Accessibility Statement Skip Navigation
  • Resources
  • Investor Relations
  • Journalists
  • Agencies
  • Client Login
  • Send a Release
Return to PR Newswire homepage
  • News
  • Products
  • Contact
When typing in this field, a list of search results will appear and be automatically updated as you type.

Searching for your content...

No results found. Please change your search terms and try again.
  • News in Focus
      • Browse News Releases

      • All News Releases
      • All Public Company
      • English-only
      • News Releases Overview

      • Multimedia Gallery

      • All Multimedia
      • All Photos
      • All Videos
      • Multimedia Gallery Overview

      • Trending Topics

      • All Trending Topics
  • Business & Money
      • Auto & Transportation

      • All Automotive & Transportation
      • Aerospace, Defense
      • Air Freight
      • Airlines & Aviation
      • Automotive
      • Maritime & Shipbuilding
      • Railroads and Intermodal Transportation
      • Supply Chain/Logistics
      • Transportation, Trucking & Railroad
      • Travel
      • Trucking and Road Transportation
      • Auto & Transportation Overview

      • View All Auto & Transportation

      • Business Technology

      • All Business Technology
      • Blockchain
      • Broadcast Tech
      • Computer & Electronics
      • Computer Hardware
      • Computer Software
      • Data Analytics
      • Electronic Commerce
      • Electronic Components
      • Electronic Design Automation
      • Financial Technology
      • High Tech Security
      • Internet Technology
      • Nanotechnology
      • Networks
      • Peripherals
      • Semiconductors
      • Business Technology Overview

      • View All Business Technology

      • Entertain­ment & Media

      • All Entertain­ment & Media
      • Advertising
      • Art
      • Books
      • Entertainment
      • Film and Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • Entertain­ment & Media Overview

      • View All Entertain­ment & Media

      • Financial Services & Investing

      • All Financial Services & Investing
      • Accounting News & Issues
      • Acquisitions, Mergers and Takeovers
      • Banking & Financial Services
      • Bankruptcy
      • Bond & Stock Ratings
      • Conference Call Announcements
      • Contracts
      • Cryptocurrency
      • Dividends
      • Earnings
      • Earnings Forecasts & Projections
      • Financing Agreements
      • Insurance
      • Investments Opinions
      • Joint Ventures
      • Mutual Funds
      • Private Placement
      • Real Estate
      • Restructuring & Recapitalization
      • Sales Reports
      • Shareholder Activism
      • Shareholder Meetings
      • Stock Offering
      • Stock Split
      • Venture Capital
      • Financial Services & Investing Overview

      • View All Financial Services & Investing

      • General Business

      • All General Business
      • Awards
      • Commercial Real Estate
      • Corporate Expansion
      • Earnings
      • Environmental, Social and Governance (ESG)
      • Human Resource & Workforce Management
      • Licensing
      • New Products & Services
      • Obituaries
      • Outsourcing Businesses
      • Overseas Real Estate (non-US)
      • Personnel Announcements
      • Real Estate Transactions
      • Residential Real Estate
      • Small Business Services
      • Socially Responsible Investing
      • Surveys, Polls and Research
      • Trade Show News
      • General Business Overview

      • View All General Business

  • Science & Tech
      • Consumer Technology

      • All Consumer Technology
      • Artificial Intelligence
      • Blockchain
      • Cloud Computing/Internet of Things
      • Computer Electronics
      • Computer Hardware
      • Computer Software
      • Consumer Electronics
      • Cryptocurrency
      • Data Analytics
      • Electronic Commerce
      • Electronic Gaming
      • Financial Technology
      • Mobile Entertainment
      • Multimedia & Internet
      • Peripherals
      • Social Media
      • STEM (Science, Tech, Engineering, Math)
      • Supply Chain/Logistics
      • Wireless Communications
      • Consumer Technology Overview

      • View All Consumer Technology

      • Energy & Natural Resources

      • All Energy
      • Alternative Energies
      • Chemical
      • Electrical Utilities
      • Gas
      • General Manufacturing
      • Mining
      • Mining & Metals
      • Oil & Energy
      • Oil and Gas Discoveries
      • Utilities
      • Water Utilities
      • Energy & Natural Resources Overview

