Newfield Announces First Quarter Financial and Operating Results

Company Provides Update on Recent Drilling Successes



Apr 26, 2001, 01:00 ET from Newfield Exploration Company

    HOUSTON, April 26 /PRNewswire/ -- Newfield Exploration Company (NYSE:   NFX)
 today announced its financial and operating results for the first quarter of
 2001.  The Company posted record quarterly net income and revenues, driven
 primarily by higher production volumes and commodity prices.  Production
 volumes in the first quarter of 2001 increased nearly 30% over year-ago levels
 and the Company expects to meet or exceed its 2001 production target of
 170 Bcfe, an increase of more than 20% over 2000 production levels.
     For the first quarter of 2001, net income was $64.2 million, or $1.34 per
 share (all per share amounts are on a diluted basis), stated before the effect
 of a non-cash charge relating to the adoption of SFAS 133.  Stated after the
 effect of the non-cash charge, net income for the first quarter of 2001 was
 $58.4 million, or $1.22 per share, on revenues of $209.3 million.  This
 compares to net income of $15.2 million, or $0.36 per share, on revenues of
 $97.8 million in the same period of 2000.  Operating cash flow before changes
 in working capital increased nearly 120% in the first quarter of 2001 to
 $141.0 million, or $2.91 per share, compared to $64.3 million, or $1.50 per
 share, for the same period in 2000.
     The Company's production in the first quarter of 2001, when stated on a
 natural gas equivalent basis, increased 27% over the first quarter of 2000.
 Newfield's production was 39.6 billion cubic feet equivalent (Bcfe), or an
 average of 440 million cubic feet equivalent per day during the first quarter
 of 2001.  The significant increase in production was due primarily to higher
 production from the Company's fields in South Texas and the acquisition of
 Lariat Petroleum, which closed January 23, 2001.  The following tables detail
 quarterly production and average realized prices:
 
     Production
 
                                        1Q01            1Q00      % Change
     United States
       Natural gas (Bcf)                30.8            22.7           36%
         Natural gas (MMcf/d)            342             249           37%
       Oil and condensate
        production (MMBbls)             1.24            0.91           36%
         Oil and condensate
          production (BOPD)           17,328          14,969           16%
     Australia
       Oil and condensate
        liftings (MBbls)               240.0           508.2          (53%)
         Oil and condensate
          liftings (BOPD)              2,662           5,646          (53%)
     Total
       Natural gas (Bcf)                30.8            22.7           36%
       Oil and condensate
        liftings (MMBbls)                1.5             1.4            4%
       Total Production (Bcfe)          39.6            31.2           27%
 
     Average Realized Prices
                                        1Q01             1Q00     % Change
 
     United States
       Natural gas (per Mcf)          $ 5.56           $ 2.6          107%
       Oil and condensate (per Bbl)   $24.36           $25.89          (6%)
     Australia
       Oil and condensate liftings
        (per Bbl)                     $26.28           $27.06          (3%)
     Total
       Natural gas (per Mcf)          $ 5.56           $ 2.68         107%
       Oil and condensate (per Bbl)   $24.95           $26.31          (5%)
 
 
     Newfield's lease operating expense (LOE) in the first quarter of 2001,
 stated on a unit of production basis, was $0.53 per thousand cubic feet
 equivalent (Mcfe) compared to $0.50 per Mcfe in the same period last year.
 Production taxes in the first quarter of 2001, including Resource Rent Tax in
 Australia, increased to $0.18 per Mcfe compared to $0.05 per Mcfe in the same
 period of 2000.  This increase in production taxes is related to significantly
 higher natural gas prices and the Company's growing U.S. onshore operations.
 The Company's DD&A expense in the first quarter of 2001 was $1.54 per Mcfe
 compared to $1.32 per Mcfe in the first quarter of 2000.  The increase in DD&A
 expense primarily reflects the purchase method of accounting for the Company's
 partially tax-free acquisition of Lariat Petroleum, including the FAS 109 tax
 gross up.  General and administrative expense for the first quarter of 2001
 was $0.27 per Mcfe compared to $0.20 per Mcfe in the same period of 2000.  The
 higher G&A expense reflects an increase in performance-based pay and additions
 to the Company's workforce in the Mid-Continent.  Interest expense in the
 first quarter of 2001 was $0.18 per Mcfe compared to $0.13 per Mcfe in the
 first quarter of 2000.  Capitalized interest expense in the first quarter of
 2001 was $1.3 million.
     Capital expenditures in the first quarter of 2001 were $99 million,
 excluding the purchase of Lariat Petroleum.
 
     2001 Activity Update
     Newfield has eight company-operated rigs running in the Gulf of Mexico
 (including workovers and recompletions), three operated rigs running onshore
 along the U.S. Gulf Coast, seven in the Anadarko Basin of Oklahoma and one in
 West Texas.  In addition, 10 outside-operated rigs are active:  two in the
 Gulf of Mexico, one onshore U.S. Gulf Coast, six in the Anadarko Basin and one
 in Bohai Bay, China.  Highlights from the first quarter 2001 drilling program
 are outlined below.
 
