HOUSTON, Oct. 28 /PRNewswire/ -- Newfield Exploration Company (NYSE: NFX) today announced financial and operating results for the third quarter and first nine months of 1999.
Third Quarter 1999
For the third quarter of 1999, Newfield reported net income of $12.4 million, or $0.29 per share (all per share amounts are on a diluted basis), on revenues of $78.6 million. By comparison, the Company reported net income of $0.85 million, or $0.02 per share, on revenues of $45.3 million for the same period of 1998. Operating cash flow before changes in working capital increased 86% for the third quarter of 1999 to $58.2 million, or $1.37 per share, compared to $31.2 million, or $0.81 per share, in the third quarter of 1998.
The significant increase in net income and revenues was due to higher production volumes and higher commodity prices. Stated on a billion cubic feet equivalent (Bcfe) basis, Newfield's total production for the third quarter of 1999 increased 40% over the same period of 1998 to 29.5 Bcfe, or 326 million cubic feet equivalent per day (MMcfe/d).
For the third quarter of 1999, Newfield's natural gas production was up 35% to 21.7 billion cubic feet (Bcf), or 236 million cubic feet per day (MMcf/d) of gas. The Company's average realized price for natural gas was $2.42 per Mcf. For the same period in 1998, gas production totaled 16 Bcf, or 174 MMcf/d, sold at an average price of $2.20 per Mcf.
Crude oil production in the third quarter of 1999 increased nearly 60% to 1.3 million barrels (MMBbls), or about 15,000 barrels of oil per day (BOPD). The Company's average crude oil price for the quarter was $20.09* per barrel. This compares to third quarter 1998 oil production of about 826 thousand barrels (MBbls), or nearly 9,000 BOPD, sold for an average price of $12.28 per barrel. This significant increase in crude oil volumes reflects a recent acquisition in Australia. Third quarter 1999 oil volumes from the Company's Australian venture were 419 MBbls, or about 5,400 BOPD, sold for an average lifting price of $20.76 per barrel.
Third quarter financial results also benefited from per unit decreases in lease operating and DD&A expenses. The Company's lease operating expense was $0.41 per thousand cubic feet equivalent (Mcfe) in the third quarter of 1999 compared to $0.42 per Mcfe in the same period of 1998. DD&A expense for the third quarter of 1999 decreased 6% to $1.30 per Mcfe compared to $1.39 per Mcfe in the comparable period of 1998. The gains from lower lease operating and DD&A expense were offset by slightly higher G&A expense attributable to performance - based pay. The Company's G&A expense for the third quarter averaged $0.16 per Mcfe compared to $0.14 per Mcfe in the same period of 1998.
"Our third quarter results were strong," said Newfield's Chairman and CEO, Joe B. Foster. "These results reflect higher prices for oil and gas. . .but more importantly, they reflect our strong production growth -- up 40%. This quarter, we added Newfield's first international volumes with oil production from Australia. At the same time, we grew our gas production 35% from our core focus areas in the Gulf of Mexico and along the Gulf Coast."
For the first nine months of 1999, Newfield recorded net income of $16.6 million, or $0.39 per share, on revenues of $191.7 million. This compares to net income of $11.3 million, or $0.29 per share, on revenues of $145.2 million during the first nine months of 1998. Operating cash flow before changes in working capital increased more than 30% for the first nine months of 1999 to $139.8 million, or $3.31 per share, compared to $106.3 million, or $2.76 per share, in the same period of 1998.
Year-to-date 1999, oil and gas production has increased 31 percent to 83.1 Bcfe. This compares to production of 63.5 Bcfe in the comparable period of 1998. Year-over-year, natural gas production increased 38 percent to 65 Bcf, or 238 MMcf/d. Crude oil volumes year-to-date increased 10% over the same period of 1998 to 3.0 MMBbls. The increase is due primarily to producing property acquisitions offshore Australia and in the Gulf of Mexico.
The Company's average realized natural gas price for the first nine months of 1999 decreased slightly from the prior period to $2.20 per Mcf. This compares to $2.32 per Mcf in the first nine months of 1998. Newfield's average crude oil price for the first three quarters of 1999 was $16.08 per barrel compared to $13.26 per barrel in the same period of 1998.
For the first nine months of 1999, the Company's lease operating expense averaged $0.37 per Mcfe, a 5% decrease from $0.39 per Mcfe in the first nine months of 1998. DD&A expense was also slightly lower, averaging $1.35 per Mcfe in the first three quarters of 1999 compared to $1.37 per Mcfe in the same period of 1998. Year-to-date, G&A expense per Mcfe is averaging $0.14, down from $0.15 per Mcfe in the same period of 1998.
Capital expenditures year-to-date are $156.6 million, including $84 million for property acquisitions. Spending levels are down from $266.8 million in the same period of 1998. For the full-year 1999, Newfield expects to invest about $225 million.
Newfield Exploration is an independent crude oil and natural gas company. The Company has a solid asset base of exploration and development drilling opportunities primarily in the Gulf of Mexico with operations along the U.S. Gulf Coast and offshore Australia. Newfield balances its drilling program with select acquisitions in core operating areas in the U.S. and overseas.
A table with third quarter and year-to-date 1999 summary financials is attached.
*Reflects a gain from Australian crude oil sold from inventory
**Certain of the statements set forth in this news release regarding 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.
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 NEWFIELD EXPLORATION COMPANY CONSOLIDATED QUARTER-END RESULTS (In thousands, except per share amounts) (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 1999 1998 1999 1998 Revenues $78,648 $45,296 $191,725 $145,180 Net Cash Provided by Operating Activities Before Changes in Operating Assets and Liabilities $58,159 $31,245 $139,761 $106,318 Income Before Taxes $19,283 $ 1,379 $ 26,044 $ 17,595 Net Income $12,405 $ 850 $ 16,610 $ 11,334 Basic Earnings Per Share $ 0.30 $ 0.02 $ 0.40 $ 0.31 Diluted Earnings Per Share $ 0.29 $ 0.02 $ 0.39 $ 0.29 Weighted Average Basic Common Shares Outstanding 41,517 36,721 41,039 36,315
Weighted Average Diluted Common
Shares Outstanding 42,590 38,776 42,192 38,470
SOURCE Newfield Exploration Company
Web site: http: //www.newfld.com
CONTACT: Steve Campbell of Newfield Exploration Company, 281-847-6081