      • View All Energy & Natural Resources

      • Environ­ment

      • All Environ­ment
      • Conservation & Recycling
      • Environmental Issues
      • Environmental Policy
      • Environmental Products & Services
      • Green Technology
      • Natural Disasters
      • Environ­ment Overview

      • View All Environ­ment

      • Heavy Industry & Manufacturing

      • All Heavy Industry & Manufacturing
      • Aerospace & Defense
      • Agriculture
      • Chemical
      • Construction & Building
      • General Manufacturing
      • HVAC (Heating, Ventilation and Air-Conditioning)
      • Machinery
      • Machine Tools, Metalworking and Metallurgy
      • Mining
      • Mining & Metals
      • Paper, Forest Products & Containers
      • Precious Metals
      • Textiles
      • Tobacco
      • Heavy Industry & Manufacturing Overview

      • View All Heavy Industry & Manufacturing

      • Telecomm­unications

      • All Telecomm­unications
      • Carriers and Services
      • Mobile Entertainment
      • Networks
      • Peripherals
      • Telecommunications Equipment
      • Telecommunications Industry
      • VoIP (Voice over Internet Protocol)
      • Wireless Communications
      • Telecomm­unications Overview

      • View All Telecomm­unications

  • Lifestyle & Health
      • Consumer Products & Retail

      • All Consumer Products & Retail
      • Animals & Pets
      • Beers, Wines and Spirits
      • Beverages
      • Bridal Services
      • Cannabis
      • Cosmetics and Personal Care
      • Fashion
      • Food & Beverages
      • Furniture and Furnishings
      • Home Improvement
      • Household, Consumer & Cosmetics
      • Household Products
      • Jewelry
      • Non-Alcoholic Beverages
      • Office Products
      • Organic Food
      • Product Recalls
      • Restaurants
      • Retail
      • Supermarkets
      • Toys
      • Consumer Products & Retail Overview

      • View All Consumer Products & Retail

      • Entertain­ment & Media

      • All Entertain­ment & Media
      • Advertising
      • Art
      • Books
      • Entertainment
      • Film and Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • Entertain­ment & Media Overview

      • View All Entertain­ment & Media

      • Health

      • All Health
      • Biometrics
      • Biotechnology
      • Clinical Trials & Medical Discoveries
      • Dentistry
      • FDA Approval
      • Fitness/Wellness
      • Health Care & Hospitals
      • Health Insurance
      • Infection Control
      • International Medical Approval
      • Medical Equipment
      • Medical Pharmaceuticals
      • Mental Health
      • Pharmaceuticals
      • Supplementary Medicine
      • Health Overview

      • View All Health

      • Sports

      • All Sports
      • General Sports
      • Outdoors, Camping & Hiking
      • Sporting Events
      • Sports Equipment & Accessories
      • Sports Overview

      • View All Sports

      • Travel

      • All Travel
      • Amusement Parks and Tourist Attractions
      • Gambling & Casinos
      • Hotels and Resorts
      • Leisure & Tourism
      • Outdoors, Camping & Hiking
      • Passenger Aviation
      • Travel Industry
      • Travel Overview

      • View All Travel

  • Policy & Public Interest
      • Policy & Public Interest

      • All Policy & Public Interest
      • Advocacy Group Opinion
      • Animal Welfare
      • Congressional & Presidential Campaigns
      • Corporate Social Responsibility
      • Domestic Policy
      • Economic News, Trends, Analysis
      • Education
      • Environmental
      • European Government
      • FDA Approval
      • Federal and State Legislation
      • Federal Executive Branch & Agency
      • Foreign Policy & International Affairs
      • Homeland Security
      • Labor & Union
      • Legal Issues
      • Natural Disasters
      • Not For Profit
      • Patent Law
      • Public Safety
      • Trade Policy
      • U.S. State Policy
      • Policy & Public Interest Overview

