Welcome!

News Feed Item

Newfield Exploration Announces Intent to Pursue Strategic Alternatives for its International Assets; Provides 2012 Year-End Business Update

- Fourth Quarter 2012 Production Exceeds Guidance, Company Produces 50 million BOE in 2012

THE WOODLANDS, Texas, Feb. 13, 2013 /PRNewswire/ -- Newfield Exploration Company (NYSE: NFX) today announced that its Board of Directors has authorized the evaluation of strategic alternatives for the Company's international assets, which consist of offshore oil and natural gas developments in Malaysia and China, and has provided significant updates on year-end results.

"The decision to pursue alternatives for Newfield's international assets follows a comprehensive review of the Company's strategy, asset base and future direction with our Board of Directors," said Lee K. Boothby, Newfield Chairman, President and CEO. "This action reflects the confidence we have in our domestic portfolio and the substantial opportunities we see across our liquids-rich domestic resource areas, which include the Uinta basin, the Cana Woodford, the Williston basin and the Eagle Ford. Our Company has evolved and adapted through the successful execution of a number of important transitions and we believe that now is the right time to become a North American-focused operator.

"During 2012, we completed our transformation to an oil-focused company by growing our liquids volumes and as a result, about 55% of our 2013 volumes are expected to come from liquids production.  We are allocating substantially all of our capital to liquids-related projects, while we focus on improving our future returns and profitability. Over the last four years, we have delivered a CAGR of more than 20% in domestic liquids production. We are confident in Newfield's ability to execute at every level of the Company and to continue delivering exceptional domestic liquids growth into the future."

Newfield has engaged Goldman, Sachs & Co. as its advisor to lead the process related to exploring strategic opportunities for its international assets.

Fourth Quarter and Full-Year 2012:

Newfield produced 50 million BOE in 2012, including 11.9 million BOE in the fourth quarter of 2012. Full-year production exceeded the Company's most recent guidance by approximately 0.5 million BOE.

Newfield incurred a $1.5 billion non-cash full cost ceiling test writedown associated with the carrying value of Newfield's domestic proved reserves. The non-cash writedown relates primarily to low natural gas prices and the sale of non-strategic assets.

During the fourth quarter of 2012, Newfield also incurred a non-cash charge for deferred income taxes of approximately $550 million. The charge was primarily related to the Company's focus on U.S. operations and its repatriation of accumulated profits from its international subsidiaries. In December 2012, the Company used repatriated cash to reduce borrowings under its revolving credit facility.

Newfield's actions related to its international assets and year-end proved reserves will impact financial results for the fourth quarter of 2012. The Company expects to report a net loss of approximately $1.2 billion or $8.80 per share.

Year-End 2012 Proved and Probable Reserves:

Proved reserves at year-end 2012 were 566 million BOE, down 13% from 652 million BOE at year-end 2011. The decrease relates primarily to low natural gas prices, the sale of non-strategic assets in 2012 and produced volumes. This decrease was partially offset by the addition of 86 million BOE of reserves through the Company's active drilling programs. Reserves were determined using SEC pricing of $2.76 per MMBtu of natural gas and $94.84 per Bbl of oil.

Approximately 90% of Newfield's proved reserves are now located in domestic resource plays and 48% of proved reserves are oil and liquids. Proved developed producing reserves now represent 45% of total proved reserves. Price-related revisions totaled 616 Bcfe and were due to low natural gas prices. The present value of the Company's proved reserves at year-end (discounted at 10%) was $5.9 billion ($4.4 billion after-tax).

Probable reserves at year-end 2012 were 283 million BOE, or 34% lower than year-end 2011. Liquids increased to 66% of probable reserves. Price-related revisions to natural gas probable reserves totaled approximately 1,200 Bcfe.

Detailed tables on year-end proved reserves and capital investments are below.

Proved Reserves:





Year Ended December 31,





2012


2011


2010





(MMBOE)

Proved Reserves:








Beginning of year


652


619


603


Reserve additions


86


151


113


Reserve revisions


(91)


(48)


(48)


Sales


(30)


(20)


(1)


Production


(51)


(50)


(48)


End of year


566


652


619








Proved Developed Reserves:








Beginning of year


355


361


318


End of year


298


355


361














2012 Capital Expenditures:






2012









(in millions)




Domestic property acquisitions:








Unproved


$

64





Proved



3




Domestic exploration and development



1,588




International costs incurred



258





Total costs incurred*


$

1,913












*

Total costs incurred include $191 million of capitalized interest and overhead and $9 million of asset retirement obligations.

Fourth Quarter / Full Year 2012 Conference Call:

As previously announced, Newfield will report its fourth quarter and full year 2012 financial and operating results after market close on February 19 and will host a conference call with analysts and investors at 8:30 a.m., February 20, 2013.

