Newfield agrees to sell Texas assets for $390m

Newfield Exploration has signed two separate agreements for the sale of all of its assets in Texas, US, for a combined value of nearly $390m.

As part of the transactions, the company will divest its unconventional assets in the Eagle Ford Shale to Protégé, and conventional natural gas assets in south and west Texas to an undisclosed party.

The combined assets have net daily production of approximately 12,700boe/d at present, roughly 35% of this consists of oil.

Newfield Exploration chairman and CEO Lee Boothby said: "We continue to refine our portfolio and focus our people and capital resources on assets with high returns and a deep inventory of future drilling opportunities.

"Since 2009, we have generated about $3bn in proceeds from asset sales as we transitioned to an oil company with a premium asset portfolio in onshore resource plays.

“Proceeds from the sale of our Texas assets will replenish our cash balance and position us for the timely acceleration of our stack development in the future."

The deals are subject to ordinary closing conditions and are expected to close in the third quarter of this year.

The company also announced that revenues for the second quarter of this year stood at $381m and total net production was 15.3Mmboe, which comprised 45% oil, 18% natural gas liquids and 37% natural gas.

Newfield’s capital budget for this year was increased to $700m-$750m, reflecting approximately $40m for two Stack pilots, and roughly $50m for additional drilling activities.

The company focuses on US resource plays and its main areas of operation include the Mid-Continent, the Rocky Mountains and onshore Texas.