HOUSTON, April 24 /PRNewswire-FirstCall/ -- Newfield Exploration Company (NYSE: NFX) today announced its financial and operating results for the first quarter of 2002. A conference call to discuss the results is planned for 8 a.m. (CDT), Thursday, April 25. To participate in the call, dial 719-457-2657. A listen-only broadcast will also be provided over the Internet. Simply go to the Investor Relations section at www.newfld.com .
For the first quarter of 2002, net income was $20.0 million, or $0.44 per share (all per share amounts are on a diluted basis), stated before the effect of a non-cash charge related to FAS 133. Stated after the effect of the non- cash charge, net income for the first quarter of 2002 was $16.3 million, or $0.37 per share. Revenues in the first quarter of 2002 were $148.0 million. This compares to net income in the first quarter of 2001 of $64.2 million, or $1.34 per share, stated before the effect of a non-cash charge related to FAS 133. Stated after the effect of the non-cash charge, net income for the first quarter of 2001 was $58.4 million, or $1.22 per share. Revenues in the first quarter of 2001 were $209.3 million. Operating cash flow before changes in working capital was $96.7 million, or $2.01 per share, in the first quarter of 2002 compared to $141.0 million, or $2.91 per share, in the same period of 2001.
The Company's production in the first quarter of 2002, when stated on a natural gas equivalent basis, increased 10% over the first quarter of 2001. Newfield's production was 43.8 billion cubic feet equivalent (Bcfe), or an average of 487 million cubic feet equivalent per day, during the first quarter of 2002. Production volumes were lower during the quarter because of the Company's decision to curtail nearly one Bcfe of unhedged production (approximately 30 MMcf/d) in February in response to low natural gas prices. Without the curtailment, volumes would have increased 13% over the prior period. The following tables detail quarterly production and average realized prices:
Production 1Q02 1Q01 % Change United States Natural gas (Bcf) 33.9 30.8 10% Natural gas (MMcf/d) 377 342 10% Oil and condensate production (MMBbls) 1.35 1.24 9% Oil and condensate production (BOPD) 14,994 13,791 9% Australia Oil and condensate liftings (MBbls) 298.3 239.6 25% Oil and condensate liftings (BOPD) 3,315 2,662 25% Total Natural gas (Bcf) 33.9 30.8 10% Oil and condensate liftings (MMBbls) 1.65 1.48 11% Total Production (Bcfe) 43.8 39.6 10% Average Realized Prices 1Q02 1Q01 % Change United States Natural gas (per Mcf) $3.26 $5.56 (42%) Oil and condensate (per Bbl) $22.03 $24.69 (11%) Australia Oil and condensate liftings (per Bbl) $22.01 $26.28 (16%) Total Natural gas (per Mcf) $3.26 $5.56 (42%) Oil and condensate (per Bbl) $22.03 $24.95 (12%) Total per Mcfe $3.35 $5.25 (36%)
Prices shown are net of transportation expense and after hedging. The Company has not entered into hedging transactions specifically relating to Australian production.
Stated on a unit of production basis, Newfield's lease operating expense in the first quarter of 2002 was $0.53 per thousand cubic feet equivalent (Mcfe), which was equal to per unit LOE expense in the same period of 2001. Due primarily to significantly lower commodity prices, production taxes in the first quarter of 2002 (including resource rent tax in Australia) decreased to $0.08 per Mcfe compared to $0.18 per Mcfe in the first quarter of 2001. DD&A expense in the first quarter of 2002 increased to $1.63 per Mcfe compared to $1.54 per Mcfe in the first quarter of 2001. General and administrative expense for the first quarter of 2002 was $0.27 per Mcfe, equal to per unit G&A expense in the first quarter of 2001. Net interest expense in the first quarter of 2002 was $0.13 per Mcfe compared to $0.18 per Mcfe in the same period of last year. Capitalized interest in the first quarter of 2002 was $2.1 million compared to $1.3 million in the same period last year.
Capital expenditures in the first quarter of 2002 were about $81 million.
