HOUSTON, Feb. 15 /PRNewswire/ -- Newfield Exploration Company (NYSE: NFX) today announced financial and operating results for the fourth quarter and full-year 2000. The Company will hold a conference call at 11 a.m. CST to discuss fourth quarter and year-end 2000 results and 2001 plans. To participate in the call, please dial 913-981-5507 and use conference code 704681. A simultaneous web cast of the call is also available at www.newfld.com, under Investor Relations.
Financial and operational highlights for 2000 include: -- Production volumes increased 23% to 140 Bcfe -- Record financial results -- Proved reserves increased 16% to 687 Bcfe at year-end 2000. Proved reserves are now about 940 Bcfe, following the recent Lariat acquisition. -- 166% of 2000 production replaced with 232 Bcfe of reserve additions -- Two major acquisitions, diversifying Company into onshore U.S. gas basins; continued to expand operations in the Gulf of Mexico -- First international discovery - CFD 12-1 Field in Bohai Bay, China
"2000 was a Vintage Year, both financially and operationally," said David A. Trice, Newfield President and CEO. "Our record earnings were driven by a 23% increase in production volumes and significantly higher product prices. But more importantly, we did some things in 2000 that strengthened our Company and ensure future growth. We announced our two largest-ever acquisitions at the beginning and end of 2000. Both of these were U.S. onshore transactions. Today, about 40% of our reserves are located onshore. But we have not diluted our efforts in our largest focus area -- the Gulf of Mexico. Our Gulf of Mexico production and reserves are also at record levels."
Fourth Quarter 2000
For the fourth quarter of 2000, Newfield reported net income of $46.6 million, or $1.01 per share (all per share amounts are on a diluted basis), on revenues of $163.7 million. This compares to 1999 net income of $16.6 million, or $0.39 cents per share, on revenues of $91.6 million.
Operating cash flow before changes in working capital increased 102% in the fourth quarter of 2000 to $133 million, or $2.84 per share. This compares to operating cash flow of $66 million, or $1.54 per share in the fourth quarter of 1999. The significant increase in earnings, revenues and cash flow is attributable to higher commodity prices and a 24% increase in production over the fourth quarter of 1999.
Newfield's natural gas production in the fourth quarter of 2000 increased 25% over the same period in 1999. The Company produced 28 Bcf of gas, or 304 million cubic feet per day (MMcf/d). This compares to natural gas production of 22.4 Bcf of gas, or 243 MMcf/d, in the fourth quarter of 1999. The Company's average realized price for gas also increased significantly, averaging $4.30 per Mcf during the fourth quarter of 2000 compared to $2.67 per Mcf during the same period of 1999.
When compared to the fourth quarter of 1999, crude oil and condensate production in the fourth quarter of 2000 increased 20% to 1.6 million barrels (MMBbls), or 17,561 barrels of oil per day (BOPD). Oil production in the fourth quarter of 1999 was 1.3 MMBbls, or 14,587 BOPD. The Company's average crude oil price for the fourth quarter of 2000 was $26.09 per barrel compared to an average realized price of $22.80 per barrel in the fourth quarter of 1999. In the fourth quarter of 2000, Newfield's oil sales from Australia contributed about 6,400 BOPD.
Stated on a unit of production basis, Newfield's lease operating expense in the fourth quarter of 2000 was $0.47 per Mcfe, or $17.9 million. This compares to $0.49 per Mcfe, or $14.8 million for the fourth quarter of 1999. Newfield's DD&A expense in the fourth quarter of 2000 increased on a unit of production basis to $1.40 per Mcfe, or $52.8 million, compared to $1.33 per Mcfe, or $40.4 million, in the fourth quarter of 1999.
For 2000, Newfield recorded a three-fold increase in net income over 1999. Net income for the full-year 2000 was $132.3 million, or $2.93 per share. We had a change in accounting principle for the recognition of revenue in Australia. Net income before this change was $134.7 million, or $2.98 per share. Revenues for the full-year 2000 were $526.6 million. This compares to net income in 1999 of $33.2 million, or $0.79 per share, on revenues of $287.9 million. Operating cash flow before changes in working capital in 2000 increased more than 85% to $384 million, or $8.25 per share, compared to $205.6 million in 1999, or $4.86 per share.
