@nfx 10.28.14 final - ningapi.ning.com/.../nfx10.28.14final1.pdf · @ n fx...
TRANSCRIPT
@ N FX isperiodically publishedtokeepstockholdersaw areofcurrentoperatingactivitiesatN ew field.Itm ay includeestim atesofexpected productionvolum es,costsandexpenses,recentchangestohedgingpositionsandcom m odity pricing.
@ NFX
3Q 14 U pdateO ctober28,2014
T ableofContents
Highlights 3
P roductionby FocusArea 4
FocusAreaU pdates 5
–AnadarkoBasin 6
– U intaBasin 13
– W illistonBasin 14
S um m ary ofW ellR esults 15
Guidance 16
DerivativeP ositionS um m aries 17
2
A llfinancialandoperationaldatarefersto“ContinuingO perations”
Highlights
3Q 14 productionexceedsguidancem id-pointby~0.5 M M BO E
3Q 14 cashflow from operations:~$321 M M ;3Q 14adjustednetincom e:$72 M M
FY14eproductionestim atedtoreachupper-end ofguidance(~47.4 M M BO E)
S trongexecutionineachfocusarea
S uccessfully tested S T ACKverticalspacingpilot;continued productiondelineationofS T ACK
Announced positionin“N EW ” S pringerplay
R eceived >$600 M M proceedsfrom saleofnon-strategicassets
– Called$600M M S eniorS ubordinatedN otesdue2018
Com m enced P earldevelopm entdrilling
2014eCapitalbudgetraised$50 M M to$1.75 B
– R eflectsadditionalacreageandactivity inS T ACK3
3Q 14 P roductionby P roduct
~56%
LiquidsGas
~44%
3Q 14 N ET P R O DU CT IO N (M M BO E)
O il 4.80
N GL s 2.24
Gas 5.62
T O T A L 12.66
0
20
40
60
80
100
120
140
MB
OEP
D(n
et)
EagleFord
W illiston
Anadarko*
U inta
*IncludesS CO O P andS T A CK;ExcludesGraniteW ash
** Com pany planstoupdateits2015-16 guidanceinFeb.2015
4
P roductionby FocusA rea
~105 M BO EP D
T obeupdatedinFeb.2015
O utperform inginEachFocusA rea
FocusA rea
2013P roduction(M M BO E)
2014 O riginalGuidance(M M BO E)
2014 FinalGuidance(M M BO E)
Delta
(M M BO E)
% Change Y-o-YGrow th
A nadarkoBasin
7.2 14.3 14.8 0.5 3% 106%
U intaBasin
8.2 8.6 9.4 0.8 9% 15%
W illistonBasin
4.4 6.0 6.5 0.5 8% 48%
EagleFord
3.0 4.0 4.2 0.2 5% 40%
T O T A L 22.8 32.9 34.9 2.0 6% 53%
5
2014eT otalDom esticP roduction:47.4 M M BO E
A nadarkoBasin*
Increasedacreageto~275,000 netacres
> 15% productiongrow thover2Q 14and> 100% over3Q 13
> 20% liquidsgrow thover2Q 14 and> 80%over3Q 13
2014eproductiontom orethandoubleover2013 volum es
Continuedhighliquidscut;gas/oilratiosrem ainconsistentw ithm odelforecast
AchievedYE14 exitratetargetof50,000BO EP D (net)
0
10,000
20,000
30,000
40,000
50,000
BOEPD(net)
AnadarkoDailyProduction*
Liquids Gas
NETAVG.PRODUCTION(BOEPD)
FY2013 3Q14 FY2014e
Liquids 10,844 26,000 23,500
Gas 8,842 19,000 17,100
TOTAL 19,686 45,000 40,600
*IncludesSCOOPandSTACK;ExcludesGraniteWash
6
S T ACK P roduction-DelineationContinues…
7
Slash C620BOEPD IP30-dayavg.
(84% Oil)
John821BOEPD IP30-dayavg.
(84% Oil)
Connie935BOEPD IP30-dayavg.
(87% Oil)
Johnisthefurtheststep-outw ellto-datetothenorthw est
Connie& Freem anarethefirstM eram ec“ S T ACKed” verticalspacingtests.Afterinitial30-daysofproduction,nointerference;w ellsabovetypecurve
S lashC recent“ best-in-class” w elldrilled andcom pletedfor$9.8M M
Com pany hasproduction-delineated~2/3 ofS T ACK acreage
Currently Drilling
Freem an680BOEPD IP30-dayavg.