      • View All Policy & Public Interest

  • People & Culture
      • People & Culture

      • All People & Culture
      • Aboriginal, First Nations & Native American
      • African American
      • Asian American
      • Children
      • Diversity, Equity & Inclusion
      • Hispanic
      • Lesbian, Gay & Bisexual
      • Men's Interest
      • People with Disabilities
      • Religion
      • Senior Citizens
      • Veterans
      • Women
      • People & Culture Overview

      • View All People & Culture

      • In-Language News

      • Arabic
      • español
      • português
      • Česko
      • Danmark
      • Deutschland
      • España
      • France
      • Italia
      • Nederland
      • Norge
      • Polska
      • Portugal
      • Россия
      • Slovensko
      • Suomi
      • Sverige
  • Explore Our Platform
  • Plan Campaigns
  • Create with AI
  • Distribute Press Releases
  • Amplify Content
  • All Products
  • General Inquiries
  • Editorial Bureaus
  • Partnerships
  • Media Inquiries
  • Worldwide Offices
  • Hamburger menu
  • PR Newswire: news distribution, targeting and monitoring
  • Send a Release
    • ALL CONTACT INFO
    • Contact Us

      888-776-0942
      from 8 AM - 10 PM ET

  • Send a Release
  • Client Login
  • Resources
  • Blog
  • Journalists
  • RSS
  • News in Focus
    • Browse All News
    • Multimedia Gallery
    • Trending Topics
  • Business & Money
    • Auto & Transportation
    • Business Technology
    • Entertain­ment & Media
    • Financial Services & Investing
    • General Business
  • Science & Tech
    • Consumer Technology
    • Energy & Natural Resources
    • Environ­ment
    • Heavy Industry & Manufacturing
    • Telecomm­unications
  • Lifestyle & Health
    • Consumer Products & Retail
    • Entertain­ment & Media
    • Health
    • Sports
    • Travel
  • Policy & Public Interest
  • People & Culture
    • People & Culture
  • Send a Release
  • Client Login
  • Resources
  • Blog
  • Journalists
  • RSS
  • Explore Our Platform
  • Plan Campaigns
  • Create with AI
  • Distribute Press Releases
  • Amplify Content
  • All Products
  • Send a Release
  • Client Login
  • Resources
  • Blog
  • Journalists
  • RSS
  • General Inquiries
  • Editorial Bureaus
  • Partnerships
  • Media Inquiries
  • Worldwide Offices
  • Send a Release
  • Client Login
  • Resources
  • Blog
  • Journalists
  • RSS

Newfield Reports Second Quarter 2011 Financial and Operating Results


News provided by

Newfield Exploration Company

Jul 20, 2011, 04:44 ET

Share this article

Share toX

Share this article

Share toX

HOUSTON, July 20, 2011 /PRNewswire/ -- Newfield Exploration Company (NYSE: NFX) today reported its unaudited second quarter 2011 financial and operating results. Newfield will be hosting a conference call at 8:30 a.m. CT on July 21, 2011. To participate in the call, dial 719-325-4774 or listen through the investor relations section of our website at http://www.newfield.com.

For the second quarter of 2011, Newfield recorded net income of $219 million, or $1.62 per diluted share (all per share amounts are on a diluted basis). Net income for the second quarter includes a net unrealized gain on commodity derivatives of $129 million ($81 million after-tax), or $0.60 per share. Without the effect of this item, net income for the second quarter of 2011 would have been $138 million, or $1.02 per share.

Revenues in the second quarter of 2011 were $621 million. Net cash provided by operating activities before changes in operating assets and liabilities was $393 million. See “Explanation and Reconciliation of Non-GAAP Financial Measures” found after the financial statements in this release.

Newfield’s production in the second quarter of 2011 was 73 Bcfe. Natural gas production in the second quarter of 2011 was 47 Bcf, an average of 517 MMcf/d. Newfield’s oil liftings and liquids production in the second quarter of 2011 were 4.4 MMBbls, or an average of approximately 48,000 BOPD. Capital expenditures in the second quarter of 2011 were approximately $630 million, excluding the Company’s $300 million acquisition in the Uinta Basin.

