The first quarter earnings for Texas-based Newfield, the company with a heavy presence in Oklahoma’s STACK play turned out better than expected.
The company reported its net production and Anadarko Basin net production exceeded the high-end of its guidance rangers. Domestic net production was 173,600 Boepd while net income totaled $86 million or 43-cents a share.
The company said earnings were impacted by an unrealized derivative loss of $79 million. But after adjusting for the effect, net income would have been $165 million or 82 cents a share.
Revenues for the quarter totaled $580 million and net cash provided by the operating activities came to $260 million.
Capital investments for the quarter were $345 million and the company reiterated its full year capital investment plan of nearly $1.3 billion.
Strong returns from the STACK development drilling campaign were seen as Newfield has drilled or participated in more than 85 infill wells. The developments also tested up to 12 wells per drilling spacing unit.
Newfield indicated that as part of an ongoing drilling campaign to hold acreage by production, it turned to several new wells in the Western STACK region of Blaine and Custer counties. It cited the Debbie and Sandrock wells attaining early gross production rates of nearly 30 MMcfe/d. The Sawyer and Lois wells had 24-hour gross initial rates of 2,483 Boepd and 1,842 Barrels of oil a day.
Newfield stated that while the production was weighted toward natural gas, the results still demonstrate the potential for the region.