     Gulf of Mexico    To date in 2001, Newfield has drilled five successful
 wells and one dry hole in the Gulf of Mexico.  The Company is operating, or
 has an interest in, four additional wells that are currently drilling in the
 Gulf of Mexico.
     Areas of significant activity in the Gulf of Mexico include West Cameron
 294 and Eugene Island 182 offshore Louisiana, and the High Island region
 offshore Texas.  In the High Island area, Newfield drilled three additional
 successful wells in the first quarter of 2001 -- the HI 472 #3, HI 489 B-29
 and HI 499 C-7.  Newfield drilled seven successful wells in the High Island
 area during 2000 and plans to drill at least five additional wells in the area
 in 2001.  Production from the High Island area has more than doubled over the
 last year; increasing from 18 MMcfe/d in early 2000 to a current rate of more
 than 42 MMcfe/d.  Completion activity underway is expected to further increase
 production.  Newfield operates substantially all of its activities in the
 area.
 
     Gulf Coast    Year-to date, Newfield drilled or participated in
 eight successful wells along the Texas coast with no dry holes.
 Three operated wells and one outside operated well are currently drilling.
 Newfield plans to drill about 20 wells along the Gulf Coast in 2001.
     One of Newfield's most active areas today is South Texas.  Newfield
 strengthened its position in the area in early 2000 with the acquisition of
 three producing gas fields.  At the time of the purchase, net production from
 the fields was 35 MMcfe/d. Since the acquisition, Newfield has maintained an
 active drilling campaign in the fields and has increased net production to
 about 55 MMcfe/d.  Development drilling is currently underway in each of the
 three fields.
     The Company's largest producing field in the area is East Sarita, located
 in Kenedy County, Texas.  Newfield drilled four successful wells in the field
 in the first quarter of 2001 and a fifth well is currently drilling.  Net
 production from the field has more than doubled from about 20 MMcfe/d at the
 time of purchase in early 2000 to a current rate of 42 MMcfe/d.  Additional
 completions underway are expected to significantly increase production from
 this field during the second quarter of 2001.  Newfield owns a 100% working
 interest in the East Sarita Field.
     Another region of significant activity is the Lower Wilcox play near the
 Provident City area, located in Lavaca and Colorado Counties, Texas.  Newfield
 recently drilled two successful wells and plans to drill eight additional
 wells in 2001.  Net production from the Provident City area is currently
 12 MMcfe/d and is expected to more than double by year-end 2001 as current
 discoveries are completed and development drilling continues.
 
     Mid-Continent     In the first quarter of 2001, the Company drilled or
 participated in 24 successful wells in the Mid-Continent and only one dry
 hole.  Newfield is currently operating seven rigs in the Anadarko Basin and
 participating in six outside operated wells.  Fifteen wells, five operated and
 10 outside operated, are in various stages of completion.  The Company plans
 to participate in up to 150 wells in the area in 2001.
     A noteworthy event was the Company's first exploratory discovery in the
 Texas Panhandle.  The success of the well sets up additional drilling
 locations.
     In addition to drilling activity in the Anadarko Basin, the Company has
 several large 3-D seismic programs underway.  In the first quarter,
 two previously acquired 3-D data sets (84 square miles) were processed and are
 now being interpreted.  Newfield recently spudded its first exploratory well
 based on this new information.  Three additional seismic acquisition programs
 are ongoing (approximately 160 square miles).  All of the programs are
 projected to be completed by the third quarter of 2001.
 
     China   International activity in the first quarter of 2001 was focused on
 Bohai Bay, China. Newfield and partners drilled the second appraisal well --
 the CFD 12-1 #3 -- in the CFD 12-1 Field on Block 05/36 in Bohai Bay.  The
 well was successful and an extensive coring and testing program is underway on
 the CFD 12-1 #3 well.  Newfield owns a 35% interest in Block 05/36.  The
 partners plan to drill up to four additional appraisal wells by mid-2001.  The
 third appraisal well is expected to spud in May 2001.
 
     Second Quarter 2001 Estimates
     Below are Newfield's estimates of certain significant operating and
 financial data for the second quarter of 2001.  Although the Company believes
 the expectations reflected in this forward-looking information are reasonable,
 such expectations are based upon assumptions and anticipated results that are
 subject to numerous uncertainties.  Please see the forward-looking footnote at
 the end of this news release.
 
     Natural gas production and pricing   Newfield's natural gas production in
 the second quarter of 2001 is expected to be 31.4 - 34.6 Bcf (345-380 MMcf/d).
 The Company's average realized gas price on volumes from the Gulf of Mexico
 and onshore Gulf Coast typically tracks the Henry Hub Index.  Gas from our
 recently acquired Mid-Continent production typically sells at a $0.12 - $0.15
 per Mcfe discount to Henry Hub.  Hedging gains or losses will affect these
 realizations. For a description of the Company's recent hedging positions,
 please see @NFX, located on the Company's web site at www.newfld.com .
 
