Jefferies Global Energy Conference. Lee Boothby Chairman, President & CEO November 13, 2013

Transcription

1 Jefferies Global Energy Conference Lee Boothby Chairman, President & CEO November 13, 2013

2 NFX Mid-Continent EXECUTION Proven operating team Track record of value creation More than a decade of experience in Oklahoma INVENTORY >225,000 net acres Multiple pay horizons Decade-plus of drilling inventory GROWTH ~175% YoY production growth prod. CAGR: 88% Extensive resource & inventory FAVORABLE ENVIRONMENT Existing field infrastructure Attractive commodity markets Reasonable regulatory environment 2

3 What is STACK? It is a new oil resource play STACK combines the Meramec and Woodford Shales Meramec is thick We are developing ~700 of oil saturated column >225,000 net acres in the Anadarko Basin It combines multiple, stacked geologic horizons We have more than 170,000 net acres prospective for the Woodford We have more than 150,000 net acres prospective for the Meramec It provides compelling economics today and room for efficiency improvements EUR range: 800 1,000 MBOE/well 70% Liquids (40% oil) >35% ROR* 3 * $90 oil / $3.50 Gas

4 >225,000 total net acres: >170,000 net acres prospective for the Woodford >150,000 net acres prospective for the Meramec Woodford Plays STACK >150,000 net acres Meramec Play SCOOP 75,000 net acres TX OK Recent Acreage Acquisition Legacy NFX Acreage 4

5 Anadarko Basin Resource STACK North STACK SCOOP South Proved concept Tested SXL wells in Woodford & Upper Meramec 2014 STACK Plan Assess Lower Meramec Development spacing Completion optimization HBP Acreage Tested Horizons ~ 700 of Oil Saturated Interval OSAGE HUNTON Upper MERAMEC Lower CHESTER SHALE (Regional Topseal) SYCAMORE WOODFORD SHALE Source Rock STACK Meramec STACK Woodford SCOOP Woodford Thickness Porosity 3-6% 3-7% 3-10% 5

6 Anadarko Basin Growth Forecast* 50 NET AVG. QUARTERLY PRODUCTION (BOEPD) 3Q13 4Q13e 1Q14e Oil 5,500 6,600 7,600 Gas 10,200 11,700 14,500 NGLs 6,500 7,500 9,400 Total 22,200 25,800 31, MBOEPD (net) Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13e 1Q14e 2Q14e 3Q14e 4Q14e 2015e 6 *Includes SCOOP and STACK; Excludes Granite Wash

7 STACK NFX Wells Bredel 1H-5X 1137 BOEPD (71% Oil) Kretchmar 1H-2W 1054 IP BOEPD (79% Oil) Klade 1H-3X 1000 BOEPD (90% Oil) Brueggen 1H-2X 926 BOEPD (91% Oil) Operated Results YTD: 7 producing wells (avg. 93% WI) 900 BOEPD IP (83% Oil) 597 BOEPD avg. 90-day rate (74% Oil) Okarche 1H-12X 995 BOEPD (84% Oil) Kremeier 1H-18X 549 BOEPD (95% Oil) Merveldt 1H-24X 637 BOEPD (68% Oil) Play Type WI% Gross Perforated Interval (ft) IP-24hr 30-Day Avg. 60-Day Avg. Klade Woodford 99% 10,292 1, Brueggen Woodford 99% 10, Merveldt Woodford 82% 9, Okarche Woodford 88% 10, Kretchmar Meramec 100% 9,930 1, Bredel Meramec 94% 10,018 1, Kremeier Meramec 92% 10, AVERAGE 93% 10, * Gross Wellhead Production

8 YTD STACK Wells vs. Type Curve 800 STACK (7 wells) 700 Type Curve (>9,000') Actuals BOEPD Days Online 8

9 SCOOP Oil Sublette 1H BOEPD (52% Oil) Highlights: ~45,000 net acres in Woodford oil Move to pad drilling in 2014 Recent wells outperforming type curve Boles 1H-14X 1910 BOEPD (57% Oil) Hunter 1H-13X 1589 BOEPD (60% Oil) Play Type WI% GPI IP-24hr 30-Day Avg. Tina 1H-26X 1855 BOEPD (47% Oil) Campbell 1H-36X 1431 BOEPD (56% Oil) Floyd 1H-3X 1068 BOEPD (39% Oil) Williams 1H-7X 1645 BOEPD (68% Oil) 60-Day Avg. Operated Results YTD: 7 producing wells (avg. 76% WI) 1,511 BOEPD IP (55% Oil) 1,194 BOEPD avg. 90-day rate (48% Oil) NFX Best in Class: Boles 1H-14X (79% WI) Drilled in 38 days (8,000 SXL) 6 month payout Tina Oil 99% 10,153 1,855 1,305 1,508 Boles Oil 79% 8,008 1,910 1,466 1,341 Campbell Oil 90% 9,859 1,431 1,063 1,174 Floyd Oil 65% 10,132 1, Hunter Oil 76% 10,170 1,589 1,023 1,162 Sublette Oil 50% 4,904 1, Williams Oil 75% 9,672 1, AVERAGE 76% 8,985 1,511 1,083 1,115 9 * Gross Wellhead Production

