UPDATE: Newfield Exploration Announces 2012 Capital Investment Program

Newfield Exploration Company NFX yesterday announced a $1.5 – $1.7 billion capital investment program for 2012. The investments will be almost entirely "oil-focused" and are expected to generate more than 20% year-over-year production growth in oil and liquids. Approximately $300 million of the budget will be allocated to an aggressive assessment of a new 125,000 net-acre position in the "liquids-rich" Cana Woodford play, located in Oklahoma's Anadarko Basin. Total planned 2012 capital investments of $1.5 – $1.7 billion, or approximately $400 million less than 2011 investments of $2.0 billion. Totals exclude acquisitions and capitalized overhead and interest of $210 million and $194 million, respectively; Oil and liquids production is expected to grow more than 20%, natural gas production expected to decline as much as 15%; Approximately $500 million, or nearly one-third of total budget, will be allocated to Uinta Basin oil plays. Multiple horizontal targets are planned to be tested in the Central Basin region and area production is expected to grow more than 20% in 2012; One-third of total budget, more than $500 million, will be allocated to the Mid-Continent. Up to seven operated rigs will be dedicated to the assessment of a new 125,000 net acre position in the Cana Woodford play; Acceleration of development drilling in Malaysia to yield approximately 35% growth in area oil production. Approximately 40% of the $235 million international budget will be allocated to development of the Pearl oil field in China; The budget will be funded through the Company's 2012 cash flows from operations, proceeds from non-strategic asset sales and borrowings as needed under its existing credit facility; Approximately 62% of the Company's expected 2012 gas production and approximately 95% of the Company's expected 2012 domestic oil production is hedged. Complete details on Newfield's hedge positions can be found on the Company's website in the @NFX publication.