Newfield Reports Second Quarter 2010 Results

For information, contact:

Investor Relations: Steve Campbell (281) 847-6081

Media Relations: Keith Schmidt (281) 674-2650

Email: info@newfield.com

2Q10 Actual Results

2Q10 Actual

Domestic

Int'l

Total

Production/Liftings

   Natural gas – Bcf

51.3

–

51.3

   Oil and condensate – MMBbls

2.1

1.5

3.6

   Total Bcfe

64.0

8.9

72.9

Average Realized Prices Note 1

   Natural gas – $/Mcf

$

5.47

$

–

$

5.47

   Oil and condensate – $/Bbl

$

84.90

$

72.90

$

79.94

   Mcf equivalent – $/Mcfe

$

7.25

$

12.15

$

7.86

Operating Expenses:

 Lease operating

   Recurring ($MM)

$

36.4

$

12.2

$

48.6

     per/Mcfe

$

0.58

$

1.36

$

0.68

   Transportation ($MM)

$

20.0

$

–

$

20.0

     per/Mcfe

$

0.32

$

–

$

0.28

   Recurring w/ trans ($MM)

$

56.4

$

12.2

$

68.6

     per/Mcfe

$

0.90

$

1.36

$

0.96

   Major (workovers, etc.) ($MM)

$

15.1

$

0.7

$

15.8

     per/Mcfe

$

0.24

$

0.08

$

0.22

Production and other taxes ($MM)

$

15.1

$

16.1

$

31.2

    per/Mcfe

$

0.24

$

1.80

$

0.43

 General and administrative (G&A), net ($MM)

$

38.5

$

2.5

$

41.0

    per/Mcfe

$

0.61

$

0.28

$

0.57

         Capitalized internal costs ($MM)

$

(15.2)

            per/Mcfe

$

(0.21)

Interest expense ($MM)

$

39.6

     per/Mcfe

$

0.55

Capitalized interest ($MM)

$

(15.4)

     per/Mcfe

$

(0.21)

Note 1: Average realized prices include the effects of hedging contracts. If the effects of these
contracts were excluded, the average realized price for total gas would have been $3.88
per Mcf and the total oil and condensate average realized price would have been $69.72
per barrel.

3Q10 & FY10 Estimates

3Q10 & FY10 Estimates

Domestic

Int'l

Total

Production/Liftings

3QE

FY10

3QE

FY10

3QE

FY10

  Natural gas – Bcf

50 – 52

200 – 202

–

–

50 – 52

200 – 202

  Oil and condensate – MMBbls Note 1

2.3 – 2.5

8.8 – 9.2

1.0 – 1.1

5.0 – 5.2

3.3 – 3.6

13.8 – 14.4

  Total Bcfe

64 – 67

253 – 257

6 – 7

30 – 31

70 – 74

283 – 288

Average Realized Prices

  Natural gas – $/Mcf

Note 2

Note 2

  Oil and condensate – $/Bbl

Note 3

Note 3

Note 4

Note 4

  Mcf equivalent – $/Mcfe

Operating Expenses:

 Lease operating

   Recurring ($MM)

$33 - $40

$141 - $147

$9 - $11

$38 - $47

$42 - $51

$179 - $194

     per/Mcfe

$0.54 - $0.58

$0.55 - $0.58

$1.47 - $1.53

$1.38 - $1.43

$0.63 - $0.67

$0.64 - $0.68

   Transportation ($MM)

$17 - $21

$72 - $75

-

-

$17 - $21

$72 - $75

     per/Mcfe

$0.28 - $0.31

$0.28 - $0.30

-

-

$0.25 - $0.28

$0.25 - $0.28

   Recurring w/ trans ($MM)

$50 - $61

$213 - $222

$9 - $11

$38 - $47

$59 - $72

$251 - $269

     per/Mcfe

$0.82 - $0.89

$0.83 - $0.89

$1.47 - $1.53

$1.38 - $1.43

$0.88 - $0.95

$0.89 - $0.96

   Major (workovers, etc.) ($MM)

