Newfield Exploration Reports First Quarter 2013 Results

           Newfield Exploration Reports First Quarter 2013 Results

Liquids comprise 56% of total company production

Domestic liquids production up 9% over fourth quarter of 2012

Domestic liquids production expected to increase 12% quarter-over-quarter in
second quarter of 2013

PR Newswire

THE WOODLANDS, Texas, April 23, 2013

THE WOODLANDS, Texas, April 23, 2013 /PRNewswire/ --Newfield Exploration
Company (NYSE: NFX) today reported its unaudited first quarter 2013 financial
results and provided an update on its operations. The Company's year-to-date
operational highlights are detailed in a "new" @NFX publication, located on
Newfield's website.

Newfield will host a conference call at 8:30 a.m. CDT on April 24, 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 719-325-4824.

First Quarter Financial Summary

For the first quarter, the Company posted a net loss of $8 million, or $0.06
per diluted share (all per share amounts are on a diluted basis). Net income
for the first quarter includes a net unrealized loss on commodity derivatives
of $111 million ($69 million after-tax), or $0.51 per share. Without the
impact of this item, net income for the first quarter of 2013 would have been
$61 million, or $0.45 per diluted share.

Revenues for the first quarter of 2013 were $651 million. Net cash provided by
operating activities before changes in operating assets and liabilities was
$323 million. See "Explanation and Reconciliation of Non-GAAP Financial
Measures" found after the financial statements in this release.

First Quarter Sales Summary

Newfield's net production in the first quarter of 2013 was 11.7 million BOE.
The composition of first quarter production was 47% oil, 9% natural gas
liquids and 44% natural gas. Newfield's first quarter domestic liquids
production was up 9% over the fourth quarter of 2012. Production by product is
detailed in this release for the first quarter of 2013.

"Our production in the first quarter of 2013 exceeded our beginning of the
year expectations and we are 'on target' to deliver on our expected 39% growth
in domestic liquids volumes for the year (adjusted for asset sales in 2012),"
said Lee K. Boothby, Newfield Chairman, President and CEO. "We kicked off the
year with better than expected first quarter volumes in our Cana Woodford,
Williston and Uinta Basin operating regions and posted quarter-over-quarter
production growth (adjusted for asset sales) in our domestic operating
regions. Our focus this year is on execution. We are seeing greater drilling
efficiencies, the benefit of optimized completions and improved returns across
the Company."

First Quarter Operational Highlights

For complete year-to-date highlights, see the Company's @NFX publication,
located on its website.

  oDomestic liquids production increased 9% over fourth quarter of 2012 and
    nearly 30% over the prior year's first quarter when adjusted for asset
    sales. Domestic liquids production expected to increase 12%
    quarter-over-quarter in second quarter of 2013.
  oAverage Cana Woodford net production in the first quarter of 2013 was
    4,300 BOEPD above the fourth quarter 2012 average. Significant drilling
    efficiency gains were achieved in the first quarter and are detailed in
    the @NFX publication.
  oRecord wells completed in the Williston Basin with average gross 24-hour
    initial production rates of more than 3,100 BOEPD in the Bakken formation.
    Completions in the Three Forks formation yielded average gross 24-hour
    initial production rates of approximately 2,400 BOEPD. Company raised its
    2013 year-over-year production growth estimate to 25% compared to original
    estimate of 15%.
  oDrilled six additional super extended lateral wells in the Eagle Ford
    Shale with well costs lowered by $0.4 million over 2012 average completed
    well costs. Wells are in various stages of completion with a 45% increase
    in quarter-over-quarter Eagle Ford production expected in the second
    quarter of 2013.
  oUinta Basin production increased 10% over the fourth quarter of 2012.
    Record drilling times of four days achieved in Greater Monument Butte Unit
    and recent Uteland Butte completions consistent with earlier successes.
    Refining capacity expansions underway in the Salt Lake City area and
    additional markets outside of Salt Lake City are being tested for
    marketing future oil.
  oAnnounced the second of two significant natural gas discoveries offshore
    Malaysia with combined estimates of gas in place ranging from
    approximately 2.0 Tcf to more than 3.0 Tcf. Company is exploring
    strategic alternatives for international businesses and a data room is
    expected to open in the second quarter of 2013.