Second Quarter 2002 Estimates
Below are estimates of certain significant operating and financial data for the second quarter of 2002. Although the Company believes the expectations reflected in this forward-looking information are reasonable, such expectations are based upon assumptions and anticipated results that are subject to numerous uncertainties. Please see the discussion regarding forward-looking information at the end of this release.
Natural gas production and pricing Newfield's natural gas production in the second quarter of 2002 is expected to be 34 - 38 Bcf (380 - 420 MMcf/d). The price received by the Company for its natural gas production from the Gulf of Mexico and onshore Gulf Coast has typically tracked the Henry Hub Index. Gas from the Company's Mid-Continent properties has typically sold at a discount of $0.12 - $0.15 per Mcfe to Henry Hub. Hedging gains or losses will affect price realizations.
Crude oil production and pricing Consolidated oil production in the second quarter of 2002 is expected to be 1.5 - 1.7 million barrels (17,000 - 19,000 BOPD). Australian oil production during the second quarter is expected to be 300 - 335 thousand barrels (3,300 - 3,700 BOPD). The timing of liftings in Australia will impact reported production and revenues. The price the Company receives from its Gulf Coast production has typically averaged about $2 below the NYMEX WTI price. Oil production from the Mid- Continent has typically sold for a $1.00 - $1.50 per barrel discount to WTI. Australian crude oil sales are based on the Tapis Benchmark, which has historically been comparable to WTI. Hedging gains or losses will affect price realizations.
For the full-year 2002, the Company expects to produce 180-185 Bcfe, an increase of 3-6% over 2001 production volumes. The Company may, however, curtail production in response to low oil and gas prices could adversely impact the Company's growth projections.
Lease Operating Expense Newfield's LOE, including domestic production and severance taxes and resource rent tax in Australia, is expected to be $30 - $33 million in the second quarter of 2002 ($0.66 - $0.72 per Mcfe). The Company's domestic LOE, including taxes, is expected to be $0.59 - $0.65 per Mcfe in the second quarter of 2002. This estimate includes severance taxes of $0.08 - $0.09 per Mcfe. LOE varies and is subject to impact from, among other things, production volumes and commodity pricing, tax rates, service costs, the costs of goods and materials and workover activities.
General and Administrative Expense Newfield's G&A expense for the second quarter of 2002 is expected to be $12 - $13 million ($0.26 - $0.29 per Mcfe). This estimate includes accrual of performance-based pay.
Interest Expense The non-capitalized portion of the Company's interest expense for the second quarter of 2002 is expected to be $6 - $7 million ($0.14 - $0.16 per Mcfe), including a $2.3 million payment on its convertible trust preferred securities. Current borrowings under the Company's bank facilities are $111 million. The remainder of long-term debt consists of two separate issuances of senior notes that in the aggregate total $300 million. Capitalized interest for the second quarter of 2002 is expected to be about $2.2 million.
Income Taxes Including both current and deferred taxes, the Company expects its consolidated income tax rate in the second quarter of 2002 to be about 35%.
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 www.newfld.com . Through the web page, shareholders can 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 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 estimated or anticipated second quarter 2002 results, capital spending and yearly production volumes 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 CONSOLIDATED STATEMENT OF INCOME (Unaudited, in thousands, except per share data) For the Three Months Ended March 31, 2002 2001 Oil and gas revenues $148,039 $209,326 Operating expenses: Lease operating 23,053 20,824 Transportation 1,331 1,262 Production and other taxes 3,410 7,118 Depreciation, depletion and amortization 71,207 61,146 General and administrative 11,767 10,690 Stock compensation 578 595 Total operating expenses 111,346 101,635 Income from operations 36,693 107,691 Other income (expense): Interest income and other, net 1,816 613 Interest expense (7,201) (6,982) Capitalized