Newfield Sees 2014 Net Production To Be 10% - 20% Higher Than 2013 Estimated

(RTTNews) - Newfield Exploration Co. (NFX) updated its "three-year plan" and provided additional information. Net production from continuing operations in 2014 is expected to range from 44 - 48 million BOE, or 10% - 20% higher than 2013 estimated net production from continuing operations of approximately 40 million BOE. Domestic liquids production in 2014 is expected to increase 30% over the previous year.

Newfield plans to invest about $1.6 billion in 2014 in its continuing operation, excludes capitalized interest and overhead.

"Our three-year plan provides strong cash flow and production growth. Last February, we issued our first three-year plan, reflecting confidence in the quality and depth of our asset base as we complete our transition to a domestic resource company. Our growth outlook for 2014-15 is substantially unchanged, and we today introduced guidance for 2016. The execution of our plan through 2016 is expected to yield more than a 20% compound annual growth rate (CAGR) in liquids production and a 25% CAGR in cash flow," said Lee K. Boothby, Newfield Chairman, President and CEO.

With a planned 2014 investment of approximately $700 million, the Anadarko Basin will be the Company's single-largest investment region. The company plans to run eight operated drilling rigs in its SCOOP and STACK plays. Newfield has more than 225,000 net acres in the region and expects its 2014 production to double over 2013 levels. Net production from the Anadarko Basin is expected to exit 2014 at nearly 50,000 BOEPD.

Planned 2014 capital investments in the Uinta Basin are approximately $400 million. Near-term activity levels in the basin have been adjusted to match timing expectations for refinery expansions in the Salt Lake City region. Newfield plans to run three operated rigs in the Greater Monument Butte Unit and one to two rigs in the Central Basin. About 200 wells are planned for the ongoing Monument Butte waterflood development. In the Central Basin's Uteland Butte and Wasatch plays, up to 10 horizontal wells are planned. Uinta Basin production in 2014 is expected to grow approximately 5% over 2013 levels.

Newfield said it expects to maintain its current four-rig program in the Williston Basin in 2014. A planned investment of approximately $330 million is expected to allow for the drilling of 45 - 50 wells. The company's Williston Basin program is in development mode with 2013 average well costs decreasing about 20% over 2012 averages. The program is focused on drilling super extended laterals (more than 7,500') from common pad locations. Net production in 2014 from the Williston Basin is expected to grow nearly 40% year-over-year.

Approximately $170 million is planned for investment in the Eagle Ford, where Newfield expects to drill about 20 development wells in 2014. Well costs in 2013 have averaged about $7.3 million for SXL wells, reflecting continued efficiency gains in development. Net production from the region is expected to increase more than 30% over 2013 levels.