Newfield Shares Sink After Curtailment Announced

PITTSBURGH (AP) — Shares of Newfield Exploration Co. dropped Tuesday, a day after the company said it will voluntarily curtail about 2.5 billion cubic feet equivalent of its third-quarter production due to low natural gas prices.

The natural gas producer said Monday it expects full-year production to remain in the upper half of the previous guidance range between 250 and 260 billion cubic feet equivalent.

Newfield said the curtailments will come mainly from the company's Mid-Continent division, which is based in Tulsa, Okla., with operations in southeastern and southwestern Oklahoma and the Texas Panhandle.

The company said the timing of completion for its 30 uncompleted wells in the Woodford Shale located in the Arkoma Basin of southeast Oklahoma will depend on natural gas prices.

In a client note Tuesday, KeyBanc analyst Jack N. Aydin wrote that "given the weakness in the near month natural gas prices, the voluntary curtailment of production does not come as a complete surprise." He affirmed his firm's "Hold" rating on the stock.

Newfield shares declined $1.76, or 4.3 percent, to $39.18 in afternoon trading. The stock has more than doubled in the year to date.