     Crude oil production and pricing   Consolidated oil production in the
 first quarter of 2001 is expected to be 1.52 - 1.68 million barrels
 (16,750 - 18,500 BOPD).  Australian oil production is expected to be
 296 - 327 thousand barrels (3,250 - 3,600 BOPD).  The timing of liftings in
 Australia will impact reported production and revenues.  Newfield's average
 realized U.S. oil price on production typically averages about $2 below the
 NYMEX WTI price.  Australian crude trades based on the Tapis Benchmark and has
 historically been comparable to WTI.  Oil from our recently acquired
 Mid-Continent production typically sells for a $1.00 - $1.50 per barrel
 discount to WTI.  Hedging gains or losses will affect these realizations.  For
 a description of the Company's recent hedging positions, please see @NFX,
 located on the Company's web site at www.newfld.com .
     For the full-year 2001, Newfield expects to meet or exceed its production
 target of 170 Bcfe, an increase of more than 20% over 2000 production volumes.
 
     Lease Operating Expense   Newfield's lease operating expense, including
 production, severance and resource rent tax in Australia, is expected to be
 $32 - $35 million in the second quarter of 2001 ($0.75 - $0.82 per Mcfe).  The
 Company's domestic LOE, including taxes, is expected to be $0.59 - $0.65 per
 Mcfe in the second quarter of 2001.  This estimate includes severance taxes of
 $0.15 - $0.18 per Mcfe attributable to high commodity prices on increased oil
 and gas production from the Company's onshore operations.  Lease operating
 expense varies and is subject to impact from the following:  production
 volumes and commodity pricing, tax rates, service costs, the costs of goods
 and materials and workover activities, among others.
 
     General and Administrative Expense   Newfield's G&A expense for the second
 quarter of 2001 is expected to be $10.4 - $11.5 million ($0.24 - $0.27 per
 Mcfe).  This estimate reflects accrual of our performance based pay program.
 
     Interest Expense   The non-capitalized portion of the Company's interest
 expense for the second quarter of 2001 is expected to be $5.8 - $6.4 million
 ($0.14 - $0.16 per Mcfe), including a $2.3 million payment on its Convertible
 Trust Preferred Securities (QUIPS).  Current borrowings under the Company's
 revolving based credit facility are $78 million.  The remainder of long-term
 debt consists of two separate senior notes issues that in the aggregate total
 $300 million.  Capitalized interest for the second quarter of 2001 is expected
 to be approximately $1.5 million.
 
     Income Taxes   Including both current and deferred taxes, the Company
 expects its consolidated income tax rate in the second quarter of 2001 to be
 about 36%.  About 45% of the tax provision is expected to be deferred.
 
     Capital Expenditures   Newfield has budgeted $710 million for 2001 capital
 expenditures, including the $333 million acquisition of Lariat Petroleum.
     In an effort to provide more timely information at significantly lower
 cost, Newfield will no longer be printing and mailing traditional quarterly
 reports.  Instead, we will publish a special quarterly edition of our
 electronic publication -- @NFX.  In addition, any publicly announced changes
 to the above estimates, as well as periodic drilling updates, will also be
 done through @NFX.  This publication can be found on the Company's web page,
 at www.newfld.com .  Through the web page, shareholders can elect to
 automatically receive @NFX by e-mail distribution.
 
     Newfield Exploration is an independent crude oil and natural gas
 exploration and production company.  The Company has a solid asset base of
 producing properties and exploration and development drilling opportunities
 and operations primarily in the Gulf of Mexico, the Anadarko Basin of
 Oklahoma, along the U.S. Gulf Coast and offshore Australia.  Newfield balances
 its drilling program with acquisitions in select areas in the U.S. and
 overseas.
     Tables with first quarter 2001 summary financials are attached.
 
     * Certain of the statements set forth in this news release regarding
 estimated or anticipated second quarter operating and financial data, daily,
 quarterly and yearly production volumes, capital expenditures, drilling plans
 and prospects are forward looking and are based upon assumptions and
 anticipated results that are subject to numerous uncertainties.  Actual
 results may vary significantly from those anticipated due to many factors,
 including drilling results, oil and gas prices, industry conditions, the
 prices of goods and services, the availability of drilling rigs and other
 support services and the availability of capital resources, labor conditions
 and other factors set forth in our Annual Report on Form 10-K for the year
 ended December 31, 2000.  In addition, the drilling of oil and gas wells and
 the production of hydrocarbons are subject to governmental regulations and
 operating risks.
 
     Newfield Exploration Company                  For information, contact:
     363 N. Sam Houston Parkway East, Ste. 2020    Steve Campbell
     Houston, TX 77060                             (281) 847-6081
     www.newfld.com                                sccampbell@newfld.com
 
 
     CONSOLIDATED STATEMENT OF INCOME
     (Unaudited, in 000's, except per share data)
                                                               For the
                                                         Three Months Ended
                                                               March 31,
                                                         2001           2000
 
     Oil and gas revenues                            $209,326        $97,822
 
     Operating expenses:
       Lease operating                                 20,824         15,491
       Production and other taxes                       7,118          1,665
       Transportation                                   1,262          1,536
       Depreciation, depletion and amortization        61,146         41,211
       General and administrative, net                 10,690          6,346
       Stock compensation                                 595            589
         Total operating expenses                     101,635         66,838
 