interest 2,130 1,330 Dividends on preferred securities of Newfield Financial Trust I (2,336) (2,336) Unrealized commodity derivative expense * (5,645) (1,558) (11,236) (8,933) Income before income taxes 25,457 98,758 Income tax provision 9,131 35,613 Income before cumulative effect of change in accounting principle 16,326 63,145 Cumulative effect of change in accounting principle * --- 4,794 Net income $16,326 $58,351 Earnings per share: Basic Income before cumulative effect of change in accounting principle $0.37 $1.43 Cumulative effect of change in accounting principle * --- (0.11) Net income $0.37 $1.32 Diluted Income before cumulative effect of change in accounting principle $0.37 $1.32 Cumulative effect of change in accounting principle * --- (0.10) Net income $0.37 $1.22 Weighted average shares outstanding for basic earnings per share 44,212 44,125 Weighted average shares outstanding for diluted earnings per share 48,745 48,882 PRODUCTION DATA For the Three Months Ended March 31, 2002 2001 Average daily production: Oil and condensate (Bbls) 18,309 16,453 Gas (Mcf) 376.8 341.7 Average realized price: Oil and condensate (Bbls) $22.03 $24.95 Gas (Mcf) $3.26 $5.56 * Associated with SFAS 133. CONSOLIDATED BALANCE SHEET (Unaudited, in thousands of dollars) March 31, December 31, 2002 2001 ASSETS Current assets: Cash & cash equivalents $25,128 $26,610 Accounts receivable, oil and gas 87,580 92,644 Inventories 8,125 7,332 Commodity derivatives * 24,678 79,012 Other current assets 26,392 25,006 Total current assets 171,903 230,604 Oil and gas properties, net (full cost method) 1,417,755 1,408,579 Furniture, fixtures and equipment, net 6,896 6,807 Commodity derivatives * 1,784 7,409 Other assets 9,684 9,972 $1,608,022 $1,663,371 LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable and accrued liabilities $128,035 $160,814 Commodity derivatives * 21,692 4,217 Total current liabilities 149,727 165,031 Other liabilities 5,918 6,288 Commodity derivatives * 2,360 1,813 Long-term debt 410,642 428,631 Deferred taxes 207,349 207,880 Total long-term liabilities 626,269 644,612 Company-obligated, mandatorily redeemable, convertible preferred securities of Newfield Financial Trust I 143,750 143,750 STOCKHOLDERS' EQUITY Common stock 451 449 Additional paid-in capital 370,544 364,734 Treasury stock (26,012) (25,794) Unearned compensation (8,176) (7,845) Accumulated other comprehensive income (loss) Foreign currency translation adjustment (7,158) (8,918) Commodity derivatives * (20,113) 24,936 Retained earnings 378,740 362,416 Total stockholders' equity 688,276 709,978 Total liabilities and stockholders' equity $1,608,022 $1,663,371 * Associated with SFAS 133. CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited, in thousands of dollars) For the Three Months Ended March 31, 2002 2001 Cash flows from operating activities: Net income $16,326 $58,351 Depreciation, depletion and amortization 71,207 61,146 Deferred taxes 2,904 14,524 Stock compensation 578 595 Commodity derivatives * 5,645 1,558 Cumulative effect of change in accounting principle * --- 4,794 96,660 140,968 Changes in operating assets and liabilities 1,989 60,563 Net cash provided by operating activities 98,649 201,531 Cash flows from investing activities: Acquisition, net of cash acquired --- (264,089) Additions to oil and gas properties (84,489) (107,846) Additions to furniture, fixtures and equipment (826) (1,112) Net cash used in investing activities (85,315) (373,047) Cash flows from financing activities: Proceeds from borrowings 128,000 663,000 Repayments of borrowings (146,000) (622,000) Proceeds from issuance of senior notes --- 174,879 Proceeds from issuances of common stock 3,396 530 Purchases of treasury stock (218) (575) Net cash provided by (used in) financing activities (14,822) 215,834 Effect of exchange rate changes on cash and cash equivalents 6 837 Increase (decrease) in cash and cash equivalents (1,482) 45,155 Cash and cash equivalents, beginning of period 26,610 18,451 Cash and cash equivalents, end of period $25,128 $63,606 * Associated with SFAS 133. MAKE YOUR OPINION COUNT - Click Here http://tbutton.prnewswire.com/prn/11690X16297040
SOURCE Newfield Exploration Company
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CAPTION: NFXLOGO-b NEWFIELD EXPLORATION LOGO Newfield Exploration Company. (PRNewsFoto)[AG] HOUSTON, TX USA 01/22/2001