2016 Conventional South Texas Divestiture

2016 Conventional South Texas Divestiture
Newfield Exploration
Key Investment Highlights
Newfield Exploration (“Newfield” or “NFX”) has retained BMO Capital Markets and Scotia Waterous as advisors to assist with the
divestment of substantially all of its assets in the state of Texas. Simultaneous with its Eagle Ford sales process, NFX is offering for
sale its Conventional Gas assets (all rights and depths) located primarily in South and West Texas (the “Properties”). This
memorandum covers those primarily South and West Texas assets only.
Gas-weighted
assets with steady,
predictable cash
flow
Significant
operational control
Substantial
untapped potential
remaining
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
Forecasted July 2016 net production is 28.5 mmcfe/d (93% gas) from 370 gross PDP wells

Well-established production decline of 12% over the next 12 months

2015 operating cash flow of approximately $11 mm

96% of net production volumes are operated

Fields have very high average working interest (~75% based on net acres)

All lands HBP (~41,500 net acres)

Limited contractual requirements

Approximately 110 volumetrically-supported recompletion opportunities in high-quality stacked
reservoirs

Side-track and drilling opportunities to access proven reserves

Tremendous gas option value with large resource base

Assets provide exposure to the highly prolific Texas Gulf Coast Wilcox, Frio-Vicksburg, and Sligo
shelf-edge producing fairways in addition to the Strawn and Canyon plays in the Val Verde Basin

The Properties have received limited focus and capital, so substantial value remains beyond
identified opportunities
Significant Operated Position in Multiple, Legendary Gas Fields
Steady and Predictable Production
160
mmcfe/d
140
120
100
80
60
40
20
-2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
3
Sarita Complex (17% of July 2016E Net Production)

Current net production: ~4.8 mmcfe/d

~3,500 net acres

Approximately 30 volumetrically supported recompletion
opportunities, many with multiple pay zones

Sarita
–
–

Sarita
Sarita and
Sarita East
Sarita and Sarita East

Newfield operated

Multiple deep, overpressured Frio sands

Numerous stacked pays with extensive recompletion potential
and infill drilling opportunity
Sarita Shallow
Sarita Shallow

Newfield operated

Multiple normally pressured Frio sands
Sanchez
Sanchez (Pesadizo NW)
–
1 producing well
Active Well Count
Producing Interval
Op.
Non-Op.
Major
Operator
Sarita
Frio
35
0
Newfield
Sanchez
Frio
1
0
Newfield
Field
4
South Texas Wilcox (26% of July 2016E Net Production)

Current net production: ~7.4 mmcfe/d

~8,000 net acres

Approximately 30 volumetrically supported recompletion
opportunities, many with multiple pay zones




Exsun
Vaquillas Ranch
–
Operated by Newfield and EOG
–
Produces from multiple overpressured Lobo sands
–
Multiple recompletion, sidetrack and development opportunities
Roleta and Exsun
–
Newfield operates Roleta; Exsun actively operated by XTO and
Hilcorp
–
Produces from Lobo and Perdido sands
Bob West
Active Well Count
Bob West
–
Operated by Cantera
–
Produces from multiple overpressured Wilcox sands
–
Majority of field developed in the early 1990’s with a second round
of drilling in the 2006-2008 time frame
–
Recent activity includes recompletions and successful cleanouts
Others
–
Haynes, Tigre Grande N
Producing Interval
Op.
Non-Op.
Major
Operator
Lobo
36
1
Newfield
Roleta
Perdido
26
0
Newfield
Exsun
Lobo
0
9
XTO
Bob West
Wilcox
0
59
Cantera
Haynes
Hinnant
0
2
Crimson
Reklaw/Perdido
4
0
Newfield
Field
Vaquillas Ranch
Tigre Grande N
5
Roleta
Vaquillas
Ranch
South Texas Vicksburg (15% of July 2016E Net Production)

Current net production: ~4.2 mmcfe/d

~6,200 net acres

Approximately 10 volumetrically supported recompletion
opportunities, many with multiple pay zones

McCook SE



6
–
Operated by Newfield
–
Produces from multiple overpressured Vicksburg sands
–
Behind pipe opportunities
Monte Christo
–
Operated by Newfield and Cantera
–
Produces from overpressured Vicksburg and Frio sands
Monte
Christo
Encino
La Rucia
McCook SE
La Rucia (Rucias N)
–
Operated by Newfield
–
Produces from overpressured Vicksburg sands
–
Several recompletion, sidetrack and drilling opportunities
Active Well Count
Producing Interval
Op.
Non-Op.
Major
Operator
Vicksburg
8
1
Newfield
Vicksburg/Frio
15
9
Newfield
La Rucia
Vicksburg
16
0
Newfield
Encino
Vicksburg
3
0
Newfield
Field
Encino
–
Operated by Newfield
–
Produces from Vicksburg sands
McCook SE
Monte Christo
West Texas (22% of July 2016E Net Production)