Production volumes reached record levels in 2000, reflecting a balance of producing property acquisitions and drill bit success. Oil and gas production increased 23 percent to 140 Bcfe in 2000 compared to 113.5 Bcfe in 1999.
Year-over-year natural gas production increased more than 21 percent to 105.4 Bcf, or an average of 288 MMcf/d. This compares to 1999 gas production of 87.4 Bcf, or an average of 239 MMcf/d. The Company's average realized natural gas price for 2000 was $3.56 per Mcf compared to $2.32 per Mcf in 1999.
In 2000, Newfield's crude oil production increased more than 30% over 1999 to 5.8 MMBbls of oil and condensate, or 15,747 BOPD compared to 4.4 MMBbls of oil and condensate, or 14,683 BOPD, in 1999. Newfield's oil sales in Australia totaled 1.7 MMBbls in 2000, averaging 4,573 BOPD in 2000. The acquisition of the Australian assets closed in mid-July 1999. From closing through year-end 1999, the properties produced 867 MBbls, or an average of 5,131 BOPD. On a consolidated basis, Newfield's average realized oil price in 2000 was $25.29 per barrel compared to $18.15 per barrel in the prior year.
Stated on a unit of production basis, Newfield's lease operating expense in 2000 was $0.47 per Mcfe, or $65.4 million. This compares to $0.40 per Mcfe, or $45.6 million in 1999. Newfield's DD&A expense on a unit of production basis in 2000 was $1.37 per Mcfe, or $191.2 million, compared to $1.35 per Mcfe, or $152.6 million, in 1999.
Finding and Development Costs
Newfield's domestic cost to find and develop reserves, stated on an Mcfe basis, was $1.58 per Mcfe during 2000. The Company's five-year average finding and development cost is $1.45 per Mcfe.
In the international arena, we had our first discovery offshore China in the Bohai Bay, but have not yet booked proved reserves to this discovery at this time. International capital expenditures, mainly in Australia and China, totaled $19.7 million in 2000.
Reserve Replacement and Proved Reserves
During 2000, Newfield's worldwide reserve replacement was 166% of total production, which was 140 Bcfe. The Company's reserve replacement in 1999 was 172% of total production. 2000 marks the 11th consecutive year that Newfield has more than replaced annual production with proved reserves.
At the end of 2000, Newfield had proved reserves of 687.3 Bcfe, an increase of 16% over proved reserves of 594.8 Bcfe at the end of 1999. At year-end 2000, Newfield's reserves were 76% natural gas compared to 74 percent natural gas at year-end 1999. Seventy-nine percent of the Company's U.S. reserves are natural gas and 95% of the Company's total proved reserves are located in the U.S.
Newfield's year-end 2000 pre-tax present value of estimated future net revenues before future income taxes, discounted at 10% (PV10) was $3,874 million at year-end 2000 compared to $874 million at the end of 1999. The value for 2000 was derived using prices on December 31, 2000 which were $9.88 per Mcf and $25.46 per barrel. Prices at year-end 1999 were $2.22 per Mcf and $24.77 per barrel.
For the full-year 2000, Newfield invested $378.7 million, including $19.7 million in the international arena and $139 million for property acquisitions, $91 million for exploration and $129 million for development activities in the United States. This compares to 1999 capital spending of $209.8 million, including $86 million for property acquisitions.
Newfield Exploration is an independent crude oil and natural gas exploration and production company. The Company has a solid asset base of producing properties and exploration and development drilling opportunities and operations primarily in the Gulf of Mexico, the Anadarko Basin of Oklahoma, along the U.S. Gulf Coast and offshore Australia. Newfield balances its drilling program with acquisitions in select areas in the U.S. and overseas.
A table with fourth quarter and full-year 2000 summary financials is attached.
* Certain of the statements set forth in this news release regarding our production volumes, capital expenditures and drilling plans are forward- looking and are based upon assumptions and anticipated results that are subject to numerous uncertainties. Actual results may vary significantly from those anticipated due to many factors, including drilling results, oil and gas prices, industry conditions, the prices of goods and services, the availability of drilling rigs and other support services and the availability of capital resources, labor conditions and other factors set forth in our Annual Report on Form 10-K for the year ended December 31, 1999. In addition, the drilling of oil and gas wells and the production of hydrocarbons are subject to governmental regulations and operating risks.
