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Newfield Reports Record Fourth Quarter and Full-Year 2000 Results*

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.

Full-Year 2000

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.

Capital Spending

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                                sccampbell@newfld.com


     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 sccampbell@newfld.com

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