Welcome!

News Feed Item

Newfield Exploration Announces Production Guidance and Capital Investment Plans for 2013-15

-- Domestic Liquids Production Expected to Grow More Than 35% in 2013; and More Than Doubles from 2012-15

THE WOODLANDS, Texas, Feb. 13, 2013 /PRNewswire/ -- Newfield Exploration Company (NYSE: NFX) today announced that its Board of Directors has approved a three-year plan and outlined the Company's production growth outlook and planned capital investment ranges for 2013-15. Informational slides related to planned capital investments, production by geographic area and expected costs and expenses have been posted to the Company's website at www.newfield.com.

"We are excited about our significant domestic production growth forecast," said Lee K. Boothby, Newfield Chairman, President and CEO. "Since 2009, we have transformed our asset base toward liquids, improved our organizational focus and aligned our people around value creation in our domestic resource plays. We are now realizing the tangible benefits of these efforts, as we transition to development drilling in our key onshore plays. Today's outlook spotlights the strength of our portfolio and, given the greater certainty in outcomes from our drilling programs, confidence in our ability to execute in 2013 and beyond to deliver these results for the benefit of our stockholders."

For 2013, the Company plans to invest $1.7 $1.9 billion (excludes capitalized interest and overhead), with the entire budget substantially allocated to liquids plays. Total company production is expected to range from 44 – 47 million BOE. This compares to 2012 production, adjusted for asset sales, of approximately 47 million BOE. Adjusted for asset sales in 2012, Newfield expects that its 2013 domestic liquids production will increase more than 35%. Natural gas volumes are expected to decline about 14% from 2012 levels due to a continued lack of investment and natural field declines.

The Company's four domestic oil resource plays will receive a capital allocation of $1.4$1.5 billion. These areas include the Cana Woodford, Uinta basin, Williston basin and the Eagle Ford. In its international operations, the Company plans to invest $300$400 million. A significant component of this investment includes the ongoing development of the Pearl oil field, offshore China. First oil sales from the Pearl development are expected in early 2014.

Boothby continued, "We believe that our 2013 investments will result in substantial gains in Newfield's liquids production growth and significant increases in our cash flow into 2014-15. Over the last several years, we have been disciplined in our levels of capital investment by funding our liquids growth plan with existing cash flows and the sale of non-strategic assets, and we will continue to do so going forward."

2013 Investment Highlights:

  • Approximately $360 million will be invested in the Cana Woodford. Newfield has fast-tracked more than 45,000 acres into development and an additional 100,000 acres continue to be assessed. The Company expects to run up to six operated rigs in the play throughout the year. Net production from the Cana is expected to grow more than 200% in 2013.
  • Active drilling in vertical and horizontal plays in the Uinta basin and the development of the Greater Monument Butte (GMBU) waterflood calls for the investment of approximately $380 million. In early 2013, the Company will spud the first of four multi-well pads in the Central basin to test the Uteland Butte with super-extended laterals (approximately 9,800'). Horizontal drilling is underway in the Wasatch and Uteland Butte formations, with an active campaign planned for both vertical and horizontal wells. More than 200 wells are planned for the ongoing GMBU development and water injection levels will increase by approximately 30%. Uinta basin oil production is expected to grow approximately 10% in 2013 and 20% in 2014. Refinery agreements are in place to match this expected growth trajectory.
  • Approximately $275 million is planned for investment in the Eagle Ford. The development program includes the drilling of about 35 wells. Drilling efficiencies in the region now allow for a 7,500' lateral well to be drilled in about 10 days. Development drilling in 2013 will focus on an approximate 25,000-acre footprint in the West Asherton and Fashing fields. Net production from the region in 2013 is expected to increase approximately 75% over 2012 levels.
  • Activity levels in the Williston basin will increase, with a planned investment of $230 million in 2013. A fourth operated rig will begin work in early March. The Company's drilling program has transitioned to development with super-extended laterals (more than 7,500') being drilled from common pad locations. In development mode, Newfield is realizing lower completed well costs and improved returns. Newfield expects to drill approximately 45 wells in the Bakken and Three Forks formations in 2013. Net production from the Williston basin in 2013 is expected to grow approximately 15% year-over-year.
  • The Company also today announced that it will pursue strategic alternatives for its international assets. Newfield will continue to make investments to maintain the significant value in these assets. The 2013 investments will focus primarily on ongoing oil developments and are expected to range from $300$400 million. Approximately $150 million of the total is related to the Pearl development located offshore China, with first production scheduled for early 2014 as infrastructure is completed. International liftings in 2013 are expected to decline 25-30% compared to 2012 annual liftings. The decrease relates to natural field declines, limited investments toward new exploration and exploitation opportunities and changes in the economic sharing of production under the Company's production sharing agreements.

