This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Newfield Exploration Management Discusses Q2 2012 Results - Earnings Call Transcript

What I see today is a very positive inflection point. Our transition to an oil company is real and more than half of our production will now be derived from high-value oil and liquids production. This is great news and we're excited about what this means for our future.

As you know, Newfield has certainly changed and evolved over time. We've transitioned from a Gulf of Mexico start up nearly 25 years ago to a company today with core, onshore North American resource plays, lucrative assets in Southeast Asia, and a deep inventory in both oil and natural gas drilling opportunities. We've more than doubled our oil production over the last 4 years, we've transitioned from a company driving growth from natural gas to a company that is driving growth from oil, and we've done it largely organically. We have thousands of low-risk oil development locations that are ready to drill today in our core development areas and a recent assessment results show very exciting early returns in the Cana Woodford, Eagle Ford Shale and in 2 in new plays in the Central Basin region of the Uinta Basin.

More on our assessments later in the call. Our Chief Operating Officer, Gary Packer, will give you a good project level overview.

I'm excited about our results here today and I'm confident we will ultimately achieve our main goal, readying a development inventory of opportunities that will again propel us to double-digit production growth, driven by oil and financed through our internal resources.

I can assure you that our management team is united in delivering strong results for our shareholders and focusing on maximizing our primary product, cash. I'll turn it over to our CFO, Terry Rathert, to quickly cover our financial results from the quarter. Terry?

Terry W. Rathert

Thanks Lee. Our net income in the second quarter, excluding FAS 133 income, was $80 million or $0.61 per share. Revenues for the second quarter were $627 million. Value creation or transition oil is evident. 86% of our revenues in the quarter came from our oil and liquids production. Cash flow for the period was $330 million. Our oil and liquids liftings in the second quarter of 2012 were up 40% over the comparable period in 2011 to 6.1 million barrels, or on average, more than 67,000 barrels of oil per day. Our NGL volumes in the quarter were about 530,000 barrels, only 4% of our total production had its realized price of $28 per barrel. Our oil and liquids production comprised 49% of our total production in the second quarter and we expect that more than half of our production will come from liquids in the back half of the year. I look forward to soon reporting our results in BOEs as compared to Bcfs.

Read the rest of this transcript for free on seekingalpha.com

3 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,279.74 +13.75 0.08%
S&P 500 2,010.40 -0.96 -0.05%
NASDAQ 4,579.7890 -13.6380 -0.30%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs