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Scotia Howard Weil Energy Conference
March 27 – 28, 2017
Lee K. Boothby – Chairman, President & CEO
Why Own Newfield Today?
 The Anadarko Basin is “Premier”
– Large, contiguous acreage position
– Consistent (and improving...
Today’s Key Takeaways
 Substantially all D&C capital allocated to the Anadarko
Basin
 NFX’s STACK is best positioned to ...
Anadarko Basin Update
STACK
 Running 4-5 rigs during 2017
 Transitioning to infill development
 Testing upsized complet...
5
0
5
10
15
0
50
100
150
200
0 20 40 60 80 100 120 140
UpsizedCompletionWellCount
MBOE
Days
Cum Production vs Days
 “UPDA...
0
100
200
300
400
500
0 2 4 6 8 10
CumulativeOilProduction,MBO
Years
Upsized Completions Burgess 1H-18
6
“Upsized” Complet...
Progress Check Points Results from 2014 – 17e
Understand Well Spacing
Increased Woodford Well
Density by 33 – 66%
Optimize...
Domestic Growth Outlook
4Q16 4Q17e 4Q18e 4Q19e
Domestic Production (MBOEPD)
4Q16 4Q17e 4Q18e 4Q19e
Anadarko Basin Producti...
9
Solid Capital Structure
 $1.8 bn unsecured credit facility maturing 2020
 ~$2.4 bn of total liquidity
 No fixed debt ...
Why Own Newfield Today?
 The Anadarko Basin is “Premier”
– Large, contiguous acreage position
– Consistent (and improving...
11
Forward Looking Statement & Related Matters
This presentation contains forward-looking statements within the meaning of...
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2017 scotia howard weil energy conference final

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Newfield Presentation March 27-28, 2017, at scotia howard weil energy conference

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2017 scotia howard weil energy conference final

