Click here to close now.



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
SYS-CON Events announced today that Fusion, a leading provider of cloud services, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, 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 clou...
As someone who has been dedicated to automation and Application Release Automation (ARA) technology for almost six years now, one of the most common questions I get asked regards Platform-as-a-Service (PaaS). Specifically, people want to know whether release automation is still needed when a PaaS is in place, and why. Isn't that what a PaaS provides? A solution to the deployment and runtime challenges of an application? Why would anyone using a PaaS then need an automation engine with workflow ...
With the Apple Watch making its way onto wrists all over the world, it’s only a matter of time before it becomes a staple in the workplace. In fact, Forrester reported that 68 percent of technology and business decision-makers characterize wearables as a top priority for 2015. Recognizing their business value early on, FinancialForce.com was the first to bring ERP to wearables, helping streamline communication across front and back office functions. In his session at @ThingsExpo, Kevin Roberts...
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management...
Your business relies on your applications and your employees to stay in business. Whether you develop apps or manage business critical apps that help fuel your business, what happens when users experience sluggish performance? You and all technical teams across the organization – application, network, operations, among others, as well as, those outside the organization, like ISPs and third-party providers – are called in to solve the problem.
SYS-CON Events announced today that Alert Logic, Inc., the leading provider of Security-as-a-Service solutions for the cloud, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Alert Logic, Inc., provides Security-as-a-Service for on-premises, cloud, and hybrid infrastructures, delivering deep security insight and continuous protection for customers at a lower cost than traditional security solutions. Ful...
@DevOpsSummit taking place June 7-9, 2016 at Javits Center, New York City, and Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 18th International @CloudExpo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. @DevOpsSummit at Cloud Expo New York Call for Papers is now open.
SYS-CON Events announced today that VAI, a leading ERP software provider, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. VAI (Vormittag Associates, Inc.) is a leading independent mid-market ERP software developer renowned for its flexible solutions and ability to automate critical business functions for the distribution, manufacturing, specialty retail and service sectors. An IBM Premier Business Part...
SYS-CON Events announced today that Catchpoint Systems, Inc., a provider of innovative web and infrastructure monitoring solutions, has been named “Silver Sponsor” of SYS-CON's DevOps Summit at 18th Cloud Expo New York, which will take place June 7-9, 2016, at the Javits Center in New York City, NY. Catchpoint is a leading Digital Performance Analytics company that provides unparalleled insight into customer-critical services to help consistently deliver an amazing customer experience. Designed...
Let’s face it, embracing new storage technologies, capabilities and upgrading to new hardware often adds complexity and increases costs. In his session at 18th Cloud Expo, Seth Oxenhorn, Vice President of Business Development & Alliances at FalconStor, will discuss how a truly heterogeneous software-defined storage approach can add value to legacy platforms and heterogeneous environments. The result reduces complexity, significantly lowers cost, and provides IT organizations with improved effi...
SYS-CON Events announced today that Pythian, a global IT services company specializing in helping companies adopt disruptive technologies to optimize revenue-generating systems, has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. Founded in 1997, Pythian is a global IT services company that helps companies compete by adopting disruptive technologies such as cloud, Big Data, advanced analytics, and DevO...
SYS-CON Events announced today that Men & Mice, the leading global provider of DNS, DHCP and IP address management overlay solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. The Men & Mice Suite overlay solution is already known for its powerful application in heterogeneous operating environments, enabling enterprises to scale without fuss. Building on a solid range of diverse platform support,...
Cognitive Computing is becoming the foundation for a new generation of solutions that have the potential to transform business. Unlike traditional approaches to building solutions, a cognitive computing approach allows the data to help determine the way applications are designed. This contrasts with conventional software development that begins with defining logic based on the current way a business operates. In her session at 18th Cloud Expo, Judith S. Hurwitz, President and CEO of Hurwitz & ...
One of the bewildering things about DevOps is integrating the massive toolchain including the dozens of new tools that seem to crop up every year. Part of DevOps is Continuous Delivery and having a complex toolchain can add additional integration and setup to your developer environment. In his session at @DevOpsSummit at 18th Cloud Expo, Miko Matsumura, Chief Marketing Officer of Gradle Inc., will discuss which tools to use in a developer stack, how to provision the toolchain to minimize onboa...
The cloud promises new levels of agility and cost-savings for Big Data, data warehousing and analytics. But it’s challenging to understand all the options – from IaaS and PaaS to newer services like HaaS (Hadoop as a Service) and BDaaS (Big Data as a Service). In her session at @BigDataExpo at @ThingsExpo, Hannah Smalltree, a director at Cazena, will provide an educational overview of emerging “as-a-service” options for Big Data in the cloud. This is critical background for IT and data profes...