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Newfield Announces First Quarter Results**

HOUSTON, April 23 /PRNewswire-FirstCall/ -- Newfield Exploration Company (NYSE: NFX) today announced its financial and operating results for the first quarter of 2003. A conference call to discuss the results is planned for 8:30 a.m. (CDT), Thursday, April 24. To participate in the call, dial 719-457-2621. 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 2003, the Company reported net income of $64.1 million, or $1.17 per diluted share (all per share amounts are on a diluted basis). Earnings for the quarter include the effects of the following two items:

     -- A $10.0 million one-time charge ($6.5 million after tax), or $0.12 per
        share, associated with the unwind of the gas forward sales obligation
        inherited through the acquisition of EEX Corporation in late 2002; and

     -- An $8.5 million gain ($5.6 million after tax), or $0.10 per share,
        resulting from the cumulative effect of adoption of SFAS 143.  SFAS
        143 changes the manner in which abandonment obligations are reported.

Revenues in the first quarter of 2003 were $279.3 million. Net cash provided by operating activities before changes in operating assets and liabilities* was $175.9 million.

This compares to net income in the first quarter of 2002 of $16.3 million, or $0.37 per share. Revenues in the first quarter of 2002 were $148.0 million. Net cash provided by operating activities before changes in operating assets and liabilities* was $96.7 million in the first quarter of 2002.

The Company's production in the first quarter of 2003, when stated on a natural gas equivalent basis, increased more than 25% over the first quarter of 2002. Newfield produced 55.2 billion cubic feet equivalent (Bcfe), or an average of 614 million cubic feet equivalent per day, during the first quarter of 2003. The following tables detail quarterly production and average realized prices.

     Production
                                                       1Q03    1Q02   % Change
    United States
      Natural gas (Bcf)                                 44.0    34.0     30%
      Oil and condensate production (MMBbls)            1.52    1.35     12%
    Australia
      Oil and condensate liftings (MMBbls)             0.358   0.298     20%
    Total Production (Bcfe)                             55.2    43.8     26%

    Average Realized Prices
                                                       1Q03    1Q02   % Change
    United States
      Natural gas (per Mcf)                            $5.05   $3.26     55%
      Oil and condensate (per Bbl)                    $29.03  $22.03     32%
    Australia
      Oil and condensate liftings (per Bbl)           $31.86  $22.01     45%
    Total (per Mcfe)                                   $5.03   $3.35     50%

     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 (LOE) in the first quarter of 2003 was $0.58 per Mcfe. This compares to LOE of $0.53 per Mcfe in the same period of 2002. Higher commodity prices contributed to significantly higher production taxes in the first quarter. Production taxes in the first quarter of 2003 (including resource rent tax in Australia) increased to $0.23 per Mcfe compared to $0.08 per Mcfe in the same period of 2002. DD&A expense, stated on a unit of production basis, in the first quarter of 2003 was $1.75 per Mcfe compared to $1.63 in the first quarter of 2002. The increase in DD&A expense is related primarily to higher cost reserve additions and the impact of adoption of SFAS 143. G&A expenses in the first quarter of 2003 were $0.32 per Mcfe compared to $0.28 per Mcfe in the same period of 2002. Capitalized G&A expenses in the first quarter of 2003 were $6.8 million compared to $2.3 million in the first quarter of 2002. The increase in G&A expense is primarily due to higher incentive compensation expense and the Company's growing workforce. In response to Newfield's increased emphasis on exploration, the Company is capitalizing a greater portion of its G&A expense.

Capital expenditures in the first quarter of 2003 were $122.7 million.

*Net cash provided by operating activities before changes in operating assets and liabilities is presented because of its acceptance as an indicator of an oil and gas exploration and production company's ability to internally fund exploration and development activities and to service or incur additional debt. This measure should not be considered as an alternative to net cash provided by operating activities as defined by generally accepted accounting principles. A reconciliation of net cash provided by operating activities before changes in operating assets and liabilities to net cash provided by operating activities is shown below:

                                                            1Q03       1Q02
    Net cash provided by operating activities            $  65,655  $  98,649
      (Increase) Decrease in operating assets
       and liabilities                                     110,262     (1,989)
    Net cash provided by operating activities
     before changes in operating assets and liabilities  $ 175,917  $  96,660


    Second Quarter 2003 Estimates

Below are estimates of production and significant operating and financial data for the second quarter of 2003. 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 2003 is expected to be 42 - 47 Bcf (462 - 511 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 2003 is expected to be 1.6 - 1.8 million barrels (18,000 - 20,000 BOPD). Australian oil production during the second quarter is expected to be 240 - 260 thousand barrels (2,600 - 2,900 BOPD). The timing of liftings in Australia will impact reported production and revenues. The price the Company receives for its Gulf Coast production has typically averaged about $2 below the NYMEX West Texas Intermediate (WTI) price. Oil production from the Mid-Continent has typically sold at 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.