2011 Capital Investments, Asset Sales

Newfield reiterated its 2011 capital budget of $1.9 billion. The budget excludes capitalized interest and overhead and the May 2011 closing of the Company’s acquisition in the Uinta Basin. Year-to-date, Newfield has divested approximately $130 million in non-strategic domestic assets. The Company continues to market and sell other certain non-strategic domestic assets with total proceeds during 2011 expected to range from $200 – $300 million.

2011 Production Guidance

The sale of non-strategic assets year-to-date has reduced 2011 production by approximately 3 Bcfe. As previously disclosed, second quarter 2011 production was negatively impacted by approximately 0.2 MMBbls of deferred production due to repairs on the Abu field, located offshore Malaysia. Repairs have been completed and the field is on-line today. For the full year, Newfield expects that its production will exceed 312 Bcfe. The Company’s original production guidance was 312 – 323 Bcfe, or an increase of at least 8% over 2010 volumes. The expectation of at least 8% growth does not include adjustments for any additional sales of non-strategic assets in the second half of 2011. A table on Newfield’s production guidance for 2011 is provided within this release.

Year-to-Date 2011 Operating Highlights:

Rocky Mountains

Uinta Basin – In conjunction with the release of its second quarter earnings and operating results, the Company today provided a comprehensive update on its Uinta Basin drilling programs, including the disclosure of new oil plays available for development. Recent acquisitions have increased the Company’s acreage position to approximately 250,000 net acres. Over the coming months, the Company expects to increase its operated rig count from a historic five-rig program to at least eight rigs in 2012. As a result, oil production growth from the region is expected to increase more than 25% in 2012. A copy of the recent release and other detailed information on the Uinta Basin can be obtained through Newfield’s website.

Williston Basin – During the second quarter of 2011, Newfield completed nine new wells in the Williston Basin. The recent completions boosted net production to 8,000 BOEPD. Newfield continues to run five operated drilling rigs in the Williston Basin where the Company has approximately 150,000 net acres.

Of the recent completions, eight of the nine wells were super extended laterals and had an average lateral length of more than 9,500’. Average gross initial production (24-hour) from the nine wells completed in the second quarter was 2,100 BOEPD. The wells were drilled and completed for an average of approximately $9.8 million (gross).

Recent results include a “Company-best” – the Wiseness Federal 152-96-4-2H, which had gross initial production (24-hour average) of 5,200 BOEPD. The well has a 5,300’ lateral and was drilled and completed for approximately $5.9 million (gross).

Significant flooding, poor road conditions and road closures in the Williston Basin impacted the timing of planned operations during the second quarter. The Company has an inventory of 10 wells that have been drilled and are in various stages of completion. Newfield expects to complete a total of 13 wells in the third quarter of 2011.

Southern Alberta Basin – To date, Newfield has drilled seven vertical wells and has completed and placed on production two horizontal wells. Fracture stimulation services are in the region today executing on a program to stimulate and test multiple geologic horizons in up to four of the vertical wells. All of the wells to date have encountered oil. Newfield has approximately 320,000 net acres in the play, located in Glacier County, Montana.

Mid-Continent

Granite Wash – Newfield recently set a new record high for its Granite Wash production – 190 MMcfe/d gross (135 MMcfe/d net). This is an increase over the 110 MMcfe/d net reported at the end of the first quarter of 2011. Since early 2009, Newfield has maintained a four-rig development drilling program in the Granite Wash, with its activities primarily located in Wheeler County, Texas.

To date, the Company has completed 47 wells in the play with gross initial production averaging approximately 16 MMcfe/d (24-hour rate). The 2011 Granite Wash program is focused on the Marmaton DE and FG intervals. Year-to-date, wells in these “liquids rich” intervals have had average initial gross production of approximately 17 MMcfe/d.

Throughout 2011, the Company’s drilling personnel have continued to deliver efficiency gains. During the second quarter, Newfield drilled and cased a “best in class” well in 24 days and is averaging approximately 28 days with recent wells. Completed well costs vary by lateral length (5,000’ – 8,000’) and range from $8 – $13 million.

For 2011, the Company plans to drill more than 30 wells and grow production more than 25% over 2010.  Newfield’s average working interest in the Granite Wash play is approximately 75%.

