Jefferies Global Energy Conference November 28, NYSE: NFX

Transcription

1 Jefferies Global Energy Conference November 28, NYSE: NFX

2 1. Transition to an Oil Company is Real Oil/Liquids to be >50% of Total Production in 4Q Oil/Liquids Growth Driving Revenues, Cash Flow ~85% of 2012 Revenues will come from Oil/Liquids 3. Encouraging Assessment Results Cana Woodford Uteland Butte Wasatch Horizontal SXL Eagle Ford 4. Asset Sales Approximately $1B Since Early NFX Has a Deep Inventory of Oil/Liquids Assets 2013 Domestic Oil/Liquids Growth >20% 2

3 1. Proven History in Oklahoma Woodford Formation Arkoma Woodford ~500 Total Wells (374 HZTs) 310,000 Net Acres Prospective for the Woodford Shale Formation 2. Assessing the Anadarko Basin Oil/Liquids-Rich Basin Thick, Quality Resource with Multiple Horizons >200,000 Net Acres 3. Cana Woodford 142,000 Net Acres Up to 1 Billion BOE of Net UnriskedResource Potential 3

4 11,000 10,000 Legacy Production / Cana Leasing Exploration Assessment 9,000 8,000 Net BOEPD 7,000 6,000 5,000 4,000 NFX Commences HZT Drilling Gas Sales NGL Oil 3,000 2,000 1,000 0 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP Key Statistics: Current 4 NFX Operated Rigs Running (24 Total Industry Rigs) 19 NFX Horizontal Wells Producing 5 Wells Waiting on Completion 2013 Plan Up to 8 NFX Operated Rigs Product Composition 33% 41% 26% Oil Gas Sales NGL 4

5 Key Takeaways 142,000 Net Acres 9,300 BOEPD Net Production 60% Liquids Active Development/Assessment 4-6 NFX Operated Rigs South Cana Results YTD 9 Producing Wells (Avg. 75% WI) 1,215 BOEPD Avg. IP (32% Oil) 901 BOEPD Avg. 30 Day Rate 792 BOEPD Avg. 100 Day Rate North Cana (Klade Well) 925 BOEPD (93% Oil) 660 BOEPD Avg. 30 Day Rate 99% WI 5

6 Two Pilots Underway Testing 80 and 130 Acre Spacing Testing Upper and Lower Woodford GOALS: Decrease Time from Assessment to Ultimate Development Determine Optimal Spacing for Development NFX Faith Spacing Pilot First Production Dec 12 Applying Best Practices to Reduce Time from Assessment to Development 6

7 BFITT ROR 80% 60% 40% 20% 0% $90/BO, $3.5/MCF South Cana (5,000 Lateral) ROR vs. NGL Price 39% 36% 33% 30% 43% 49% 54% 57% 17% 15% 14% 13% $25.00 $30.00 $35.00 $40.00 NYMEX NGL Price, $/BNGL Oil Rev. NGL Rev. Gas Rev. 5,000' ROR Delivering Exceptional Returns 100% 80% 60% 40% 20% 0% % Revenue Contribution BFITT ROR 80% 60% 40% 20% 0% North Cana (10,000 Lateral) ROR vs. Oil Price 10% 9% 8% 8% 13% 12% 11% 10% 77% 79% 81% 82% $80 $90 $100 $110 $3.5/MCF, $30/BNGL NYMEX Oil Price, $/BO Oil Rev. NGL Rev. Gas Rev. 10,000' ROR 100% 80% 60% 40% 20% 0% % Revenue Contribution LIQUIDS Drive Value Creation OIL Drives Value Creation 7

8 OIL/COND 500 BCPD (27%) SEPARATOR GAS 8.3 MMcf/d (73%) WELLHEAD Wright 1H-9 Cana XL GAS PLANT 5.8 MMcf/d +/-930 BblsNGL 5.8/6 + COND + NGLs 960 BOEPD 500 BCPD 930 Bbls 40% 21% 39% 2390 BOEPD 100% * $18,900/day $47,500/day $32,500/day *Assumes $95/Bbl Oil, $35/Bbl NGLs and $3.25/Mcf $98,900/day 8

9 > 50% Improvement in Drill Time and Cost/Lateral foot YTD 12 0 South Cana Days vs. Depth New Technology Rotary Steerable Systems New PDC Bits Innovative Casing Designs Identifying High Rate of Penetration Zones Increasing Lateral Lengths to 7,500-10,000 Depth(ft.) 2,000 4,000 6,000 8,000 10,000 12,000 Q Q Q Best in Class: 40 Days Faith 4H-12 Well (5,000 Lateral) 14,000 16,000 18,000 20,000 22, Days 9

10 SIERRA GRANDE Woodford Fairway Woodford Shale Cherokee Platform OZARK UPLIFT BRAVO DOME Arkoma Basin Woodford - SH Significant Potential along the Woodford Fairway 15+ Productive Intervals with Oil, Wet Gas, & Gas Stacked Unconventional Resource Fairways Traditional Vertical Potential Existing Technical Knowledge & Expertise One of the most Prolific Onshore US Basins Rich Stratigraphic Column with Numerous O&G Pays Multiple Petroleum Systems 10

11 UTAH ~10 Miles Altamont / Bluebell Central Basin Monument Butte Greater Monument Butte Unit Horizontal Wasatch Wells Horizontal Uteland Butte Key Takeaways 230,000 Net Acres Natural Buttes Gross Production Approximately 39,000 BOEPD Pressured UtelandButte* 5 Total Wells Drilled & Completed 1,200 BOEPD (87% Oil) Avg. 24 Hour IP 720 BOEPD Avg. 30 Day Rate** 550 BOEPD Avg. 60 Day Rate** 3,800 Avg. Lateral Length 6 Wells in Various Stages of Completion Wasatch Wells* 35 Total Vertical Wells to Date 900 BOEPD (87% Oil) Avg. 24 Hour IP 400 BOEPD Avg. 30 Day Rate 275 BOEPD Avg. 60 Day Rate 250 BOEPD Avg. 90 Day Rate 2 HZT Wells Drilled & Completed 1,200 BOEPD (88% Oil) Avg. 24 Hour IP 900 BOEPD Avg. 30 Day Rate 750 BOEPD Avg. 60 Day Rate 625 BOEPD Avg. 90 Day Rate ~3,200 Avg. Lateral Length *Gross 24-hour rates ** Includes 4 wells 11

12 Period Volume Hedged MMCF/D Weighted-Average Fixed Price $2 / MMBtu $3 / MMBtu $4 / MMBtu 4Q $3.65 $44MM $18MM ($11MM) $4.29 $235MM $136MM $29MM $3.86 $163MM $75MM ($7MM) $4.03 $44MM $23MM $3MM Period Volume Hedged BOPD Weighted-Average Fixed Price $80 / Bbl $90 / Bbl $100 / Bbl $110 / Bbl 4Q 12 35,000 $82.96 $8MM $6MM ($2MM) ($22MM) ,700 $94.55 $190MM $59MM ($10MM) ($32MM) ,000 $92.87 $99MM $22MM ($29MM) ($55MM) * on Newfield Website for Detailed Hedging Position 12

13 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 estimated reserves, production targets, drilling and development plans and the timing of production and other activities, planned capital expenditures, the availability of capital resources to fund 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, 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 in Utah, the availability of capital resources, labor conditions, severe weather conditions, governmental regulations and other operating risks. Please see Newfield s 2011 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 2011 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. 13