"Over the next three years, we expect to see continued strong growth in our domestic resource plays," said Boothby. "In fact, we expect to more than double our 2012 liquids volumes by 2015, which highlights the value of our robust inventory."

Newfield expects to update its total company prospect inventory and economic expectations by play on February 19, 2013 in conjunction with its earnings release for the fourth quarter and full year 2012. Additional slides related to inventory will be posted to the website at that time.

Production Guidance and Cost and Expense Expectations:


The table below details the Company's growth forecast for 2013-15.










2012*


2013e


2014e


2015e

Domestic Production:








  Oil (MMBO)

11.1


13.5 - 14.5


16.8 - 19.0


20.6 - 25.3

  NGLs (MMBbls)

2.3


4.2 - 4.7


7.2 - 8.0


6.9 - 8.5

  Natural Gas (BCF)

140


115 - 125


114 - 132


112 - 136

Domestic Total (MMBOE)

36.8


37.0 - 40.0


43.0 - 49.0


46.0 - 57.0

  YoY Domestic Liquids Growth

27%


39%


38%


20%

  YoY Domestic Gas Growth

(7%)


(14%)


1%


--

  YoY Domestic Total Growth

3%


5%


18%


12%









International Production:








  Oil (MMBO)

9.9


7.2





  Natural Gas (BCF)

1.2


0.0





International Total (MMBOE):

10.1


    7.2**





Total Production (MMBOE):

46.9


44.2 - 47.2













* Excludes production from assets sold

** Approximately 60% of full-year 2013 international production is expected in the first half of 2013

 

The following table details the Company's expected ranges for 2013 costs and expenses.








Domestic


International


Total

Operating Expenses:






  Recurring LOE (per BOE)

$5.50 - $6.15


$15.40 - $17.00


$7.05 - $7.80

  Major Expense (per BOE)

$1.65 - $1.80


$2.00 - $2.20


$1.70 - $1.90

  Transportation (per BOE)

$2.50 - $2.80


---


$2.05 - $2.30

Total LOE (per BOE)

  $9.65 - $10.75


$17.40 - $19.20


$10.80 - $12.00

Production & Other Taxes (per BOE):

$2.35 - $2.60


$32.50 - $35.75


$7.00 - $7.80

DD&A Expense (per BOE):

$16.50 - $17.25


$30.00 - $31.50


$18.50 - $19.25

General & Administration (G&A), net (per BOE):





$5.00 - $5.50

Capitalized Internal Costs (per BOE):





($3.00 - $3.30)

Interest Expense (per BOE):





$4.25 - $4.65

Capitalized Interest (per BOE):





($1.10 - $1.20)

