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Newfield Exploration Reports Third Quarter 2015 Results

The following excerpt is from the company's SEC filing.

3Q15 net domestic production of 12.9 MMBOE exceeded guidance mid-point by 0.4 MMBOE

Total Company oil production increased 42% year-over-year; domestic oil production up 11% year-over-year adjusted for asset sales

3Q15 domestic lease operating expense of $4.51 per BOE was 15% below guidance; full-year 2015 lease operating expense expected to be down nearly 25% year-over-year per BOE

Adjusted 3Q15 diluted earnings per share of $0.21 topped consensus estimates

Full-year 2015 net domestic production forecast raised for second time to 50.0 50.5 MMBOE (previous forecast: 48.5 50.0 MMBOE); 2015 consolidated net production raised to 55.3 55.8 (previous forecast: 53.5 55.0 MMBOE)

3Q15 Anadarko Basin average net production was approximately 68,000 BOEPD; 4Q15 average estimated Anadarko Basin net production increased to 74,000 BOEPD (previous forecast: 71,000 BOEPD)

Milestone: Anadarko Basin daily net production levels surpassed remainder of Companys combined domestic businesses

Company reported continued improvements in average production rates from recent STACK wells

Newfield sold approximately $77 million in non-strategic assets year-to-date

Company reiterated 2015 capital investment budget of approximately $1.4 billion

The Woodlands, Texas November 3, 2015

Newfield Exploration Company (NYSE: NFX)

today reported its unaudited third quarter 2015 financial results. In addition, the Company provided an updated @NFX publication on its website and plans to host a conference call at 10:00 a.m. CST on November 4, 2015. To listen to the call and to view the slide deck, please visit Newfields website at To participate in the call, dial (785) 424-1666 and enter conference code 7962303.

Despite a challenging macro environment, Newfield is delivering on the key elements of its business plan in 2015, and we expect to enter 2016 with momentum and an improving cost structure,

said Lee K. Boothby, Newfield Chairman, President and CEO.

We took decisive steps in early 2015 to improve our balance sheet, reduce expenses and improve margins, and shifted both people and capital resources to our highest return asset the Anadarko Basin. Our near-term priorities remain unchanged: maintaining liquidity and a strong capital structure, holding our economically resilient STACK acreage by production, capturing remaining acreage opportunities in the Anadarko Basin and improving our margins across the Company. We are focused on delivering long-term value creation for our stockholders.

Third Quarter 2015 Results

For the third quarter, the Company recorded a net loss of $1.2 billion, or $7.52 per diluted share (all per share amounts are on a diluted basis). The loss was primarily related to a full-cost ceiling test impairment of $1.9 billion ($1.2 billion after-tax, or $7.49 per share). After adjusting for the effect of impairments, unrealized derivative losses and restructuring related costs, net income would have been $34 million, or $0.21 per share.

Revenues for the third quarter were $377 million. Net cash provided by operating activities before changes in operating assets and liabilities was $280 million.

Newfields total net production in the third quarter of 2015 was 14.3 MMBOE, comprised of 47% oil, 16% natural gas liquids and 37% natural gas. Domestic production in the third quarter was 12.9 MMBOE.

Production Guidance and Capital Investments

Newfield increased its 2015 domestic net production guidance to 50.0 50.5 MMBOE (previous forecast: 48.5 50.0 MMBOE). With recent strong performance from its wells in the Anadarko Basins SCOOP and STACK, Newfield again increased its expectations for fourth quarter 2015 average net production in the Anadarko Basin to approximately 74,000 BOEPD (previous forecast: 71,000 BOEPD).

Total Company net production guidance was raised to 55.3 55.8 (previous forecast: 53.5 55.0 MMBOE). The Companys 2015 capital budget was reiterated at approximately $1.4 billion.

Additional operational highlights for the third quarter of 2015 can be found in @NFX.

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 focus on U.S. resource...