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Newfield Announces 21% Production Growth With its Second Quarter Results

HOUSTON, July 29 /PRNewswire/ -- Newfield Exploration Company (NYSE: NFX) today announced earnings for the three months ended June 30, 1999, of $4.4 million, or $0.10 per share (all per share amounts are on a diluted basis), on revenues of $60.1 million. By comparison, earnings for the three months ended June 30, 1998, were $3.8 million, or $0.10 per share, on revenues of $49.9 million. Operating cash flow before changes in working capital for the second quarter of 1999 rose 21% to $44.4 million, as compared with $36.8 million for the second quarter of 1998.

For the three months ended June 30, 1999, oil and gas production rose 21% to 27.0 billion cubic feet of natural gas equivalent (Bcfe) versus 22.4 Bcfe for the comparable period in 1998. As of January 1999, Newfield had become the ninth largest operator of production in the Gulf of Mexico outer continental shelf.

On July 15, 1999, Newfield completed the acquisition of Gulf Australia Resources Limited. The purchase includes interests in two producing oil fields with identified drilling potential in the Timor Sea, offshore Australia. The acquired Jabiru and Challis fields are currently producing at a net daily rate of 6,000 barrels of oil per day. Newfield acquired ten exploration and production licenses covering three million gross acres in the Timor Sea and 5,000 square kilometers of 3-D seismic data. The current drilling plans include two to three infill exploitation wells in 2000 and seven exploration wells over the next two to three years.

Newfield has also reached agreement to purchase three producing oil and gas fields in the Gulf of Mexico from Ocean Energy, Inc. for approximately $66 million. Current net production from these fields is 25 MMcfe per day and the production is 70% oil. Newfield is also in the latter stages of negotiating additional property acquisitions in the Gulf of Mexico that would have an aggregate purchase price of approximately $25 million.

"We were active during the second quarter in each of our focus areas," commented Joe B. Foster, Newfield's Chairman and Chief Executive Officer. "The Gulf of Mexico acquisitions should assure continued production growth into 2000. The Australian acquisition provides our first international production plus both development and exploration drilling opportunities. Further, we have recently entered into a 14,700 gross acre joint venture in onshore South Texas which will result in our drilling three exploratory tests during the next twelve months, and are nearing total depth on our first Lower Wilcox wildcat in South Texas."

Newfield also announced a new production target for 1999 of 111 Bcfe, a 25% increase over 1998.

Capital expenditures for the six months ended June 30, 1999, were $48 million, including $25 million for the three months ended June 30, 1999. Capital expenditures for the second quarter of 1998 were $71 million. As a result of the acquisitions and drilling success, Newfield's capital budget for 1999 has been increased to $200 million.

Newfield explores, develops and acquires oil and gas properties principally in the Gulf of Mexico and has operating activities in the onshore Gulf Coast and offshore Australia and China.

                         NEWFIELD EXPLORATION COMPANY
                             QUARTER END RESULTS
                   (In Thousands Except Per Share Amounts)
                                 (Unaudited)

                            Three Months Ended            Six Months Ended
                                 June 30,                    June 30,
                            1999          1998            1999        1998

    Revenues              $60,072       $49,902         $112,986     $99,884

    Net Cash Provided
     by Operating
     Activities
    Before Changes in
    Operating Assets
    and Liabilities       $44,423       $36,798          $81,602     $75,073

    Earnings Before
     Taxes                 $6,902        $5,848           $6,761     $16,216

    Net Earnings           $4,375        $3,772           $4,205     $10,484

    Basic Earnings
     Per Share              $0.11         $0.10            $0.10       $0.29

    Diluted Earnings
     Per Share              $0.10         $0.10            $0.10       $0.27

    Weighted Average
     Basic Common
     Shares Outstanding    41,078        36,175           40,796      36,113

    Weighted Average
     Diluted Common
     Shares Outstanding    42,221        38,348           41,967      38,316

Certain of the statements set forth in this press release regarding production targets and planned capital expenditures and activities are forward-looking and are 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. In addition, the drilling of oil and gas wells and the production of hydrocarbons are subject to governmental regulations and operating risks.

For more information, contact: James P. Ulm, II 281-847-6000.
SOURCE Newfield Exploration Company
Web site: http: //www.newfld.com
CONTACT: James P. Ulm II of Newfield Exploration Company, 281-847-6000

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