Newfield Exploration announced that in connection with the preparation of its consolidated financial statements as of and for the year ended December 31, 2004 it had concluded to fully write off the $35 million book value associated with the Enserch Garden Banks floating production facility (EGB) and related pipelines and processing facility. As a result, the Company will record an after-tax net charge in the fourth quarter of 2004 of $22.8 million, or $0.36 per diluted share. The write off will not impact the current portion of taxes in 2004. Associated tax benefits would be realized in 2005 or beyond.
Newfield acquired a 60% interest in the EGB facility in its late 2002 acquisition of EEX Corporation. Since that time, the Company has undertaken to sell the EGB and related components and has determined that there is no market for this unique asset.