Goldman Sachs Global Energy Conference. January 15, 2009

Transcription

1 Goldman Sachs Global Energy Conference January 15, 2009

2 Recent Highlights 2008 Production of 236 Bcfe, an Increase of 24% Over 2007 Proforma Volumes 09 Capital Budget Reduced to $1,450 MM, Down >30% from Original Expectations BUDGET EQUALS CASH FLOW 2009 Production: Bcfe, Up 6-10% Over 08 Levels Continued Cost Improvements in Woodford Williston Basin Successes Continue

3 Capital Investments Onshore Gulf Coast 28% * Int l 9% GOM 13% Original Mid-Continent 33% Rockies 17% Onshore Gulf Coast 15% GOM 16% Int l 9% Rockies 19% Mid-Continent 41% Int l Onshore 7% Gulf Coast 13% GOM 17% 2009 Mid-Continent 45% Rockies 18% $2.2 Billion * ~ $2.0 Billion $1,450 MM** * Includes $227 MM S. Texas Acq. ** Includes capitalized interest and overhead We Will Live Within Cash Flow in David Trice 3Q08 Conference Call Oct. 22, 2008

4 Production Growth 300 Reported Production GOM Onshore GC Int'l Mid Cont Rockies * BCFE e = 12% CAGR E 2009E Pro Forma for Assets Sold in 2007 * Reflects 5 Bcfe Deferral Due to GOM Storms

5 2009 Capital Budget What s In Woodford Shale 12-Rig Program >30% Production Growth HBP Remaining 15% Acreage Monument Butte 3-Rig Program 8-10% Production Growth Williston Basin 1-Rig Program, Increase Activity Bakken, Sanish/3 Forks Build Dvp. Inventory Deepwater GOM 5 Developments Underway Significant Prod. Growth ( 09-12) 2 Wildcat Wells International Continue Oil Developments ~10% Production Growth Rockies Deep Gas What s Out Limit Exploration $ Acreage / Oppty. HBP Pinedale Gas Drilling Move Rig to Williston Reduced Exploration Spending Reduced Seismic Expenditures Reduced Leasehold Investment Preserves Liquidity 2009: 7-11% Production Growth 2010: Comparable Growth Retains Inventory / Oppty. Set

6 GOM Deepwater Portfolio ON SOUTH MARSH ISLAND N. ADDN BAY MARCHAND Nemo Nemo VIOSCA KNOLL Fastball DESTIN DO EAST CAMERON S. ADDN Dingo EAST CAMERON Kerr Kerr Pyrenees VERMILION VERMILION S. ADDN Springfield Hill Hill SOUTH MARSH ISLAND SOUTH MARSH ISLAND S. ADDN Leonberger Waylon EUGENE ISLAND EUGENE ISLAND S. ADDN Power Play SHIP SHOAL SHIP SHOAL S. ADDN BULLWINKLE SOUTH PELTO SOUTH TIMBALIER SOUTH TIMBALIER S. ADDN BRUTUS Sleeper EWING BANK GRAND ISLE GRAND ISLE S. ADDN Anduin, W. W. WEST DELTA Lefty Lefty WEST DELTA S. ADDN Anduin ORRI Gladden SOUTH PASS S. ADDN SOUTH PASS COGNAC -1000' Cloud 9 MARS MARS -3000' Nelson Nelson Wrigley MISSISSIPPI CANYON DEVILS TOWER URSA URSA -5000' Rigel NAKIKA -7000' Alpha Alpha THUNDER HORSE Cornelius INDEPENDENCE HUB HUB Dalmatian DE SOTO CANYON -1000' Holly Holly GARDEN BANKS Mastiff Jones Jones Sargent AUGER -3000' Winter Winter Llano ORRI Jason Jason Travis Travis MAGNOLIA BALDPATE St. Bernard -5000' El El Dorado Sumpter TROIKA GREEN CANYON Lyell Lyell Glider TAHITI GENESIS K-2 K-2 Boa Boa // Wildebeest ATLANTIS MAD MAD DOG DOG NEPTUNE Magellan Magellan Walker Walker Vaughan Green Green ATWATER VALLEY LLOYD RIDGE KEATHLEY CANYON WALKER RIDGE LUND HENDERSO NFX Lease CGoM Sale 206 NFX High Bid Block Industry Major Field NFX Deepwater Prospect NFX Producing Field NFX 08 Developments CGoM Sale 206 NFX Prospect

