Newfield shares drop after 3Q earnings report
NEW YORK -- Shares of Newfield Exploration Co. fell Wednesday after the oil and gas company reported a third-quarter loss due to declining value of derivatives. Adjusted earnings and revenue were both below analysts' expectations.
THE SPARK: The company reported late Tuesday that it lost $33 million, or 24 cents per share, in the July-to-September period. The results included before-tax derivative losses of $135 million and $20 million in one-time costs mostly related to redeeming senior notes.
Without those items, the company said it would have earned $65 million, or 48 cents per share. Analysts, who usually exclude items, expected earnings of 51 cents per share, according to FactSet.
Revenue fell to $615 million from $628 million a year earlier. Analysts expected $652 million.
Newfield, based in The Woodlands, Texas, also gave an update on recent drilling including "strong" results in central Oklahoma. The company stood by an earlier forecast that full-year production would be equal to 298 billion cubic feet of gas.
SHARE ACTION: In midday trading, the shares fell $3.99, or 12 percent, to $29.33 in heavy trading .Volume was already more than three times the daily average. In the past year, the stock has ranged from $47.40 last December to $25.01 in June.