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Newfield Announces Third Quarter Results

HOUSTON, Oct. 23 /PRNewswire/ -- Newfield Exploration Company (NYSE: NFX) today announced earnings for the three months ended September 30, 1997, of $8.7 million, or $0.23 per share, on revenues of $49.9 million. For the three months ended September 3O, l996, earnings were $8.7 million, or $0.23 per share on revenues of $35.8 million. Operating cash flow before changes in working capital for the third quarter of 1997 rose 31% to $39.9 million, as compared with $30.4 million for the third quarter of 1996.

For the nine months ended September 30, 1997, oil and gas production rose to 53.9 billion cubic feet of natural gas equivalent (Bcfe), up 32% from the comparable period in 1996. For the first nine months of 1997, earnings per share increased to $0.75 as compared to $0.66 per share in 1996. Also, operating cash flow before changes in working capital was $112.1 million for the first three quarters of 1997, a 32% increase over the prior year.

Capital expenditures for the nine months ended September 30, 1997, were $188.3 million, up from $120.8 million during the comparable period of 1996. During the third quarter of 1997, Newfield's capital expenditures were $74.6 million versus the $64.1 million in the prior year's quarter.

"During the third quarter of 1997, drilling programs completed at Vermilion 398, Ship Shoal 69 and West Delta 152 and the acquisition of producing interests in five fields in the Western Gulf of Mexico contributed to the significant increase in Newfield's production. Our revised production target for 1997 is 73.5 Bcfe, a 30% increase over 1996," commented Joe B. Foster, Newfield's Chairman and CEO. "The addition of new drilling opportunities is an important element of Newfield's strategy for continued growth. We were successful in adding new prospects in the third quarter as Newfield was the high bidder on two blocks in the August 1997 Federal OCS Lease Sale, acquired proved producing properties with drilling upside in its $43 million Western Gulf acquisition and farmed into several projects. As a result of our idea generation efforts, Newfield has increased its 1997 capital budget to $236 million."

"In October, Newfield issued $125 million of 7.45% senior unsecured notes due October 2007. The net proceeds were used primarily to repay outstanding bank indebtedness. Our bank credit facility, as amended and restated, provides for $100 million of available funds. As such, we have the resources through internally generated cash flow and debt capacity to fund future growth through the drill bit and to pursue selected acquisition opportunities."

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

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

                                 Three Months Ended       Nine Months Ended
                                    September 30,            September 30,
                                 1997        1996         1997         1996
    Revenues                 $ 49,863    $ 35,799    $ 139,135    $ 101,774

    Net Cash Provided by
      Operating Activities
      Before Changes in
      Operating Assets
      and Liabilities        $ 39,886    $ 30,415    $ 112,110    $  85,041

    Earnings Before Taxes    $ 13,457    $ 13,330    $  43,667    $  37,754

    Net Earnings             $  8,715    $  8,673    $  28,375    $  24,551

    Earnings Per Share       $   0.23    $   0.23    $    0.75    $    0.66

    Weighted Average Common Shares
      Outstanding              38,120      37,549       37,771       37,132

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

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