Full-Year 2013 Guidance

Newfield expects 2013 total company production will range from 44 – 47 million
BOE. The table below details the Company's growth forecast through 2015 and
its planned capital investment ranges for 2013.

                              2012*  2013e        2014e         2015e
Domestic Production:
 Oil (MMBO)                  11.1   13.5 - 14.5  16.8 - 19.0  20.6 - 25.3
 NGLs (MMBbls)               2.3    4.2 - 4.7    7.2 - 8.0     6.9 - 8.5
 Natural Gas (BCF)           140    115 - 125    114 - 132     112 - 136
Domestic Total (MMBOE)        36.8   37.0 - 40.0  43.0 - 49.0   46.0 - 57.0
 YoY Domestic Liquids Growth 27%    39%          38%           20%
 YoY Domestic Gas Growth     (7%)   (14%)        1%            --
 YoY Domestic Total Growth   3%     5%           18%           12%
International Production:
 Oil (MMBO)                  9.9    7.2
 Natural Gas (BCF)           1.2    --
International Total (MMBOE):  10.1    7.2**
Total Production (MMBOE):     46.9   44.2 – 47.2
* Excludes Production from Assets Sold
** Approximately 60% of Annual Production expected in first half of 2013

2013 Costs and Expense Guidance

                            Domestic           International        Total
Operating Expenses:
 Recurring LOE (per BOE):  $5.50 - $6.15      $15.40 - $17.00      $7.05 -
                                                                    $7.80
 Major Expense (per BOE):  $1.65 - $1.80      $2.00 - $2.20        $1.70 -
                                                                    $1.90
 Transportation (per       $3.10 - $3.50      --                   $2.70 -
BOE)*:                                                              $3.00
Total LOE (per BOE)         $10.25 - $11.45    $17.40 - $19.20      $11.45 -
                                                                    $12.70
Production & Other Taxes    $2.35 - $2.60      $32.50 - $35.75      $7.00 -
(per BOE):                                                          $7.80
DD&A Expense (per BOE):     $16.50 - $17.25    $30.00 - $31.50      $18.50 -
                                                                    $19.25
General & Administration                                            $5.00 -
(G&A), net (per BOE):                                               $5.50
Capitalized Internal Costs                                          ($3.00 -
(per BOE):                                                          $3.30)
Interest Expense (per BOE):                                         $4.25 -
                                                                    $4.65
Capitalized Interest (per                                           ($1.10 -
BOE):                                                               $1.20)
Effective Corporate Tax                                             55 - 65%
Rate**:
______
* All transportation and processing fees, whether paid in cash or in-kind, are
reflected in transportation expense as opposed to a realized price deduction.
Realized prices increased and offset transportation expense.
**  In 2012, Newfield made the decision to repatriate earnings generated by
its international businesses to the U.S. As a result, the profits of its
international businesses are included in the Company's consolidated U.S. tax
return resulting in additional taxable income in the U.S. While we receive a
foreign tax credit for taxes paid in foreign tax jurisdictions, we are unable
to recognize these benefits because of our substantial net operating loss
carry-forward position. As a result, the Company expects an effective book
tax rate in 2013 of 55% to 65%. At current oil prices, Newfield's full-year
2013 international cash income taxes are expected to be $55 to $65 million.
Our 2013 domestic federal taxes remain substantially deferred.

Newfield Exploration Company is an independent energy company engaged in the
exploration, development and production of crude oil, natural gas and natural
gas liquids. We are focused on North American resource plays of scale. Our
principal domestic areas of operation include the Mid-Continent, the Rocky
Mountains and onshore Texas. Internationally, we have oil developments
offshore Malaysia and China.

**This release contains forward-looking information. All information other
than historical facts included in this release, such as information regarding
estimated or anticipated drilling plans, planned capital expenditures, and
estimated production, is forward-looking information. Although Newfield
believes that these expectations are reasonable, this information is based
upon assumptions and anticipated results that are subject to numerous
uncertainties and risks. 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, the availability of
refining capacity for the crude oil Newfield produces in the Uinta Basin, the
availability and cost of capital resources, new regulations or changes in tax
legislation, labor conditions and severe weather conditions. In addition, the
drilling of oil and natural gas wells and the production of hydrocarbons are
subject to numerous governmental regulations and operating risks. Other
factors that could impact forward-looking statements are described in "Risk
Factors" in Newfield's 2012 Annual Report on Form 10-K and other subsequent
public filings with the Securities and Exchange Commission, which can be found
at www.sec.gov. Unpredictable or unknown factors not discussed in this press
release could also have material adverse effects on forward-looking
statements. Readers are cautioned not to place undue reliance on
forward-looking statements, which speak only as of the date hereof. Unless
legally required, Newfield undertakes no obligation to publicly update or
revise any forward-looking statements.