Onshore Texas

Eagle Ford Shale – Newfield continues to explore and assess its 335,000 net acre position in the Maverick Basin. Oil field services in the region today remain tight. The Company expects that it can meet its contractual drilling obligations and hold its leases by running one to two rigs in the play through the remainder of 2011. By limiting activity to this level, capital can be redirected to the Uinta Basin where the Company is adding operated rigs. We continue to assess and increase our understanding of the Eagle Ford Shale, as well as other prospective formations including the Georgetown and Pearsall.

Year-to-date, the Company has completed 13 wells in the Eagle Ford Shale, four wells in the Georgetown formation and two wells in the Pearsall Shale. Current gross production from the Maverick Basin is approximately 6,500 BOEPD. Newfield’s average working interest in the region is approximately 80%.

Recent drilling activity in the Eagle Ford has focused on the “southern” portion of the Company’s acreage. An area up to 50,000 acres is now being developed along existing infrastructure. A pilot program is underway with recent wells being drilled from pad locations to help determine optimal well spacing. The wells have been drilled in as few as seven days and gross completed well costs have averaged approximately $6.6 million. Initial 24-hour gross production rates from recent wells have ranged from 400 – 1,400 BOEPD.

The Company recently commenced production from a Pearsall Shale horizontal completion at a pipeline-restricted rate of 4.4 MMcf/d and 6,800 psi of flowing tubing pressure (gross). Newfield’s working interest in the Pearsall play averages more than 70%. A recent Georgetown completion commenced production at more than 500 BOEPD (gross). The well was drilled and completed for approximately $1.3 million (gross). Newfield’s working interest in the Georgetown is averages more than 70%.

International Oil Developments

Second quarter 2011 net liftings from the Company’s oil assets in Southeast Asia were 1.2 MMBbls, or an average of about 13,500 BOPD. The largest contributor to Newfield’s international oil production was Malaysia where net liftings during the period averaged approximately 11,200 BOPD. Second quarter 2011 production from Malaysia was negatively impacted by approximately 0.2 MMBbls due to infrastructure damage in the Abu field. Repairs were recently completed and the field has resumed production.

The Company’s production from the East Belumut facility, located at PM 323, has attained recent highs and has averaged approximately 32,000 BOPD (gross) over the last month. On PM 329, the East Piatu development is expected to commence production at about 10,000 BOPD (gross) in late 2011. Newfield has a 70% interest in East Piatu.

Deepwater Gulf of Mexico

The Company’s deepwater Gulf of Mexico production in the second quarter of 2011 was 9 Bcfe, or nearly 95 MMcfe/d. Pyrenees, located at Garden Banks 293, is expected to commence production in late 2011 at approximately 50 MMcf/d and 2,400 BCPD (gross). Outside operated developments, Axe and Dalmatian, are scheduled for first production in 2013.

TABLE: 2011 Production Guidance


BCFE



Original Production Guidance

312-323

    Non-strategic asset sales thru 6/30/11*

(3)

    Weather related issues YTD (Rockies, Mid-Continent)

(2)

    Abu FSO repairs

(1.2)

    Other

(.8)



Updated Production Guidance

312-316

*Asset sales were not included in the Company’s original production guidance. Additional sales are anticipated in the second half of 2011.

Newfield Exploration Company is an independent crude oil and natural gas exploration and production company. The Company relies on a proven growth strategy of growing reserves through an active drilling program and select acquisitions. Newfield's domestic areas of operation include the Mid-Continent, the Rocky Mountains, onshore Texas, Appalachia and the Gulf of Mexico. The Company has international operations in Malaysia and China.

**This release contains forward-looking information. All information other than historical facts included in this release, such as information regarding estimated or anticipated drilling plans and planned capital expenditures, is forward-looking information. Although Newfield believes that these expectations are reasonable, this information is based upon assumptions and anticipated results that are subject to numerous uncertainties and risks. 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, the availability of refining capacity for the crude oil Newfield produces from its Monument Butte field in Utah, the availability and cost of capital resources, labor conditions and severe weather conditions (such as hurricanes). In addition, the drilling of oil and gas wells and the production of hydrocarbons are subject to governmental regulations and operating risks. Other factors that could impact forward-looking statements are described in "Risk Factors" in Newfield's 2010 Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and other subsequent public filings with the Securities and Exchange Commission, which can be found at www.sec.gov. Unpredictable or unknown factors not discussed in this press release could also have material adverse effects on forward-looking statements. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. Unless legally required, Newfield undertakes no obligation to publicly update or revise any forward-looking statements.

