Newfield (NFX) shifting focus to oil

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dan_s
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Joined: Fri Apr 23, 2010 8:22 am

Newfield (NFX) shifting focus to oil

Post by dan_s »

I really like this announcement NFX made on Monday. This is a Core Holding for us. - Dan

On Monday, Newfield announced that the Company intends to allocate additional capital in 2010 to its ongoing oil activities in the Uinta and Williston Basins. Newfield now expects to invest approximately $700 million in oil projects in 2010, or nearly 45% of its total budget. At current oil prices, Newfield’s growing crude oil volumes are expected to account for approximately 60% of 2010 revenues.

As a result of the re-allocation in expenditures, the Company’s 2010 domestic crude oil production is expected to increase throughout the remainder of 2010 and is expected to be at least 20% above 2009 domestic oil production. Spending reductions in planned gas development programs will offset these new oil investments. Newfield maintains its capital budget of $1.6 billion.

For the full year 2010, Newfield expects that its production will be in the upper half of its previous production guidance of 278 – 288 Bcfe, representing an expected increase of at least 10% over 2009 volumes. An intentional reduction in natural gas volumes in the second half of 2010 should be more than offset by our growing crude oil volumes.
Dan Steffens
Energy Prospectus Group
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