HOUSTON, May 21 /PRNewswire-FirstCall/ -- Newfield Exploration Company
(NYSE: NFX) announced today that it had reset its oil hedge positions for
2009 and 2010 on approximately 6.6 million barrels (MMBbls) of anticipated
production. The new positions are:
2009 -- fixed price swaps on 3.3 MMBbls with a volume weighted average
price of $128.93 per barrel; and
2010 -- "put spreads" covering approximately 3.3 MMBbls by purchasing "at
the money" puts at $127.29 per barrel and selling puts at $105.58 per
barrel, which retains the upside benefit for prices in excess of $127.29
per barrel and provides protection of up to $22.39 per barrel for prices
below $105.58 per barrel.
The cost to reset these hedges was approximately $520 million and was
funded through cash on hand and borrowings under our credit arrangements.
The costs of the transactions will be recovered through higher realized
prices in 2009-10.
"With the exception of the net cost of the puts we purchased, resetting
our hedge position is balance sheet neutral. Our future results of
operations will more accurately reflect the cash flow from our growing oil
production," said David Trice, Chairman, President and CEO. "These hedges
originated with our 2004 acquisition of the Monument Butte field in the
Uinta Basin of northeast Utah."
For a complete table on our hedging positions, please see our @NFX
publication located at http://www.newfield.com.
Newfield Exploration Company is an independent crude oil and natural
gas exploration and production company. The Company relies on a proven
growth strategy of growing reserves through an active drilling program and
select acquisitions. Newfield's domestic areas of operation include the
U.S. onshore Gulf Coast, the Anadarko and Arkoma Basins of the
Mid-Continent, the Rocky Mountains and the Gulf of Mexico. The Company has
international operations in Malaysia and China.
For information, contact:
Investor Relations: Steve Campbell (281) 847-6081
Media Relations: Keith Schmidt (281) 674-2650
Email: info@newfield.com
SOURCE Newfield Exploration Company
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Related links:
http://www.newfield.com
CONTACT:
investor relations, Steve Campbell,
+1-281-847-6081, or media relations, Keith Schmidt,
+1-281-674-2650, both of Newfield Exploration Company,
info@newfield.com
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