THE WOODLANDS, Texas,
May 5, 2016 /PRNewswire/
-- Newfield Exploration Company (NYSE: NFX) today signed a
definitive purchase and sale agreement with a subsidiary of
Chesapeake Energy Corporation (NYSE: CHK) to acquire approximately
42,000 net acres in the Anadarko Basin STACK play for $470 million. The transaction will have an
effective date of April 1, 2016 and
closing is subject to customary adjustments. Newfield expects to
fund the transaction with cash on hand and closing is planned for
the second quarter of 2016.
Transaction Highlights:
- Expands Newfield's industry-leading STACK footprint to
approximately 265,000 net acres. Significant overlap with
Newfield's existing acreage in Kingfisher, Blaine, Dewey and
Canadian counties (see map in @NFX located on the Company's
website);
- More than 90% of the acreage to be acquired is
held-by-production, requiring only modest capital investments over
the next several years;
- Of the total consideration, approximately $50 million is associated with proved developed
producing (PDP) reserves and reimbursement for recent STACK wells
which are currently drilling or have been drilled and are planned
for completion. Excluding PDP and reimbursement allocations, the
undeveloped acreage value equates to approximately $10,000 per acre;
- Current net production from the assets is approximately 3,800
BOEPD (55% liquids) and is expected to more than double by year-end
2016 as recently drilled wells are completed and turned to
sales;
- Including this transaction, Newfield estimates that its
cumulative investments in STACK acreage to date total less than
$3,000 per acre. Newfield's average
working interest across the 265,000 net acres in STACK would be
approximately 50%;
- Substantial future upside from multiple prospective horizons,
improving efficiencies in drilling and completion optimization, and
enhanced well performance. Newfield has identified more than 1,000
potential drilling locations on this new acreage.
"This bolt-on acquisition is ideal for Newfield, combining
strategic fit in a growing resource play where we have a clear
competitive advantage," said Newfield Chairman Lee Boothby. "As the discoverer and founder of
STACK, we have drilled more than a quarter of the play's total
wells and are the proven leader. Time and again, we have
demonstrated our ability to efficiently move large-scale resource
plays from concept to discovery, through the HBP phase and into
full-field development. We expect that this acquisition will create
significant, incremental future value for our shareholders."
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 U.S.
resource plays and our principal areas of operation include the
Mid-Continent, the Rocky Mountains and onshore Texas. We also have offshore oil developments
in China.
This news release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. The words "may," "believe," "expect," "anticipate,"
"intend," "estimate," "project," "target," "goal," "plan,"
"should," "will," "predict," "guidance," "potential" or other
similar expressions are intended to identify forward-looking
statements. Other than historical facts included in this news
release, all information and statements, including but not limited
to information regarding acquisitions, use of cash, planned capital
expenditures, estimated reserves, estimated production targets,
drilling and development plans, the timing of production, planned
capital expenditures, and other plans, strategies and objectives
for future operations, are forward-looking statements. Although, as
of the date of this news release, 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 but not limited to
commodity prices, drilling results, our liquidity and the
availability of capital resources, operating risks, industry
conditions, China and U.S.
governmental regulations, financial counterparty risks, the prices
of goods and services, the availability of drilling rigs and other
support services, our ability to close on acquisitions, monetize
assets and repay or refinance our existing indebtedness, labor
conditions, severe weather conditions, and other operating risks.
Please see Newfield's 2015 Annual Report on Form 10-K and Quarterly
Report on Form 10-Q for 1Q 2016, both filed with the U.S.
Securities and Exchange Commission (SEC), for a discussion of other
factors that may cause actual results to vary. Unpredictable or
unknown factors not discussed herein or in Newfield's SEC filings
could also have material adverse effects on actual results. Readers
are cautioned not to place undue reliance on forward-looking
statements, which speak only as of the date of this news release.
Unless legally required, Newfield undertakes no obligation to
publicly update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise.
For additional information, please contact Newfield's Investor
Relations department.
Phone: 281-210-5321
Email: info@newfield.com
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SOURCE Newfield Exploration Company