Houston Mariners SeminarHouston Mariners SeminarSeptember 21, 2004September 21, 2004David A. TriceDavid A. Trice

The Traditional Shelf (10,000-15,000’) is MatureThe Traditional Shelf (10,000-15,000’) is Mature

Independents are Entering DeepwaterIndependents are Entering Deepwater- Enhanced Economics- Enhanced Economics- Infrastructure Creates Opportunities- Infrastructure Creates Opportunities

The Ever-Changing Gulf of MexicoThe Ever-Changing Gulf of Mexico

1.1.

2.2.

Today’s PresentationToday’s Presentation

3.3. Ultra-Deep ShelfUltra-Deep Shelf- An Emerging Shallow Water Play- An Emerging Shallow Water Play- Newfield’s Unique Exposure- Newfield’s Unique Exposure

8

9

10

11

12

13

14

15

16

1Q98 1Q99 1Q00 1Q01 1Q02 1Q03 1Q04

SWGOM DWGOM

GOM Production StrugglesGOM Production Struggles

BCF/D

80

100

120

140

160

180

200

220

240

1Q97 1Q98 1Q99 1Q00 1Q01 1Q02 1Q03 1Q04

DWGOM Rig CountSWGOM Rig Count

GOM Rig Count, Shelf and DeepwaterGOM Rig Count, Shelf and Deepwater

Limited Production Response to High Rig Count

Low Drilling/High Prices = Diminishing Opportunities

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

$4.00

$4.50

$5.00

$5.50

$6.00

$6.50

$7.00

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Gas

Pri

ce ($

/MM

BT

U)

0

25

50

75

100

125

150

175

200

225

250

275

300

GO

M J

ack-

up R

ig C

ount

12 Month Strip

GOM Jack-up Rig Count

Rig Count v. Gas PriceRig Count v. Gas Price

GOM ReservesGOM Reserves

0

5,000

10,000

15,000

20,000

25,000

30,000

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

Rese

rves

- Bc

f

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

% D

eepw

ater

Shelf Deepwater % Deep

The Growth of NFXThe Growth of NFX

0

50

100

150

200

250

1993 1995 1997 1999 2001 2003

Gulf of Mexico

Net Production (BCFE)

Mid-Continent

Onshore GC

International

Rockies

LOUISIANATEXAS

Small Targets in Deep WatersSmall Targets in Deep Waters POST-1995 DEEPWATER INFRASTRUCTUREPOST-1995 DEEPWATER INFRASTRUCTURE

Deepwater Processing PlatformNewfield Deepwater 3D Seismic

• Higher Commodity Prices• Extensive Infrastructure• Longer Tie Backs, Sub-sea Completions, Better Flow Assurance

Models• Improved Completion, Development Technologies

•Standardized Sub-sea Trees• Better Synthetic Drilling Muds

•Higher Rate Completions•Frac Packs•Larger Tublars

Gulf of Mexico

M I S S I S S I P P I

Deepwater MilestonesDeepwater Milestones

Toledo Prospect CHVWater Depth: 10,062’ TD: 22,695’

TobagoUCLWater Depth: 9,627’ TD: 18,500’Drilling

Trident UCLWater Depth: 9,687’ TD: 19,539’

Great White ShellWater Depth: 8,070’ TD: 19,705’

Spiderman APCWater Depth: 8,055’ TD: 17,743’

JackCHVWater Depth: 7,000’ TD: 31,000’

St. MaloUCLWater Depth:

6,853’ TD: 29,066’450’ Oil1,400’ Section

ChinookBHPWater Depth: 8,831’ TD: 27,652’620’ Gross Column260’ Net Oil

TahitiCHVWater Depth: 4,292’ TD: 29,000’1,000’ Net Pay400-500 MMBbls

Atlas Prospect APCWater Depth: 8,807’ TD: 16,769’

JubileeAPCWater Depth: 8,730’ TD: 17,850’

VortexKMGWater Depth: 8,344’ TD: 19,330’

Coulomb ShellWater Depth:

7,570’ TD: 18,237’Thunderhorse

BPWater Depth: 6,037’ TD: 29,100’

Lease Expiration - > 2,999’ WaterLease Expiration - > 2,999’ Water

0100200300400500600700800900

1000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Und

rille

d G

OM

Lea

ses

31%

69%

16%

84%

72%

39%

61%

Undrilled Leases > 2,999’ - MajorsUndrilled Leases > 2,999’ - Independents

28% 72%

28%

57%

43%

56%

44%

64%

36%

57%

43%

Source: James K Dodson Company, CSFB Equity Research

Gulf of Mexico

M I S S I S S I P P I

-

DEEPWATER PROJECTS

WORKING INTEREST

NET RESERVE POTENTIAL, BCFE 2003 2004 2005

Llano ORRI - - -Glider 25% 60 40 22 -

Wrigley 50% 50 - 9 15

Sleeper 100% 40 8 10 27Dalmatian 37.50% 60 - 25 23

388 47 79 97

SUCCESS CASE CAPITAL (in MM$)

DVP.

