Newfield Exploration Company Oil and Gas Valuation Report

SUMMARY

Summary

Newfield Exploration Company Valuation Report is the essential source for those interested in the investment outlook for Newfield Exploration . The report provides exhaustive information on the areas of operations of the company as well as the market overview of the regions in which the company operates. The reports also provides detailed financial outlook of the company for the next five years along with the key financial and operational ratios. It also provides detailed asset by asset valuation of the company's oil and gas exploration blocks and oil and gas fields.

Scope

• Provides detailed information and analysis of areas of operations of the company.
• Provides detailed information regarding production and reserves of the company.
• Provides detailed analysis of the share price performance of the company as well as its comparison with the market and the peer group.
• Provides financial forecast for the company for the next five years.
• Provides asset by asset valuation (sum-of-parts) of the company along with the sensitivity analysis.
• Provides peer-group analysis based on share performance, operational and financial parameters.

Reasons to buy

• Make investment decisions relating to the company on the basis of detailed data relating to the company's forecast performance.
• Value the company by understanding the key drivers of the company's performance, its oil and gas reserves and forecast production.
• Use the information for strategy and planning, M and A identifications, and competitor analysis.

TABLE OF CONTENTS

1 Table Of Contents 2
1.1 List Of Tables 5
1.2 List Of Figures 6
2 Investment Summary 8
2.1 Newfield Leads Operators in Woodford 9
2.2 Upside Reserves Potential 11
2.3 Supplements Organic effrots with Opportunistic Acquisitions 13
3 Company Overview 15
3.1 Shareholding Structure 16
3.2 Strategy and Vision 17
3.3 Production and Reserves 17
3.4 Exploration and Appraisal 21
3.5 Share Performance 24
3.6 Key Management 25
4 Operations Summary 29
4.1 United States 30
4.1.1 Overview 30
4.1.2 Production and Reserves 31
4.1.3 Exploration and Development 33
4.1.4 Outlook 34
4.2 Malaysia 34
4.2.1 Overview 34
4.2.2 Production and Reserves 35
4.2.3 Exploration and Development 37
4.2.4 Outlook 38
4.3 China 39
4.3.1 Overview 39
4.3.2 Production and Reserves 40
4.3.3 Exploration and Development 41
4.3.4 Outlook 41
5 Financial Outlook 42
5.1 Income Statement (2005-2012) 43
5.2 Balance Sheet (2005-2012 43
5.3 Cash Flow Statement (2005-2012) 45
5.4 Key Ratios (2005-2012) 46
6 Valuation 47
6.1 Sum-of-Parts Analysis 47
6.2 Discounted Cash Flow Valuation 49
6.3 Comparative Valuation 51
6.4 Sensitivity Analysis 53
7 Peer Group Analysis 54
7.1 Share Price Performance 54
7.2 Operational and Financial Performance 55
8 Key Risks 58
8.1 Crude oil and natural gas prices 58
8.2 Political Instability 58
8.3 Competition 58
8.4 Reserves and Drilling operations 58
9 Market Scenario 59
9.1 The United States 59
9.2 Reserves and Production 59
9.3 Imports and Exports 60
9.4 Infrastructure 60
9.5 Regulations 60
9.6 Key Fiscal Regime 60
9.7 China 61
9.7.1 Reserves and Production 61
9.7.2 Import and Exports 62
9.7.3 Infrastructure 62
9.7.4 Regulations 62
9.7.5 Key Fiscal Regime 62
9.7.6 Private versus State Participation 63
9.8 Malaysia 63
9.8.1 Reserves and Production 63
9.8.2 Import and Exports 64
9.8.3 Infrastructure 64
9.8.4 Regulations 65
9.8.5 Key Fiscal Regime 65
9.8.6 Private versus State Participation 65
10 Appendix 67
10.1 Methodology 67
10.1.1 Coverage 67
10.1.2 Secondary Research 68
10.1.3 Primary Research 68
10.1.4 Forecasts 69
10.2 Key Economic Assumptions 71
10.3 Expert Panel Validation 72
10.4 Definitions 72
10.5 Unit Of Measure 73
10.6 About Global Markets Direct 74
10.7 Contact Us 74
10.8 Disclosure information 75
10.9 Disclaimer 75

