Newfield: the company increased output worldwide as it repositioned in the US
Production drives Newfield gains
Houston independent Newfield Exploration reported strong second quarter earnings, boosted by increased production and hedging returns.
The company reported second quarter net income of $150 million, or $1.15 per diluted share, up from $94 million, or 73 cents per diluted share in the second quarter of last year.
Stripping out the effects of hedging, net income for the quarter would have been $114 million, or 87 cents per share.
Revenues for the quarter were $528 million, up from $390 million previously.
Newfield reported production of 71 billion cubic feet of natural gas equivalent, up 22% over the year-ago quarter and up 10% sequentially.
The company spent $522 million on capital expenditures worldwide in the quarter, not including $577 million paid for properties in the Rocky Mountains.
The company said it expected its full-year capital budget to be about $2.1 billion.
The company said it planned to spin off about 45 Bcfe of production as it sold its Gulf of Mexico assets to McMoRan for $1.1 billion under a deal struck in June.
Net earnings for the first half of 2007 were $54 million, or 41 cents per share, compared with $243 million, or $1.89 for the first half of 2006.
The company reported revenues of $968 million over the same period, up from $821 million previously.
Including production gains from the new assets the company lowered its full year production guidance to 240-253 Bcfe, down from an original 279-291 Bcfe, reflecting the loss of a net 38 Bcfe.