Despite huge success with wells producing more than 2,500 barrels of oil a day in 2015 in northwestern Oklahoma, Houston-based Newfield Exploration joined the ranks of numerous other oil and gas companies reporting financial losses for the year. Newfield announced this week its fourth quarter net loss totaled $663 million or $4.06 per diluted share, a loss primarily related to what the company called a full-cost ceiling test impairment of $702 million. After adjusting for the effect of impairments and unrealized derivative losses, net income would have been $50 million or $0.30 per share, according to the firm’s announcement.
Revenues for the fourth quarter still totaled $362 million while the net cash provided by the operating activities before changes in operating assets and liabilities was $289 million.
For the full year of 2015, Newfield posted a net loss of $3.4 billion or $21.18 per share. Excluding impairments, unrealized losses on commodity derivatives and the premium to call notes, net income would have been $165 million or $1.02 per share. Revenues for the year totaled $1.6 billion and the consolidated cash provided by operating activities before changes in operating assets and liabilities was nearly $1.2 billion.
The company had continued success with huge oil wells in Blaine, Kingfisher and Canadian Counties, helping boost the company’s net production in the fourth quarter to 14.9 MMBOE which was comprised of 47 percent oil, 16 percent natural gas liquids and 37 percent natural gas. For the full year of 2015, the production was 56 MMBOE.
The company’s proved reserves were down year-over-year and were impacted by the significantly lowered crude oil and natural gas prices. Newfield stated in its financial earnings report that it invested nearly $1.5 billion in 2015 which included approximately $304 million in land and leasehold expenditures and $107 million of capitalized interest and internal costs.
