Newfield Exploration Co. (NFX)

[Timothy Smith]

Newfield Exploration has issued 10-year 5.375% $700 million notes due 2026 and retired a commensurate amount of 6.875% notes due 2020. The company now has $2.9 billion of total debt with no maturity until 2022.

Further, Newfield Exploration has raised $815 million by selling equity and paid off its previous credit facility. The company has now increased its revolver by $400 million to $1.8 billion while its term has been extended by 2 years to 2020.

The company's pro forma liquidity now stands at $2.1 billion, with nothing drawn on the revolver credit facility. The company can generate nearly $700 million in annual cash flows, even if the cash flows drop by 50% from last year due to lower commodity prices.

With revamped liquidity and cash flows, Newfield Exploration clearly has ample resources to cover the $1.2 billion capital budget for 2015.