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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): DECEMBER 20, 2002
NEWFIELD EXPLORATION COMPANY
(Exact Name of Registrant as Specified in Its Charter)
DELAWARE 1-12534 72-1133047
(State or Other Jurisdiction (Commission (I.R.S. Employer
of Incorporation) File Number) Identification No.)
363 N. SAM HOUSTON PARKWAY E., SUITE 2020
HOUSTON, TEXAS 77060
(Address of Principal Executive Offices)
(281) 847-6000
(Registrant's Telephone Number, Including Area Code)
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ITEM 9. REGULATION FD DISCLOSURE
See the following press release by Newfield Exploration Company providing
updated operating and financial guidance for the fourth quarter of 2002
following the recent acquisition of EEX Corporation.
NEWFIELD PROVIDES UPDATED FOURTH QUARTER 2002 GUIDANCE
NEWFIELD EXPLORATION COMPANY (NYSE:NFX) today provided updated
operating and financial guidance for the fourth quarter of 2002 following the
recent acquisition of EEX Corporation. Newfield also made an updated listing of
its hedge position (as of December 19, 2002) available on its web page at
www.newfld.com.
On November 26, Newfield closed its acquisition of EEX Corporation.
Current production from the recently acquired EEX properties is approximately
115 million cubic feet equivalent per day (MMcfe/d). Approximately 95% of this
production is natural gas.
Although the Company believes the expectations reflected in its updated
operating and financial guidance are reasonable, such expectations are based
upon assumptions and anticipated results that are subject to numerous
uncertainties. Please see the discussion regarding forward-looking information
at the end of this release.
FOURTH QUARTER 2002:
NATURAL GAS PRODUCTION AND PRICING Newfield's natural gas production in
the fourth quarter of 2002 is expected to be 36 - 40 Bcf (390 - 435 MMcf/d). The
price received by the Company for its natural gas production from the Gulf of
Mexico and onshore Gulf Coast has typically tracked the Henry Hub Index. Gas
from the Company's Mid-Continent properties has typically sold at a discount of
$0.12 - $0.15 per Mcfe to Henry Hub. Hedging gains or losses will affect price
realizations.
CRUDE OIL PRODUCTION AND PRICING Consolidated oil production in the
fourth quarter of 2002 is expected to be 1.5 - 1.7 million barrels (16,500 -
18,000 BOPD). Australian oil production during the fourth quarter is expected to
be 280 - 290 thousand barrels (3,000 - 3,200 BOPD). The Australian estimate
reflects expected production downtime associated with annual maintenance on
production facilities and the timing of expected liftings. The price the Company
receives for its Gulf Coast production has typically averaged about $2 below the
NYMEX West Texas Intermediate (WTI) price. Oil production from the Mid-Continent
has typically sold at a $1.00 - $1.50 per barrel discount to WTI. Australian
crude oil sales are based on the Tapis Benchmark, which has historically been
comparable to WTI. Hedging gains or losses will affect price realizations.
For the full-year 2002, the Company expects to produce about 183 Bcfe,
an increase of 5% over 2001 production. Newfield will announce its 2003
production target along with year-end results in February 2003.
LEASE OPERATING EXPENSE AND PRODUCTION AND OTHER TAXES Newfield's LOE,
including domestic production and severance taxes and resource rent tax in
Australia, is expected to be $35 - $38 million in the fourth quarter of 2002
($0.73 - $0.80 per Mcfe). The Company's domestic LOE, including taxes, is
expected to be $0.64 - $0.71 per Mcfe in the fourth quarter of 2002. This
estimate includes severance taxes of $0.12 - $0.14 per Mcfe. LOE varies and is
subject to impact from, among other things, production volumes and commodity
pricing, tax rates, service costs, the costs of goods and materials and workover
activities.
GENERAL AND ADMINISTRATIVE EXPENSE Newfield's G&A expense for the
fourth quarter of 2002 is expected to be $12.9 - $14.3 million ($0.28 - $0.32
per Mcfe). This estimate includes accrual of performance-based pay.
INTEREST EXPENSE The non-capitalized portion of the Company's interest
expense for the fourth quarter of 2002 is expected to be $6 - $7 million ($0.14
- $0.16 per Mcfe), including a $2.3 million payment on its convertible trust
preferred securities. Capitalized interest for the fourth quarter of 2002 is
expected to be about $2.5 million.
INCOME TAXES Including both current and deferred taxes, the Company
expects its consolidated income tax rate in the fourth quarter of 2002 to be
about 35%. The Company expects that the entire tax expense in the fourth quarter
will be current.
The Company provides information regarding its outstanding hedging
positions in its annual and quarterly reports filed with the SEC and in its
electronic publication -- @NFX. This publication can be found on the Company's
web page at http://www.newfld.com. Through the web page, interested persons may
elect to receive @NFX through e-mail distribution.
Newfield Exploration is an independent crude oil and natural gas
exploration and production company. The Company has a solid asset base of
producing properties and exploration and development drilling opportunities in
the Gulf of Mexico, along the U.S. Onshore Gulf Coast, in the Anadarko and
Permian Basins, offshore Australia and in China's Bohai Bay. Newfield balances
its drilling program with acquisitions in select areas in the U.S. and overseas.
** CERTAIN OF THE STATEMENTS SET FORTH IN THIS RELEASE REGARDING
ESTIMATED OR ANTICIPATED FOURTH QUARTER 2002 RESULTS AND PRODUCTION VOLUMES ARE
FORWARD-LOOKING AND BASED UPON ASSUMPTIONS AND ANTICIPATED RESULTS THAT ARE
SUBJECT TO NUMEROUS UNCERTAINTIES. 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 AND THE AVAILABILITY OF CAPITAL
RESOURCES, LABOR CONDITIONS AND OTHER FACTORS SET FORTH IN OUR ANNUAL REPORT ON
FORM 10-K FOR THE YEAR ENDED DECEMBER 31, 2001. IN ADDITION, THE DRILLING OF OIL
AND GAS WELLS AND THE PRODUCTION OF HYDROCARBONS ARE SUBJECT TO GOVERNMENTAL
REGULATIONS AND OPERATING RISKS.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
NEWFIELD EXPLORATION COMPANY
Date: December 20, 2002 By: /s/ TERRY W. RATHERT
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Terry W. Rathert
Vice President and
Chief Financial Officer
(Authorized Officer and Principal
Financial Officer)
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