Attached files
| file | filename |
|---|---|
| 8-K - 8-K - NEWFIELD EXPLORATION CO /DE/ | d783528d8k.htm |
 Lee
K. Boothby Chairman, President and CEO
September 2014
Exhibit 99.1 |
 Executing Our Vision
1.
Focus the asset base
2.
Expand our inventory (liquids)
3.
Execute our three-year plan
4.
Grow oil / liquids production
5.
Strengthen the balance sheet |
 3
Repositioned asset portfolio to
U.S. onshore, liquids-rich plays
Added liquids assets in SCOOP/STACK and
Uinta Central Basin
Focused people, capital on “plays of
the future”
Monetizing non-core assets |
 4
Multiple, stacked geologic pays
Liquids-focused portfolio, deep inventory
Common play attributes allow transfer of
technology, people and capital
Operational efficiencies unlocking
additional inventory
Drilling efficiencies in all focus areas
Completion optimizations enhance returns;
expand economic development windows |
 5
Key objectives:
Production / reserve growth
Inventory expansion
Improve cost structure
Strengthen the balance sheet
Delivered 2013 plan (year 1)
On track with 2014e-16e plan
Double-digit production & cash flow growth |
 6
Shifted investments to liquids
Added assets in the Anadarko and Uinta
basins
Focused people, capital on “plays
of the future”
SCOOP/STACK, Central Basin
Accelerated liquids growth
Three-year cash flow CAGR: ~25%
2014 oil production to grow 30% YOY |
 7
Oil Drives Our Future Growth
*Assumes guidance mid-points for 2014-16 |
 8
Non-core asset sales funded
transition of the asset base
Sold ~$2.5 billion in non-strategic assets
Proceeds from Granite Wash sale to reduce
long-term debt
Maintained strong credit profile
throughout transition |
 9
*Pro-forma for Call on $600 MM Sr. Sub Notes Due 2018
Improved credit
metrics
Staggered debt
maturities
Increased cash flow
generation and
reducing long-term
debt
Credit Facility
$0 drawn @6/30/14
Bonds |
 2014
Goals 1.
Anadarko Basin: 100% production growth
a)
SCOOP area in active development
2.
STACK: “Production delineate,”
HBP
3.
Central Basin: Assess and deliver SXL results
4.
Williston Basin & Eagle Ford: Grow >35%
5.
Post efficiency gains in drilling, completions
6.
Exit International |
 11
STACK
165,000 net acres
SCOOP
85,000 net acres
Newfield acreage position
Meramec Play
Woodford Play
Anadarko Basin
>250,000 Total Net Acres:
—
Added 25,000 net acres YTD
—
Multiple prospective horizons
—
SCOOP South in development
—
Assessing “SCOOP North”
—
Newfield operated rig running
—
Benefitting through “Operated By Others”
(OBO) activity
—
2014 program will production
delineate ~70% of STACK
(~50% currently) |
 12
Anadarko Basin—SCOOP
85,000 Net Acres:
—
North SCOOP ~42,000 net acres
—
Six industry rigs running in N. SCOOP
—
Active assessment underway
—
Newfield operated rig running
—
South SCOOP ~43,000 net acres
“NEW”
McElroy Wet Gas Pad (4 XL
wells)
–
(17% oil in IP and 30-day)
—
Avg. lateral length: 4,978’
—
Avg. 24-hr IP per well: 1,811 BOEPD
—
Avg. 30-day per well: 1,395 BOEPD
—
“NEW”
Boles Oil Pad (5 SXL wells)
—
Avg. lateral length: ~7,754’
—
Current pad rate: ~10,365 BOEPD (41% oil)
—
Continuing to clean-up and achieve max rate |
 13
Anadarko Basin—STACK
*Includes 4 wells
>165,000 Total Net Acres:
—
~50% of acreage now “production
delineated”
—
RORs improving through lower
completed well costs
—
“Best-in-Class”
well: $~10 MM
—
Five
“NEW”
STACK wells:
Walta, Annuschat, Bernard,
Slash C and Bohlman wells
—
Avg. lateral length: ~10,000’
—
Avg. 24-hr IP: 845 BOEPD (87% oil)
—
Avg. 30-day rate*: 530 BOEPD (85% oil) |
 14
Well Type
# Wells
Avg.
Gross IP
(24-Hours)
Avg.
Gross
30-Day Rate
Avg.
Gross
60-Day Rate
Avg.
Gross
90-Day Rate
SCOOP Wet Gas SXL (1)
15
2,106 BOEPD
1,669 BOEPD
1,689 BOEPD
1,626 BOEPD
SCOOP Wet Gas XL (2)
17
1,468 BOEPD
1,105 BOEPD
966 BOEPD
965 BOEPD
SCOOP Oil* (3)
15
1,435 BOEPD
1,068 BOEPD
1,071 BOEPD
1,056 BOEPD
STACK (4)
15
888 BOEPD
599 BOEPD
606 BOEPD
566 BOEPD
(1) All 15 wells have 90-day rates
(2) 60 and 90-day rates include 13 wells
(3) All 15 wells have 90-day rates
(4) 60-day rate includes 12 wells and 90-day rate includes 11 wells (data
excludes 2 STACK wells drilled in single-well extension areas) All rates
reported as wellhead volumes Anadarko Basin—'13–'14 Wells Driving
Growth Shallower decline rates and higher oil cuts in STACK providing
attractive returns
*Excludes New Boles pad currently cleaning-up
69 operated wells
South SCOOP in “full field”
development
–
–
– |
 15
Anadarko Basin—SCOOP & STACK Production
3,700 BOEPD
0
10
20
30
40
50
1Q12
2Q12
3Q12
4Q12
1Q13
2Q13
3Q13
4Q13
1Q14
2Q14 |
 16
Perank
Jorgensen
Aubrey 2
Close
Uteland Butte SXL Wells: Producing (6)
Wasatch SXL Wells: Producing (2)
SXL Horizontal Wells: Drilling/Completing (5)
Ranch
Existing Wells
Uinta Basin—Recent SXL Wells
UTAH
Altamont / Bluebell
Greater
Monument Butte Unit
(GMBU)
Natural Buttes
Green River
Central Basin
~10 Miles |
 17
Well Type
# Wells
Avg.