     Income from operations                           107,691         30,984
     Other income (expense)                            (7,375)        (4,081)
     Unrealized commodity derivative expense *         (1,558)            --
     Income before income taxes                        98,758         26,903
     Income tax provision                              35,613          9,360
 
     Income before Cumulative Effect of Change in
      Accounting Principles                            63,145         17,543
     Cumulative Effect of Change in Accounting
      Principles
         Adoption of SAB 101                               --         (2,360)
         Adoption of SFAS 133 *                        (4,794)            --
     Net income                                      $ 58,351        $15,183
     Earnings per share:
       Basic -
        Income before Cumulative Effect of
         Change in Accounting Principles             $   1.43        $  0.42
        Cumulative Effect of Change in
         Accounting Principles                          (0.11)         (0.06)
       Net Income                                    $   1.32        $  0.36
     Diluted -
       Income before Cumulative Effect of
        Change in Accounting Principles              $   1.32        $  0.41
       Cumulative Effect of Change in
        Accounting Principles                           (0.10)         (0.05)
       Net Income                                    $   1.22        $  0.36
 
     Weighted average shares outstanding
      for basic earnings per share                     44,125         41,882
 
     Weighted average shares outstanding
      for diluted earnings per share                   48,882         46,764
 
     PRODUCTION DATA
 
                                                              For the
                                                         Three Months Ended
                                                              March 31,
                                                         2001           2000
     Average daily production:
       Oil and condensate (Bbls)                       17,328         14,969
       Gas (Mcf)                                      341,710        249,409
 
     Average realized price:
       Oil and condensate (Bbls)                     $  24.95        $ 26.31
 
       Gas (Mcf)                                     $   5.56        $  2.68
 
 
     * Associated with adoption of SFAS133.
 
 
     CONSOLIDATED BALANCE SHEET
     (Unaudited, in thousands of dollars)            March 31,   December 31,
                                                         2001           2000
     ASSETS
     Current assets:
       Cash & cash equivalents                     $   63,606     $   18,451
       Accounts receivable, oil and gas               122,097        147,643
       Inventories                                      9,366          7,164
       Commodity derivatives *                         13,121             --
       Other current assets                             4,208          5,891
         Total current assets                         212,398        179,149
 
     Oil and gas properties, net
      (full cost method)                            1,309,965        833,315
     Furniture, fixtures and equipment, net             6,049          4,028
     Commodity derivatives *                            6,012             --
     Other assets                                      10,745          6,758
                                                   $1,545,169     $1,023,250
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
     Current liabilities                           $  187,399     $  141,060
     Commodity derivatives *                           43,571             --
         Total current liabilities                    230,970        141,060
 
     Other liabilities                                 13,040          6,030
     Commodity derivatives *                           14,880             --
     Long-term debt                                   349,599        133,711
     Deferred taxes                                   173,456         79,244
         Total long-term liabilities                  550,975        218,985
 
     Company-obligated, mandatorily redeemable,
      convertible preferred securities
      of Newfield Financial Trust I                   143,750        143,750
 
     STOCKHOLDERS' EQUITY
       Common stock                                   358,835        286,838
       Unearned compensation                           (9,337)        (6,201)
        Accumulated other comprehensive loss
         Foreign currency translation adjustment       (7,941)        (4,644)
        Commodity derivatives *                       (23,896)            --
       Retained earnings                              301,813        243,462
                                                      619,474        519,455
                                                   $1,545,169     $1,023,250
 
     * Associated with adoption of SFAS133.
 
 
     CONSOLIDATED STATEMENT OF
     CASH FLOWS
     (Unaudited, in thousands of dollars)                     For the
                                                         Three Months Ended
                                                              March 31,
                                                         2001           2000
     Cash flows from operating activities:
       Net income                                  $   58,351     $   15,183
       Depreciation, depletion and amortization        61,146         41,211
       Deferred taxes                                  14,524          5,643
       Stock compensation                                 595            589
       Commodity derivatives *                          1,558             --
       Cumulative effect of change in
        accounting principles
          Adoption of SAB 101                              --          2,360
          Adoption of SFAS 133 *                        4,794             --
                                                      140,968         64,986
     Changes in operation assets and liabilities       60,563         (4,371)
       Net cash provided by operating activities      201,531         60,615
 
     Cash flows from investing activities:
       Acquisition of Lariat Petroleum,
        net of cash acquired                         (264,089)            --
       Additions to oil and gas properties           (107,846)      (181,456)
       Additions to furniture, fixtures and equipment  (1,112)          (303)
         Net cash used in investing activities       (373,047)      (181,759)
     Cash flows from financing activities:
       Proceeds from borrowings                       663,000        120,000
       Repayments of borrowings                      (622,000)       (16,000)
       Proceeds from issuances of senior notes        174,879             --
       Proceeds from issuances of common stock, net       (45)         3,313
         Net cash provided by financing activities    215,834        107,313
     Effect of exchange rate changes on cash
      and cash equivalents                                837         (1,688)
 
     Increase (decrease) in cash and cash equivalents  45,155        (15,519)
     Cash and cash equivalents, beginning of period    18,451         41,841
 
     Cash and cash equivalents, end of period      $   63,606     $   26,322
 
     * Associated with adoption of SFAS133.
 
