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 Newfield Exploration (NFX) jumped 10% today after the company released earnings.
So what: Domestic liquids production rose 9% and net production reached 11.7 million barrels of oil equivalent, at the high end of estimates. Earnings per share were $0.45, which was two cents ahead of estimates, ending a string of three straight earnings misses.
Now what: Management expects to grow domestic liquids production another 12% next quarter and is on track to spend $1.7 billion-$1.9 billion on capital this year. Operationally, the company is performing better than expected and that provides an opportunity for investors. Shares trade at just 9.2 times this year's estimates and I think that's low enough that shares will move higher if the company can continue this operational momentum in coming quarters.
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