$10 - $13

$35 - $43

$4 - $6

$9 - $10

$14 - $19

$44 - $53

     per/Mcfe

$0.16 - $0.18

$0.14 - $0.16

$0.77 - $0.81

$0.30 - $0.32

$0.22 - $0.24

$0.16 - $0.18

 Production/Taxes ($MM) Note 5

$15 - $18

$57 - $70

$10 - $13

$44 - $54

$25- $31

$101 - $124

    per/Mcfe

$0.24 - $0.26

$0.24 - $0.26

$1.77 - $1.81

$1.60 - $1.63

$0.38 - $0.40

$0.38 - $0.41

 G&A, net ($MM)

$35 - $42

$143 - $158

$1 - $2

$6 - $7

$36 - $44

$149 - $165

   per/Mcfe

$0.58 - $0.60

$0.59 - $0.61

$0.19 - $0.21

$0.19 - $0.20

$0.54 - $0.56

$0.54 - $0.56

   Capitalized internal costs ($MM)

($18 - $22)

($67 - $82)

     per/Mcfe

($0.27 - $0.28)

($0.26 - $0.27)

Interest expense ($MM)

$35 - $43

$140 - $171

     per/Mcfe

$0.53 - $0.54

$0.54 - $0.55

Capitalized interest ($MM)

($10 - $12)

($45 - $55)

     per/Mcfe

($0.15 - $0.16)

($0.17 - $0.18)

Tax rate (%) Note 6

36% - 38%

36% - 38%

Income taxes (%)

 Current

14% - 16%

14% - 16%

 Deferred

84% - 86%

84% - 86%

Note 1:

Includes 0.5 – 0.6 MMBbls of deferred Malaysian oil production associated with a damaged export pipeline.

Note 2:

The price that we receive for natural gas production from the Gulf of Mexico and onshore Gulf Coast,
after basis differentials, transportation and handling charges, typically averages $0.25 - $0.50 per MMBtu less
than the Henry Hub Index.  Realized natural gas prices for our Mid-Continent properties, after basis differentials,
transportation and handling charges, typically average 85-90% of the Henry Hub Index.

Note 3:

The price we receive for our Gulf Coast oil production typically averages about 90-95% of the NYMEX West Texas
Intermediate (WTI) price. The price we receive for our oil production in the Rocky Mountains is currently averaging
about $12-$14 per barrel below the WTI price. Oil production from our Mid-Continent properties typically averages
88-92% of the WTI price.

Note 4:

Oil sales from our operations in Malaysia typically sell at a slight discount to Tapis, or about 90-95% of WTI. Oil sales
from our operations in China typically sell at $4-$6 per barrel less than the WTI price.

Note 5:

Guidance for production taxes determined using $75/Bbl oil and $4.50/MMBtu gas.

Note 6:

Tax rate applied to earnings excluding unrealized gains or losses on commodity derivatives.

CONSOLIDATED STATEMENT OF INCOME

(Unaudited, in millions, except per share data)

For the
Three Months Ended
June 30,

For the
Six Months Ended
June 30,

2010

2009

2010

2009

Oil and gas revenues

$  448

$  287

$  906

$  549

Operating expenses:

 Lease operating

84

57

151

128

 Production and other taxes

31

15

56

24

 Depreciation, depletion and amortization

160

137

307

296

 General and administrative

41

34

77

66

  Ceiling test writedown

—

—

—

1,344

 Other

2

5

10

7

   Total operating expenses

318

248

601

1,865

Income (loss) from operations

130

39

305

(1,316)

Other income (expenses):

 Interest expense

(39)

(32)

(77)

(64)

 Capitalized interest

16

12

28

26

 Commodity derivative income (expense)

46

(81)

283

197

 Other

(1)

2

1

5

   Total other income (expenses)