(85% Oil)
S T ACK VerticalS pacingT est
M eram ecS hale~400’
8
S T ACKVerticalS pacingT est
ConnieW ell(U pperM eram ec)
– 935 BO EP D IP 30-day avg.(87% oil)
Freem anW ell(L ow erM eram ec)
– 680 BO EP D IP 30-day avg.(85% oil)
S paced~275’ vertically inM eram ec
S paced~880’ acrossleaseline 275’
880’
0
5
10
15
20
25
30
0
100
200
300
400
500
600
700
800
0 200 400 600
Wel
lCo
un
t
BO
EPD
DaysO nline
S T ACK T ypeCurve 18w ellsplotted againsttypecurve
– 10,090’ averagelaterallength
S T ACKW ellP erform ance
T ypeCurve(9,000’)
Actual
W ellCount
9
25 w ellsplotted againsttypecurve
– 8,120’ averagelaterallength
“N EW ” Briardevelopm ent(4 S X Linfillw ells)
– Briar1H and2H w ellsaverage60-day rate:1,250 BO EP D (53% oil)
– Briar3H and4H w ellsaverage30-day rate:1,375 BO EP D (~50% oil)
T ypeCurve(8,900’)
Actual
W ellCount
S CO O P O ilW ellP erform ance
10
0
5
10
15
20
25
30
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
0 100 200 300 400 500 600
Wel
lCo
un
t
BO
EPD
DaysO nline
S CO O P O ilT ypeCurves
P roductiondataexcludes3w ellsshut-inforoffsettingfracs
S CO O P W etGasW ellP erform ance
11
32 w ellsplottedagainsttypecurve
– 6,011’ averagelaterallength
0
5
10
15
20
25
30
35
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
0 100 200 300 400 500 600
Wel
lCo
un
t
BO
EPD
DaysO nline
S CO O P W etGasT ypeCurve
T ypeCurve(5,900’)
Actual
W ellCount
S pringerS haleS trengthensS CO O P Inventory
Addsinventory toHBP S outhS CO O Pacreage
U pto150’ thick
Highly siliceous,organicrich
Highperm eability andporosity
O ver-pressured
R ecentoperated w ell:
– Jarred(4,850’ lateral)
1,950 BO EP D 24-hrIP (85% oil)
1,220 BO EP D 30-day avg.(81% oil)
T hreerecentnon-operated S pringerw ellshadaverage24-hrIP ratesof1,494BO EP D
12
U intaBasin
Forecasting15% YoY grow thin‘14;(up> 800,000 BO Efrom originalforecast)
S X L drillingcam paigninCentralBasindeliveringencouragingresults
– R ecent“ best-in-class” U teland Buttew elldrilled andcom pleted for~$10.8M M
R efinery expansionsunderw ay
R ailm arketsexpanding
0
10,000
20,000
30,000
BOEPD(net)
UintaDailyProduction
Liquids Gas
NETAVG.PRODUCTION(BOEPD)
FY2013 3Q14 FY2014e
Liquids 18,140 20,800 21,100
Gas 4,389 5,000 4,700
TOTAL 22,529 25,800 25,800
13
W illistonBasin
~8% productiongrow thover2Q 14 and45% over3Q 13
YT D S X L saverage~$7.5M M (includingfacilities)
– Full-field developm ent,targetingM iddleBakkenand T hree-Forks1
– Im provedefficienciesthroughpad drillingand optim ized com pletions
– R ecent“ best-in-class” W ehrung4H(9,900’ lateral)
$6.8 M M com pleted w ellcost(includingfacilities)
– 2,775 BO EP D 24-hrIP
– 878BO EP D 30-day avg.
– 694 BO EP D 60-day avg.
– 609 BO EP D 90-day avg.
0
5,000
10,000
15,000
20,000
BOEPD(net)
WillistonDailyProduction
Liquids Gas
NETAVG.PRODUCTION(BOEPD)
FY2013 3Q14 FY2014e
Liquids 10,337 16,100 14,900
Gas 1,852 3,300 2,900
TOTAL 12,189 19,400 17,800
14
YT D S um m ary ofW ellR esults
W ellT ype # W ellsAvg.
GrossIP
(24-Hours)
Avg.
Gross
30-Day R ate
Avg.
Gross
60-Day R ate
Avg.