10 SCOOP Wet Gas Gregory 1H BOEPD (35% Oil) Highlights: ~30,000 net acres in Woodford Wet Gas Active pad development Improved results by reducing perforation cluster spacing (<75 ) Wilson 1H BOEPD (22% Oil) Jo Ann 1H BOEPD (11% Oil) Mashburn 1H BOEPD (33% Oil) Branch Pilot 5 New Wells 10,750 BOEPD (25% Oil) Operated Results YTD: 10 producing wells (avg. 68% WI) 1,841 BOEPD avg. IP (34% Oil) 1,232 BOEPD avg. 90-day rate (22% Oil) Casados 1H-21X 2127 BOEPD (19% Oil) NFX Best in Class: Play Type WI% GPI IP-24hr 30-Day Avg. 60-Day Avg. Gregory 5H-28 (39% WI) Drilled in 26 days (4,900 Lateral) Casados Wet Gas 59% 6,698 2,127 1,795 1,875 Wilson Wet Gas 57% 4,879 1, Mashburn Wet Gas 55% 4,886 1, Gregory Wet Gas 39% 4,879 1,688 1,195 1,216 Jo Ann Wet Gas 39% 4,894 1, ,078 Branch Infills** Wet Gas 89% 7,115 2,150 1,567 1,661 AVERAGE 68% 6,181 1,841 1,314 1, * Gross Wellhead Production ** Average of 5 infill wells

11 YTD SCOOP Wells vs. Type Curves SCOOP Wet Gas (10 wells) SCOOP Oil (7 Wells) BOEPD 800 BOEPD Days Online Days Online Wet Gas Type Curve (6,150 ) Wet Gas Actuals (6,326 ) Oil Type Curve (>9,000 ) Oil Actuals (8,300 ) 11

12 Focus Area Highlights UINTA BASIN CANA WOODFORD Patterson Wasatch XL sets HZT record IP Drilled Uinta Basin s 1 st SXL UtelandButte wells Drilled Uinta Basin s 1 st Stacked Lateral Wasatch wells Focused on regulatory reform to allow for optimal well design Studied and tested rail options for oil 2013e production growth 8% WILLISTON BASIN Expanded footprint in the Anadarko Basin; announced the STACK resource play Reduced drilling costs and optimized completion techniques SCOOP wells performed above type curves STACK returns already competing with SCOOP 2013e production growth ~174% --1Q14e average to 31,500 BOEPD EAGLE FORD SHALE Reduced well costs, improved returns Drilled SXL wells from pads Optimized development drilling and completion techniques 2013e production growth 40% Reduced well costs, improved returns Drilled SXL wells from pads Optimized development drilling and completion techniques 2013e production growth 70% 12

13 What Matters at Newfield? Focus We are focused on four quality domestic resource plays Returns We are high-grading our investment opportunities to improve future returns and profitability Control of Operations/Cost Control We are working to reduce costs and improve efficiencies throughout our company Inventory Our geoscientists are working to unlock new play types and opportunities within our focus areas 13

14 Forward Looking Statements and Related Matters This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The words will, believe, intend, plan, expect or other similar expressions are intended to identify forward-looking statements. Other than historical facts included in this presentation, all information and statements, such as information regarding planned capital expenditures, estimated reserves, estimated production targets, drilling and development plans, the timing of production, planned capital expenditures, and other plans and objectives for future operations, are forward-looking statements. Although as of the date of this presentation 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, commodity 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 in Utah, the availability of capital resources, labor conditions, severe weather conditions, governmental regulations and other operating risks. Please see Newfield s 2012 Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q filed with the U.S. Securities and Exchange Commission(SEC) for a discussion of other factors that may cause actual results to vary. Unpredictable or unknown factors not discussed herein or in Newfield s SEC filings could also have material adverse effects on forward-looking statements. Readers are cautioned not to place undo reliance on forward-looking statements, which speak only as of the date of this presentation. Unless legally required, Newfield undertakes no obligation to publicly update or revise any forward-looking statements. Cautionary Note to Investors Effective January 1, 2010, the SEC permits oil and gas companies, in their filings with the SEC, to disclose only proved, probable and possible reserves that meet the SEC s definitions for such terms. Newfield may use terms in this presentation, such as resources, net resources, net discovered resources, net risked resources, net lower-risked captured resources, net risked captured resources, gross resources, gross resource potential, gross unrisked resource potential, gross unrisked resources, and similar terms that the SEC s guidelines strictly prohibit in SEC filings. Investors are urged to consider closely the oil and gas disclosures in Newfield s 2012 Annual Report on Form 10-K, available at or by writing Newfield at 4 Waterway Square Place, Suite 100, The Woodlands, Texas Attn: Investor Relations. 14