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SOURCE Newfield Exploration Company
    HOUSTON, April 26 /PRNewswire/ -- Newfield Exploration Company (NYSE:   NFX)
 today announced its financial and operating results for the first quarter of
 2001.  The Company posted record quarterly net income and revenues, driven
 primarily by higher production volumes and commodity prices.  Production
 volumes in the first quarter of 2001 increased nearly 30% over year-ago levels
 and the Company expects to meet or exceed its 2001 production target of
 170 Bcfe, an increase of more than 20% over 2000 production levels.
     For the first quarter of 2001, net income was $64.2 million, or $1.34 per
 share (all per share amounts are on a diluted basis), stated before the effect
 of a non-cash charge relating to the adoption of SFAS 133.  Stated after the
 effect of the non-cash charge, net income for the first quarter of 2001 was
 $58.4 million, or $1.22 per share, on revenues of $209.3 million.  This
 compares to net income of $15.2 million, or $0.36 per share, on revenues of
 $97.8 million in the same period of 2000.  Operating cash flow before changes
 in working capital increased nearly 120% in the first quarter of 2001 to
 $141.0 million, or $2.91 per share, compared to $64.3 million, or $1.50 per
 share, for the same period in 2000.
     The Company's production in the first quarter of 2001, when stated on a
 natural gas equivalent basis, increased 27% over the first quarter of 2000.
 Newfield's production was 39.6 billion cubic feet equivalent (Bcfe), or an
 average of 440 million cubic feet equivalent per day during the first quarter
 of 2001.  The significant increase in production was due primarily to higher
 production from the Company's fields in South Texas and the acquisition of
 Lariat Petroleum, which closed January 23, 2001.  The following tables detail
 quarterly production and average realized prices:
 
     Production
 
                                        1Q01            1Q00      % Change
     United States
       Natural gas (Bcf)                30.8            22.7           36%
         Natural gas (MMcf/d)            342             249           37%
       Oil and condensate
        production (MMBbls)             1.24            0.91           36%
         Oil and condensate
          production (BOPD)           17,328          14,969           16%
     Australia
       Oil and condensate
        liftings (MBbls)               240.0           508.2          (53%)
         Oil and condensate
          liftings (BOPD)              2,662           5,646          (53%)
     Total
       Natural gas (Bcf)                30.8            22.7           36%
       Oil and condensate
        liftings (MMBbls)                1.5             1.4            4%
       Total Production (Bcfe)          39.6            31.2           27%
 
     Average Realized Prices
                                        1Q01             1Q00     % Change
 
     United States
       Natural gas (per Mcf)          $ 5.56           $ 2.6          107%
       Oil and condensate (per Bbl)   $24.36           $25.89          (6%)
     Australia
       Oil and condensate liftings
        (per Bbl)                     $26.28           $27.06          (3%)
     Total
       Natural gas (per Mcf)          $ 5.56           $ 2.68         107%
       Oil and condensate (per Bbl)   $24.95           $26.31          (5%)
 
 
     Newfield's lease operating expense (LOE) in the first quarter of 2001,
 stated on a unit of production basis, was $0.53 per thousand cubic feet
 equivalent (Mcfe) compared to $0.50 per Mcfe in the same period last year.
 Production taxes in the first quarter of 2001, including Resource Rent Tax in
 Australia, increased to $0.18 per Mcfe compared to $0.05 per Mcfe in the same
 period of 2000.  This increase in production taxes is related to significantly
 higher natural gas prices and the Company's growing U.S. onshore operations.
 The Company's DD&A expense in the first quarter of 2001 was $1.54 per Mcfe
 compared to $1.32 per Mcfe in the first quarter of 2000.  The increase in DD&A
 expense primarily reflects the purchase method of accounting for the Company's
 partially tax-free acquisition of Lariat Petroleum, including the FAS 109 tax
 gross up.  General and administrative expense for the first quarter of 2001
 was $0.27 per Mcfe compared to $0.20 per Mcfe in the same period of 2000.  The
 higher G&A expense reflects an increase in performance-based pay and additions
 to the Company's workforce in the Mid-Continent.  Interest expense in the
 first quarter of 2001 was $0.18 per Mcfe compared to $0.13 per Mcfe in the
 first quarter of 2000.  Capitalized interest expense in the first quarter of
 2001 was $1.3 million.
     Capital expenditures in the first quarter of 2001 were $99 million,
 excluding the purchase of Lariat Petroleum.
 
     2001 Activity Update
     Newfield has eight company-operated rigs running in the Gulf of Mexico
 (including workovers and recompletions), three operated rigs running onshore
 along the U.S. Gulf Coast, seven in the Anadarko Basin of Oklahoma and one in
 West Texas.  In addition, 10 outside-operated rigs are active:  two in the
 Gulf of Mexico, one onshore U.S. Gulf Coast, six in the Anadarko Basin and one
 in Bohai Bay, China.  Highlights from the first quarter 2001 drilling program
 are outlined below.
 