Gross
90-Day R ate
S CO O P W etGasS X L 5 2,006 BO EP D 1,615 BO EP D 1,646 BO EP D 1,550 BO EP D
S CO O P W etGasX L 13 1,377 BO EP D 1,054 BO EP D 1,042 BO EP D 1,022 BO EP D
S CO O P O il(1) 17 1,511 BO EP D 1,194 BO EP D 1,166 BO EP D 977BO EP D
S T ACK(2) 10 931 BO EP D 651 BO EP D 580 BO EP D 581 BO EP D
U teland ButteS X L 3 2,157 BO EP D 1,449 BO EP D 1,251 BO EP D 1,067 BO EP D
W asatchS X L 2 2,068 BO EP D 1,428 BO EP D 1,479 BO EP D 1,241 BO EP D
W illistonBasin(3)(4) 39 2,369 BO EP D 821 BO EP D 671 BO EP D 599 BO EP D
EagleFordS X L (5) 9 874 BO EP D 783 BO EP D 735 BO EP D 734 BO EP D
(1)30-day rateincludes16 w ells,60-day rateincludes13 w ellsand90-day rateincludes7 w ells
(2)60-day rateincludes6 w ellsand90-day rateincludes3 w ells
(3)Includes31 M iddleBakkenw ellsand8T hreeForksw ells
(4)30-day rateincludes36 w ells,60-day rateincludes34 w ellsand90-day rateincludes28 w ells
(5)90-day rateincludes5 w ells
15
2014e 3Q 14 4Q 14e
P roduction:O il(M M BO ) 18.4 4.8 5.0
N GL s(M M Bbls) 8.0 2.2 2.1
N aturalGas(BCF) 126 33.7 29.4
T otal(M M BO E) 47.4 12.72 12.02
T otalL O E($M M ) $483 $126 $127
P roduction& O therT axes($M M )3 $115 $31 $30
DD&A Expense($M M ) $845 $228 $217
General& A dm inistrative(G&A ),net($M M ) $222 $48 $50
CapitalizedInternalCosts($M M ) ($134) ($23) ($25)
O therO peratingExpense($M M ) $8 $8 --
InterestExpense($M M ) $195 $51 $42
CapitalizedInterest($M M ) ($52) ($13) ($13)
P rem ium onCallofN otes($M M )4 $14 -- $14
1 P roduction,CostsandExpensesarebasedoncontinuingoperationsandCostsand Expensesareexpectedtobew ithin7% oftheestim atesabove.2 T hirdquarteractualresultsand reportedguidancereflecttherem ovalof0.1 M M BO Ein3Q 14 and0.9 M M BO Ein4Q 14eduetothesaleofGraniteW ash.3 T ableA ssum es1Q 14 – 3Q 14 actualcom m odity prices& stripcom m odity pricesfor4Q 144 4Q 14erelatestoaone-tim eprem ium paym enttocallour$600M M 71/8% S eniorS ubordinatedN otesin4Q 14
P roduction,Cost& ExpenseGuidance1
16
Volum e/day W eighted-AverageP rice
P eriod Bbls S w apsS w apsw / S hort
P uts2 CollarsCollarsw / S hort
P uts1
4Q 201423,00016,0006,000
$89.94——
—$75.00/95.16
—
———
——
$75.83/90.83-$102.93
1Q 20158,000
38,5002,000
$90.63——
—$72.03/90.08
—
———
——
$75.00/90.00-$104.00
2Q 20159,000
38,5002,000
$90.01——
—$72.03/89.96
—
———
——
$75.00/90.00-$104.00
3Q 20157,000
41,0002,000
$90.00——
—$71.65/89.95
—
———
——
$75.00/90.00-$104.00
4Q 20151,000
46,5002,000
$90.00——
—$71.12/90.08
—
———
——
$75.00/90.00-$104.00
O ilHedgingDetailsasof10/28/14
N ote:P eriodically,w esellputoptionsagainstpreviously entered intofixed-price sw apsorcollarsinordertoenhancethepriceofnew positions.Assuch,putoption contractsm ay beentered intoatdifferenttim esandw ithdifferentcounterpartiesascom pared toouropenfixed-price sw aporcollarcontracts.How ever,w edonotsellputoptionsforvolum esinexcessofouropenfixed-price sw aporcollarcontracts.
