Shares of Houston-based independent energy company Newfield Exploration (NFX) were sinking 7.58%  to $39.27 early Wednesday afternoon after offering conservative 2017 guidance in its fourth quarter earnings report.

About 5.99 million shares had traded vs. the stock's 1.99 million share 30-day average.

Despite the stock's weak performance, the company beat estimates for both earnings and revenue for its fourth quarter.

Newfield reported earnings of 49 cents per share, topping expectations of 37 cents per share. Revenue came in at $415 million, beating projections of $396.1 million.