For information, contact:


Investor Relations:

Steve Campbell (281) 847-6081


Danny Aguirre (281) 668-2657

Media Relations:

Keith Schmidt (281) 674-2650

Email:

[email protected]

2Q11 Actual Results



2Q11 Actual


Domestic

Int'l

Total

Production/Liftings




   Natural gas – Bcf

47.0

–

47.0

   Oil, condensate and NGLs – MMBbls

3.2

1.2

4.4

   Total Bcfe

65.9

7.3

73.2





Average Realized Prices (Note 1)




   Natural gas – $/Mcf

$

5.77

$

–

$

5.77

   Oil, condensate and NGLs – $/Bbl

$

80.39

$

118.72

$

91.16

   Mcf equivalent – $/Mcfe

$

8.03

$

19.79

$

9.24








Operating Expenses:







 Lease operating ($MM)







   Recurring

$

56.6

$

14.9

$

71.5

   Major (workovers, etc.)

$

10.5

$

18.8

$

29.3

   Transportation

$

23.6

$

–

$

23.6








 Lease operating (per Mcfe)







   Recurring

$

0.88

$

2.02

$

1.00

   Major (workovers, etc.)

$

0.16

$

2.55

$

0.41

   Transportation

$

0.37

$

–

$

0.33








Production and other taxes ($MM)

$

22.1

$

56.9

$

79.0

    per/Mcfe

$

0.34

$

7.73

$

1.10








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

$

42.6

$

1.7

$

44.3

    per/Mcfe

$

0.66

$

0.24

$

0.62








         Capitalized internal costs ($MM)





$

(27.1)

            per/Mcfe





$

(0.38)








Interest Expense ($MM)





$

41.7

     per/Mcfe





$

0.58








Capitalized Interest ($MM)





$

(19.4)

     per/Mcfe





$

(0.27)








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 $4.42 per Mcf and the domestic and total oil and condensate average realized prices would have been $87.03 and $95.94 per barrel, respectively.




3Q11 & FY11 Estimates


Domestic

Int'l

Total

Production/Liftings

3QE

FY11

3QE

FY11

3QE

FY11

  Natural gas – Bcf

45 – 49

188 – 190

–

0.2  – 0.2

45 – 49

189 – 190

  Oil, condensate and NGLs – MMBbls

3.4 – 4.0

14.1 – 14.4

1.4 – 2.0

6.5  – 6.6

4.8 – 5.9

20.6 – 21.0

  Total Bcfe

65 – 73

273 – 276

8 – 12

39 – 40

74 – 84

312 – 316








Average Realized Prices







  Natural gas – $/Mcf

Note 1

Note 1





  Oil, condensate and NGLs – $/Bbl

Note 2

Note 2

Note 3

Note 3



  Mcf equivalent – $/Mcfe














Operating Expenses (per Mcfe):  







   Lease Operating







     Recurring

$0.74 - $0.86

$0.72 - $0.87

$1.75 - $2.22

$1.55 - $1.93

$0.87 - $1.04

$0.82 - $1.00

     Major (workovers, etc.)

$0.21 - $0.29

$0.14 - $0.18

$0.36 - $0.48

$0.64 - $0.83

$0.23 - $0.31

$0.20 - $0.26

     Transportation  

$0.30 - $0.39

$0.31 - $0.40

-

-

$0.26 - $0.34

$0.27 - $0.35








   Production/Taxes (Note 4)

$0.33 - $0.42

$0.29 - $0.39

$4.74 - $5.77

$4.96 - $6.23

$0.90 - $1.10

$0.86 - $1.11








  G&A, net

$0.62 - $0.75

$0.55 - $0.72

$0.16 - $0.21

$0.15 - $0.19

$0.56 - $0.68

$0.50 - $0.65








     Capitalized internal costs  





($0.33 - $0.40)

($0.30 - $0.38)








  Interest Expense





$0.51 - $0.60

$0.51 - $0.55








  Capitalized Interest





($0.23 - $0.30)

($0.22 - $0.27)








Tax rate (%) (Note 5)





36% - 38%

36% - 38%








Income taxes (%)







 Current





18% - 22%

18% - 22%

 Deferred





78% - 82%

78% - 82%








Note 1:

The price that the Company receives 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 90-95% of the Henry Hub Index.

