|Newfield Exploration Reports Third Quarter 2013 Results|
THE WOODLANDS, Texas, Nov. 4, 2013 /PRNewswire/ — Newfield Exploration Company (NYSE: NFX) today reported its unaudited third quarter 2013 financial results and provided an update on its operations. The Company’s year-to-date operational highlights are detailed in the @NFX publication, located on Newfield’s website.
Newfield will host a conference call at 7:30 a.m. CST on November 5, 2013. To listen to the call and view the slide deck, please visit Newfield’s website at http://www.newfield.com. To participate in the call, dial 719-325-2344.
Third Quarter Financial Summary
With the process underway to divest Newfield’s international businesses, the Company is reporting its financial and operating results for international businesses as “discontinued operations.”
For the third quarter of 2013, the Company posted a loss from continuing operations of $4 million, or $0.03 per diluted share, which includes the impact of a net unrealized loss on commodity derivatives of $106 million ($68 million after-tax), or $0.50 per share. Income from discontinued operations was $31 million, or $0.08 per share, which includes a reduction to EPS of $20 million, or $0.15 per share, related to the purchase of the outstanding preferred shares of Newfield China, LDC, a now wholly-owned subsidiary, from Huffco International, LLC (effective July 1, 2013). Combined net income for the third quarter of 2013 was $27 million, or $0.05 per share (all per share amounts are on a diluted basis).
Excluding the unrealized loss on commodity derivatives and including earnings from discontinued international operations, net income for the third quarter of 2013 would have been $95 million, or $0.70 per diluted share without the effect of the purchase of preferred shares.
Revenues for the third quarter of 2013 were $486 million, excluding $189 million from discontinued operations. Net cash provided by operating activities before changes in operating assets and liabilities was $403 million. See “Explanation and Reconciliation of Non-GAAP Financial Measures” found after the financial statements in this release.
Third Quarter 2013 Sales Summary
Newfield’s net production in the third quarter of 2013 was 12 million BOE, of which 1.6 million BOE was from the Company’s international businesses, which are classified as discontinued operations. Domestic liquids production in the third quarter was up 9% compared to the second quarter of 2013. The composition of third quarter production was 44% oil, 12% natural gas liquids and 44% natural gas. Production by product is detailed in this release for the third quarter of 2013.
“We have executed well in 2013. Not only have we delivered on our projections, but we also have added our new STACK play which provides inventory and economic locations to exploit in 2014 and beyond,” said Lee K. Boothby, Newfield Chairman, President and CEO. “In February 2013, we rolled out a three-year plan and today we have year one behind us. We have even greater confidence in our ability to hit our corporate level targets and we intend to deliver on our promise of doubling liquids production from our four key plays by the end of 2015.”
2013 Production Guidance and Capital Investments
Newfield today raised its production guidance for 2013 to approximately 48 million BOE (previous guidance was 46 – 47 million BOE). The guidance includes approximately 8 million BOE from discontinued international operations.
The Company expects to invest approximately $2 billion, which includes a $62 million acquisition in the Anadarko Basin in August 2013 and excludes capitalized internal costs.
The STACK Play
Newfield today unveiled a new resource play in the Anadarko Basin of Oklahoma. In less than two years, the Company’s net production in the Anadarko Basin has grown to approximately 25,000 BOEPD. The STACK play is adjacent to and complements the Company’s SCOOP play.
“Our early results in the STACK play are very encouraging, with initial wells providing about 35% rates of return,” said Gary D. Packer, Newfield Chief Operating Officer. “We are early in our learning curve in the STACK and history proves that we can lower costs and enhance returns as we move to development mode. STACK has the potential to more than double our unrisked resource potential in the basin and add thousands of new drilling locations. We will be increasing our planned activity levels in the Anadarko Basin, as this region has the potential to drive our corporate growth rates over the next decade. Our net production from the Anadarko Basin is expected to exit 2014 at nearly 50,000 BOEPD.”