Newfield Notes Unaudited 2Q Financial Results

Newfield Exploration has reported its unaudited second quarter 2009 financial results.

"Our second quarter results show the diligent efforts of our employees to lower costs and improve margins throughout our focus areas," said President & CEO Lee K. Boothby. "We are seeing cost reductions throughout our operations. A combination of improving efficiencies in drilling and completions, falling service costs and a strong hedge position in 2009-2010 provides us with an advantage in today's challenging environment. Our production volumes are strong. In fact, we expect to be in the top half of our guidance range for 2009 AND we intend to continue deferring completions in the Woodford, as well as defer completions on the remainder of our planned Granite Wash wells in 2009.

"We are intensely focused on how we are allocating capital in our business units today, ensuring that dollars are flowing to the areas with the best returns and the highest growth prospects. We intend to meet our production targets in 2009 and are confident that our portfolio will allow us to grow production at similar percentage levels, within cash flow, in 2010-11."

Second Quarter 2009

For the second quarter of 2009, Newfield recorded a net loss of $39 million, or $0.30 per diluted share (all per share amounts are on a diluted basis). The loss reflects a net unrealized loss on commodity derivatives of $322 million ($208 million after-tax), or $1.58 per share.
Without the effect of this item, net income for the second quarter of 2009 would have been $169 million, or $1.28 per share.

Revenues in the second quarter of 2009 were $287 million. Net cash provided by operating activities before changes in operating assets and liabilities was $417 million.

Capital expenditures in the second quarter of 2009 were $300 million.