About Newfield Exploration Company

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), 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 2015 Newfield Exploration reported proved reserves of 509 million barrels of oil equivalent (41% oil, 16% NGLs, and 43% natural gas).


While Newfield Exploration only has operations in the oil and gas exploration and production industry, it is organizationally structured in geographic operating segments: the US and China.

In 2015 the company had 5230 gross wells (net 3,280).

Geographic Reach

Newfield Exploration has oil and gas assets in the US (Mid-Continent, the Rocky Mountains and onshore Texas), and China. US operations accounted for 83% of the company's revenues in 2015, while China accounted for the remainder.

Sales and Marketing

Oil, natural gas and NGLs are sold at market-based prices to a variety of purchasers, primarily under short-term contracts and long-term contracts in the Uinta Basin at market-based prices. China National Offshore Oil Corporation Ltd., MidCon Gathering LLC, and Sunoco Logistics Partners Operations GP LLC accounted for 13%, 11%, and 10%, respectively, of the company's total revenues in 2015.

Financial Performance

In 2015 Newfield Exploration's decreased by 32%.

The drop in revenues from domestic operations was attributable to lower oil prices. Domestic liquids production increased year over year, reducing the impact of lower commodity prices by $236 million. The proved reserves in 2015 were negatively impacted by the significant drop in commodity prices. Due to price-related revisions, domestic liquids reserves decreased 21% year-over-year.

Revenues from China increased due to production from the Pearl development.

In 2015 net loss decreased by 474% due to the presence of a ceiling test and other impairments as the result of a net decrease in the discounted value of its proved reserves and a drop in net sales.

Cash from operating activities decreased by 13%.


Despite a reduced capital budget in 2015 that reflected the current price environment, the company's primary, long-term goal continues to be delivering stockholder value through consistent growth of cash flow, production and reserves. Over the past several years, it has focused its investments on oil and liquids-rich resource plays in the US. It operates in several US basins with the primary growth area being the Anadarko Basin. Key components of Newfield Exploration's business strategy includes: focusing on organic opportunities through disciplined capital investment; continuously improving operations and returns; preserving a strong and flexible capital structure; maintaining a diverse asset base with ongoing portfolio management; and executing select, strategic acquisitions and divestitures.

In 2016 more than 80% of its capital investment was focused on the SCOOP and STACK. Outside of the Anadarko Basin, the company planned to invest $125 million the Williston, Uinta and Arkoma basins. It planned to complete 12-15 wells in the Williston Basin.

That year Newfield Exploration sold its Texas assets for about $380 million.

In 2015 the company reduced it capital investments by 26% and re-directed capital to their highest return region - the Anadarko Basin of Oklahoma. It also divested non-strategic assets of $2.2 billion from 2012-2015 and used the proceeds for drilling and reduce borrowing. As part of their cost saving measure, the company reduced workforce by more than 20%.

In 2015, the company acquired various other oil and gas properties for approximately $125 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. It is also developing its international assets, including its holdings in the Pearl field in the offshore China.

To raise cash in order to pay down debt and fund capital expenditures, in 2014 the company sold it Granite Wash assets, located primarily in Texas, for $588 million, and its Malaysia business to SapuraKencana Petroleum Berhad for $898 million.

During 2014, it continued to market its China business. Due to the precipitous decline in oil prices, the company was unable to sell the China business at an acceptable price and determined it was in Newfield Exploration's best interest to retain the cash flow from the China business. Accordingly, it reclassified this business as continuing operations.

Company Background

In 2013 the company announced a major natural gas discovery on the Block SK 310 Production Sharing Contract (PSC) area, located 50 miles offshore Sarawak (Malaysia). Newfield Exploration, which operates Block SK 310 with a 30% interest, estimated that the discovery had gas reserves of 1.5 - 3 trillion cu. ft. That year the company also announced that it was evaluating strategic alternatives for the company's international businesses.

In 2012 it sold its remaining Gulf of Mexico assets (78 federal offshore lease blocks on 432,700 gross acres) to W&T Offshore for $228 million.

In 2011 Newfield Exploration bought oil and gas assets in Utah's Uinta Basin from Harvest Natural Resources for $215 million.

The company was incorporated in 1988.

- Show Less + Show Full Description

Company News and Press Releases

- Show Less + Show More News and Press Releases

Newfield Exploration Company

4 Waterway Square Pl #100
The Woodlands, TX 77380-2764
Phone: 1 (281) 210-5100
Fax: 1 (281) 405-4242


  • Employer Type: Public
  • Stock Symbol: NFX
  • Stock Exchange: NYSE
  • Chairman, President, and CEO: Lee K. Boothby
  • SVP Operations: John H. Jasek
  • EVP and COO: Gary D. Packer
  • 2016 Employees: 994

Major Office Locations

  • The Woodlands, TX

Other Locations

  • Williston, ND
  • Elk City, OK
  • Foster, OK
  • Mcalester, OK
  • Asherton, TX
  • Spring, TX
  • Myton, UT
- Show Less + Show More