  1. 1. Scotia Howard Weil Energy Conference March 27 – 28, 2017 Lee K. Boothby – Chairman, President & CEO
  2. 2. Why Own Newfield Today?  The Anadarko Basin is “Premier” – Large, contiguous acreage position – Consistent (and improving) results across a large geographic area – Premium returns TODAY – Development mode is driving efficiencies  NFX has a Proven Track Record – Weathered multiple commodity price cycles – History of finding and developing valuable plays – Proven operator  Inventory Depth – Thousands of quality drilling locations  Financial Strength – Record of financial discipline 2
  3. 3. Today’s Key Takeaways  Substantially all D&C capital allocated to the Anadarko Basin  NFX’s STACK is best positioned to deliver decades of high return drilling – “NEW” Burgess 1H-18 STACK XL well sets record 24-hour and 20- day average oil production rates per 1,000’ GPI  NFX is a proven operator and has taken multiple plays from concept to development – Today’s learnings are being applied “real-time” to our development plans  NFX’s plan is deliverable, even at today’s commodity prices – Driven by strong Anadarko Basin oil growth  NFX’s solid capital structure is differentiating 3
  4. 4. Anadarko Basin Update STACK  Running 4-5 rigs during 2017  Transitioning to infill development  Testing upsized completions & downspacing  Testing strategic exploration opportunities SCOOP  Running 3-5 rigs during 2017  Driving production through continued development drilling  Testing strategic exploration opportunities SCOOP STACK 4
  5. 5. 5 0 5 10 15 0 50 100 150 200 0 20 40 60 80 100 120 140 UpsizedCompletionWellCount MBOE Days Cum Production vs Days  “UPDATED” 15 total wells with current completion design: 2,100 lbs/ft & 2,100 gals/ft  “NEW” Burgess 1H-18 well – 24-hour peak oil production per 1,000’ GPI: 417 BOPD – 20-day average oil production per 1,000’ GPI: 361 BOPD  Evaluating completions and well spacing in 2017 1 All wells normalized to 10,000’ lateral length. Two stream production normalized to three stream using 120/Mmcf NGL yield & 21% gas shrink. STACK 85% liquids 70% oil 85% liquids 60% oil STACK Results from Recent “Upsized” Completions Burgess 1H-18 Record Oil Well
  6. 6. 0 100 200 300 400 500 0 2 4 6 8 10 CumulativeOilProduction,MBO Years Upsized Completions Burgess 1H-18 6 “Upsized” Completions Enhancing STACK Oil Production  STACK type curve Oil EUR is ~470 MBO with ~60% production in the first 5 years  STACK type curve wells estimated to “payout” in ~1.75 years  Upsized completions performing above 1.1 MMBOE EUR type curve3 Payout in ~ 1.75 years2 1 All wells normalized to 10,000’ lateral length 2 Using type curve and assuming $7.8 mm total well cost (including facilities) and $55 / 60 / 65 flat oil for 2017 / 18 / 19 and $3.00 flat gas 3Estimated ultimate recovery (EUR) refers to potential recoverable oil and natural gas hydrocarbon quantities with ethane processing and depends on the availability of capital, regulatory approvals, commodity prices, costs, actual drilling results and other factors. Such amounts do not meet SEC rules and guidelines, may not be reflective of SEC proved reserves and do not equate to or predict any level of reserves or production 60% 80% 1 1
  7. 7. Progress Check Points Results from 2014 – 17e Understand Well Spacing Increased Woodford Well Density by 33 – 66% Optimize Completion Design Increased Woodford Completion Design by ~100% Drive Down Learning Curve Decreased Completed Well Costs >25% Improve Productivity Increased 30-Day Average Production Rates 25% Improve Cost Structure Decreased Lease Operating Expense >10%1 Improve Overall Economics Increased Rate-of-Return 100%2 7 SCOOP Woodford Development Learnings… a Proxy for STACK 1 LOE = Total LOE over life of the well 2 Assumes $50/55/60/Bbl flat and $3.00 gas flat
  8. 8. Domestic Growth Outlook 4Q16 4Q17e 4Q18e 4Q19e Domestic Production (MBOEPD) 4Q16 4Q17e 4Q18e 4Q19e Anadarko Basin Production (MBOEPD) 88 105 – 115 125 – 135138 150 - 160 170 – 180 Liquids Gas Liquids Gas 190 – 210 150 – 170 65% 65% 35% 35%  Domestic production growth forecast driven by the Anadarko Basin  Plan assumes about 10 rigs in the Anadarko Basin throughout the plan period – Commodity price range: Oil $50 - $60 WTI and Gas $3.00 HH  Plan does not include exploratory successes, acquisitions or divestitures  Domestic oil growth rate of 15 – 20% exceeds company growth rate 8 1 1 Excludes production associated with Eagle Ford and south Texas asset sale. See handout for details
  9. 9. 9 Solid Capital Structure  $1.8 bn unsecured credit facility maturing 2020  ~$2.4 bn of total liquidity  No fixed debt maturities until 2022  Weighted average fixed debt maturity of >7 years at 4.9% YTM1  Company goal: to maintain Net Debt / EBITDA ratio of 1.5 – 2.5x throughout plan 1 Sourced from FactSet as of December 31, 2016. 2 Net debt represents principal balance of debt less cash on balance sheet. Adjusted EBITDA calculated per credit agreement definition; YE 2016 reflects 5th amendment executed 3/18/2016. See handout for details. Net debt / adj EBITDA2 Fixed debt maturity schedule $750 $1,000 $700 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 $ millions 1.9x 1.9x 2.0x YE 2014 YE 2015 YE 2016 No maturities for 5 years
  10. 10. Why Own Newfield Today?  The Anadarko Basin is “Premier” – Large, contiguous acreage position – Consistent (and improving) results across a large geographic area – Premium returns TODAY – Development mode is driving efficiencies  NFX has a Proven Track Record – Weathered commodity price cycles – History of finding and developing valuable plays – Proven operator  Inventory Depth – Thousands of quality drilling locations  Financial Strength – Record of financial discipline 10
  11. 11. 11 Forward Looking Statement & Related Matters 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 ““may,” “forecast,” “outlook,” “could,” “budget,” “objectives,” “strategy,” “believe,” “expect,” “anticipate,” “intend,” “estimate,” “project,” “target,” “goal,” “plan,” “should,” “will,” “predict,” “guidance,” “potential” or other similar expressions are intended to identify forward-looking statements. Other than historical facts included in this presentation, all information and statements, including but not limited to 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 but not limited to commodity prices, drilling results, our liquidity and the availability of capital resources, operating risks, industry conditions, China and U.S. governmental regulations, financial counterparty risks, the prices of goods and services, the availability of drilling rigs and other support services, our ability to monetize assets and repay or refinance our existing indebtedness, labor conditions, severe weather conditions, new regulations or changes in tax legislation, environmental liabilities not covered by indemnity or insurance, legislation or regulatory initiatives intended to address seismic activity, and other operating risks. Please see Newfield’s 2016 Annual Report on Form 10-K and subsequent public filings, all 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 actual results. Readers are cautioned not to place undue 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, whether as a result of new information, future events or otherwise. This presentation has been prepared by Newfield and includes market data and other statistical information from sources believed by Newfield to be reliable, including independent industry publications, government publications or other published independent sources. Some data are also based on Newfield’s good faith estimates, which are derived from its review of internal sources as well as the independent sources described above. Although Newfield believes these sources are reliable, it has not independently verified the information and cannot guarantee its accuracy and completeness. Actual quantities that may be ultimately recovered from Newfield’s interests may differ substantially from the estimates in this presentation. Factors affecting ultimate recovery include the scope of Newfield’s ongoing drilling program, which will be directly affected by commodity prices, the availability of capital, drilling and production costs, availability of drilling services and equipment, drilling results, lease expirations, transportation constraints, regulatory approvals and other factors, and actual drilling results, including geological and mechanical factors affecting recovery rates. Newfield may use terms in this presentation, such as “EURs”, “upside potential”, “net unrisked resource”, “gross EURs”, and similar terms that the SEC’s guidelines strictly prohibit in SEC filings. These terms include reserves with substantially less certainty than proved reserves, and no discount or other adjustment is included in the presentation of such reserve numbers. Investors are urged to consider closely the oil and gas disclosures in Newfield’s 2016 Annual Report on Form 10-K and subsequent public filings, 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. In addition, this presentation contains non-GAAP financial measures, which include, but are not limited to, Adjusted EBITDA. Newfield defines EBITDA as net (loss) income before income tax (benefit) expense, interest expense and depreciation, depletion and amortization. Adjusted EBITDA, as presented herein, is EBITDA before ceiling test impairments, gains on asset sales, non-cash compensation expense and net unrealized (gains) / losses on commodity derivatives. Adjusted EBITDA is not a recognized term under GAAP and does not represent net income as defined under GAAP, and should not be considered an alternatives to net income as an indicator of operating performance or to cash flows as a measure of liquidity. Adjusted EBITDA is a supplemental financial measure used by Newfield’s management and by securities analysts, lenders, ratings agencies and others who follow the industry as an indicator of Newfield’s ability to internally fund exploration and development activities.

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