Newfield Exploration Company (the Company or Newfield) today provided the following updates in conjunction with its planned appearance
at the Goldman Sachs Energy Conference (the GS Presentation) in Miami, Florida.
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For the fourth quarter of 2018, Newfield expects that its total domestic net production, stated on a barrel of
oil equivalent basis, will be at the high end of its previously stated guidance range of 185 200 MBOE/D. Newfields international oil liftings for the fourth quarter were approximately 237,000 net barrels and also at the high end of
previous guidance.
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For the fourth quarter of 2018, Newfield expects that its daily net liquids production in the Anadarko Basin will
be above the high end of its previously stated guidance range of 80 86 MBbls/D. Net oil production from the Anadarko Basin in the fourth quarter of 2018 is expected to be above the
mid-point
of its
previously stated guidance range of 42 44 MBO/D and will compare favorably to its original fourth quarter estimate of 42 MBO/D provided at the beginning of 2018. The Company also provided updated BOE and oil production data (out through 160
days) for several of its recent black oil infill development drilling projects in the Anadarko Basins STACK play. The data for these 34 infill wells can be found in the accompanying chart included in the GS Presentation.
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Newfields preliminary determination of
year-end
2018 proved
reserves is expected to result in an increase of more than 100 MMBOE (or 15%) year-over-year to over 780 MMBOE (~99% domestic). The largest source of expected reserve additions came from the Anadarko Basin, where estimated reserves grew by
approximately 118 MMBOE and now total more than 545 MMBOE and comprise 70% of Newfields total company reserves. The Company expects to have replaced approximately 240% of its 2018 full-year production volumes with the anticipated addition of
new proved reserves. The anticipated proved reserve life index for Newfield is approximately 11 years.
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Newfield invested approximately $1.4 billion in 2018, in line with previous guidance. The total investments
exclude approximately $115 million of capitalized interest and internal costs.
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A copy of the GS Presentation is furnished herewith
as Exhibit 99.1.
The information in Item 8.01 of this Current Report, including the exhibit attached hereto as Exhibit 99.1, is being furnished and
shall not be deemed filed for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information in Item 8.01 of this Current Report shall not be
incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended, except as otherwise expressly stated in such filing.
Cautionary Note Regarding Forward-Looking Statements
This communication 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. Examples include discussions as to our expectations, beliefs, plans, goals, objectives and future financial or other performance. These statements, by their nature, involve estimates, projections,
forecasts and uncertainties that could cause actual results or outcomes to differ substantially from those expressed in the forward-looking statements.
The words may, forecast, outlook, could, budget, objectives, strategy,
believe, expect, anticipate, intend, estimate, project, prospective, target, goal, plan, should, will,
predict, guidance, may increase, may fluctuate, potential or other similar expressions are intended to identify forward-looking statements. Other than historical facts included in this
communication, all information and statements, including but not limited to information regarding certain plans, expectations, goals, projections and statements about the benefits of the proposed transaction, the merger parties plans,
objectives, expectations and intentions, the expected timing of completion of the proposed transaction, planned capital expenditures, estimated reserves, estimated production targets and commodity mix, estimated
pre-tax
wellhead rates of return, estimated future operating costs and other expenses and other financial measures, estimated future tax rates, drilling and development plans, the timing of production, and
other plans and objectives for future operations, are forward-looking statements. Although, as of the date of this communication, Newfield believes that these expectations are reasonable, this information is based upon assumptions and anticipated
results that are subject to numerous uncertainties and risks, some of which are beyond Newfields control and are difficult to predict. No assurance can be given that such expectations will prove to have been correct.
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