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Newfield Announces First Quarter Results

HOUSTON, April 30 /PRNewswire/ -- Newfield Exploration Company (NYSE: NFX) today announced earnings for the three months ended March 31, 1998 of $6.7 million, or $0.18 per share (all per share amounts are on a diluted basis), as compared to $11.9 million, or $0.31 per share, for the three months ended March 31, 1997. Operating cash flow before changes in working capital for the first quarter of 1998 was $38.3 million, compared with $38.5 million for the first quarter of 1997. The average price realized for crude oil, which constitutes 28% of Newfield's production, was $14.57 per barrel, compared to $22.32 per barrel in the first quarter of 1997. Average price realizations per Mcfe for the first quarter of 1998 were $2.49, down 14% from average realizations for the first quarter of 1997.

Oil and gas production for the three months ended March 31, 1998 was 20.1 billion cubic feet of natural gas equivalent (Bcfe), an increase of 24% over the comparable period in 1997. The completion of development drilling programs and the acquisition of producing interests in the western Gulf of Mexico during 1997 contributed to the production increase. Newfield's capital expenditures for the first quarter of 1998 totaled $72.4 million. Capital spending in 1998 is expected to increase to $200 million as the Company's inventory of exploratory opportunities has increased and early 1998 exploration success has resulted in an increase in planned development and construction activity. Newfield has also increased its 1998 production target to 87 Bcfe, up 18% from 1997.

"Newfield has been an active driller in 1998," commented Joe B. Foster, Chairman and Chief Executive Officer. "Offshore, successful exploratory wells were drilled at High Island A-471, East Cameron 45, East Cameron 151, East Breaks 164 and Main Pass 260. Four successful development wells were completed at East Cameron 286/287, the site of a 1997 exploratory discovery. Major development projects are also underway at Ship Shoal 354, East Cameron 373 and Main Pass 256."

Mr. Foster continued, "Our onshore gulf coast efforts were rewarded with our first exploration discovery at the Gladys Garber #1 in the Broussard area. Three to five additional exploratory wells are planned for the remainder of this year onshore in southern Louisiana, along with further 3-D seismic data acquisition."

Newfield explores, develops and acquires oil and gas properties principally in the Gulf of Mexico.

     Newfield Exploration Company             For more information contact:
     363 N. Sam Houston Pkwy. E., Ste. 2020   James P. Ulm, II
     Houston, TX 77060                        (281) 847-6000

                         NEWFIELD EXPLORATION COMPANY
                       Quarter End Results (Unaudited)
                   (In Thousands Except Per Share Amounts)

                                             Three Months Ended
                                                  March 31,
                                           1998              1997

    Revenues                            $49,982           $46,927

    Net Cash Provided by Operating
      Activities Before Changes in
      Operating Assets
      and Liabilities                   $38,275           $38,544

    Earnings Before Taxes               $10,368           $18,255

    Net Earnings                         $6,712           $11,887

    Basic Earnings Per Share              $0.19             $0.34

    Diluted Earnings per Share            $0.18             $0.31

    Weighted Average Basic Common
      Shares Outstanding                 36,051            35,250

    Weighted Average Diluted Common
      Shares Outstanding                 38,284            37,759

Note: Earnings per share and weighted average common shares outstanding have

been determined in accordance with SFAS No. 128.

Certain of the statements set forth in this document regarding production targets and growth 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.
SOURCE Newfield Exploration Company
Web site: http: //www.newfld.com
CONTACT: James P. Ulm, II of Newfield, 281-847-6000

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