Welcome!

Microsoft Cloud Authors: David H Deans, Liz McMillan, Pat Romanski, Janakiram MSV, Jnan Dash

News Feed Item

Newfield Exploration Announces Intent to Pursue Strategic Alternatives for its International Assets; Provides 2012 Year-End Business Update

- Fourth Quarter 2012 Production Exceeds Guidance, Company Produces 50 million BOE in 2012

THE WOODLANDS, Texas, Feb. 13, 2013 /PRNewswire/ -- Newfield Exploration Company (NYSE: NFX) today announced that its Board of Directors has authorized the evaluation of strategic alternatives for the Company's international assets, which consist of offshore oil and natural gas developments in Malaysia and China, and has provided significant updates on year-end results.

"The decision to pursue alternatives for Newfield's international assets follows a comprehensive review of the Company's strategy, asset base and future direction with our Board of Directors," said Lee K. Boothby, Newfield Chairman, President and CEO. "This action reflects the confidence we have in our domestic portfolio and the substantial opportunities we see across our liquids-rich domestic resource areas, which include the Uinta basin, the Cana Woodford, the Williston basin and the Eagle Ford. Our Company has evolved and adapted through the successful execution of a number of important transitions and we believe that now is the right time to become a North American-focused operator.

"During 2012, we completed our transformation to an oil-focused company by growing our liquids volumes and as a result, about 55% of our 2013 volumes are expected to come from liquids production.  We are allocating substantially all of our capital to liquids-related projects, while we focus on improving our future returns and profitability. Over the last four years, we have delivered a CAGR of more than 20% in domestic liquids production. We are confident in Newfield's ability to execute at every level of the Company and to continue delivering exceptional domestic liquids growth into the future."

Newfield has engaged Goldman, Sachs & Co. as its advisor to lead the process related to exploring strategic opportunities for its international assets.

Fourth Quarter and Full-Year 2012:

Newfield produced 50 million BOE in 2012, including 11.9 million BOE in the fourth quarter of 2012. Full-year production exceeded the Company's most recent guidance by approximately 0.5 million BOE.

Newfield incurred a $1.5 billion non-cash full cost ceiling test writedown associated with the carrying value of Newfield's domestic proved reserves. The non-cash writedown relates primarily to low natural gas prices and the sale of non-strategic assets.

During the fourth quarter of 2012, Newfield also incurred a non-cash charge for deferred income taxes of approximately $550 million. The charge was primarily related to the Company's focus on U.S. operations and its repatriation of accumulated profits from its international subsidiaries. In December 2012, the Company used repatriated cash to reduce borrowings under its revolving credit facility.

Newfield's actions related to its international assets and year-end proved reserves will impact financial results for the fourth quarter of 2012. The Company expects to report a net loss of approximately $1.2 billion or $8.80 per share.

Year-End 2012 Proved and Probable Reserves:

Proved reserves at year-end 2012 were 566 million BOE, down 13% from 652 million BOE at year-end 2011. The decrease relates primarily to low natural gas prices, the sale of non-strategic assets in 2012 and produced volumes. This decrease was partially offset by the addition of 86 million BOE of reserves through the Company's active drilling programs. Reserves were determined using SEC pricing of $2.76 per MMBtu of natural gas and $94.84 per Bbl of oil.

Approximately 90% of Newfield's proved reserves are now located in domestic resource plays and 48% of proved reserves are oil and liquids. Proved developed producing reserves now represent 45% of total proved reserves. Price-related revisions totaled 616 Bcfe and were due to low natural gas prices. The present value of the Company's proved reserves at year-end (discounted at 10%) was $5.9 billion ($4.4 billion after-tax).

Probable reserves at year-end 2012 were 283 million BOE, or 34% lower than year-end 2011. Liquids increased to 66% of probable reserves. Price-related revisions to natural gas probable reserves totaled approximately 1,200 Bcfe.

Detailed tables on year-end proved reserves and capital investments are below.

Proved Reserves:





Year Ended December 31,





2012


2011


2010





(MMBOE)

Proved Reserves:








Beginning of year


652


619


603


Reserve additions


86


151


113


Reserve revisions


(91)


(48)


(48)


Sales


(30)


(20)


(1)


Production


(51)


(50)


(48)


End of year


566


652


619








Proved Developed Reserves:








Beginning of year


355


361


318


End of year


298


355


361














2012 Capital Expenditures:






2012









(in millions)




Domestic property acquisitions:








Unproved


$

64





Proved



3




Domestic exploration and development



1,588




International costs incurred



258





Total costs incurred*


$

1,913












*

Total costs incurred include $191 million of capitalized interest and overhead and $9 million of asset retirement obligations.

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 and natural gas developments offshore Malaysia and China.

**This release contains forward-looking information. All information other than historical facts included in this release, such as information regarding international strategic plans,estimated or anticipated production growth 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.