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 developments located offshore 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 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
Big Data, cloud, analytics, contextual information, wearable tech, sensors, mobility, and WebRTC: together, these advances have created a perfect storm of technologies that are disrupting and transforming classic communications models and ecosystems. In his session at @ThingsExpo, Erik Perotti, Senior Manager of New Ventures on Plantronics’ Innovation team, provided an overview of this technological shift, including associated business and consumer communications impacts, and opportunities it m...
For organizations that have amassed large sums of software complexity, taking a microservices approach is the first step toward DevOps and continuous improvement / development. Integrating system-level analysis with microservices makes it easier to change and add functionality to applications at any time without the increase of risk. Before you start big transformation projects or a cloud migration, make sure these changes won’t take down your entire organization.
The financial services market is one of the most data-driven industries in the world, yet it’s bogged down by legacy CPU technologies that simply can’t keep up with the task of querying and visualizing billions of records. In his session at 20th Cloud Expo, Jared Parker, Director of Financial Services at Kinetica, will discuss how the advent of advanced in-database analytics on the GPU makes it possible to run sophisticated data science workloads on the same database that is housing the rich inf...
It is one thing to build single industrial IoT applications, but what will it take to build the Smart Cities and truly society changing applications of the future? The technology won’t be the problem, it will be the number of parties that need to work together and be aligned in their motivation to succeed. In his Day 2 Keynote at @ThingsExpo, Henrik Kenani Dahlgren, Portfolio Marketing Manager at Ericsson, discussed how to plan to cooperate, partner, and form lasting all-star teams to change the...
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
"delaPlex is a software development company. We do team-based outsourcing development," explained Mark Rivers, COO and Co-founder of delaPlex Software, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
In his session at 20th Cloud Expo, Mike Johnston, an infrastructure engineer at Supergiant.io, will discuss how to use Kubernetes to setup a SaaS infrastructure for your business. Mike Johnston is an infrastructure engineer at Supergiant.io with over 12 years of experience designing, deploying, and maintaining server and workstation infrastructure at all scales. He has experience with brick and mortar data centers as well as cloud providers like Digital Ocean, Amazon Web Services, and Rackspace....
SYS-CON Events announced today that CA Technologies has been named “Platinum Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business – from apparel to energy – is being rewritten by software. From ...
"I think that everyone recognizes that for IoT to really realize its full potential and value that it is about creating ecosystems and marketplaces and that no single vendor is able to support what is required," explained Esmeralda Swartz, VP, Marketing Enterprise and Cloud at Ericsson, in this SYS-CON.tv interview at @ThingsExpo, held June 7-9, 2016, at the Javits Center in New York City, NY.
SYS-CON Events announced today that Fusion, a leading provider of cloud services, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Fusion, a leading provider of integrated cloud solutions to small, medium and large businesses, is the industry’s single source for the cloud. Fusion’s advanced, proprietary cloud service platform enables the integration of leading edge solutions in the cloud, including cloud...
The buzz continues for cloud, data analytics and the Internet of Things (IoT) and their collective impact across all industries. But a new conversation is emerging - how do companies use industry disruption and technology enablers to lead in markets undergoing change, uncertainty and ambiguity? Organizations of all sizes need to evolve and transform, often under massive pressure, as industry lines blur and merge and traditional business models are assaulted and turned upside down. In this new da...
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settle...
SYS-CON Events announced today that Cloud Academy will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Cloud Academy is the industry’s most innovative, vendor-neutral cloud technology training platform. Cloud Academy provides continuous learning solutions for individuals and enterprise teams for Amazon Web Services, Microsoft Azure, Google Cloud Platform, and the most popular cloud computing technologies. Ge...
The best way to leverage your Cloud Expo presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering Cloud Expo and @ThingsExpo will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at Cloud Expo. Product announcements during our show provide your company with the most reach through our targeted audiences.
Cloud Expo, Inc. has announced today that Andi Mann and Aruna Ravichandran have been named Co-Chairs of @DevOpsSummit at Cloud Expo 2017. The @DevOpsSummit at Cloud Expo New York will take place on June 6-8, 2017, at the Javits Center in New York City, New York, and @DevOpsSummit at Cloud Expo Silicon Valley will take place Oct. 31-Nov. 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.