Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.

Why Shares of Newfield Exploration Co. Jumped Today

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of oil and gas explorer Newfield Exploration Co. (NYSE: NFX  ) jumped as much as 10% today after reporting earnings.

So what: Fourth-quarter revenue was down 23% from a year ago, to $498 million, but that excludes $232 million from discontinued operations like the sale of Newfield's Malaysian business. Continued operations posted a net income of $31 million but, after pulling out one-time items like derivatives, earnings would have been $66 million, or $0.48 per share. That was $0.01 ahead of estimates. 

Now what: The focus on U.S. operations is paying off, and the Anadarko Basin, Williston Basin, and Eagle Ford all increased production significantly last year. When we account for the asset sales, including China, going forward, the revenue drop isn't what it first appears. I think the company is well positioned to grow as U.S. production increases, and it's doing so profitably.

Three great plays in energy
Record oil and natural gas production is revolutionizing the United States' energy position. Finding the right plays, while historic amounts of capital expenditures are flooding the industry, will pad your investment nest egg. For this reason, the Motley Fool is offering a comprehensive look at three energy companies set to soar during this transformation in the energy industry. To find out which three companies are spreading their wings, check out the special free report, "3 Stocks for the American Energy Bonanza." Don't miss out on this timely opportunity; click here to access your report -- it's absolutely free. 

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2855970, ~/Articles/ArticleHandler.aspx, 5/28/2015 8:40:17 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...