Newfield to Sell Eagle Ford Assets

Newfield Energy announced yesterday that they are leaving the Lone Star State with the sale of a substantial portion of their Texas assets, including those in the Eagle Ford Shale.

Related: Newfield Energy in the Eagle Ford

Newfield is hoping to replenish their cash flow with the $390 million deal, which is set to close in the third quarter of 2016. The sale includes Newfield’s unconventional assets in the Eagle Ford plus conventional natural gas assets in south and west Texas. The company estimates that the current net daily production from both assets is approximately 12,700 barrels of oil equivalent per day, of which about 35% is oil.

We continue to refine our portfolio and focus our people and capital resources on assets with high returns and a deep inventory of future drilling opportunities,” said Newfield Chairman & CEO Lee K. Boothby. “Proceeds from the sale of our Texas assets will replenish our cash balance and position us for the timely acceleration of our STACK development in the future.

For the second quarter, Newfield recorded a net loss of $667 million. Other quarterly highlights include:

  • Net domestic production was 13.7 MMBOE
  • Anadarko Basin average net production reached record 83,700 BOEPD
  • Domestic lease operating expense per BOE was down approximately 25% year-over-year
  • Increases its 2016 production outlook and planned capital investments
  • Continued strong results in STACK lead to 15% increase in type curve to 1.1 MMBOE gross