EXPL.

~3

Anduin 50% 70 - 17 25

Rigel 25% 25 7 8 4

2006

50

La Femme 50% 50 7 8 Jacobs 100% 30 8 10 23

23 --

40

186

--

---

Deepwater GOM Deepwater GOM

LLANO On-line ORRI ~3 Bcfe Net Exposure

GLIDER On-line Joint Venture Development NFX WI: 25%

WILDEBEEST NFX WI: 100%

SLEEPER 2003 Lease Sale NFX WI: 100%

ANDUIN Est. Spud: Late 2004 NFX WI: 50%

WRIGLEY Est. Spud: Late 2004 NFX WI: 50%

JACOBS NFX WI: 100%

La Femme NFX WI:

50%

DALMATIAN NFX WI: 37.5%

RIGEL Under Development First Prod: 2H05 NFX WI: 25%

Development

Exploration

Ultra Deep Drilling on the GOM ShelfUltra Deep Drilling on the GOM Shelf - What is Treasure Project? - What is Treasure Project?

Ultra-deep drilling concept (24,000 – 35,000’)Ultra-deep drilling concept (24,000 – 35,000’) Carry deepwater tertiary reservoirs found productive in Carry deepwater tertiary reservoirs found productive in

deepwater fields back under the Shelfdeepwater fields back under the Shelf Trap reservoirs on 4-way closures beneath salt weldTrap reservoirs on 4-way closures beneath salt weld Paleogene and Cretaceous (?) reservoirs could also Paleogene and Cretaceous (?) reservoirs could also

occur at great depth on same 4-way closures occur at great depth on same 4-way closures (productive elsewhere in GOM basin)(productive elsewhere in GOM basin)

Multi-Tcfe targetsMulti-Tcfe targets Major drilling challengesMajor drilling challenges

Ultra-Deep ExplorationUltra-Deep Exploration

Gulf of Mexico

M I S S I S S I P P I

Newfield Exposure:59 Blocks: 45% WI21 Blocks: 100% WI6 Blocks: 25 – 100 % WI

Sale 192 – Industry Leasing Sale 190 – Industry Leasing

Blackbeard *XOM Operated Est. Spud: Late ‘04 / early ‘05NFX WI: 23%

Treasure Island

Tahiti GC 640/641

JB Mountain SMI 223

FerganaShark

Thunder Horse MC 776/777

* All, or substantially all, of NFX’s WI is carried

BP BHP BHP

BHP KMG

BHP XOM

BHP BHP BP / Shell

Petrobras

Treasure Bay *

BHP Operated

NFX WI: 26%

JosephShell

DrillingPTD: ~ 25,000

TARZAN Class Jack-up Rig:TARZAN Class Jack-up Rig:“Scooter Yeargain”“Scooter Yeargain”

Combined Drilling Load: 2.5 million pounds

Liquid Mud Volume: 2,800 BBLS

Mud Pump Input HP: 9,000 ( 3 @ 3,000)

Mud Pump Volume: 1,800 GPM @7500 PSI

Horsepower: 10,750 Rowan’s “Scooter Yeargain”

Blackbeard Prospect –

Operator XOM signs firm well commitment with Rowan to spud between Dec. 1, 2004 and Jan. 31, 2005

Ultra-Deep Challenges (other than the obvious)Ultra-Deep Challenges (other than the obvious)

5-year lease terms are insufficient to allow for 5-year lease terms are insufficient to allow for evaluation & testing of frontier playevaluation & testing of frontier play

Long lead times required for:Long lead times required for:– Geotechnical evaluationsGeotechnical evaluations– Land/partnering negotiationsLand/partnering negotiations– Drilling design / procurementDrilling design / procurement– Well evaluationWell evaluation– Completion design / procurement / testingCompletion design / procurement / testing

SOO’s for Ultra-Deep DrillingSOO’s for Ultra-Deep Drilling

Notice to Lessees:Notice to Lessees:““Ultra deep frontier offers the potential for Ultra deep frontier offers the potential for significant resources…”significant resources…”““Importance of expediting domestic exploration to Importance of expediting domestic exploration to address initial national need.”address initial national need.”““Expedite exploration for new sources of hydo-Expedite exploration for new sources of hydo-carbons at ultra-deep depths.”carbons at ultra-deep depths.”

