Imperial Capital Starts Newfield Exploration (NFX) at Outperform

Imperial Capital initiates coverage on Newfield Exploration (NYSE: NFX) with a Outperform rating and a price target of $27.00, saying it is well positioned for the downturn.

Analyst Kim Pacanovsky commented, "Our price target is about 15% above the recent share price. We believe there will be continued weakness in the independent E&P sector, but NFX’s positioning for a “lower for longer” scenario should help it to continue to outperform its peers. NFX has a strong balance sheet and a large acreage footprint in the core Oklahoma STACK and SCOOP plays. We believe that at a $40/bbl crude price, returns in the region are among the most attractive in the lower-48 states (although at $30/bbl crude, we would add that returns are not attractive anywhere). In our view, NFX has the staying power to survive a long commodity downturn, and the combination of improved performance and lower costs should lead to production growth as well as highly economic returns when we are firmly in a recovery."

For an analyst ratings summary and ratings history on Newfield Exploration click here. For more ratings news on Newfield Exploration click here.

Shares of Newfield Exploration closed at $23.71 yesterday.

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