Lease Operating and Other Expenses Newfield's LOE is expected to be $36 - $39 million ($0.65 - $0.72 per Mcfe) in the second quarter of 2003. The Company's domestic LOE is expected to be $31 - $35 million ($0.59 - $0.65 per Mcfe). Production and other taxes in the second quarter of 2003 (including resource rent tax in Australia) are expected to be $10 - $11 million ($0.18 - $0.20 per Mcfe). These expenses vary and are 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 2003 is expected to be $14 - $16 million ($0.25 - $0.28 per Mcfe), net of capitalized G&A expense. Capitalized G&A expense is expected to be $6 - $8 million. G&A expense includes stock and incentive compensation expense. Incentive compensation expense depends largely on Newfield's net income.

Interest Expense The non-capitalized portion of the Company's interest expense for the second quarter of 2003 is expected to be $11 - $13 million ($0.21 - $0.23 per Mcfe), including a $2.3 million dividend on its convertible trust preferred securities. Current borrowings under the Company's bank facilities are $205 million. The remainder of long-term debt consists of three separate issuances of senior notes that in the aggregate total $550 million principal amount. Capitalized interest for the second quarter of 2003 is expected to be about $2 - $3 million.

Income Taxes Including both current and deferred taxes, the Company expects its consolidated income tax rate in the second quarter of 2003 to be about 35 - 38%. About 35% of the tax provision is expected to be deferred.

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 relies on a proven growth strategy that includes balancing acquisitions with drill bit opportunities. Newfield's areas of operation include the Gulf of Mexico, the onshore U.S. Gulf Coast, the Anadarko Basin and offshore northwest Australia.

**Certain of the statements set forth in this release regarding estimated or anticipated second quarter results and production volumes 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, labor conditions and other factors set forth in our Annual Report on Form 10-K for the year ended December 31, 2002. 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                                 info@newfld.com



     CONSOLIDATED STATEMENT OF INCOME
     (Unaudited, in thousands, except per share data)

                                                          For the
                                                     Three Months Ended
                                                          March 31,
                                                  2003                2002
    Oil and gas revenues                      $ 279,284           $ 148,039

    Operating expenses:
      Lease operating                            32,256              23,053
      Production and other taxes                 12,574               3,410
      Transportation                              1,563               1,331
      Depreciation, depletion
       and amortization                          96,700              71,207
      General and administrative                 16,903              11,767
      Gas sales obligation settlement             9,998                 ---
      Stock compensation                            679                 578
              Total operating expenses          170,673             111,346

    Income from operations                      108,611              36,693

    Other income (expense):
      Interest expense                          (16,686)             (7,201)
      Capitalized interest                        3,819               2,130
      Dividends on preferred securities of
       Newfield Financial Trust I                (2,336)             (2,336)
      Unrealized commodity derivative expense *  (1,217)             (5,645)
      Other                                      (1,229)              1,816
                                                (17,649)            (11,236)

    Income before income taxes                   90,962              25,457

    Income tax provision                         32,396               9,131
    Income before cumulative effect of
     change in accounting principle              58,566              16,326

    Cumulative effect of change in
     accounting principle**                       5,575                 ---

    Net income                                $  64,141           $  16,326

    Earnings per share:
      Basic
          Income before cumulative effect
           of change in accounting principle  $    1.13           $    0.37
          Cumulative effect of change in
           accounting principle**                  0.11                 ---
          Net income                          $    1.24           $    0.37
      Diluted
          Income before cumulative effect
           of change in accounting principle  $    1.07           $    0.37
          Cumulative effect of change in
           accounting Principle**                  0.10                 ---
          Net income                          $    1.17           $    0.37

    Weighted average shares outstanding
     for basic earnings per share                51,886              44,212

    Weighted average shares outstanding
     for diluted earnings per share              56,208              48,745


    PRODUCTION DATA

                                                           For the
                                                     Three Months Ended
                                                          March 31,
                                                  2003                2002
    Average daily production:
            Oil and condensate (Bbls)            20,821              18,309
            Gas (Mcf)                             488.9               376.8

    Average realized price:
            Oil and condensate (Bbls)         $   29.57           $   22.03
            Gas (Mcf)                         $    5.05           $    3.26

     * Associated with SFAS 133.
    ** Associated with the adoption of SFAS 143.