1.1 List Of Tables

Table 1: Newfield Exploration Company, Woodford Shale Reserves Potential, 2008 11
Table 2: Newfield Exploration Company, Additional Upside Potential, 2008 12
Table 3: Newfield Exploration Company, Exploration and Exploitation Projects, 2008 12
Table 4: Newfield Exploration Company, Reserves Addition (Bcfe) and Reserves Replacement Ratio, 2005-2007 13
Table 5: Newfield Exploration Company, Deals Details, 2005-2007 14
Table 6: Newfield Exploration Company, Key Corporate Events, 1990-2008 15
Table 7: Newfield Exploration Company, Company Time-Line, 1990-2008 (Cont'd) 16
Table 8: Newfield Exploration Company, Top shares Holders, 2008 16
Table 9: Newfield Exploration Company, Total Oil and Gas Reserves, 2003-2007 20
Table 10: Newfield Exploration Company, Acreage, 2003-2007 22
Table 11: Newfield Exploration Company, Well Data, 2003-2007 22
Table 12: Newfield Exploration Company, Acquisition, Development and Exploration Cost, 2003-2007 23
Table 13: Newfield Exploration Company, Board and Senior Management Background and Experience Highlight, 2008 28
Table 14: Newfield Exploration Company, The United States, Drilling History and Acreage, 2003-2007 34
Table 15: Newfield Exploration Company, Malaysia, Exploration and Production Assets Details, 2008 35
Table 16: Newfield Exploration Company, Malaysia, Undeveloped Acreage, 2004-2007 38
Table 17: Newfield Exploration Company, China, Exploration and Production Assets Details, 2008 40
Table 18: Newfield Exploration Company, China, Undeveloped Acreage, 2004-2007 41
Table 19: Newfield Exploration Company, Income Statement ($ Million), 2005-2012 43
Table 20: Newfield Exploration Company, Balance Sheet ($ Million), 2005-2012 44
Table 21: Newfield Exploration Company, Cash Flow Statement ($ Million), 2005-2012 45
Table 22: Newfield Exploration Company, Key Ratios, 2005-2012 46
Table 23: Newfield Exploration Company, Summary of Target Price ($/share), 2008 47
Table 24: Newfield Exploration Company, Sum-of Parts DCF, 2008 48
Table 25: Newfield Exploration Company, Discounted Cash Flow, 2008 50
Table 26: Newfield Exploration Company, Discounted Cash Flow, Key Assumptions, 2008 50
Table 27: Newfield Exploration Company, Comparative Valuations, 2007 51
Table 28: Newfield Exploration Company, Valuation Sensitivity to Natural Gas Price (Per Mcfl) and Discount Rate (%), 2008 53
Table 29: Newfield Exploration Company Vs. Peer Group Operational and Financial Performance, 2007 55
Table 30: Brent Blend NYMEX Future Prices 71

1.2 List Of Figures

Figure 1: Newfield Exploration Company, Woodford Operated Rigs by Operator, March 2008 9
Figure 2: Newfield Exploration Company, Woodford Operated Wells Spud By Operator, March 2008 10
Figure 3: Newfield Exploration Company, Woodford Production, March 2008 10
Figure 4: Newfield Exploration Company Limited, Total Production and Reserves (Bcfe), 2001-2007 18
Figure 5: Newfield Exploration Company, Production Profile (Bcfe), 2005-2012 19
Figure 6: Newfield Exploration Company, Proved Reserves (Bcfe), 2007 20
Figure 7: Newfield Exploration Company, Share Performance, March 2005-February 2008 24
Figure 8: Newfield Exploration Company, Exploration and Production Map, 2008 29
Figure 9: Newfield Exploration Company, The United States, Exploration and Production Map, 2008 30
Figure 10: Newfield Exploration Company, The United States, Natural Gas (Bcfe) and Crude Oil Production (Mbbls), 2003-2007 31
Figure 11: Newfield Exploration Company, The United States, Production By Area, Bcfe, 2007 32
Figure 12: Newfield Exploration Company, The United States, Proved Reserves, Bcfe, 2007 33
Figure 13: Newfield Exploration Company, Malaysia, Exploration and Production Map, 2008 35
Figure 14: Newfield Exploration Company, Malaysia, Production (Working Interest, Mbbls), 2004-2012 36
Figure 15: Newfield Exploration Company, Malaysia, Proved Developed Reserves, (Working Interest, Bcfe), 2004-2007 37
Figure 16: Newfield Exploration Company , China, Exploration and Production Map, 2008 39
Figure 17: Newfield Exploration Company, China Production (Working Interest, Mbbls), 2004-2012 40
Figure 18: Newfield Exploration Company, EV/EBITDA, 2008 52
Figure 19: Newfield Exploration Company Vs. Peer Group Share Price Performance, May 2007-May 2008 54
Figure 20: Newfield Exploration Company, Production Vs. Peer Group, Bcfe, 2007 56
Figure 21: Newfield Exploration Company, Reserve Vs. Peer Group, Bcfe, 2007 56
Figure 22: Newfield Exploration Company, F&D costs and Reserve Replacement Ration, 2005-2007 57
Figure 23: The United States, Crude Oil and Natural Gas, Production and Consumption, 1996-2007 59
Figure 24: China, Crude Oil and Natural Gas, Production and Consumption, 1996-2007 61
Figure 25: Malaysia, Crude Oil and Natural Gas, Production and Consumption, 1996-2007 64
Figure 26: Global Markets Direct Methodology 67