Newfield Boosts 2014 Production Guidance
Newfield Exploration Company raised its 2014 production guidance Thursday, reflecting year-to-date operating momentum across the company. In addition, the Company provided an interim update on recent acreage additions in the Anadarko Basin. As a result of new leasing and efficiencies associated with its drilling campaigns, Newfield increased its 2014 domestic capital budget by approximately $100 million to $1.7 billion. Newfield also reported that its second quarter 2014 net production was 12.1 MMboe, exceeding its guidance mid-point by approximately 1 MMboe.
"We are executing extremely well across the company today and this momentum is allowing us to increase the production and cash flow growth in our three-year plan," said Lee K. Boothby, Newfield chairman, president and CEO. "We are confident that the momentum we have generated in 2014 will be accretive to our three-year plan and our 2015-16 growth outlook, as well. Consistent with our normal course of business, we will be working our future capital allocation and investment plans later this year and expect to issue a new three-year plan by early 2015. Our outlook continues to improve and the changes we expect to make will be positive for our oil growth and cash flow projections and will improve our debt-adjusted growth metrics."
Since late 2013, Newfield has been adding additional acreage in its SCOOP and STACK plays, located in Oklahoma's Anadarko Basin. Year-to-date, Newfield has added more than 25,000 net acres and now owns interests in more than 250,000 net acres.
Newfield today raised its 2014 production forecast to 46.5 – 48.5 MMboe (previous guidance was 44 – 48 MMboe). An updated production guidance table for 2014 is included in this release.
Newfield expects that its planned 2014 domestic capital investments will total about $1.7 billion, excluding capitalized interest and overhead and acquisitions (previous guidance was $1.6 billion). The additional investments specifically relate to improved drilling performance ("days to depth") across the Company and the addition of new acreage in the Anadarko Basin. Due to continued operational efficiencies, Newfield today expects to drill up to 15 additional gross wells across its focus areas in 2014.
Newfield's net production from continuing operations in the second quarter of 2014 was 12.1 MMboe (guidance range was 10.7 – 11.3 MMboe). Liquids comprised approximately 55 percent of second quarter production volumes. Net liftings from discontinued operations totaled less than 0.1 MMboe. Domestic production in the second quarter of 2014 increased 12 percent over the first quarter of 2014 and 21 percent over the comparable quarter of 2013. Domestic liquids production in the second quarter of 2014 increased 13 percent over the first quarter of 2014 and 40 percent over the comparable quarter of 2013.
Newfield expects that its G&A expense in the second quarter will be approximately $68 million (previous guidance was $55 million). The increase relates primarily to higher expenses under stock-based compensation programs, including the achievement of two milestones under the Company's Stockholder Value Appreciation Program (SVAP) as a result of the 41 percent increase in Newfield's stock price during the second quarter.
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