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) (Unaudited) 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
SOURCE Newfield Exploration Company
CONTACT: James P. Ulm, II of Newfield Exploration Company, 281-847-6000
Web site: http: //www.newfld.com