Gross IP
(24-Hours)
Avg.
Gross
30-Day Rate
Avg.
Gross
60-Day Rate
Avg.
Gross
90-Day Rate
Recent Uteland Butte SXLs (1)
3
2,157 BOEPD
1,532 BOEPD
1,323 BOEPD
1,154 BOEPD
Wasatch SXLs (2)
2
2,068 BOEPD
1,428 BOEPD
1,479 BOEPD
1,583 BOEPD
Existing Uteland Butte SXLs
3
1,543 BOEPD
997 BOEPD
818 BOEPD
753 BOEPD
Central Basin Avg. SXL (3) (4)
8
1,905 BOEPD
1,273 BOEPD
1,151 BOEPD
1,025 BOEPD
(1) 30-day, 60-day and 90-day rates include 2 wells
(2) 90-day rates include 1 well
(3) 30-day rate includes 7 wells
(4) 60-day and 90-day rates include 6 wells
All rates reported as wellhead volumes
—
Five SXLs have average IP of >2,100 BOEPD gross
—
Strong 30, 60 & 90-day rates
—
Current “Best-in-Class”
Uteland Butte SXL wells: ~$11.2 MM (drill
& complete)
—
Production performance supporting projected type curves
Uinta Basin—Recent SXL Wells |
 18
Uteland Butte—Significant Resource Potential and
Returns
ROR%
D&C cost ($ MM)
“Days to depth”
decreasing
Completed well costs per lateral foot improving
Recent wells outperforming type curve
Price deck*
*Flat pricing, assumes indicated oil price and $4/Mmbtu gas price
|
 19
Newfield is a proven operator:
Demonstrated execution in field
Moved multiple plays from HBP
mode to full-field development
Applying “lessons learned”
across
the portfolio
Today’s developments benefitting from
common attributes across portfolio |
 20
*Days to depth, spud to rig-release |
 21
Pearl Topsides
installed in August
2014!
First oil: 4Q14
Working with
potential bidders
Goal: monetize the
business
China Update |
 To
Do List 1.
Deliver the three-year plan
2.
Provide visibility, unlock potential (‘14-’16)
3.
Continued efficiencies (always)
4.
Monetize China business
5.
Update three-year Plan (Feb. ‘15) |
 23
This
presentation
contains
forward-looking
statements
within
the
meaning
of
Section
27A
of
the
Securities
Act
of
1933,
as
amended,
and
Section
21E
of
the
Securities
Exchange
Act
of
1934,
as
amended.
The
words
“will”,
“believe”,
“intend”,
“plan”,
“expect”
or
other
similar
expressions are intended to identify forward-looking statements. Other than
historical facts included in this presentation, all information and
statements, such as information regarding planned capital expenditures, estimated
reserves, estimated production targets, drilling and development
plans,
the
timing
of
production,
planned
capital
expenditures,
and
other
plans
and
objectives
for
future
operations,
are
forward-
looking
statements.
Although
as
of
the
date
of
this
presentation
Newfield
believes
that
these
expectations
are
reasonable,
this
information
is
based upon assumptions and anticipated results that are subject to numerous
uncertainties and risks. Actual results may vary significantly from those
anticipated due to many factors, including drilling results, commodity prices, industry conditions, the prices of goods and
services, the availability of drilling rigs and other support services, the
availability of refining capacity for the crude oil Newfield produces in the
Uinta Basin in Utah, the availability of capital resources, labor conditions, severe weather conditions, governmental regulations and other
operating risks. Please see Newfield’s 2013 Annual Report on Form 10-K
and subsequent Quarterly Reports on Form 10-Q filed with the U.S.
Securities and Exchange Commission (SEC) for a discussion of other factors that may
cause actual results to vary. Unpredictable or unknown factors not discussed
herein or in Newfield’s SEC filings could also have material adverse effects on forward-looking statements.
Readers are cautioned not to place undo reliance on forward-looking statements,
which speak only as of the date of this presentation. Unless legally
required, Newfield undertakes no obligation to publicly update or revise any forward-looking statements.
Cautionary
Note
to
Investors
–
Effective
January
1,
2010,
the
SEC
permits
oil
and
gas
companies,
in
their
filings
with
the
SEC,
to
disclose
only proved, probable and possible reserves that meet the SEC’s definitions for
such terms. Newfield may use terms in this presentation, such as
“resources”, “net resources”, “net discovered resources”, “net risked resources”, “net lower-risked captured resources”, “net risked
captured resources”, “gross resources”, “gross resource
potential”, “gross unrisked resource potential”, “gross unrisked resources”, and
similar terms that the SEC’s guidelines strictly prohibit in SEC filings.
Investors are urged to consider closely the oil and gas disclosures in
Newfield’s
2013
Annual
Report
on
Form
10-K,
available
at
www.newfield.com,
www.sec.gov
or
by
writing
Newfield
at
4
Waterway
Square
Place,
Suite
100,
The
Woodlands,
Texas
77380
Attn:
Investor
Relations.
Forward Looking Statements and Related Matters |
 Lee
K. Boothby Chairman, President and CEO
September 2014 |