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Newfield Announces Second Quarter Results

HOUSTON, July 23 /PRNewswire/ -- Newfield Exploration Company (NYSE: NFX) today announced earnings for the three months ended June 30, 1998, of $3.8 million, or $0.10 per share (all per share amounts are on a diluted basis), on revenues of $49.9 million. By comparison, earnings for the three months ended June 30, 1997, were $7.8 million, or $0.21 per share, on revenues of $42.3 million. Operating cash flow before changes in working capital for the second quarter of 1998 rose 9% to $36.8 million, as compared with $33.7 million for the second quarter of 1997. Average crude oil price realizations during the second quarter of 1998 declined 29% to $12.84 per barrel. On an equivalent basis, average price realizations were $2.23 per million cubic feet of natural gas equivalent (Mcfe) in the second quarter of 1998 as compared to $2.38 per Mcfe in the prior year period.

For the three months ended June 30, 1998, oil and gas production rose 26% to 22.4 billion cubic feet of natural gas equivalent (Bcfe) versus 17.8 Bcfe for the comparable period in 1997. The increased production was primarily attributable to successful development activities at Ship Shoal 354, East Cameron 373 and West Cameron 561. "Despite lower average price realizations for the quarter, Newfield was able to increase operating cash flow by growing production volumes," commented Joe B. Foster, Chairman and Chief Executive Officer. "Since our founding in 1990, Newfield has grown to become the 11th leading operator of production in the Gulf of Mexico."

Capital expenditures for the six months ended June 30, 1998, were $143.0 million, including $70.7 million for the three months ended June 30, 1998. Capital expenditures for the second quarter of 1997 were $37.8 million. A total of 18 exploratory and development wells have been drilled during 1998 with an overall success rate of 72%. Newfield recently completed the purchase of proved producing interests at South Marsh Island 160. As a result of the acquisition and success in drilling programs, Newfield's capital budget for 1998 has been increased to $223 million.

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

    More information is available at www.newfld.com.

                         NEWFIELD EXPLORATION COMPANY
                             Quarter End Results
                   (In thousands except per share amounts)

                               Three Months Ended             Six Months Ended
                                    June 30,                      June 30,
                              1998           1997             1998        1997
    Revenues               $49,902        $42,345          $99,884     $89,272

    Net Cash Provided by
      Operating Activities
      Before Changes in
        Operating Assets
         and Liabilities   $36,798        $33,680          $75,073     $72,224

    Earnings Before Taxes   $5,848        $11,955          $16,216     $30,210

    Net Earnings            $3,772       $  7,773          $10,484     $19,660

    Basic Earnings
     Per Share             $  0.10         $ 0.22           $ 0.29      $ 0.56

    Diluted Earnings
     Per Share             $  0.10         $ 0.21           $ 0.27      $ 0.52

    Weighted Average Basic
     Common Shares
     Outstanding            36,175         35,505           36,113      35,377

    Weighted Average Diluted
     Common Shares
     Outstanding            38,348         37,807           38,316      37,783

    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 press release regarding production targets 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
CONTACT: James P. Ulm, II of Newfield Exploration Company, 281-847-6000
Web site: http: //www.newfld.com

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