HOUSTON, April 29 /PRNewswire/ -- Newfield Exploration Company (NYSE: NFX) today reported a net loss for the three months ended March 31, 1999 of $0.2 million, or breakeven on a per share basis, as compared to net income of $6.7 million, or $0.18 per share (all per share amounts are on a diluted basis), for the three months ended March 31, 1998. Primarily as a result of lower product price realizations on increased production volumes, operating cash flow before changes in working capital for the first quarter of 1999 was $37.2 million, compared with $38.3 million for the first quarter of 1998.
Newfield's operating results were negatively impacted by the lower commodity prices realized during the first quarter of 1999. Before hedging activities, the average price realized for the three months ended March 31, 1999 was $1.71 per Mcfe, a 25% decrease from the $2.27 per Mcfe realized in the prior year. Newfield's hedging program added $7.5 million in revenues, or $0.28 per Mcfe during the first quarter of 1999.
Oil and gas production for the three months ended March 31, 1999 increased 32% to 26.5 billion cubic feet of natural gas equivalent (Bcfe) compared to 20.1 Bcfe in the prior year period. Approximately 79% of Newfield's production was natural gas. Newfield continued the development of its properties during the first quarter of 1999 as development activities were completed offshore at Main Pass 256 and South Marsh Island 141/144 and onshore south Louisiana in the Broussard area. Initial production from these properties as well as the first full quarter of production from East Cameron 286/287 contributed to the increase in net equivalent daily production to over 300 MMcfe, a record level for Newfield.
"We expect improved operating performance during the remainder of 1999," said Joe B. Foster, Newfield's Chairman and Chief Executive Officer. "Production volumes are expected to be up 20% for the full year 1999. Unit costs have been reduced from those of a year ago, and the futures markets are signaling higher oil and gas prices than existed in 1998. We also expect a higher level of drilling activity during the next three quarters than during the first quarter."
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 (www.newfld.com) NEWFIELD EXPLORATION COMPANY QUARTER END RESULTS (Unaudited) (In Thousands Except Per Share Amounts) Three Months Ended March 31, 1999 1998 Revenues $ 52,914 $ 49,982 Net Cash Provided by Operating Activities Before Changes in Operating Assets and Liabilities $ 37,179 $ 38,275 Income (Loss) Before Taxes $ (141) $ 10,368 Net Income (Loss) $ (170) $ 6,712 Basic Earnings Per Share $ 0.00 $ 0.19 Diluted Earnings Per Share $ 0.00 $ 0.18 Weighted Average Basic Common Shares Outstanding 40,512 36,051 Weighted Average Diluted Common Shares Outstanding 40,512 (a) 38,284 (a) Absent a loss in the period, the outstanding shares would have been 41,713.
Certain of the statements set forth in this document regarding production
targets and growth, operating costs and future drilling 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
SOURCE Newfield Exploration Company
Web site: http: //www.newfld.com
CONTACT: James P. Ulm, II of Newfield Exploration Company, 281-847-6000