Note 2:

The price the Company receives for its Gulf Coast oil production, excluding NGLs, typically averages about 98-102% of the NYMEX West Texas Intermediate (WTI) price. The price the Company receives for its oil production in the Rocky Mountains, excluding NGLs, is currently averaging about $15-$17 per barrel below the WTI price. Oil production from the Company's Mid-Continent properties, excluding NGLs, typically averages 90-95% of the WTI price.

Note 3:

Oil sales from the Company's operations in Malaysia typically sell at a slight discount to Tapis, or today about 110-115% of WTI. Oil sales from the Company's operations in China typically sell at a premium of up to $10 per barrel greater than the WTI price.

Note 4:

Guidance for production taxes determined using the average of the strip at 06/21/11 ($94.54/bbl, $4.50/mcf).

Note 5:

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,


2011


2010


2011


2010









Oil and gas revenues

$  621


$  448


$  1,166


$  906









Operating expenses:








 Lease operating

125


84


218


151

 Production and other taxes

79


31


150


56

 Depreciation, depletion and amortization

173


160


339


307

 General and administrative

44


41


81


77

 Other

-


2


-


10

   Total operating expenses

421


318


788


601









Income from operations

200


130


378


305









Other income (expenses):








 Interest expense

(41)


(39)


(81)


(77)

 Capitalized interest

19


16


37


28

 Commodity derivative income (expense)

169


46


(13)


283

 Other

-


(1)


(1)


1

   Total other income (expenses)

147


22


(58)


235









Income before income taxes

347


152


320


540









Income tax provision

128


56


118


200









Net income

$  219


$  96


$  202


$  340









Earnings per share:








Basic --

$  1.64


$  0.73


$  1.52


$  2.59









Diluted --

$  1.62


$  0.72


$  1.50


$  2.55









Weighted-average number of shares outstanding

  for basic earnings per share

134


132


133


131

Weighted-average number of shares outstanding

  for diluted earnings per share

135


134



135


133





CONDENSED CONSOLIDATED BALANCE SHEET

(Unaudited, in millions)



June 30,

2011




December 31,

2010





ASSETS




Current assets:




 Cash and cash equivalents

$  74


$  39

 Derivative assets

128


197

 Other current assets

546


495

   Total current assets

748


731





Property and equipment, net (full cost method)

7,564


6,608

Derivative assets

35


39

Other assets

134


116

   Total assets

$  8,481


$  7,494





LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities:




 Current liabilities

$  896


$  875

 Derivative liabilities

65


53

   Total current liabilities

961


928





Other liabilities

163


153

Derivative liabilities

69


46

Long-term debt

2,889


2,304

Deferred taxes

837


720

   Total long-term liabilities

3,958


3,223









STOCKHOLDERS' EQUITY




Common stock and additional paid-in capital

1,423


1,410

Accumulated other comprehensive loss

(8)


(12)

Retained earnings

2,147


1,945

   Total stockholders' equity

3,562


3,343

   Total liabilities and stockholders' equity

$  8,481


$  7,494



CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(Unaudited, in millions)



For the

Six Months Ended

June 30,


2011


2010

Cash flows from operating activities:




 Net income

$  202


$  340

Adjustments to reconcile net income to net cash provided by
   operating activities:




  Depreciation, depletion and amortization

339


307

 Deferred tax provision

88


173

 Stock-based compensation

14


12

 Commodity derivative (income) expense

13


(283)

 Cash receipts on derivative settlements, net

95


227

 Other

3


—


754


776

 Net changes in operating assets and liabilities

(25)