7 GOM Program Managing Risk, Capital PROSPECT Winter* EST. SPUD 1Q09 RISK EXPOSURE 15% DEVELOPMENT CASE 30% Pyrenees 2Q09 5% 40% SMI 260* 4Q08 44% 60% SMI 261 1Q09 36% 52% SS 186 4Q08 33% 50% SS 290* 4Q08 50% 67% EI 68* *NFX Marketing Additional Interests 2Q09 36% 52%

8 Deepwater Inventory Conventional DW Amplitude Salt Overhang Subsalt Miocene Folds Estimated Size (Bcfe) Estimated Devel. Costs (gross, $MM) Current Newfield Prospects DALMATIAN - Disc. SARGENT - Disc. PYRENEES WINTER MASTIFF GREEN ALPHA CORNELIUS SLEEPER LEFTY GLIDER G SAND WRIGLEY 5500ms PUMPER AXE WAYLON HOLLY KERR LYELL BOA SUMPTER CLOUD 9 EL DORADO ST. BERNARD DINGO LEONBERGER GLIDER SUBSALT HILL SPRINGFIELD JONES TRAVIS MAGELLAN WALKER VAUGHAN 2H 2008 Prospects 2009 Prospects Prospects

9 GOM Production Growth In-Hand 50 Net BCFE Sargent Dalmatian Anduin W. Gladden Fastball Power Play Shelf Base E 2009E 2010E

10 Woodford Shale Largest 2009 Investment 45 Active Industry Rigs 13 Operated NFX Rigs 225 NFX Operated HZT Wells 750 Industry HZT Wells Coal Hughes O K L A H O M A Ammo Depot Atoka Pittsburg Strong Production Growth Current prod: >265 MMcfe/d >30% production growth in 2009 Significant Drilling Inventory >2,500 Development locations Improving Capital Efficiency Pad drilling lowering F&D Ext. laterals increasing EUR/Well Upcoming Catalysts Dual lateral (2x4500 ) 1 st WAPANUCKA Hzt test Super extended lateral: 8,000 10,000 Newfield Acreage: 165,000 net >85% held by production

11 Horizontal Woodford Type Curve 4 Bcfe Typical Well 4,500 4,000 MCFD 3,500 3,000 2,500 2,000 1,500 1, Typical Well Economic Assumptions Net Revenue Interest: 81.0% Fixed LOE ($/MCF): $0.45 Production Tax (% of Revenue): - Production Tax (first 48 months or PO) 1.09% - Production Tax (thereafter): 7.09% Wellhead Pricing vs. Henry Hub ($/MCF): -$0.75 Gas Quality (BTU/CF) 1050 Total Fuel Gas %(Wellhead to Perryville): 8.0% 62% 28% 18% 13% 11% 7% End of Year

12 Type Well Economics Flat HH Gas Prices & Q Service Costs Henry Hub Price $/MMBTU (Flat) F&D = $1.75 $5 $7 $9 10% ($M) ROR (%) PAYOUT (Months) F&D = $ % ($M) (500) ROR (%) PAYOUT (Months)

13 NFX Development Plan Summary 40-acre spacing Wells approx. 660 apart 8 wells per section Avg. Lateral Length >4,100 ~ 4.0 Bcf per well (average) $5.6 - $6.0 MM per well (average) F&D Metric $ $2.00/mcf NFX Net Estimated Reserves: Booked Proved Reserves at YE 07: 600 Bcfe (includes 300 Bcfe PUD) Estimated Future Reserves Tcf Total NFX Net Reserves Tcf NFX Net Future CAPEX $9.6 - $10.3 B

14 09 Capital Spending by Basin Other 7% Uinta 73% Williston 20% $240 Million Oil Focused Growth Opportunities ~95% of Budget Directed to Oil HIGHLIGHTS Uinta: Green River Oil Development 150 Monument Butte 6 Gusher/Ouray Deep Gas Exploration 3-6 Monument Butte (RTA) Williston: Bakken/Sanish/Three Forks 20 wells (primarily North Dakota) 1-2 rig program Green River: Pinedale HBP acreage, deferred drilling Jonah 4 wells (non-operated)