MMS May Grant an SOO if the Following Applies:MMS May Grant an SOO if the Following Applies:1) Lease in primary term on Aug. 1, 20021) Lease in primary term on Aug. 1, 20022) Targets below 25,000’2) Targets below 25,000’3) Reasonable schedule of work leading to drilling3) Reasonable schedule of work leading to drilling

Treasure Island, Comparison to Deepwater GOMTreasure Island, Comparison to Deepwater GOM

Deepwater * Treasure IslandDepth 20,000' - 30,000'+ 24,000' - 35,000'+

DHC $20 - $100 MM+ $35 - $75 MM+

Reserves .1Bn BBL - 2Bn BBL Roughly equivalent

Prospect Areas Single to several blocks Same

Wells Drilled (thru 2002) 2284 1

Initial Drilling Technology Adequate InadequateInitial Prod./Dev. Technology Inadequate ?

Time to 1st Production 3 - 8 years <1 - 2 years

Lease Term 10 year 5 year

Royalty Relief 5 - 87.5 MMBO 25 BCF(4.16 MMBOE)

*Larger, deepwater prospects

EH&S: A PriorityEH&S: A Priority

• Newfield’s operating practices are often commended by the MMS.

– Nominated for 2003 National SAFE Award in High Activity Category

– Top 3 Finalist, 2002 SAFE Award, High Activity Category

– Lake Jackson District 2001 Award,Production Operations

– Lafayette District 2000 SAFE Award– Top 5 Finalist, 2000 SAFE Award,

High Activity Category– Top 5 Finalist, 1998 SAFE Award,

High Activity Category– National SAFE Award 1997,

Small Producer Category– Houma District 1997 SAFE Award,

Operations at Eugene Island 182A– Lafayette District 1996 SAFE Award

                                                                       

May 15, 2003

Socially Responsible Fund Excels

Neuberger Berman Offering Tops Market With Returns as It Eschews Some Stocks

Within the energy sector, the manager [Ms. Dyott] is bullish on Newfield Exploration Co., partly because the company has consistently increased its reserves and production capacity on a per-share basis.

Another plus, she said, is that Newfield ties executive compensation partly to the company's environmental, safety and health performance. That means that if a significant number of accidents occur within a division, the executive in charge of that group may see his or her compensation reduced.

"There's no better way to ensure good performance than to factor this into management's paychecks," said Ms. Dyott.

* NFX remains one of Neuberger’s two core E&P holdings in this fund.

This presentation by Newfield Exploration Company includes forward-looking information. All This presentation by Newfield Exploration Company includes forward-looking information. All information other than historical facts included in this presentation, including information information other than historical facts included in this presentation, including information regarding estimated proved reserves, production targets, anticipated production rates, planned regarding estimated proved reserves, production targets, anticipated production rates, planned capital expenditures, the number of wells planned to be drilled in the future, the relative risks capital expenditures, the number of wells planned to be drilled in the future, the relative risks and potential of planned exploratory wells, the availability of capital resources to fund capital and potential of planned exploratory wells, the availability of capital resources to fund capital expenditures and business strategy and other plans and objectives for future operations, is expenditures and business strategy and other plans and objectives for future operations, is forward-looking information. Although the Company believes that the expectations reflected in forward-looking information. Although the Company believes that the expectations reflected in such forward-looking information are reasonable, such expectations are based upon such forward-looking information are reasonable, such expectations are based upon assumptions and anticipated results that are subject to numerous uncertainties. Actual results 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 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 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. In addition, the drilling rigs and other support services and the availability of capital resources. In addition, the drilling of oil and gas wells and the production of hydrocarbons are subject to governmental of oil and gas wells and the production of hydrocarbons are subject to governmental regulations and operating risks.regulations and operating risks.

There are numerous additional uncertainties inherent in estimating quantities of proved oil and There are numerous additional uncertainties inherent in estimating quantities of proved oil and natural gas reserves, including many factors beyond the control of the Company. Reserve natural gas reserves, including many factors beyond the control of the Company. Reserve engineering is a subjective process of estimating underground accumulations of oil and natural engineering is a subjective process of estimating underground accumulations of oil and natural gas that cannot be measured in an exact way, and the accuracy of any reserve estimate is a gas that cannot be measured in an exact way, and the accuracy of any reserve estimate is a function of the quality of available data and of engineering and geological interpretation and function of the quality of available data and of engineering and geological interpretation and judgment. As a result, estimates made by different engineers often vary from one another. In judgment. As a result, estimates made by different engineers often vary from one another. In addition, results of drilling, testing and production subsequent to the date of an estimate may addition, results of drilling, testing and production subsequent to the date of an estimate may necessitate revisions of such estimates. Accordingly, reserve estimates are generally different necessitate revisions of such estimates. Accordingly, reserve estimates are generally different from quantities of oil and natural gas that are recovered.from quantities of oil and natural gas that are recovered.

Forward-Looking StatementsForward-Looking Statements