HOUSTON, Jan. 19 /PRNewswire-FirstCall/ -- Newfield Exploration Company (NYSE: NFX) today announced that in connection with the preparation of its consolidated financial statements as of and for the year ended December 31, 2004 it had concluded to fully write off the $35 million book value associated with the Enserch Garden Banks floating production facility (EGB) and related pipelines and processing facility. As a result, the Company will record an after-tax net charge in the fourth quarter of 2004 of $22.8 million, or $0.36 per diluted share. The write off will not impact the current portion of taxes in 2004. Associated tax benefits would be realized in 2005 or beyond.
Newfield acquired a 60% interest in the EGB facility in its late 2002 acquisition of EEX Corporation. Since that time, the Company has undertaken to sell the EGB and related components and has determined that there is no market for this unique asset.
Newfield Exploration Company is an independent crude oil and natural gas exploration and production company. The Company relies on a proven growth strategy that includes balancing acquisitions with drill bit opportunities. Newfield's areas of operation include the Gulf of Mexico, the U.S. onshore Gulf Coast, the Anadarko and Arkoma Basins of the Mid-Continent, the Uinta Basin of the Rocky Mountains and select international ventures.
** The statements set forth in this release regarding anticipated tax benefits 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 the Company's results of operations.
Newfield Exploration Company For information, contact: 363 N. Sam Houston Parkway East, Ste. 2020 Steve Campbell Houston, TX 77060 (281) 847-6081 http://www.newfld.com email@example.com
SOURCE Newfield Exploration Company -0- 01/19/2005 /CONTACT: Steve Campbell of Newfield Exploration Company, +1-281-847-6081, or firstname.lastname@example.org / /Web site: http://www.newfld.com / (NFX) CO: Newfield Exploration Company; Enserch Garden Banks; EEX Corporation ST: Texas IN: OIL SU: AH-AP -- DAW046 -- 5780 01/19/2005 17:24 EST http://www.prnewswire.com