22

(99)

235

164

Income (loss) before income taxes

152

(60)

540

(1,152)

Income tax provision (benefit)

56

(21)

200

(419)

Net income (loss)

$  96

$  (39)

$  340

$  (733)

Income (loss) per share:

Basic --

$  0.73

$  (0.30)

$  2.59

$  (5.66)

Diluted --

$  0.72

$  (0.30)

$  2.55

$  (5.66)

Weighted average number of shares outstanding
for basic income (loss) per share

132

130

131

129

Weighted average number of shares outstanding
for diluted income (loss) per share *

134

130

133

129

* Had we recognized net income for the three and six month periods ended June 30, 2009, the weighted average number
of shares outstanding for the computation of diluted earnings per share would have increased by 2 million shares.

CONDENSED CONSOLIDATED BALANCE SHEET

(Unaudited, in millions)

June 30,
2010

December 31,
2009

ASSETS

Current assets:

 Cash and cash equivalents

$  122

$  78

 Derivative assets

278

269

 Other current assets

504

546

   Total current assets

904

893

Property and equipment, net (full cost method)

5,949

5,247

Derivative assets

61

19

Other assets

94

95

   Total assets

$  7,008

$  6,254

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities

$  921

$  873

Other liabilities

188

142

Long-term debt

2,169

2,037

Deferred taxes

602

434

   Total long-term liabilities

2,959

2,613

Commitments and contingencies

—

—

STOCKHOLDERS' EQUITY

Common stock

1

1

Additional paid-in capital

1,418

1,389

Treasury stock

(40)

(33)

Accumulated other comprehensive loss

(13)

(11)

Retained earnings

1,762

1,422

 Total stockholders' equity

3,128

2,768

 Total liabilities and stockholders' equity

$  7,008

$  6,254

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(Unaudited, in millions)

For the
Six Months Ended
June 30,

2010

2009

Cash flows from operating activities:

 Net income (loss)

$  340

$  (733)

Adjustments to reconcile net income (loss) to net cash provided by
   operating activities:

  Depreciation, depletion and amortization

307

296

 Deferred tax provision (benefit)

173

(420)

 Stock-based compensation

12

15

 Ceiling test writedown

—

1,344

 Commodity derivative income

(283)

(197)

 Cash receipts on derivative settlements

227

459

776

764

 Changes in operating assets and liabilities

112

(52)

     Net cash provided by operating activities

888

712

Cash flows from investing activities:

 Additions to oil and gas properties and other, net

(774)

(781)

 Acquisitions of oil and gas properties

(219)

(9)

 Proceeds from sales of oil and gas properties

14

—

 Redemptions of investments

5

14

     Net cash used in investing activities

(974)

(776)

Cash flows from financing activities:

 Net proceeds (repayments) under credit arrangements

(385)

78

 Net proceeds from issuance of senior subordinated notes

686

—

 Repayment of senior notes

(175)

—

 Other

4

—

   Net cash provided by financing activities

130

78

Increase in cash and cash equivalents

44

14

Cash and cash equivalents, beginning of period

78

24

Cash and cash equivalents, end of period

$  122

$  38

2Q10

(in millions)

Net income

$  96

  Net unrealized loss on commodity derivatives (1)

71

  Early redemption charge

2

  Income tax adjustment for above items

(27)

Earnings stated without the effect of the above items

$  142

(1) The determination of "Net unrealized loss on commodity derivatives" for the second quarter of 2010
is as follows:

2Q10

(in millions)

   Commodity derivative income

$  46

   Cash receipts on derivative settlements

(124)

   Option premiums associated with derivatives settled

     during the period

7

     Net unrealized loss on commodity derivatives

$  (71)

2Q10

(in millions)

Net cash provided by operating activities

$  474

  Net change in operating assets and liabilities

(91)

Net cash provided by operating activities before changes

  in operating assets and liabilities

$  383