@ThingsExpo Stories
Web Real-Time Communication APIs have quickly revolutionized what browsers are capable of. In addition to video and audio streams, we can now bi-directionally send arbitrary data over WebRTC's PeerConnection Data Channels. With the advent of Progressive Web Apps and new hardware APIs such as WebBluetooh and WebUSB, we can finally enable users to stitch together the Internet of Things directly from their browsers while communicating privately and securely in a decentralized way.
Keeping pace with advancements in software delivery processes and tooling is taxing even for the most proficient organizations. Point tools, platforms, open source and the increasing adoption of private and public cloud services requires strong engineering rigor - all in the face of developer demands to use the tools of choice. As Agile has settled in as a mainstream practice, now DevOps has emerged as the next wave to improve software delivery speed and output. To make DevOps work, organization...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm.
What sort of WebRTC based applications can we expect to see over the next year and beyond? One way to predict development trends is to see what sorts of applications startups are building. In his session at @ThingsExpo, Arin Sime, founder of WebRTC.ventures, will discuss the current and likely future trends in WebRTC application development based on real requests for custom applications from real customers, as well as other public sources of information,
SYS-CON Events announced today that Interoute, owner-operator of one of Europe's largest networks and a global cloud services platform, has been named “Bronze Sponsor” of SYS-CON's 20th Cloud Expo, which will take place on June 6-8, 2017 at the Javits Center in New York, New York. Interoute is the owner-operator of one of Europe's largest networks and a global cloud services platform which encompasses 12 data centers, 14 virtual data centers and 31 colocation centers, with connections to 195 add...
TechTarget storage websites are the best online information resource for news, tips and expert advice for the storage, backup and disaster recovery markets. By creating abundant, high-quality editorial content across more than 140 highly targeted technology-specific websites, TechTarget attracts and nurtures communities of technology buyers researching their companies' information technology needs. By understanding these buyers' content consumption behaviors, TechTarget creates the purchase inte...
With the introduction of IoT and Smart Living in every aspect of our lives, one question has become relevant: What are the security implications? To answer this, first we have to look and explore the security models of the technologies that IoT is founded upon. In his session at @ThingsExpo, Nevi Kaja, a Research Engineer at Ford Motor Company, will discuss some of the security challenges of the IoT infrastructure and relate how these aspects impact Smart Living. The material will be delivered i...
In his session at @ThingsExpo, Eric Lachapelle, CEO of the Professional Evaluation and Certification Board (PECB), will provide an overview of various initiatives to certifiy the security of connected devices and future trends in ensuring public trust of IoT. Eric Lachapelle is the Chief Executive Officer of the Professional Evaluation and Certification Board (PECB), an international certification body. His role is to help companies and individuals to achieve professional, accredited and worldw...
Your homes and cars can be automated and self-serviced. Why can't your storage? From simply asking questions to analyze and troubleshoot your infrastructure, to provisioning storage with snapshots, recovery and replication, your wildest sci-fi dream has come true. In his session at @DevOpsSummit at 20th Cloud Expo, Dan Florea, Director of Product Management at Tintri, will provide a ChatOps demo where you can talk to your storage and manage it from anywhere, through Slack and similar services ...
My team embarked on building a data lake for our sales and marketing data to better understand customer journeys. This required building a hybrid data pipeline to connect our cloud CRM with the new Hadoop Data Lake. One challenge is that IT was not in a position to provide support until we proved value and marketing did not have the experience, so we embarked on the journey ourselves within the product marketing team for our line of business within Progress. In his session at @BigDataExpo, Sum...
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
SYS-CON Events announced today that Ocean9will 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. Ocean9 provides cloud services for Backup, Disaster Recovery (DRaaS) and instant Innovation, and redefines enterprise infrastructure with its cloud native subscription offerings for mission critical SAP workloads.
SYS-CON Events announced today that Linux Academy, the foremost online Linux and cloud training platform and community, 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. Linux Academy was founded on the belief that providing high-quality, in-depth training should be available at an affordable price. Industry leaders in quality training, provided services, and student certification passes, its goal is to c...
SYS-CON Events announced today that Telecom Reseller has been named “Media 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. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
SYS-CON Events announced today that Loom Systems 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. Founded in 2015, Loom Systems delivers an advanced AI solution to predict and prevent problems in the digital business. Loom stands alone in the industry as an AI analysis platform requiring no prior math knowledge from operators, leveraging the existing staff to succeed in the digital era. With offices in S...
SYS-CON Events announced today that T-Mobile 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. As America's Un-carrier, T-Mobile US, Inc., is redefining the way consumers and businesses buy wireless services through leading product and service innovation. The Company's advanced nationwide 4G LTE network delivers outstanding wireless experiences to 67.4 million customers who are unwilling to compromise on ...
SYS-CON Events announced today that Cloudistics, an on-premises cloud computing company, has been named “Bronze 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. Cloudistics delivers a complete public cloud experience with composable on-premises infrastructures to medium and large enterprises. Its software-defined technology natively converges network, storage, compute, virtualization, and management into a ...
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 ...
SYS-CON Events announced today that Infranics 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. Since 2000, Infranics has developed SysMaster Suite, which is required for the stable and efficient management of ICT infrastructure. The ICT management solution developed and provided by Infranics continues to add intelligence to the ICT infrastructure through the IMC (Infra Management Cycle) based on mathemat...
Now that the world has connected “things,” we need to build these devices as truly intelligent in order to create instantaneous and precise results. This means you have to do as much of the processing at the point of entry as you can: at the edge. The killer use cases for IoT are becoming manifest through AI engines on edge devices. An autonomous car has this dual edge/cloud analytics model, producing precise, real-time results. In his session at @ThingsExpo, John Crupi, Vice President and Eng...