Friday, October 22, 2010

Newfield Exploration (NYSE:NFX) Keeps "Overweight" from Barclays (NYSE:BCS) on Liquid Gas

Barclays (NYSE:BCS) reiterated its "Overweight" on Newfield Exploration (NYSE:NFX), citing a move toward liquid natural gas.

"Capital is shifting away from dry natural gas toward liquids-rich plays. Investors are eager to hear results (early Q1 announcement likely) in the Eagle Ford shale and the Southern Alberta Basin where Newfield has recently begun drilling operations...We are revising EPS to reflect lower gas prices. Lowering 4Q'10 benchmark gas-price forecast to $3.75/MMBtu and '11E to $4.00/MMBtu. NFX has nearly 70% of expected 2011 gas production hedged at $6.15/MMBtu," Barclays said.

Earnings estimate for full year 2011 was increased on Newfield from from $4.40 to $4.60, but lowered for 2012 from $4.45 to $4.40.

Newfield closed Thursday at $58.91, gaining $0.06, or 0.10 percent. Barclays has a price target of $60 on them.

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