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$NFX 1Q15 10-Q: At 1Q15-end, net oil and gas properties consisted of $7.60Bil vs. $8.23Bil at 4Q14-end. Net stock-based compensation expense was $15MM vs. $17MM in 1Q14. As of March 31, 2015, Co. had approx. 200,000 stock options outstanding and exercisable.
$NFX's total net production during 1Q17 was 145,978 BOEPD. This comprised of 43% oil, 19% natural gas liquids and 38% natural gas. Domestic production in the quarter was 138,833 BOEPD, comprised of 40% oil, 20% natural gas liquids and 40% natural gas.
$NFX has broken ground on a water recycling facility located in its STACK play in the Anadarko Basin (Kingfisher County, Oklahoma). The complex, named the Barton Water Recycle Facility, is expected to process about 30,000 barrels of water per day (BWPD) upon completion early in 3Q17.
$NFX provided its 2017 capital plan and a multi-year production growth outlook for the Company, driven by its industry-leading position in the SCOOP and STACK plays in the Anadarko Basin of Oklahoma. $NFX's capital budget for 2017 is about $1Bil, excluding about $120MM in capitalized interest and internal costs.
$NFX has allocated $1Bil as part of 2017 capital investment program. Of that allocation, $750MM will be invested on development, drilling and completion activities, while $250MM will be invested on other activities. The company said it has no additional investments planned for China.
$NFX closed on the sale of its Eagle Ford and South Texas assets for $380MM in 2H16. The company said it divested about $3Bil in assets since 2011 and used the proceeds to build its footprint in Anadarko Basin. The company exited 2016 with more than $500MM of cash on the balance sheet.
$NFX's total net production in 4Q16 was 13.9 MMBOE, comprising of 44% oil, 18% natural gas liquids and 38% natural gas. Domestic net production in the quarter was 12.7 MMBOE, which topped the guidance range and comprised of 39% oil, 20% natural gas liquids and 41% natural gas.
Oil and gas explorer $NFX posted a quarterly profit for 4Q16, helped by higher oil, gas and NGL revenues. The company reported a net income of $13MM or $0.07 per diluted share, compared to a net loss of $663MM or $4.06 loss per diluted share a year ago. Revenue rose 14.64% YonY to $415MM from $362MM.
$NFX said that it expects around two-thirds of its total activity in 2017 to be development related. Going from held by production mode to development mode, there is probably somewhere in the $0.75-1.00MM total cost synergies that the company is able to capture in development mode.
$NFX's domestic production in 3Q16 was 14.3MM barrels of oil equivalent, nearly 4.5% higher than 2Q16. Total company production was 15.2MM barrels or about 800,000 barrels of oil equivalent, above the midpoint of its guidance. Of the total, 61% was liquids and 39% was gas.
Excluding acquisitions, $NFX expects to beat its original 2016 business plan by about 3.5MM barrels of oil equivalent, which is 7% over its beginning of year forecast. Had it retained the Eagle Ford and South Texas assets, the company would have bested guidance by nearly 4.5MM barrels of oil equivalent.
$NFX increased expectations for its 2016 production. The increase is related primarily to stronger performance year-to-date from existing assets. Domestic net production is now expected to be 53.7 – 54.1 MMBOE and total company net production guidance is raised to 58.8 – 59.2 MMBOE.
$NFX said 2016 capital investments are now expected to be approx. $750MM, or the upper end of its previous $700 – $750MM capital investment range. The increase to the upper end of our previous range reflects the planned addition of drilling rigs in the Anadarko Basin in late 2016.
$NFX said it closed on the sale of its Texas assets for approx. $380MM. The transactions included the company's unconventional assets in the Eagle Ford Shale and its conventional natural gas assets in south and west Texas. The company reiterated that the sales are expected to have an immaterial impact on its 3Q16 production.
Johnson Rice analyst Ronald Mills questions $NFX on increased usage of propane concentrations. CEO Lee Boothby says that the company has been working on various combinations of fluid volumes and propane, and the mix in terms of the fluid systems. $NFX said that a lot of the higher volume and propane is recent data and not a part of the work done.