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Newfield Announces Third Quarter Results

HOUSTON, Oct. 29 /PRNewswire/ -- Newfield Exploration Company (NYSE: NFX) today announced earnings for the three months ended September 30, 1998, of $0.9 million, or $0.02 per share (all per share amounts are on a diluted basis), on revenues of $45.3 million. For the three months ended September 30, 1997, earnings were $8.7 million, or $0.23 per share, on revenues of $49.9 million. Operating cash flow before changes in working capital for the third quarter of 1998 was $31.2 million, or $0.81 per share.

For the nine months ended September 30, 1998, oil and gas production rose to 63.5 billion cubic feet of natural gas equivalent (Bcfe), an increase of 18% over the comparable period in 1997. This increase was achieved despite significant production curtailments associated with four tropical storms during September, 1998. Capital expenditures for the nine months ended September 30, 1998, were $266.8 million, up from $188.3 million during the comparable period of 1997. For the full year of 1998, Newfield's projected capital expenditures are $314 million, including $87 million of proved acquisitions completed year to date.

"Newfield faced a difficult operating environment in the third quarter with lower oil and gas prices and shut-ins from tropical storms. Nonetheless, Newfield was profitable for the 20th consecutive quarter since becoming a public company in November 1993," commented Joe B. Foster, Newfield's Chairman and CEO. "Newfield continued to be an active driller in the Gulf of Mexico during the quarter. In addition, it closed an aggregate of $78 million of producing property acquisitions in 10 oil and gas fields in the Gulf of Mexico. This will assure production growth during 1999 and increase our inventory of drilling prospects."

Mr. Foster continued, "Following these acquisitions, Newfield issued four million common shares and used the $83 million of net proceeds to repay bank debt. With significant cash flow from operations and approximately $125 million of bank credit capacity, we are set to pursue attractive opportunities in the coming year."

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)
                                   (Unaudited)

                                 Three Months Ended       Nine Months Ended
                                    September 30,           September 30,
                                 1998         1997        1998         1997

    Revenues                    $45,296     $49,863    $145,180     $139,135

    Net Cash Provided by
     Operating Activities
     Before Changes in
     Operating Assets and
     Liabilities                $31,245     $39,886    $106,318     $112,110

    Earnings Before Taxes       $ 1,379     $13,457    $ 17,595     $ 43,667

    Net Earnings                $   850     $ 8,715    $ 11,334     $ 28,375

    Basic Earnings Per Share    $  0.02     $  0.24    $   0.31     $   0.80

    Diluted Earnings Per Share  $  0.02     $  0.23    $   0.29     $   0.75

    Weighted Average Basic
     Common Shares Outstanding   36,721      35,759      36,315       35,505

    Weighted Average Diluted
     Common Shares Outstanding   38,776      38,213      38,470       37,926

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

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