112

     Net cash provided by operating activities

729


888





Cash flows from investing activities:




 Additions to oil and gas properties and other, net

(1,087)


(774)

 Acquisitions of oil and gas properties

(311)


(219)

 Proceeds from sales of oil and gas properties

130


14

 Redemptions of investments

1


5

     Net cash used in investing activities

(1,267)


(974)





Cash flows from financing activities:




 Net proceeds (repayments) under credit arrangements

585


(385)

 Net proceeds from issuance of senior subordinated notes

—


694

 Repayment of senior notes

—


(175)

 Other

(12)


(4)

   Net cash provided by financing activities

573


130









Increase in cash and cash equivalents

35


44

Cash and cash equivalents, beginning of period

39


78





Cash and cash equivalents, end of period

$  74


$  122


Explanation and Reconciliation of Non-GAAP Financial Measures

Earnings Stated Without the Effect of Certain Items

Earnings stated without the effect of certain items is a non-GAAP financial measure. Earnings without the effect of these items are presented because they affect the comparability of operating results from period to period. In addition, earnings without the effect of these items are more comparable to earnings estimates provided by securities analysts.

A reconciliation of earnings for the second quarter of 2011 stated without the effect of certain items to net income is shown below:



2Q11




(in millions)

Net income

$    219



  Net unrealized gain on commodity derivatives (1)

(129)



  Income tax adjustment for above item

48



Earnings stated without the effect of the above items

$    138








(1) The determination of "Net unrealized gain on commodity derivatives" for the second quarter of 2011 is  as follows:



2Q11




(in millions)

   Commodity derivative income

$    169



   Cash receipts on derivative settlements, net

(40)



     Net unrealized gain on commodity derivatives

$    129




Net Cash Provided by Operating Activities Before Changes in Operating Assets and Liabilities

Net cash provided by operating activities before changes in operating assets and liabilities is presented because of its acceptance as an indicator of an oil and gas exploration and production company's ability to internally fund exploration and development activities and to service or incur additional debt. This measure should not be considered as an alternative to net cash provided by operating activities as defined by generally accepted accounting principles.

A reconciliation of net cash provided by operating activities before changes in operating assets and liabilities to net cash provided by operating activities is shown below:



2Q11




(in millions)

Net cash provided by operating activities

$    420



  Net change in operating assets and liabilities

(27)



Net cash provided by operating activities before changes

  in operating assets and liabilities

$    393




SOURCE Newfield Exploration Company

21%

more press release views with 
Request a Demo

Modal title

Contact PR Newswire

  • Call PR Newswire at 888-776-0942
    from 8 AM - 9 PM ET
  • Chat with an Expert
  • General Inquiries
  • Editorial Bureaus
  • Partnerships
  • Media Inquiries
  • Worldwide Offices

Products

  • For Marketers
  • For Public Relations
  • For IR & Compliance
  • For Agency
  • All Products

About

  • About PR Newswire
  • About Cision
  • Become a Publishing Partner
  • Become a Channel Partner
  • Careers
  • Accessibility Statement
  • APAC
  • APAC - Simplified Chinese
  • APAC - Traditional Chinese
  • Brazil
  • Canada
  • Czech
  • Denmark
  • Finland
  • France
  • Germany
  • India
  • Indonesia
  • Israel
  • Italy
  • Japan
  • Korea
  • Mexico
  • Middle East
  • Middle East - Arabic
  • Netherlands
  • Norway
  • Poland
  • Portugal
  • Russia
  • Slovakia
  • Spain
  • Sweden
  • United Kingdom
  • Vietnam

My Services

  • All New Releases
  • Platform Login
  • ProfNet
  • Data Privacy

Do not sell or share my personal information:

  • Submit via [email protected] 
  • Call Privacy toll-free: 877-297-8921

Contact PR Newswire

Products

About

My Services
  • All News Releases
  • Platform Login
  • ProfNet
Call PR Newswire at
888-776-0942
  • Terms of Use
  • Privacy Policy
  • Information Security Policy
  • Site Map
  • RSS
  • Cookies
Copyright © 2025 Cision US Inc.