     CONSOLIDATED BALANCE SHEET
     (Unaudited, in thousands of dollars)
                                                March 31,         December 31,
                                                  2003                2002

    ASSETS
    Current assets:
      Cash & cash equivalents                $   42,586          $   48,898
      Accounts receivable, oil and gas          209,864             130,489
      Inventories                                 7,223               7,910
      Commodity derivatives *                    22,002               2,655
      Deferred taxes                             18,075              12,801
      Other current assets                       29,810              36,074
              Total current assets              329,560             238,827

    Oil and gas properties, net
     (full cost method)                       2,203,105           2,010,005
    Assets held for sale                         35,000              35,000
    Furniture, fixtures and equipment, net        8,747               8,030
    Commodity derivatives *                       4,533               4,439
    Other assets                                 20,952              19,452
                Total assets                 $2,601,897          $2,315,753

    LIABILITIES AND STOCKHOLDERS' EQUITY
    Current liabilities                      $  213,424          $  246,197
    Commodity derivatives *                      69,798              49,610
                Total current liabilities       283,222             295,807

    Other liabilities                            16,906              16,976
    Commodity derivatives *                      12,777              10,610
    Long-term debt                              778,903             709,615
    Asset retirement obligation **              155,240                 ---
    Deferred taxes                              141,595             129,309
                Total long-term liabilities   1,105,421             866,510

    Company-obligated, mandatorily redeemable,
     convertible preferred securities of
     Newfield  Financial Trust I                143,750             143,750
    Minority interest                               ---                 455

    STOCKHOLDERS' EQUITY
      Common stock                                  530                 526
      Additional paid-in capital                643,970             636,317
      Treasury stock                            (26,552)            (26,213)
      Unearned compensation                     (12,936)             (6,479)
      Accumulated other comprehensive
       income (loss)
          Foreign currency translation
           adjustment                               131              (3,888)
          Commodity derivatives *               (36,043)            (27,295)
      Retained earnings                         500,404             436,263
          Total stockholders' equity          1,069,504           1,009,231
          Total liabilities and stockholders'
           equity                            $2,601,897          $2,315,753

     * Associated with SFAS 133.
    ** Associated with the adoption of SFAS 143.


     CONSOLIDATED STATEMENT OF CASH FLOWS
     (Unaudited, in thousands of dollars)

                                                          For the
                                                     Three Months Ended
                                                          March 31,
                                                  2003                 2002
    Cash flows from operating activities:
      Net income                              $  64,141            $  16,326
      Depreciation, depletion and
       amortization                              96,700               71,207
      Deferred taxes                              8,757                2,904
      Stock compensation                            679                  578
      Commodity derivatives *                     1,217                5,645
      Cumulative effect of change in
       accounting principle**                    (5,575)                 ---
      Gas sales obligation settlement             9,998                  ---
                                                175,917               96,660
      Changes in assets and liabilities         110,262               (1,989)
          Net cash provided by operating
           activities                            65,655               98,649
    Cash flows from investing activities:
      Additions to oil and gas properties      (123,992)             (84,489)
      Additions to furniture, fixtures
       and equipment                             (1,891)                (826)
          Net cash used in investing
           activities                          (125,883)             (85,315)
    Cash flows from financing activities:
      Proceeds from borrowings under
       credit arrangements                      744,000              128,000
      Repayments of borrowings under
       credit arrangements                     (575,000)            (146,000)
      Deliveries under the gas sales
       obligation                                (8,442)                 ---
      Proceeds from issuance of common stock        726                3,396
      Repayments of secured notes               (11,215)                 ---
      Purchase of secured notes                 (33,869)                 ---
      Gas sales obligation settlement           (62,017)                 ---
      Purchases of treasury stock                  (339)                (218)
          Net cash provided by (used in)
           financing activities                  53,844              (14,822)
    Effect of exchange rate changes on cash
     and cash equivalents                            72                    6

    Decrease in cash and cash equivalents        (6,312)              (1,482)
    Cash and cash equivalents, beginning
     of period                                   48,898               26,610

    Cash and cash equivalents,
     end of period                            $  42,586            $  25,128

     * Associated with SFAS 133.
    ** Associated with the adoption of SFAS 143.

SOURCE Newfield Exploration Company

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