     Gulf of Mexico    To date in 2001, Newfield has drilled five successful
 wells and one dry hole in the Gulf of Mexico.  The Company is operating, or
 has an interest in, four additional wells that are currently drilling in the
 Gulf of Mexico.
     Areas of significant activity in the Gulf of Mexico include West Cameron
 294 and Eugene Island 182 offshore Louisiana, and the High Island region
 offshore Texas.  In the High Island area, Newfield drilled three additional
 successful wells in the first quarter of 2001 -- the HI 472 #3, HI 489 B-29
 and HI 499 C-7.  Newfield drilled seven successful wells in the High Island
 area during 2000 and plans to drill at least five additional wells in the area
 in 2001.  Production from the High Island area has more than doubled over the
 last year; increasing from 18 MMcfe/d in early 2000 to a current rate of more
 than 42 MMcfe/d.  Completion activity underway is expected to further increase
 production.  Newfield operates substantially all of its activities in the
 area.
 
     Gulf Coast    Year-to date, Newfield drilled or participated in
 eight successful wells along the Texas coast with no dry holes.
 Three operated wells and one outside operated well are currently drilling.
 Newfield plans to drill about 20 wells along the Gulf Coast in 2001.
     One of Newfield's most active areas today is South Texas.  Newfield
 strengthened its position in the area in early 2000 with the acquisition of
 three producing gas fields.  At the time of the purchase, net production from
 the fields was 35 MMcfe/d. Since the acquisition, Newfield has maintained an
 active drilling campaign in the fields and has increased net production to
 about 55 MMcfe/d.  Development drilling is currently underway in each of the
 three fields.
     The Company's largest producing field in the area is East Sarita, located
 in Kenedy County, Texas.  Newfield drilled four successful wells in the field
 in the first quarter of 2001 and a fifth well is currently drilling.  Net
 production from the field has more than doubled from about 20 MMcfe/d at the
 time of purchase in early 2000 to a current rate of 42 MMcfe/d.  Additional
 completions underway are expected to significantly increase production from
 this field during the second quarter of 2001.  Newfield owns a 100% working
 interest in the East Sarita Field.
     Another region of significant activity is the Lower Wilcox play near the
 Provident City area, located in Lavaca and Colorado Counties, Texas.  Newfield
 recently drilled two successful wells and plans to drill eight additional
 wells in 2001.  Net production from the Provident City area is currently
 12 MMcfe/d and is expected to more than double by year-end 2001 as current
 discoveries are completed and development drilling continues.
 
     Mid-Continent     In the first quarter of 2001, the Company drilled or
 participated in 24 successful wells in the Mid-Continent and only one dry
 hole.  Newfield is currently operating seven rigs in the Anadarko Basin and
 participating in six outside operated wells.  Fifteen wells, five operated and
 10 outside operated, are in various stages of completion.  The Company plans
 to participate in up to 150 wells in the area in 2001.
     A noteworthy event was the Company's first exploratory discovery in the
 Texas Panhandle.  The success of the well sets up additional drilling
 locations.
     In addition to drilling activity in the Anadarko Basin, the Company has
 several large 3-D seismic programs underway.  In the first quarter,
 two previously acquired 3-D data sets (84 square miles) were processed and are
 now being interpreted.  Newfield recently spudded its first exploratory well
 based on this new information.  Three additional seismic acquisition programs
 are ongoing (approximately 160 square miles).  All of the programs are
 projected to be completed by the third quarter of 2001.
 
     China   International activity in the first quarter of 2001 was focused on
 Bohai Bay, China. Newfield and partners drilled the second appraisal well --
 the CFD 12-1 #3 -- in the CFD 12-1 Field on Block 05/36 in Bohai Bay.  The
 well was successful and an extensive coring and testing program is underway on
 the CFD 12-1 #3 well.  Newfield owns a 35% interest in Block 05/36.  The
 partners plan to drill up to four additional appraisal wells by mid-2001.  The
 third appraisal well is expected to spud in May 2001.
 
     Second Quarter 2001 Estimates
     Below are Newfield's estimates of certain significant operating and
 financial data for the second quarter of 2001.  Although the Company believes
 the expectations reflected in this forward-looking information are reasonable,
 such expectations are based upon assumptions and anticipated results that are
 subject to numerous uncertainties.  Please see the forward-looking footnote at
 the end of this news release.
 
     Natural gas production and pricing   Newfield's natural gas production in
 the second quarter of 2001 is expected to be 31.4 - 34.6 Bcf (345-380 MMcf/d).
 The Company's average realized gas price on volumes from the Gulf of Mexico
 and onshore Gulf Coast typically tracks the Henry Hub Index.  Gas from our
 recently acquired Mid-Continent production typically sells at a $0.12 - $0.15
 per Mcfe discount to Henry Hub.  Hedging gains or losses will affect these
 realizations. For a description of the Company's recent hedging positions,
 please see @NFX, located on the Company's web site at www.newfld.com .
 
