Newfield Reports $1.6 Billion 2008 Capital Investment Program

Newfield Exploration Company reported a $1.6 billion capital investment program for 2008. More than 80% of the 2008 budget is allocated to development activities.

The 2008 capital program, detailed below, will be substantially funded through cash flow and cash on hand. Following the sale of $1.8 billion in assets in 2007, Newfield exited the year with approximately $370 million in cash. Approximately 75% of Newfield’s 2008 natural gas production is hedged at a NYMEX floor price of approximately $8 per MMBtu. Newfield’s debt-to-book capitalization ratio at year-end 2007 was approximately 23% and the Company’s $1.25 billion revolver is undrawn.

"Our '08 budget will deliver organic production growth of 13-21%," said Newfield Chairman, President and CEO David A. Trice. "We expect to produce 215 - 230 Bcfe in '08, compared to approximately 190 Bcfe in 2007, adjusted for our '07 asset sales and acquisitions. Our growth is largely coming from growing onshore resource plays and new oil developments offshore Malaysia. Because of the quality of our asset portfolio, we have visible production and reserve growth for the next several years."