Q: How do you go about valuing this company?

Glasser: We look at it on a net asset basis, using various commodity prices. We try to make conservative judgments about the reserves they have and the reserves they are likely to have and what the final development costs are going to be. It also depends on your assumptions in terms of natural gas. If you were using an $11.50 per Mcf [thousand cubic feet] gas price, the upside price potential over a multi-year period is double its current price of about 67. If you put a $7 per Mcf price on natural gas, there's modest downside. Currently, natural gas is at about $13 per Mcf.

Buy - Price 65.90 on June 18
by Sterne Agee & Leach

Newfield Exploration announced that one field offshore Malaysia had commenced production and that another would commence production later this week. For 2008, NFX raised production guidance from 224 to 234 [billion cubic feet of natural-gas equivalent] to 232 to 239 Bcfe, the second time this year the company has raised guidance. Our Buy rating and target price of 85 a share are reiterated. The target price equates to 20.8, 6.7 and 7.6 times our 2008 estimates of EPS, Ebitda and EV/Ebitda, respectively. The stock is currently selling for 16.2, 5.2 and 6.1 times our 2008 EPS, Ebitda and EV/Ebitda estimates versus 14, 4.7 and 5.5 times the group averages, respectively. Market cap: $8.4 billion.

Newfield Exploration (NFX) was upgraded from Hold to Buy, KeyBank Capital said. $77 price target. Upgrade is attributed to several factors including; improved production growth, increased earning and cash flow estimates, "hidden value" in Rockies properties, asset base clean up and expected multiple expansions.

Technical analysis
wait for confirm on Nov19

Goldman Sachs said it is downgrading Newfield Exploration (NFX) to Neutral from Buy based on more attractive catalysts at other E&Ps, most notably Apache. See potential for improved sentiment if Newfield ramps up production in Malaysia, an if drilling results are successful at the Woodford Shale. Price target at $56.

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domestic gas producer

Upgraded by Canaccord Adams from Hold to Buy

Upgraded by Bernstein from Mkt Perform to Outperform

From Barron's 4/2/07

As a result of the new company guidance, we have revised our 2007 earnings estimates downward, from $4.91 to $4.51 per share...Retaining our Buy rating, with a target price of 54 [which] equates to 12 and 3.7 times our 2007E EPS and Ebitda per share, respectively. We believe the stock will react favorably to the onset of production at the Wrigley Field, Grove Field and Abu Field, all expected soon.