Newfield Exploration Outlines 2017 Capital Investment Plan and Growth Outlook

THE WOODLANDS, Texas, Feb. 21, 2017

"We are excited about the future of our Company and the profitable oil growth trajectory that we are disclosing today," said Lee K. Boothby, Newfield Chairman, President and CEO. "Our focus has now shifted to development as we plan to aggressively attack our SCOOP and STACK plays to accelerate value creation for our stockholders.

"Our confidence in the Anadarko Basin has allowed us to outline a 2017 – 19 forecast with industry leading liquids growth. Our oil growth will largely be driven by the rapid development of our legacy STACK acreage in the heart of the play's oil window. Our production outlook includes a relatively static rig count of about 10 operated rigs. As oil prices improve, we have the organizational capacity and the financial resources to further accelerate our activity levels in the future."  

The highlights of our plan are outlined below and additional slides can be found in the @NFX publication:

Plan Highlights:

• Newfield's capital budget for 2017 is approximately $1.0 billion, excluding about $120 million in capitalized interest and internal costs. Substantially all of the budget is allocated to domestic operations and approximately 85% is earmarked for SCOOP and STACK. Newfield expects to drill 85 – 90 wells in STACK and up to 50 wells in SCOOP.
• Although the Company's 2017 drilling campaign is weighted toward multi-well pad developments in SCOOP and STACK, capital will be directed to test other prospective, stacked horizons on Newfield's existing acreage positions. The net unrisked resource potential associated with this program is more than 1.0 billion barrels of oil equivalent (see note 1). In addition, investments are planned for infrastructure and land.
• Domestic net production for 2017 is expected to average 142,500 – 145,500 BOEPD, or an increase of 3 – 5% (adjusted for 2016 asset sales). The Company's growth profile in 2017 is expected to be "back-end" weighted due to the timing of completions of multi-well development pads in STACK. All of the Company's operated rigs in STACK today are drilling on multi-well pads. The 2017 fourth quarter net domestic production average is expected to be 150,000 – 160,000 BOEPD.
• Newfield expects to run about 10 operated rigs in the Anadarko Basin in 2017 – 19. Fourth quarter 2017 net production from the Anadarko Basin is expected to increase to approximately 105,000 – 115,000 BOEPD, an approximate 25% increase over fourth quarter 2016 levels. Looking forward, SCOOP and STACK volumes are expected to average 150,000 – 170,000 BOEPD in the fourth quarter of 2019.
• The Company plans to continue operating a single rig in the Williston Basin throughout 2017 where recent SXL wells are being drilled and completed (including facilities) for about $5 million gross. In addition, drilling will continue in the Uinta Basin with a single rig operating under a joint venture in the Central Basin. Recent results have delivered significantly lower total well costs.
• No additional capital is planned for investment in China and the Pearl field is on natural decline. The Company recently reached an agreement to sell its interest in non-operated producing oil fields in Bohai Bay China for approximately $39 million. The sale is expected to close around mid-year 2017. Including the impact of the Bohai Bay sale at mid-year 2017, the Company's 2017 net production in China is expected to average nearly 6,000 BOEPD.
• Newfield provided estimated compound annual growth rates for its net production at $50 - $60 NYMEX WTI  over the period 2017 – 19:
  • Domestic oil production 15 – 20% CAGR
  • Domestic total production 10 – 15% CAGR

2017e Production, Cost and Expense Guidance

	Domestic ARIVA.DE Börsen-Geflüster Kurse Newfield Exploration -   0,00%		China		Total
Production
Oil %	40%		100%		43%
NGLs %	20%		–		19%
Natural Gas %	40%		–		38%
Total (mboepd)1	142.5 – 145.5		5.7 – 6.0		148.2 – 151.5
Expenses ($/boe)2
LOE3	$3.43		$17.48		$3.97
Transportation4	5.62		–		5.40
Production & other taxes	1.16		0.17		1.12
General & administrative (G&A), net	$3.42		$4.18		$3.45
Interest expense, gross	–		–		2.73
Capitalized interest and direct internal costs	–		–		($2.25)
Effective Tax rate5	0 – 5%		0 – 5%		0 – 5%

1Q17e Production, Cost and Expense Guidance

	Domestic		China		Total
Production
Oil %	40%		100%		44%
NGLs %	19%		–		18%
Natural Gas %	41%		–		38%
Total (mboepd)	132.0 – 134.2		6.5 – 7.5		138.5 – 141.7
Expenses ($/boe)1
LOE2	$3.80		$13.33		$4.28
Transportation3	5.89		–		5.60
Production & other taxes	1.18		0.22		1.13
General & administrative (G&A), net	$3.76		3.29 Werbung Mehr Nachrichten zur Newfield Exploration Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 15.04.24 - PR Newswire BlackRock Energy and Resources Income Trust Plc - Transaction in Own Shares 15.04.24 - PR Newswire Fidelity China Special Situations Plc - Transaction in Own Shares Gefragter denn je...:    Explosive Nachfrage und Schockierendes Defizit! Auf den Schwingen des Silbers jetzt abheben! weiterlesen» Anzeige wo-site-teaser-box-16670_site-teaser-box_2024-04-16_08%253A00%253A00_2024-04-17_09%253A00%253A59