Newfield Exploration Company is an independent energy company engaged in the exploration, development and production of crude oil, natural gas and natural gas liquids. We are focused on North American resource plays of scale. Our principal domestic areas of operation include the Mid-Continent, the Rocky Mountains and onshore Texas.  Internationally, we have oil and natural gas developments offshore Malaysia and China.

**This release contains forward-looking information. All information other than historical facts included in this release, such as information regarding international strategic plans,estimated or anticipated production growth 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 in the Uinta basin, the availability and cost of capital resources, new regulations or changes in tax legislation, labor conditions and severe weather conditions (such as hurricanes). In addition, the drilling of oil and natural gas wells and the production of hydrocarbons are subject to numerous governmental regulations and operating risks. Other factors that could impact forward-looking statements are described in "Risk Factors" in Newfield's 2011 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 additional information, please contact Newfield's Investor Relations department.
Phone: 281-210-5201
Email: [email protected]

SOURCE Newfield Exploration Company

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
"Outscale was founded in 2010, is based in France, is a strategic partner to Dassault Systémes and has done quite a bit of work with divisions of Dassault," explained Jackie Funk, Digital Marketing exec at Outscale, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"I think DevOps is now a rambunctious teenager – it’s starting to get a mind of its own, wanting to get its own things but it still needs some adult supervision," explained Thomas Hooker, VP of marketing at CollabNet, in this SYS-CON.tv interview at DevOps Summit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"We are still a relatively small software house and we are focusing on certain industries like FinTech, med tech, energy and utilities. We help our customers with their digital transformation," noted Piotr Stawinski, Founder and CEO of EARP Integration, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"We've been engaging with a lot of customers including Panasonic, we've been involved with Cisco and now we're working with the U.S. government - the Department of Homeland Security," explained Peter Jung, Chief Product Officer at Pulzze Systems, in this SYS-CON.tv interview at @ThingsExpo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"We're here to tell the world about our cloud-scale infrastructure that we have at Juniper combined with the world-class security that we put into the cloud," explained Lisa Guess, VP of Systems Engineering at Juniper Networks, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
There is a huge demand for responsive, real-time mobile and web experiences, but current architectural patterns do not easily accommodate applications that respond to events in real time. Common solutions using message queues or HTTP long-polling quickly lead to resiliency, scalability and development velocity challenges. In his session at 21st Cloud Expo, Ryland Degnan, a Senior Software Engineer on the Netflix Edge Platform team, will discuss how by leveraging a reactive stream-based protocol,...
"With Digital Experience Monitoring what used to be a simple visit to a web page has exploded into app on phones, data from social media feeds, competitive benchmarking - these are all components that are only available because of some type of digital asset," explained Leo Vasiliou, Director of Web Performance Engineering at Catchpoint Systems, in this SYS-CON.tv interview at DevOps Summit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
Your homes and cars can be automated and self-serviced. Why can't your storage? From simply asking questions to analyze and troubleshoot your infrastructure, to provisioning storage with snapshots, recovery and replication, your wildest sci-fi dream has come true. In his session at @DevOpsSummit at 20th Cloud Expo, Dan Florea, Director of Product Management at Tintri, provided a ChatOps demo where you can talk to your storage and manage it from anywhere, through Slack and similar services with...
"We want to show that our solution is far less expensive with a much better total cost of ownership so we announced several key features. One is called geo-distributed erasure coding, another is support for KVM and we introduced a new capability called Multi-Part," explained Tim Desai, Senior Product Marketing Manager at Hitachi Data Systems, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"I'm here to leverage my secret sauce, which is using outsourced development and the company that I utilize is delaPlex Software and they've basically allowed me to win Fortune 500 companies," noted Justin Witz, CTO of FRA and PlanTools, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"We provide IoT solutions. We provide the most compatible solutions for many applications. Our solutions are industry agnostic and also protocol agnostic," explained Richard Han, Head of Sales and Marketing and Engineering at Systena America, in this SYS-CON.tv interview at @ThingsExpo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"As we've gone out into the public cloud we've seen that over time we may have lost a few things - we've lost control, we've given up cost to a certain extent, and then security, flexibility," explained Steve Conner, VP of Sales at Cloudistics,in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"We are an IT services solution provider and we sell software to support those solutions. Our focus and key areas are around security, enterprise monitoring, and continuous delivery optimization," noted John Balsavage, President of A&I Solutions, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
SYS-CON Events announced today that Calligo, an innovative cloud service provider offering mid-sized companies the highest levels of data privacy and security, has been named "Bronze Sponsor" of SYS-CON's 21st International Cloud Expo ®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Calligo offers unparalleled application performance guarantees, commercial flexibility and a personalised support service from its globally located cloud plat...
As enterprise cloud becomes the norm, businesses and government programs must address compounded regulatory compliance related to data privacy and information protection. The most recent, Controlled Unclassified Information and the EU’s GDPR have board level implications and companies still struggle with demonstrating due diligence. Developers and DevOps leaders, as part of the pre-planning process and the associated supply chain, could benefit from updating their code libraries and design by in...