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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): FEBRUARY 18, 2003
NEWFIELD EXPLORATION COMPANY
(Exact Name of Registrant as Specified in Its Charter)
DELAWARE 1-12534 72-1133047
(State or Other Jurisdiction (Commission File Number) (I.R.S. Employer
of Incorporation) Identification No.)
363 N. SAM HOUSTON PARKWAY E., SUITE 2020
HOUSTON, TEXAS 77060
(Address of Principal Executive Offices)
(281) 847-6000
(Registrant's Telephone Number, Including Area Code)
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ITEM 9. REGULATION FD DISCLOSURE
On February 18, 2003, Newfield Exploration Company announced that it
had hedged additional production. Set forth below is a portion of the press
release.
HOUSTON - (FEBRUARY 18, 2003) -- NEWFIELD EXPLORATION COMPANY
(NYSE:NFX) today announced that it had hedged an additional 35 million MMBtus
(approximately 34 Bcf) of its expected gas production for the period April 1
through October 31, 2003 at a floor price of $4.87 per MMBtu. On an energy
equivalent basis, this represents a price of approximately $5.11 per Mcf. The
cost to Newfield of these hedging transactions was about $0.25 per MMBtu.
"We have consistently used hedging to reduce volatility, ensure that we
will have adequate cash flow to implement our drilling programs and manage price
risks and rates of return on some of our acquisitions," said David A. Trice,
President and CEO. "The chance to lock in a $5 per Mcf floor price and retain
all the potential upside in gas prices made this too compelling to pass on. We
estimate that our cash flow will far exceed our 2003 capital budget of $450
million, providing us with the flexibility to fund acquisitions, pay down debt
or repurchase shares. At this time, we are not planning to hedge any additional
production for the winter of 2003-04."
FORWARD-LOOKING INFORMATION
Certain of the statements set forth in this release regarding
anticipated 2003 cash flow and capital spending and uses of future cash flow are
forward looking and based upon assumptions and anticipated results that are
subject to numerous uncertainties. Actual results may vary significantly from
those anticipated due to many factors, including drilling results, oil and gas
prices, industry conditions, the prices of goods and services, the availability
of drilling rigs and other support services and the availability of capital
resources, labor conditions and other factors set forth in our Annual Report on
Form 10-K for the year ended December 31, 2001. In addition, the drilling of oil
and gas wells and the production of hydrocarbons are subject to governmental
regulations and operating risks.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this Form 8-K to be signed on its behalf by the
undersigned hereunto duly authorized.
NEWFIELD EXPLORATION COMPANY
Date: February 19, 2003 By:/s/ TERRY W. RATHERT
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Terry W. Rathert
Vice President and Chief Financial Officer
(Authorized Officer and Principal
Financial Officer)