HOUSTON, April 27 /PRNewswire/ -- Newfield Exploration Company (NYSE: NFX) today announced its financial and operating results for the first quarter of 2000. The Company posted record net income and revenues, driven primarily by higher production volumes and commodity prices.
For the first quarter of 2000, Newfield reported net income of $17.1 million, or $0.40 per share (all per share amounts are on a diluted basis), on revenues of $95.0 million. This compares to a net loss for the first quarter of 1999 of $0.2 million, or break-even on a per share basis, on revenues of $52.9 million. Operating cash flow before changes in working capital increased nearly 75% in the first quarter of 2000 to $64.3 million, or $1.50 per share, compared to $37.2 million, or $0.89 per share for the same period in 1999.
For the first quarter of 2000, the Company's natural gas production increased to 22.7 billion cubic feet (Bcf), an average of 249 million cubic feet per day (MMcf/d). Newfield's average realized price for the first quarter of 2000 was $2.68 per thousand cubic feet (Mcf). This compares to an average realized price of $2.02 for the same period of 1999.
The Company's oil production in the first quarter of 2000 increased about 50% to 1.4 million barrels (MMBbls), or an average of 14,969 barrels of oil per day (BOPD). The Company's averaged realized oil price during the first quarter of 2000 was $25.14 per barrel. The significant increase is due primarily to the Company's mid-1999 acquisition of oil producing properties offshore Australia and new development projects in the Gulf of Mexico. First quarter 2000 oil volumes from Newfield's Australian properties were 448,418 barrels, or about 4,928 BOPD, sold for an average lifting price of $26.89 per barrel.
Newfield's lease operating expense (LOE), stated on a unit of production basis, was $0.49 per thousand cubic feet equivalent (Mcfe) compared to $0.35 per Mcfe in the same period last year. The increase relates primarily to the acquisitions of producing properties in mid-1999. When compared to the most recent quarter (fourth quarter 1999), LOE is flat. The Company's DD&A expense in the first quarter of 2000 was $1.33 per Mcfe, down four percent from $1.39 per Mcfe in the first quarter of 1999, and like LOE, flat with the fourth quarter of 1999. General and administrative expense for the first quarter of 2000 was $0.21 per Mcfe compared to $0.12 per Mcfe in the same period of 1999. The higher G&A expense reflects an increase in performance- based pay, one-time charges and the impact of the Company's growing workforce. Interest expense in the first quarter of 2000 was $0.13 per Mcfe, equal to interest expense in the first quarter of 1999.
Newfield expects its 2000 production to be about 139 billion cubic feet equivalent (Bcfe), an increase of more than 20% over 1999 production levels.
Capital expenditures in the first quarter of 2000 were $183.2 million. The largest component of this was the $137 million purchase of three producing gas fields in South Texas.
2000 Drilling Update
Newfield has five company-operated rigs running in the Gulf of Mexico, two operated rigs running onshore along the U.S. Gulf Coast and one in Australia. In addition, five outside-operated rigs are running, including two in the Gulf of Mexico, two onshore U.S. Gulf Coast and one in Bohai Bay, China. A summary of the Company's first quarter 2000 drilling results by focus area is outlined below.
Gulf of Mexico -- To date in 2000, Newfield drilled five discoveries and one dry hole in the Gulf of Mexico. The Company is operating, or has an interest in, five additional wells that are currently drilling in the Gulf of Mexico. The wells include:
Well name status working interest Operator East Cameron 38 #8 discovery 65% NFX High Island A-521 discovery 41% NFX Ship Shoal 139 #1 discovery/testing 82% NFX South Timbalier 107 #2 discovery/drilling 30% NFX West Cameron 532 #A-12 discovery 33% outside Ship Shoal 139 #2 drilling 82% NFX Grand Isle 103 #2 drilling 48% NFX East Cameron 64 #H-6 drilling 18% NFX Ship Shoal 28 #39 drilling 33% outside Brazos 542 drilling 16% outside Eugene Island 199 #10 dry hole 75% NFX
The Company plans to drill at least 25 wells in the Gulf of Mexico in 2000.
U.S. Onshore Gulf Coast -- Year-to date, Newfield drilled or participated in two discoveries and a successful development well along the Texas coast. Two wells are currently drilling -- one each in Louisiana and Texas. Results follow.
Prospect Location Status Working Interest Operator Cash Texas discovery/drilling 75% NFX Real Texas discovery/testing 75% NFX Davis A-5 Texas successful dev. well 35% outside McCoy Texas drilling 33% outside Wright Louisiana drilling 60% NFX
Newfield plans to begin drilling development wells in the Company's East Sarita Field, located in Kenedy County, Texas. The East Sarita Field was acquired in early 2000 and is currently producing 22 MMcf/d (net). Newfield plans to drill eight additional wells in the coastal regions of Texas and Louisiana during 2000.
International -- Newfield plans to drill at least five wells in international waters during 2000. The program includes four wells offshore Australia and at least one well in China's Bohai Bay.
Australia -- To date in 2000, Newfield drilled three wells offshore Australia. Brontosaurus #1, an outside-operated wildcat drilled on Exploration Permit AC/P 20, was a dry hole. Newfield also drilled two infill wells year-to-date. The Jabiru #14 well did not find sufficient oil pay to warrant completion at this time and was temporarily abandoned. The Challis #15 well was unsuccessful and plugged and abandoned. Newfield operates the Jabiru and Challis Fields with a 50% interest.
China -- A wildcat well on license area 05/36 in China's Bohai Bay began drilling on April 25 to test a large structure directly east of a recent discovery on adjoining license area 04/36. Newfield owns a 35% working interest in this outside operated well.
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 primarily in the Gulf of Mexico with operations along the U.S. Gulf Coast and offshore Australia. Newfield balances its drilling program with acquisitions in select areas in the U.S. and overseas.
A table with first quarter 2000 summary financials is attached.
*Certain of the statements set forth in this news release regarding capital expenditures, activities 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. 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 email@example.com NEWFIELD EXPLORATION COMPANY CONSOLIDATED QUARTER-END RESULTS (In thousands, except per share amounts) (Unaudited) Three Months Ended March 31, 2000 1999 Revenue $ 95,039 $ 52,889 Net Cash Provided by Operating Activities Before Changes in Operating Assets and Liabilities $ 64,299 $ 37,179 Income (Loss) Before Taxes $ 26,267 $ (141) Net Income (Loss) $ 17,123 $ (170) Basic Earnings Per Share $ 0.41 $ 0.00 Diluted Earnings Per Share $ 0.40 $ 0.00 Weighted Average Basic Common Shares Outstanding 41,882 40,512 Weighted Average Diluted Common Shares Outstanding 42,841 40,512
SOURCE Newfield Exploration Company
Web site: http: //www.newfld.com
CONTACT: Steve Campbell of Newfield Exploration Company, 281-847-6081, or email, firstname.lastname@example.org