     Crude oil production and pricing   Consolidated oil production in the
 first quarter of 2001 is expected to be 1.52 - 1.68 million barrels
 (16,750 - 18,500 BOPD).  Australian oil production is expected to be
 296 - 327 thousand barrels (3,250 - 3,600 BOPD).  The timing of liftings in
 Australia will impact reported production and revenues.  Newfield's average
 realized U.S. oil price on production typically averages about $2 below the
 NYMEX WTI price.  Australian crude trades based on the Tapis Benchmark and has
 historically been comparable to WTI.  Oil from our recently acquired
 Mid-Continent production typically sells for a $1.00 - $1.50 per barrel
 discount to WTI.  Hedging gains or losses will affect these realizations.  For
 a description of the Company's recent hedging positions, please see @NFX,
 located on the Company's web site at www.newfld.com .
     For the full-year 2001, Newfield expects to meet or exceed its production
 target of 170 Bcfe, an increase of more than 20% over 2000 production volumes.
 
     Lease Operating Expense   Newfield's lease operating expense, including
 production, severance and resource rent tax in Australia, is expected to be
 $32 - $35 million in the second quarter of 2001 ($0.75 - $0.82 per Mcfe).  The
 Company's domestic LOE, including taxes, is expected to be $0.59 - $0.65 per
 Mcfe in the second quarter of 2001.  This estimate includes severance taxes of
 $0.15 - $0.18 per Mcfe attributable to high commodity prices on increased oil
 and gas production from the Company's onshore operations.  Lease operating
 expense varies and is subject to impact from the following:  production
 volumes and commodity pricing, tax rates, service costs, the costs of goods
 and materials and workover activities, among others.
 
     General and Administrative Expense   Newfield's G&A expense for the second
 quarter of 2001 is expected to be $10.4 - $11.5 million ($0.24 - $0.27 per
 Mcfe).  This estimate reflects accrual of our performance based pay program.
 
     Interest Expense   The non-capitalized portion of the Company's interest
 expense for the second quarter of 2001 is expected to be $5.8 - $6.4 million
 ($0.14 - $0.16 per Mcfe), including a $2.3 million payment on its Convertible
 Trust Preferred Securities (QUIPS).  Current borrowings under the Company's
 revolving based credit facility are $78 million.  The remainder of long-term
 debt consists of two separate senior notes issues that in the aggregate total
 $300 million.  Capitalized interest for the second quarter of 2001 is expected
 to be approximately $1.5 million.
 
     Income Taxes   Including both current and deferred taxes, the Company
 expects its consolidated income tax rate in the second quarter of 2001 to be
 about 36%.  About 45% of the tax provision is expected to be deferred.
 
     Capital Expenditures   Newfield has budgeted $710 million for 2001 capital
 expenditures, including the $333 million acquisition of Lariat Petroleum.
     In an effort to provide more timely information at significantly lower
 cost, Newfield will no longer be printing and mailing traditional quarterly
 reports.  Instead, we will publish a special quarterly edition of our
 electronic publication -- @NFX.  In addition, any publicly announced changes
 to the above estimates, as well as periodic drilling updates, will also be
 done through @NFX.  This publication can be found on the Company's web page,
 at www.newfld.com .  Through the web page, shareholders can elect to
 automatically receive @NFX by e-mail distribution.
 
     Newfield Exploration is an independent crude oil and natural gas
 exploration and production company.  The Company has a solid asset base of
 producing properties and exploration and development drilling opportunities
 and operations primarily in the Gulf of Mexico, the Anadarko Basin of
 Oklahoma, along the U.S. Gulf Coast and offshore Australia.  Newfield balances
 its drilling program with acquisitions in select areas in the U.S. and
 overseas.
     Tables with first quarter 2001 summary financials are attached.
 
     * Certain of the statements set forth in this news release regarding
 estimated or anticipated second quarter operating and financial data, daily,
 quarterly and yearly production volumes, capital expenditures, drilling plans
 and prospects are forward looking and are based upon assumptions and
 anticipated results that are subject to numerous uncertainties.  Actual
 results may vary significantly from those anticipated due to many factors,
 including drilling results, oil and gas prices, industry conditions, the
 prices of goods and services, the availability of drilling rigs and other
 support services and the availability of capital resources, labor conditions
 and other factors set forth in our Annual Report on Form 10-K for the year
 ended December 31, 2000.  In addition, the drilling of oil and gas wells and
 the production of hydrocarbons are subject to governmental regulations and
 operating risks.
 
     Newfield Exploration Company                  For information, contact:
     363 N. Sam Houston Parkway East, Ste. 2020    Steve Campbell
     Houston, TX 77060                             (281) 847-6081
     www.newfld.com                                sccampbell@newfld.com
 
 
     CONSOLIDATED STATEMENT OF INCOME
     (Unaudited, in 000's, except per share data)
                                                               For the
                                                         Three Months Ended
                                                               March 31,
                                                         2001           2000
 
     Oil and gas revenues                            $209,326        $97,822
 
     Operating expenses:
       Lease operating                                 20,824         15,491
       Production and other taxes                       7,118          1,665
       Transportation                                   1,262          1,536
       Depreciation, depletion and amortization        61,146         41,211
       General and administrative, net                 10,690          6,346
       Stock compensation                                 595            589
         Total operating expenses                     101,635         66,838
 
     Income from operations                           107,691         30,984
     Other income (expense)                            (7,375)        (4,081)
     Unrealized commodity derivative expense *         (1,558)            --
     Income before income taxes                        98,758         26,903
     Income tax provision                              35,613          9,360
 