15 Uinta Basin Position 2009 Program - Monument Butte Oil 150 wells - Assess Deep Gas Data - Greater Horseshoe Bend 5 wells Large Acreage Position (180,000 net acres) - Monument Butte 96,000 ac - Greater Horseshoe Bend 38,500 ac - Tribal JV s 45,500 ac - Oil Targets 180,000 ac - Deep Gas Targets 81,700 ac

16 MB Deep Gas Opportunity RTA Drilling T Drilled to Mid-Mancos Completion Underway T Drilled to Dakota Completion underway T Currently Drilling 2008 Drilling Approximate Proven Deep Gas Area NFX Exploitation Area 10,700 Net RTA JV 71,000 Net NFX Drilling Drilled to Mid-Mancos Mancos Completion Only IP = 2.39 mmcfd Drilled to Mid Mancos Completion underway Drilling to Mid Mancos

17 Greater Williston Basin Active 2008 Drilling Program Bakken 7-10 wells Sanish /Three Forks 2 wells Large Acreage Position (473,000 net acres) Dev. and Exploitation 170,000 ac Exploration 303,000 ac 2009 Drilling Program (20-40 wells) LEGEND NFX Leasehold Other Operators Horiz. Bakken Activity Recent NFX Bakken BIG VALLEY NFX Net Acres: 51,600 Operator: NFX North Dakota Nesson Anticline Horizontal Middle Bakken Fairway WESTBERG PROSPECT AREA NFX Net Acres: 8,050 Operator: NFX and OBO 2008 drilling plan: 5 wells Richland County, MT Horizontal Middle Bakken Fairway CARTWRIGHT NFX Net Acres: 14,400 Operator: NFX Sanish Field Parshall Field Elm Coulee Field AQUARIUM - JV NFX Net Acres: 4,000 Operator: Whiting, 40% WI LOST BEAR NFX Net Acres: 7,700 Operators: NFX and OBO 2008 drilling plan: 5 wells ELM COULEE NFX Net Acres: 54,000 Operator: NFX and OBO 0 SCALE (Miles) 20 WATFORD SOUTH NFX Net Acres: 7,800 Operator: NFX

18 Newfield 2008 Results Encouraging Bakken Results to Date (5) ND Bakken wells completed 2008 Recent IPs significantly above area s industry average Westberg Olson 1-30H: 329 BOEPD Larsen 1-16H: 710 BOEPD Rolfsrud 1-32H: 590 BOEPD Wisness 1-21H: Awaiting Completion Lost Bear Jorgensen 1-10H: 911 BOEPD Jorgensen 1-4H: 622 BOEPD Improved IPs attributed to technical work on target definition 1 st Sanish/Three Forks Test Successful Recent Activity (Lost Bear) Jorgensen 1-15H: 1010 BOEPD Lost Bridge 16-9H: Awaiting Completion Evaluating and Evolving Completion Technology Frac sleeves vs. Plug & Perf Frac monitoring

19 Forward Looking Statements This presentation by Newfield Exploration Company includes forwardlooking information. All information other than historical facts included in this presentation, such as information regarding estimated reserves, production targets, drilling and development plans and the timing of production and other activities, planned capital expenditures, the number of wells planned to be drilled in the future, the relative risks and potential of planned exploratory wells, the availability of capital resources to fund capital expenditures and business strategy and other plans and objectives for future operations, is forward-looking information. Although Newfield believes that these expectations are reasonable, this information is based upon assumptions and anticipated results that are subject to numerous uncertainties and risks. Actual results may vary significantly from those anticipated due to many factors, including drilling results, oil and gas prices, industry conditions, the prices of goods and services, the availability of drilling rigs and other support services, the availability of refining capacity for the crude oil Newfield produces from its Monument Butte field in Utah, the availability of capital resources, labor conditions and severe weather conditions (such as hurricanes). In addition, the drilling of oil and gas wells and the production of hydrocarbons are subject to governmental regulations and operating risks. Please see Newfield s most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q for a discussion of factors that may cause actual results to vary.