Current net production: ~6.4 mmcfe/d

~14,200 net acres

Several volumetrically supported recompletion
opportunities

Poulter


–
Operated by Newfield
–
Produces from Strawn sands
–
Wolfcamp recompletion opportunities
Vinegarone E
Poulter
`
Vinegarone E (including Armer South and Beano)
–
Operated by Newfield
–
Produces from Canyon sands and Ellenburger formation
Others
–
Four Mills, Geronimo Creek, Langtry, Snakebite
Active Well Count
Producing Interval
Op.
Non-Op.
Major
Operator
Strawn
17
0
Newfield
Vinegarone E
Canyon /
Ellenburger
53
0
Newfield
Four Mills
Ellenburger
8
0
Newfield
Geronimo Creek
Ellenburger
12
2
Newfield
Canyon
6
2
Newfield
Ellenburger
10
0
Newfield
Field
Poulter
Langtry
Snakebite
7
Upper Texas Coast (12% of July 2016E Net Production)

Current net production: ~3.3 mmcfe/d

~7,700 net acres

Over 35 volumetrically supported recompletion
opportunities, many with multiple pay zones

Provident City

–
Operated by Newfield and Milagro Exploration (White Oak)
–
Produces from multiple-stacked, overpressured Wilcox sands
–
Numerous behind pipe opportunities
Caney Creek W
Provident
City
Caney Creek W (Dynamic)
–
Operated by Newfield
–
Produces from multiple-stacked, overpressured Wilcox sands
–
Numerous behind pipe opportunities
Active Well Count
Producing Interval
Op.
Non-Op.
Major
Operator
Provident City
Wilcox
14
2
Newfield
Caney Creek W
Wilcox
10
0
Newfield
Field
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Additional Transaction Information



Confidentiality Agreement
–
Download at http://datarooms.bmo.com
–
Email CAs to Newfield.SouthTexas@bmo.com