     Income before Cumulative Effect of Change in
      Accounting Principles                            63,145         17,543
     Cumulative Effect of Change in Accounting
      Principles
         Adoption of SAB 101                               --         (2,360)
         Adoption of SFAS 133 *                        (4,794)            --
     Net income                                      $ 58,351        $15,183
     Earnings per share:
       Basic -
        Income before Cumulative Effect of
         Change in Accounting Principles             $   1.43        $  0.42
        Cumulative Effect of Change in
         Accounting Principles                          (0.11)         (0.06)
       Net Income                                    $   1.32        $  0.36
     Diluted -
       Income before Cumulative Effect of
        Change in Accounting Principles              $   1.32        $  0.41
       Cumulative Effect of Change in
        Accounting Principles                           (0.10)         (0.05)
       Net Income                                    $   1.22        $  0.36
 
     Weighted average shares outstanding
      for basic earnings per share                     44,125         41,882
 
     Weighted average shares outstanding
      for diluted earnings per share                   48,882         46,764
 
     PRODUCTION DATA
 
                                                              For the
                                                         Three Months Ended
                                                              March 31,
                                                         2001           2000
     Average daily production:
       Oil and condensate (Bbls)                       17,328         14,969
       Gas (Mcf)                                      341,710        249,409
 
     Average realized price:
       Oil and condensate (Bbls)                     $  24.95        $ 26.31
 
       Gas (Mcf)                                     $   5.56        $  2.68
 
 
     * Associated with adoption of SFAS133.
 
 
     CONSOLIDATED BALANCE SHEET
     (Unaudited, in thousands of dollars)            March 31,   December 31,
                                                         2001           2000
     ASSETS
     Current assets:
       Cash & cash equivalents                     $   63,606     $   18,451
       Accounts receivable, oil and gas               122,097        147,643
       Inventories                                      9,366          7,164
       Commodity derivatives *                         13,121             --
       Other current assets                             4,208          5,891
         Total current assets                         212,398        179,149
 
     Oil and gas properties, net
      (full cost method)                            1,309,965        833,315
     Furniture, fixtures and equipment, net             6,049          4,028
     Commodity derivatives *                            6,012             --
     Other assets                                      10,745          6,758
                                                   $1,545,169     $1,023,250
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
     Current liabilities                           $  187,399     $  141,060
     Commodity derivatives *                           43,571             --
         Total current liabilities                    230,970        141,060
 
     Other liabilities                                 13,040          6,030
     Commodity derivatives *                           14,880             --
     Long-term debt                                   349,599        133,711
     Deferred taxes                                   173,456         79,244
         Total long-term liabilities                  550,975        218,985
 
     Company-obligated, mandatorily redeemable,
      convertible preferred securities
      of Newfield Financial Trust I                   143,750        143,750
 
     STOCKHOLDERS' EQUITY
       Common stock                                   358,835        286,838
       Unearned compensation                           (9,337)        (6,201)
        Accumulated other comprehensive loss
         Foreign currency translation adjustment       (7,941)        (4,644)
        Commodity derivatives *                       (23,896)            --
       Retained earnings                              301,813        243,462
                                                      619,474        519,455
                                                   $1,545,169     $1,023,250
 
     * Associated with adoption of SFAS133.
 
 
     CONSOLIDATED STATEMENT OF
     CASH FLOWS
     (Unaudited, in thousands of dollars)                     For the
                                                         Three Months Ended
                                                              March 31,
                                                         2001           2000
     Cash flows from operating activities:
       Net income                                  $   58,351     $   15,183
       Depreciation, depletion and amortization        61,146         41,211
       Deferred taxes                                  14,524          5,643
       Stock compensation                                 595            589
       Commodity derivatives *                          1,558             --
       Cumulative effect of change in
        accounting principles
          Adoption of SAB 101                              --          2,360
          Adoption of SFAS 133 *                        4,794             --
                                                      140,968         64,986
     Changes in operation assets and liabilities       60,563         (4,371)
       Net cash provided by operating activities      201,531         60,615
 
     Cash flows from investing activities:
       Acquisition of Lariat Petroleum,
        net of cash acquired                         (264,089)            --
       Additions to oil and gas properties           (107,846)      (181,456)
       Additions to furniture, fixtures and equipment  (1,112)          (303)
         Net cash used in investing activities       (373,047)      (181,759)
     Cash flows from financing activities:
       Proceeds from borrowings                       663,000        120,000
       Repayments of borrowings                      (622,000)       (16,000)
       Proceeds from issuances of senior notes        174,879             --
       Proceeds from issuances of common stock, net       (45)         3,313
         Net cash provided by financing activities    215,834        107,313
     Effect of exchange rate changes on cash
      and cash equivalents                                837         (1,688)
 
     Increase (decrease) in cash and cash equivalents  45,155        (15,519)
     Cash and cash equivalents, beginning of period    18,451         41,841
 
     Cash and cash equivalents, end of period      $   63,606     $   26,322
 
     * Associated with adoption of SFAS133.
 
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 SOURCE  Newfield Exploration Company

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