Newfield Exploration
| File:Newfield logo.svg | |
| Industry | Petroleum industry |
|---|---|
| Founded | 1988 |
| Founder | Joe B. Foster |
| Defunct | Template:End date and age |
| Fate | Purchased by Encana |
| Headquarters | Houston, Texas |
Key people | Lee K. Boothby, Chairman, CEO & President Gary D. Packer, COO Lawrence S. Massaro, CFO |
| Products | Petroleum Natural gas Natural gas liquids |
Production output | 152 thousand barrels of oil equivalent (930,000 GJ) daily (2017) |
| Revenue | Increase $1.767 billion (2017) |
| Increase $0.427 billion (2017) | |
| Total assets | Increase $4.961 billion (2017) |
| Total equity | Increase $1.408 billion (2017) |
Number of employees | 1,010 (2017) |
Newfield Exploration Company operated as an exploration and production firm specializing in petroleum, natural gas, and natural gas liquids, with its headquarters situated in Houston, Texas. The company was absorbed by Encana in February 2019.
By the end of 2017, Newfield’s proved reserves totaled , with more than 99% located within the United States and a minor portion—approximately 1%—in the South China Sea. The composition of these reserves was approximately 37% crude oil, 19% natural gas liquids, and 44% natural gas.
Principal assets included:
- Anadarko Basin – approximately 67% of total reserves; encompassing 400,000 net acres within the SCOOP and STACK plays; daily production at
- Arkoma Basin – representing 12% of reserves; covering 147,000 net acres; daily output at
- Uinta Basin – holding 13% of reserves; consisting of 217,000 net acres; daily production at
- Williston Basin – accounting for 10% of reserves; with 82,000 net acres; daily production at
- South China Sea – comprising 1% of reserves; daily output at
History
Established in 1988 by industry veteran Joe B. Foster, former chairman of Tenneco Oil Company, Newfield began with initial funding of $9 million sourced from investors including Charles Duncan, Jr. and the University of Texas endowment fund.
The company’s first producing property acquisition occurred in 1990 with Eugene Island Block 172 located in the Gulf of Mexico, which elevated its daily production from to over within that year.
Newfield transitioned to a publicly traded entity in November 1993 through an initial public offering that issued 3.125 million shares. Subsequent strategic expansions involved acquiring Gulf Australia Resources Limited in 1999 to enhance its offshore Australian operations; purchasing south Texas assets valued at $142 million in 2000; acquiring Lariat Petroleum for $333 million in 2001 to establish a presence in the Anadarko Basin; and obtaining EEX Corporation for $640 million in 2002 to further develop South Texas holdings.
In 2004, Newfield entered the Rocky Mountains region by acquiring Inland Resources and broadened its offshore exploration activities in the South China Sea via a collaboration with CNOOC initiated in 2005.
The firm expanded its Rocky Mountain portfolio further by acquiring assets from Stone Energy for $575 million in 2007 while divesting its North Sea properties for $486.4 million to concentrate on domestic U.S. operations.
Newfield briefly operated within Pennsylvania’s Marcellus Shale through a partnership with Hess Corporation starting in 2009 but had exited these leases by 2013.
Efforts to optimize asset allocation continued with the sale of Gulf of Mexico properties to W&T Offshore in 2012 and divestiture of Malaysian assets to SapuraKencana Petroleum Berhad for $896 million completed in 2014.
A notable transaction occurred in 2016 when Newfield acquired an additional 42,000 acres within the Anadarko Basin’s STACK play from Chesapeake Energy for $470 million while simultaneously selling Texas assets for $390 million to focus investment on core U.S. resource basins.
This strategic growth path culminated with Newfield’s acquisition by Encana in February 2019, integrating its asset base into one of North America’s leading energy companies.
Environmental record
In 2012, Newfield discovered possible breaches of the Clean Water Act concerning unauthorized discharge of fill substances in the Uinta Basin. These matters were settled with the Environmental Protection Agency in 2015, resulting in a penalty payment of $175,000 by the company.