Houston-based Newfield Exploration Co. was founded in 1989 and went public in 1993. Until the mid-1990s, the company’s sole focus area was the shallow waters of the Gulf of Mexico. However, Newfield began changing its strategy in August 2004 when it acquired Inland Resources in a $575 million transaction. The acquisition established a new focus area in the Rocky Mountains. Inland had proved reserves of 326 bcfe, and the company replaced nearly 300% of 2004 production with new reserves.
Newfield invested approximately $2 billion in 2006 reflecting the large development projects underway and the high level of activity in its focus areas. That year, Newfield’s diversification became apparent as more than 50% of total company reserves were located in longer-lived resource plays, including Monument Butte in Utah, the Woodford Shale play in southeastern Oklahoma, and the Mountain Front Wash play of the Stiles/Britt Ranch in western Oklahoma and the Texas Panhandle.
Newfield Exploration operation in Woodford Shale.Photo courtesy of Newfield Exploration Co.
At year-end 2008, the company had 2.95 tcfe of total proved reserves. Nearly 90% of these reserves were located onshore US. The reserves consisted of 72% natural gas and approximately 62% were proved developed. In 2008, Newfield’s production grew 24% over 2007 levels when adjusted for properties sold and acquired. The 2009 capital budget is $1.45 billion, heavily weighted toward development programs. Newfield’s Woodford Shale is the largest investment area, representing about 30% of its total budget.
Ranked by assets, Newfield is the 20th largest US producer. It also ranks 20th in market capitalization, 19th in stockholders’ equity, and 17th in capital and exploratory spending.