Newfield Exploration Company For information, contact: 363 N. Sam Houston Parkway East, Ste. 2020 Steve Campbell Houston, TX 77060 (281) 847-6081 www.newfld.com firstname.lastname@example.org NEWFIELD EXPLORATION COMPANY Supplemental Information (Unaudited) Financial Data ($ in 000's, except per share amounts) Quarter Ended Twelve Months Ended December 31, December 31, 2000 1999 2000 1999 Revenues: Oil and gas $163,685 $ 91,595 $526,642 $287,889 Operating expenses: Lease Operating 17,852 14,778 65,372 45,561 Production and other taxes 6,487 1,161 10,288 2,215 Transportation 1,313 1,353 5,984 5,922 Depreciation, depletion and amortization 52,800 40,412 191,182 152,644 Ceiling test write-down --- --- 503 --- General and administrative, net 8,398 4,055 29,037 14,405 Stock Compensation 785 514 3,047 1,999 Total operating expenses 87,635 62,273 305,413 222,746 Income from operations 76,050 29,322 221,229 65,143 Other income (expenses) Other income (expense), net (1,084) (963) (7,196) (9,572) Dividends on preferred securities (2,336) (2,388) (9,344) (3,556) (3,420) (3,351) (16,540) (13,128) Income before income tax 72,630 25,971 204,689 52,015 Income tax provision 26,072 9,377 69,980 18,811 Income before Cumulative Effect of Change in Accounting Principle 46,558 16,594 134,709 33,204 Cumulative Effect of Change in Accounting Principle --- --- (2,360) --- Net income $ 46,558 $ 16,594 $132,349 $ 33,204 Earnings per share: Basic - Income before Cumulative Effect of Change in Accounting Principle $ 1.09 $ 0.40 $ 3.18 $ 0.81 Cumulative Effect of Change in Accounting Principle --- --- (0.05) --- Net Income $ 1.09 $ 0.40 $ 3.13 $ 0.81 Diluted - Income before Cumulative Effect of Change in Accounting Principle $ 1.01 $ 0.39 $ 2.98 $ 0.79 Cumulative Effect of Change in Accounting Principle --- --- (0.05) --- Net Income $ 1.01 $ 0.39 $ 2.93 $ 0.79 Weighted average basic shares outstanding 42,566 41,654 42,333 41,194 Weighted average diluted shares outstanding 47,450 42,586 47,228 42,294 Discretionary Cash Flow: Net income $ 46,558 $ 16,594 $132,349 $ 33,204 DD&A 52,800 40,412 191,182 152,644 Deferred taxes 33,069 8,272 54,083 17,706 Stock compensation 785 514 3,047 1,999 Ceiling test write-down --- --- 503 --- Cumulative effect of change in Accounting Principle --- --- 2,360 --- Total $133,212 $ 65,792 $383,524 $205,553 Diluted discretionary cash flow per share $ 2.84 $ 1.54 $ 8.25 $ 4.86 NEWFIELD EXPLORATION COMPANY Supplemental Information (Unaudited) Operating Data Quarter Ended Twelve Months Ended December 31, December 31, 2000 1999 2000 1999 Net Natural Gas Production (Mcf/day) 304,095 243,144 288,104 239,343 Average Gas Price ($/Mcf) $ 4.30 $ 2.67 $ 3.56 $ 2.32 Net Crude/Condensate Production (Bbl/day) 17,561 14,587 15,747 14,683 Average Crude/Condensate Price ($Bbl) $ 26.09 $ 22.80 $ 25.29 $ 18.15 Selected Balance Sheet Data ($ in 000's) December 31, December 31, 2000 1999 Current Assets $179,149 $125,929 Oil and Gas Properties, net 833,315 644,842 Furniture, Fixtures & Equipment and Other Assets 10,786 10,790 Total Assets 1,023,250 781,561 Current Liabilities 141,060 90,727 Long-Term Liabilities (excluding Long-Term Debt) 85,274 47,387 Long-Term Debt 133,711 124,679 Convertible Preferred Securities 143,750 143,750 Stockholders' Equity 519,455 375,018 Total Liabilities and Stockholders' Equity 1,023,250 781,561
SOURCE Newfield Exploration Company
Web site: http: //www.newfld.com
CONTACT: Steve Campbell of Newfield Exploration Company, 281-847-6081, or email@example.com