1 Below $75.83 perBblin2014 and below $75.00 in2015,thesecontractseffectively resultinrealized pricesthatareonaverage$15.00 perBblhigherthanthecashpricethatotherw isew ould havebeenrealized.2 Below $75.00 perBblfor2014,$72.03 perBblfor1Q 2015,$72.03 perBblfor2Q 2015,$71.65perBblfor3Q 2015,and $71.12 perBblfor4Q 2015,thesecontractseffectively resultinrealized pricesthatareonaverage$20.16,$18.05,$17.93,$18.30,and $18.96perBblhigher,respectively,thanthecashpricethatotherw isew ould havebeenrealized.
17
Denotesupdate
O ilHedgingDetailsasof10/28/14Volum e/day W eighted-AverageP rice
P eriod Bbls S w apsS w apsw / S hort
P uts2 CollarsCollarsw / S hort
P uts1
1Q 2016 33,00017,000
——
$73.48/89.97—
——
—$75.00/90.00-$96.30
2Q 2016 27,00019,000
——
$74.44/89.99—
——
—$75.00/90.00-$96.32
3Q 2016 27,00016,000
——
$74.44/90.03—
——
—$75.00/90.00-$95.98
4Q 2016 23,00016,000
——
$74.35/89.90—
——
—$75.00/90.00-$95.98
1Q 2017 15,00013,000
——
$73.73/89.23—
——
—$75.00/90.00-$95.52
2Q 2017 10,00010,000
——
$73.10/88.09—
——
—$75.00/90.00-$95.69
3Q 2017 13,000—
——
$73.08/87.90—
——
——
4Q 2017 11,000—
——
$73.09/88.01—
——
——
1 Below $75.00 perBblin2016and 2017,thesecontractseffectively resultinrealized pricesthatareonaverage$15.00 perBblhigherthanthecashpricethatotherw isew ould havebeenrealized.2 Below $73.48perBblfor1Q 2016,$74.44 perBblfor2Q 2016,$74.44 perBblfor3Q 2016,$74.35perBblfor4Q 2016,$73.73 perBblfor1Q 2017,$73.10 perBblfor2Q 2017,$73.08perBblfor3Q 2017,and $73.09 perBblfor4Q 2017,thesecontractseffectively resultinrealized pricesthatareonaverage$16.49,$15.55,$15.59,$15.55,$15.50,$14.99,$14.82 and $14.92 perBblhigher,respectively,thanthecashpricethatotherw isew ould havebeenrealized.
N ote: W ehaveentered intosw aption contractsthatw ould potentially hedge732,000 barrelsof2016production atasw appriceof$91.00 ifexercised ontheirexpiration dateofM arch31,2015.Any futurepotentialsettlem entvaluew illbeexcluded hereinunlessand untilthesw aptionsareexercised.
18
O ilHedgingDetailsasof10/28/14
O ilP rices
P eriod $70 $80 $90 $100 $110
4Q 2014 $80 $49 $8 ($28) ($69)
1Q 2015 $78 $44 $1 ($41) ($84)
2Q 2015 $80 $45 $0 ($43) ($88)
3Q 2015 $82 $46 $0 ($44) ($90)
4Q 2015 $80 $46 $0 ($43) ($88)
1Q 2016 $72 $45 $0 ($36) ($81)
2Q 2016 $64 $42 $0 ($31) ($73)
3Q 2016 $61 $40 $0 ($31) ($70)
4Q 2016 $55 $36 $0 ($27) ($63)
1Q 2017 $38 $24 ($1) ($20) ($45)
2Q 2017 $27 $16 ($2) ($15) ($33)
3Q 2017 $18 $9 ($3) ($14) ($26)
4Q 2017 $15 $8 ($2) ($12) ($22)
T hefollow ingtabledetailstheexpectedim pacttopre-taxincom e(inm illions,exceptprices)from thesettlem entofourderivativecontracts,outlinedonthepreviousslide,atvariousN YM EX oilprices.