Submit Additional Questions & Inquiries to
Newfield.SouthTexas@bmo.com

Final offers targeted Mid-July
Evaluation Materials
Data Room Pres.
Bid Date mid-July
Holiday
–
Evaluation data available week of May 30, 2016
–
Includes supporting documents such as land,
commercial assumptions, and technical support
S
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Newfield Reserve Report in ARIES and PHDWin
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Data Rooms (Houston, TX) open early June
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Please contact Chelsea Neville at
Newfield.SouthTexas@bmo.com (713-546-9703) to
schedule a Data Room appointment
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2016
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Geoff Roberts
Managing Director & Head of U.S. A&D
713-547-0808
geoff.roberts@bmo.com
Howard Barnwell
Director / Transaction Mgr.
713-546-9767
howard.barnwell@bmo.com
Rob Priske
Director
713-546-9727
rob.priske@bmo.com
Doug Reynolds
Managing Director & Head of U.S.
713-437-5063
doug.reynolds@scotiabank.com
Tim Pish
Director, Geology
713-437-5048
tim.pish@scotiabank.com
Dan Schockling
Director / Commercial
713-547-0805
dan.schockling@bmo.com
Steve Hendrickson
Senior Engineer
713-518-1245
steve.hendrickson@bmo.com
Bob Maurer
Senior Geologist
713-518-1272
bob.maurer@bmo.com
Robert Urquhart
Director
713-437-5046
robert.urquhart@scotiabank.com
Rene McKale
Director, Engineering
832-476-6403
rene.mckale@scotiabank.com
Eric Monus
VP / Engineer
713-546-9734
eric.monus@bmo.com
Rosie Cross
Associate
713-518-1229
rosie.cross@bmo.com
Ashley Northrup
Associate
713-547-0807
ashley.northrup@bmo.com
Max van Adrichem
Associate Director, Corporate Finance
713-437-5061
max.vanadrichem@scotiabank.com
Cameron Todor
Associate, Engineering
832-426-6052
cameron.todor@scotiabank.com
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Disclaimer
NOTE: All or part of the Newfield 2016 Conventional South Texas Divestiture is subject to prior sale at any time and any dates are subject to revisions at any
time, at the sole discretion of Newfield, BMO Capital Markets Corp. (“BMOCMC”) and Scotia. All information included in this document is based on information
provided by Newfield. Please note all numbers may be approximate or estimated and tables may not add due to rounding. Please do not contact Newfield
directly. Direct all inquires to the BMOCMC and Scotia personnel listed above.
DISCLAIMER: BMOCMC, Scotia and Newfield make no representation or warranty, express or implied in respect thereof, take no responsibility for any errors
and omissions which may be contained herein and accept no liability whatsoever for any loss (whether direct or consequential) arising from any use of or
reliance on this Announcement or its contents. Information may be available to BMOCMC and Scotia, which is not reflected herein. This Announcement is not
to be construed as an offer or solicitation to buy or sell any security. BMO Capital Markets is a trade name used by BMO Financial Group for the wholesale
banking businesses of Bank of Montreal, BMO Harris Bank N.A. (member FDIC), Bank of Montreal Ireland p.l.c, and Bank of Montreal (China) Co. Ltd and the
institutional broker dealer businesses of BMO Capital Markets Corp. (Member SIPC) in the U.S., BMO Nesbitt Burns Inc. (Member Canadian Investor Protection
Fund) in Canada and Asia and BMO Capital Markets Limited (authorised and regulated by the Financial Conduct Authority) in Europe and Australia. “Nesbitt
Burns” is a registered trademark of BMO Nesbitt Burns Inc., used under license. “BMO Capital Markets” is a trademark of Bank of Montreal, used under license.
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States, Canada and elsewhere.™ Trademark of Bank of Montreal in the United States and Canada.
Trademark of The Bank of Nova Scotia. Used under license, where applicable. Scotiabank, together with "Global Banking and Markets", is a marketing name for
the global corporate and investment banking and capital markets businesses of The Bank of Nova Scotia and certain of its affiliates in the countries where they
operate, including Scotia Capital Inc., Scotia Capital (USA) Inc., Scotiabanc Inc., Citadel Hill Advisors L.L.C., The Bank of Nova Scotia Trust Company of New York,
Scotiabank Europe plc, Scotiabank (Ireland) Limited, Scotiabank Inverlat S.A., Institución de Banca Múltiple, Scotia Inverlat Casa de Bolsa S.A. de C.V., Scotia
Inverlat Derivados S.A. de C.V. – all members of the Scotiabank Group and authorized users of the mark. The Bank of Nova Scotia is incorporated in Canada with
limited liability. Scotia Capital Inc. is a member of the Canadian Investor Protection Fund. Scotia Capital (USA) Inc. is a broker-dealer registered with the SEC and
is a member of FINRA, NYSE, NFA and SIPC. The Bank of Nova Scotia is authorized and regulated by the Office of the Superintendent of Financial Institutions in
Canada. The Bank of Nova Scotia is authorized by the Prudential Regulation Authority and subject to regulation by the Financial Conduct Authority and limited
regulation by the Prudential Regulation Authority. Details about the extent of The Bank of Nova Scotia's regulation by the Prudential Regulation Authority are
available from us on request. Scotia Capital Inc. is regulated by the Investment Industry Regulatory Organisation of Canada and authorised and regulated by the
Financial Conduct Authority. Scotiabank Europe plc is authorized by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and
the Prudential Regulation Authority. Scotiabank Inverlat, S.A., Scotia Inverlat Casa de Bolsa, S.A. de C.V., and Scotia Derivados, S.A. de C.V., are each authorized
and regulated by the Mexican financial authorities. The products and services described herein may not be available in all jurisdictions, and are offered by
different legal entities authorized to use the SCOTIABANK trademark.
The ScotiaMocatta trademark is used in association with the precious and base metals businesses of The Bank of Nova Scotia The Scotia Waterous trademark is
used in association with the oil and gas M&A advisory businesses of The Bank of Nova Scotia and some of its subsidiaries, including Scotia Waterous Inc, Scotia
Waterous (USA) Inc, Scotia Waterous (UK) Limited and Scotia Capital Inc - all members of the Scotiabank group and authorized users of the mark.
Scotia Capital Inc owns or controls an equity interest in the TMX Group Limited (TMX) and has a nominee director serving on its board As such, Scotia Capital
Inc may be considered to have an economic interest in the listing of securities on an exchange owned or operated by TMX, including the Toronto Stock
Exchange, the TSX Venture Exchange and the Alpha Exchange (each, an Exchange) No person or company is required to obtain products or services from TMX
or its affiliates as a condition of Scotia Capital Inc supplying or continuing to supply a product or service Scotia Capital Inc does not require issuers or selling
shareholders to list securities on any of the Exchanges as a condition of supplying or continuing to supply underwriting and/or any other services.
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