Newfield - Conventional South Texas Divestiture 2016

Newfield Exploration (“Newfield” or “NFX”) has retained BMO Capital Markets and Scotia Waterous as advisors to assist with the divestment of substantially all of its assets in the state of Texas. Simultaneous with its Eagle Ford sales process, NFX is offering for sale its Conventional Gas assets (all rights and depths) located primarily in South and West Texas (the “Properties”). This memorandum covers those primarily South and West Texas assets only.

Overview

  • Forecasted July 2016 net production is 28.5 mmcfe/d (93% gas) from 370 gross PDP wells
  • Well-established production decline of 12% over the next 12 months
  • 2015 operating cash flow of approximately $11 mm
  • 96% of net production volumes are operated
  • Fields have very high average working interest (~75% based on net acres)
  • All lands HBP (~41,500 net acres)
  • Limited contractual requirements
  • Approximately 110 volumetrically-supported recompletion opportunities in high-quality stacked reservoirs
  • Side-track and drilling opportunities to access proven reserves
  • Tremendous gas option value with large resource base
  • Assets provide exposure to the highly prolific Texas Gulf Coast Wilcox, Frio-Vicksburg, and Sligo shelf-edge producing fairways in addition to the Strawn and Canyon plays in the Val Verde Basin
  • The Properties have received limited focus and capital, so substantial value remains beyond identified opportunities

Contacts

Please email the signed Confidentiality Agreement to Newfield.SouthTexas@bmo.com

Contact Chelsea Neville at +1 713-546-9703 or any of the above individuals with questions.