For additional information, please contact Newfield's Investor Relations
department.
Phone: 281-210-5201
Email: info@newfield.com

                                                  1Q13 Actual
1Q13 Actual Results ^                            Domestic    Int'l     Total
Production/Liftings^Note 1
           Crude oil and condensate - MMBbls ^    3.0         2.5       5.5
           Natural gas - Bcf ^                    31.0        0.2       31.2
           NGLs - MMBbls ^                        1.0         —         1.0
           Total MMBOE ^                          9.1         2.6       11.7
Average Realized Prices^Note 2
           Crude oil and condensate - $/Bbl ^  $  84.06     $ 110.02  $ 96.06
           Natural gas - $/Mcf ^               $  4.09      $ 3.79    $ 4.09
           NGLs - $/Bbl ^                      $  28.63     $ —       $ 28.63
           Boe equivalent - $/BOE              $  45.27     $ 108.69  $ 59.79
Operating Expenses: ^
  Lease operating ($MM)
  Recurring                                    $  48.7      $ 32.6    $ 81.3
  Major (workovers, etc.)                      $  8.7       $ 2.8     $ 11.5
  Transportation                               $  30.0      $ —       $ 30.0
  Lease operating (per BOE)
  Recurring                                    $  5.59      $ 12.60   $ 7.20
  Major (workovers, etc.)                      $  1.00      $ 1.06    $ 1.02
  Transportation                               $  3.44      $ —       $ 2.65
  Production and other taxes ($MM)             $  12.1      $ 102.7   $ 114.8
  per BOE                                      $  1.39      $ 39.69   $ 10.16
  General and administrative (G&A), net ($MM)  $  45.0      $ 0.9     $ 45.9
  per BOE                                      $  5.17      $ 0.34    $ 4.06
   Capitalized internal costs ($MM)                                 $ (36.3)
   per BOE                                                      $ (3.21)
Interest expense ($MM)                                                $ 50.6
  per BOE                                                             $ 4.47
Capitalized interest ($MM)                                            $ (13.5)
  per BOE                                                             $ (1.19)
______

Note 1: Represents volumes lifted and sold regardless of when produced.
Includes natural gas produced and consumed in our operations of 2.6 Bcf during
the three months ended March 31, 2013.


Note 2: Average realized prices include the effects of hedging contracts, but
exclude fuel volumes. If the effects of these contracts were excluded, the
average realized price for domestic and total natural gas would have been
$3.14 per Mcf and the domestic and total crude oil and condensate average
realized prices would have been $83.90 and $95.98 per barrel, respectively. We
did not have any hedging contracts associated with NGL production as of March
31, 2013.



CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited, in millions, except per share data)
                                                            Three Months Ended

                                                            March 31,
                                                            2013       2012
Oil, gas and NGL revenues                                   $ 651      $  678
Operating expenses:
 Lease operating                                            123         127
 Production and other taxes                                 115         83
 Depreciation, depletion and amortization                   222         226
 General and administrative                                 46          45
 Total operating expenses                                506         481
Income from operations                                        145         197
Other income (expenses):
 Interest expense                                           (51)        (51)
 Capitalized interest                                       14          18
 Commodity derivative income (expense)                      (84)        24
 Other                                                      3           (1)
 Total other income (expense)                            (118)       (10)
Income before income taxes                                    27          187
Income tax provision                                          35          71
 Net income (loss)                                     $ (8)      $  116
Earnings (loss) per share:
 Basic                                                    $ (0.06)   $  0.86
 Diluted                                                  $ (0.06)   $  0.86
Weighted-average number of shares outstanding for basic       135         134
income (loss) per share
Weighted-average number of shares outstanding for diluted     135         135
income (loss) per share



