Newfield Exploration Co. (NFX), Oasis Petroleum Inc. (OAS): Three Energy Firms to Watch This Earnings Season

Anadarko Petroleum Corporation (NYSE:APC)’s strength comes from  rising production levels, new discoveries and better natural gas pricing. The company has also managed to beat both top and bottom line estimates in the previous quarter on the back of strong performance from its onshore assets.

Due to the increase in daily sale volume by 16% from a year ago to 793,000 boe, annual sales guidance has been increased by 2 million boe to the range of 279 to 287 million boe. Meanwhile, Anadarko Petroleum Corporation (NYSE:APC) has received a 300 million cubic feet per day boost from the start-up of its Brasada gas plant. Its two new wells have achieved measured depths of more than 13,0000 feet in 5 days.

Production is certainly going up at a good pace. Although Anadarko Petroleum Corporation (NYSE:APC) is mainly U.S. focused , generating more than 70% of its revenues in the U.S., it is expanding its operations outside the U.S. as well. The business plans to spend $5.5 billion at its home and $1 billion in other countries as capital expenditure. Anadarko Petroleum Corporation (NYSE:APC) is  behind one of the most important gas discoveries of the decade, in Mozambique, with 30 to 65 trillion cubic feet of recoverable natural gas. The company is currently working on an enormous LNG project in the African nation which, I believe, would yield considerable returns to shareholders in the coming years.

Although the company is relatively less likely to beat Wall Street’s expectations in the coming quarter compared to Newfield Exploration and Oasis Petroleum Inc. (NYSE:OAS) I believe that it is still a very attractive long term investment. In fact, as identified by Jefferies, Anadarko Petroleum Corporation (NYSE:APC) is on top of the ‘buy’ list of almost every other Wall Street firm out there. Out of the three firms, Anadarko would be my pick for long term investors.

Sarfaraz Khan has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Sarfaraz is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

The article Three Energy Firms to Watch This Earnings Season originally appeared on Fool.com is written by Sarfaraz Khan.

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