THE WOODLANDS, Texas,
Feb. 6, 2012 /PRNewswire/
-- Newfield Exploration Company (NYSE: NFX) today provided an
update on its ongoing sale of non-strategic assets. The program to
date will generate estimated proceeds of approximately $735 million. This includes approximately
$400 million of sales closed in 2011
and an additional $335 million in
sales that are expected to close in early 2012.
In 2011, Newfield grew its oil and liquids production more than
20%. Natural gas volumes declined approximately 5% in 2011 due to
reduced capital investments in gas assets and natural field
declines. For the full year 2011, the Company produced
approximately 300 Bcfe. On a pro forma basis, excluding the
production associated with assets sold in 2011 and the anticipated
closings in early 2012, full year 2011 production would have been
approximately 290 Bcfe.
"Our focus over the last several years has been on oil," said
Lee K. Boothby, Newfield Chairman,
President and CEO. "We are re-allocating our people and using
proceeds from recent asset sales to drive strong oil growth. For
2012, we will direct substantially our entire budget to oil and
liquids-rich opportunities. As a result, we expect to again
generate more than 20% growth in our 2012 oil and liquids volumes.
With a lack of investment and natural declines, our natural gas
volumes will continue to fall. In the second half of 2012, we
anticipate that approximately 50% of our production will be from
oil and liquids assets... this compares to just one-third of
production just three years ago. With today's weak natural gas
prices, investing in oil growth is clearly the right economic
choice to create the most value for our shareholders."
Boothby continued, "As evidenced through our asset sales
program, we are committed to living within our internal resources.
We will continue to monetize assets over time that are
non-strategic to our future and use the proceeds to high-grade our
investment inventory."
With the continued emphasis on oil growth and its focus on
developing long-lived onshore resource plays, Newfield now
considers its Gulf of Mexico
assets to be "non-strategic." Newfield is not planning to drill any
additional exploratory wells in the Gulf
of Mexico and will explore all options in 2012 to create
value from these assets.
Newfield will release its fourth quarter and full year 2011
financial and operating results on February
21, following the market close. A conference call with
management will held at 10 a.m. CST,
February 22, 2012. To participate in
the call, dial 719-325-2481 or listen through the investor
relations section of our website at http://www.newfield.com.
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, 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, new regulations or changes in tax legislation,
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 numerous 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:
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Investor
Relations:
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Steve
Campbell (281) 210-5200
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Danny
Aguirre (281) 210-5203
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Media
Relations:
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Keith
Schmidt (281) 210-5202
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SOURCE Newfield Exploration Company