19
GasHedgingDetailsasof10/28/14
Volum e/day W eighted-AverageP rice
P eriod M M Btus S w apsS w apsw / S hort
P utsCollars
Collarsw / S hortP uts
4Q 2014 221,70065,000
$3.97—
——
—$3.75 -$4.62
——
1Q 2015 135,000105,000
$4.28—
——
—$3.93 -$4.74
——
2Q 2015 135,000105,000
$4.28—
——
—$3.93 -$4.74
——
3Q 2015 135,000105,000
$4.28—
——
—$3.93 -$4.74
——
4Q 2015 135,000105,000
$4.28—
——
—$3.93 -$4.74
——
20
GasHedgingDetailsasof10/28/14
GasP rices
P eriod $3 $4 $5 $6
4Q 2014 $24 ($1) ($23) ($50)
1Q 2015 $24 $3 ($11) ($33)
2Q 2015 $25 $3 ($12) ($33)
3Q 2015 $25 $3 ($12) ($34)
4Q 2015 $25 $3 ($12) ($34)
T hefollow ingtabledetailstheexpectedim pacttopre-taxincom e(inm illions,exceptprices)from thesettlem entofourderivativecontracts,outlinedonthepreviousslide,atvariousN YM EX gasprices.
21
W eprovideinform ationregardingouroutstandinghedgingpositionsinourannualandquarterly reportsfiledw iththeS EC andinourelectronicpublication--@ N FX . T hispublicationcanbefoundonN ew field’sw ebpageathttp://w w w .new field.com .T hroughthew ebpage,you m ay electtoreceive@ N FX throughe-m aildistribution.
N ew fieldExplorationCom panyisanindependentenergy com panyengagedintheexploration,developm entandproductionofcrudeoil,naturalgasandnaturalgasliquids.W earefocusedonN orthAm ericanresourceplaysandourprincipalareasofoperationincludetheM id-Continent,theR ocky M ountainsandonshoreGulfCoast.
T hispresentation containsforw ard-looking statem entsw ithin the m eaning ofS ection 27A ofthe S ecuritiesA ct of1933,asam ended,and S ection 21E ofthe
S ecuritiesExchange A ct of1934,asam ended. T he w ords“w ill”,“believe”,“intend”,“plan”,“expect” orothersim ilarexpressionsare intended to identify
forw ard-looking statem ents. O therthan historicalfactsincluded in thispresentation,allinform ation and statem ents,such asinform ation regarding planned
capitalexpenditures,estim ated reserves,estim ated production targets,drillingand developm entplans,the tim ingofproduction,planned capitalexpenditures,
and otherplansand objectivesforfuture operations,areforw ard-lookingstatem ents.A lthough asofthe date ofthispresentation N ew field believesthatthese
expectationsare reasonable,thisinform ation isbased upon assum ptionsand anticipated resultsthat are subject to num erousuncertaintiesand risks.A ctual
resultsm ay vary significantly from those anticipated due to m any factors,including drilling results,com m odity prices,industry conditions,the pricesofgoods
and services,theavailability ofdrillingrigsand othersupportservices,theavailability ofrefiningcapacity forthecrudeoilN ew field producesin theU intaBasin
in U tah,the availability ofcapitalresources,laborconditions,severe w eatherconditions,governm entalregulationsand otheroperating risks. P lease see
N ew field’s2013 A nnualR eportonForm 10-K and subsequentQ uarterly R eportsonForm 10-Q filed w iththeU .S .S ecuritiesand ExchangeCom m ission(S EC)fora
discussion ofotherfactorsthat m ay cause actualresultsto vary.U npredictable orunknow n factorsnot discussed herein orin N ew field’sS EC filingscould also
havem aterialadverseeffectsonforw ard-lookingstatem ents. R eadersarecautionednottoplaceundorelianceonforw ard-lookingstatem ents,w hichspeakonly
asofthedateofthispresentation. U nlesslegally required,N ew field undertakesnoobligation topublicly updateorreviseany forw ard-lookingstatem ents.
Cautionary N ote to Investors– Effective January 1,2010,the S EC perm itsoiland gascom panies,in theirfilingsw ith the S EC,to disclose only proved,probable
and possible reservesthat m eet the S EC’sdefinitionsforsuch term s. N ew field m ay use term sin thispresentation,such as“resources”,“net resources”,“net
discovered resources”,“net risked resources”,“net low er-risked captured resources”,“net risked captured resources”,“grossresources”,“grossresource
potential”,“grossunrisked resource potential”,“grossunrisked resources”,and sim ilarterm sthat the S EC’sguidelinesstrictly prohibit in S EC filings. Investors
are urged to considerclosely the oiland gasdisclosuresin N ew field’s2013 A nnualR eport on Form 10-K,available at w w w .new field.com ,w w w .sec.govorby
w ritingN ew field at4 W aterw ay S quareP lace,S uite100,T heW oodlands,T exas77380 A ttn:InvestorR elations.
Forw ardL ookingS tatem entsandR elatedM atters
22