CONDENSED CONSOLIDATED BALANCE SHEET
(Unaudited, in millions)
                                                    March 31,  December 31,
                                                    2013       2012
ASSETS
Current assets:
 Cash and cash equivalents                      $  44      $    88
 Derivative assets                                 51           125
 Other current assets                              577          653
 Total current assets                          672          866
 Property and equipment, net (full cost method)    7,092        6,902
 Derivative assets                                 22           17
 Other assets                                      142          127
 Total assets                               $  7,928   $    7,912
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
 Derivative liabilities                         $  39      $    6
 Other current liabilities                         881          953
 Total current liabilities                     920          959
                                                       
 Other liabilities                                              47
                                                       46
 Derivative liabilities                            24           15
 Long-term debt                                    3,045        3,045
 Asset retirement obligations                      137          132
 Deferred taxes                                    974          934
 Total long-term liabilities                   4,226        4,173
STOCKHOLDERS' EQUITY
Common stock and additional paid-in capital            1,495        1,487
Accumulated other comprehensive loss                   (5)          (7)
Retained earnings                                      1,292        1,300
 Total stockholders' equity                       2,782        2,780
 Total liabilities and stockholders' equity    $  7,928   $    7,912



CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited, in millions)
                                                       Three Months Ended

                                                       March 31,
                                                       2013       2012
Cash flows from operating activities:
 Net income (loss)                                    $  (8)     $ 116
Adjustments to reconcile net income (loss) to net cash
 provided by operating activities:
 Depreciation, depletion and amortization                222       226
 Deferred tax provision (benefit)                        (13)      23
 Stock-based compensation                                9         8
 Commodity derivative (income) expense                   84        (24)
 Cash receipts on derivative settlements, net            27        34
 Other non-cash charges                                  2         4
                                                          323       387
Changes in operating assets and liabilities               36        (175)
 Net cash provided by operating activities           359       212
Cash flows from investing activities:
 Additions to oil and gas properties and other          (403)     (471)
 Acquisitions of oil and gas properties                 —         (9)
 Proceeds from sales of oil and gas properties          4         312
 Net cash used in investing activities               (399)     (168)
Cash flows from financing activities:
 Net repayments under credit arrangements               —         (86)
 Other                                                  (4)       (7)
 Net cash provided by financing activities           (4)       (93)
Decrease in cash and cash equivalents                     (44)      (49)
Cash and cash equivalents, beginning of period            88        76
Cash and cash equivalents, end of period               $  44      $ 27

Explanation and Reconciliation of Non-GAAP Financial Measures

Earnings Stated Without the Effect of Certain Items
Earnings stated without the effect of certain items is a non-GAAP financial
measure. Earnings without the effect of these items are presented because they
affect the comparability of operating results from period to period. In
addition, earnings without the effect of these items are more comparable to
earnings estimates provided by securities analysts.

A reconciliation of earnings for the first quarter of 2013 stated without the
effect of certain items to net income (loss) is shown below:

                                                         1Q13
                                                         (in millions)
Net income (loss)                                      $ (8)
   Net unrealized loss on commodity derivatives^(1)      111
   Income tax adjustment for above item                  (42)
Earnings stated without the effect of the above item ^ $ 61

(1) The determination of "Net unrealized loss on commodity derivatives" for
the first quarter 2013 is as follows:



                                                  1Q13
                                                  (in millions)
Commodity derivative expense                    $ (84)
Cash receipts on derivative settlements, net      (27)
  Net unrealized loss on commodity derivatives  $ (111)

Net Cash Provided by Operating Activities Before Changes in Operating Assets
and Liabilities
Net cash provided by operating activities before changes in operating assets
and liabilities is presented because of its acceptance as an indicator of an
oil and gas exploration and production company's ability to internally fund
exploration and development activities and to service or incur additional
debt. This measure should not be considered as an alternative to net cash
provided by operating activities as defined by U.S. generally accepted
accounting principles.

A reconciliation of net cash provided by operating activities before changes
in operating assets and liabilities to net cash provided by operating
activities is shown below:

                                                           1Q13
                                                            (in millions)
Net cash provided by operating activities                 $ 359
     Net change in operating assets and liabilities       (36)
Net cash provided by operating activities before changes
    in operating assets and liabilities                   $ 323





SOURCE Newfield Exploration Company

Website: http://www.newfield.com