HOUSTON, Feb. 18 /PRNewswire-FirstCall/ -- Newfield Exploration Company (NYSE: NFX) today announced that it had hedged an additional 35 million MMBtus (approximately 34 Bcf) of its expected gas production for the period April 1 through October 31, 2003 at a floor price of $4.87 per MMBtu. On an energy equivalent basis, this represents a price of approximately $5.11 per Mcf. The cost to Newfield of these hedging transactions was about $0.25 per MMBtu.
"We have consistently used hedging to reduce volatility, ensure that we will have adequate cash flow to implement our drilling programs and manage price risks and rates of return on some of our acquisitions," said David A. Trice, President and CEO. "The chance to lock in a $5 per Mcf floor price and retain all the potential upside in gas prices made this too compelling to pass on. We estimate that our cash flow will far exceed our 2003 capital budget of $450 million, providing us with the flexibility to fund acquisitions, pay down debt or repurchase shares. At this time, we are not planning to hedge any additional production for the winter of 2003-04."
The Company provides information regarding its outstanding hedging positions in its annual report and quarterly reports filed with the SEC and in its electronic publication -- @NFX. This publication can be found on the Company's web page at http://www.newfld.com . Through the web page, interested persons may elect to receive @NFX through e-mail distribution.
Newfield Exploration is an independent crude oil and natural gas exploration and production company. The Company has a solid asset base of producing properties and exploration and development drilling opportunities and operations primarily in the Gulf of Mexico, along the U.S. Onshore Gulf Coast, in the Anadarko and Permian Basins, offshore Australia and in China's Bohai Bay. Newfield balances its drilling program with acquisitions in select areas in the U.S. and overseas.
**Certain of the statements set forth in this release regarding anticipated 2003 cash flow and capital spending and uses of future cash flow are forward looking and based upon assumptions and anticipated results that are subject to numerous uncertainties. 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 and the availability of capital resources, labor conditions and other factors set forth in our Annual Report on Form 10-K for the year ended December 31, 2001. In addition, the drilling of oil and gas wells and the production of hydrocarbons are subject to governmental regulations and operating risks.
Newfield Exploration Company For information, contact: 363 N. Sam Houston Parkway East, Ste. 2020 Steve Campbell Houston, TX 77060 (281) 847-6081 www.newfld.com firstname.lastname@example.org
SOURCE Newfield Exploration Company