Newfield Exploration explores for new fields of oil and natural gas reserves but is happy with old reserves too. The independent oil and gas exploration and production company drills in the Mid-Continent (Anadarko and Arkoma Basins), the Rockies (Uinta and Williston Basins), the Gulf of Mexico (mostly in the shallow waters off the Louisiana coast), and the Gulf Coast region of Texas. The company seeks to hedge its exploration and production bets by exploiting assets outside of the US, primarily in China and Malaysia. In 2011 Newfield Exploration reported proved reserves of 3.9 trillion cu. ft. of natural gas equivalent (60% of which was natural gas).
Newfield Exploration has oil and gas assets in the US, China, and Malaysia.
Sales and Marketing
In 2011 sales of oil and gas products to Royal Dutch Shell and Tesoro accounted for 12% and 11%, respectively, of Newfield Exploration's revenues.
In fiscal 2011 Newfield Exploration reported a revenue increase of 31% attributable to higher prices and a rise in oil production. Domestic oil and gas production increased by 2% due to an 8% increase in production in its Rocky Mountain and Mid-Continent divisions as a result of successful development drilling efforts. In addition, international oil production increased thanks to a 13% spike in production in Malaysia as a result of new field developments. Newfield's net income grew by 3% in 2011 thanks to higher revenues and the absence of ceiling test and other impairments and expenses it carried it 2010.
Except for a recession-related revenue slump in 2009, the company has seen an upward trend in revenues from 2007 to 2011.
To raise cash to pay down debt, in 2012 Newfield agreed to sell its remaining Gulf of Mexico assets (78 federal offshore lease blocks on 432,700 gross acres) to W&T Offshore for $228 million.
In the US, Newfield Exploration has steadily shifted its exploration and production focus from the Gulf Coast and Gulf of Mexico to the Mid-Continent and Rocky Mountain regions. In particular, it is targeting unconventional oil shale plays, where due to recent improvements in drilling technology it can access a higher return on investment.
In 2011 Newfield Exploration bought oil and gas assets in Utah's Uinta Basin from Harvest Natural Resources for $215 million.
In 2010 the bankrupt TXCO sold its properties in the Maverick Basin in Texas to Anadarko Petroleum and Newfield Exploration for $310 million. The deal boosted Newfield's South Texas (primarily shale) asset base by some 300,000 acres.
Capital World Investors owns 11.4% of Newfield Exploration, while Wellington Management Company holds another 10.8%.
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