8-K

UNITED STATES
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): April 23, 2008

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)

Registrant’s telephone number, including area code: (281) 847-6000

Not Applicable
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition

          On April 23, 2008, Newfield issued a press release announcing its first quarter 2008 financial and operating results and second quarter 2008 earnings guidance. A copy of the press release is furnished herewith as Exhibit 99.1.

Item 7.01 Regulation FD Disclosure

          On April 23, 2008, Newfield issued its @NFX publication, which includes first quarter 2008 highlights, full year and second quarter 2008 guidance and tables detailing complete hedging positions as of April 23, 2008. A copy of this publication is furnished herewith as Exhibit 99.2.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits

99.1	Press release issued by Newfield Exploration Company on April 23, 2008.
99.2	@NFX publication issued by Newfield Exploration Company on April 23, 2008.

2

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: April 24, 2008	By:	/s/ TERRY W. RATHERT
		Terry W. Rathert
		Senior Vice President and Chief Financial Officer

3

Exhibit Index

Exhibit No.		Description
	99.1	Press release issued by Newfield Exploration Company on April 23, 2008.
	99.2	@NFX publication issued by Newfield Exploration Company on April 23, 2008.

EX-99.1

Exhibit 99.1

Newfield Reports First Quarter 2008 Financial Results
Company provides operational update, increases 2008 production guidance

FOR IMMEDIATE RELEASE

          Houston — April 23, 2008 — Newfield Exploration Company (NYSE:NFX) today reported first quarter 2008 financial and operating results. Newfield will be hosting a conference call at 8:30 a.m. (CDST) on April 24. To participate in the call, dial 719-325-4773 or listen through the website at http://www.newfield.com.

First Quarter 2008

          Newfield’s production in the first quarter of 2008 was 55.1 Bcfe. Production results exceeded guidance due to higher than expected production volumes from the Woodford Shale Play, increased oil liftings from Malaysia and better than expected production in the deepwater Gulf of Mexico. Newfield’s production in the first quarter of 2008 was 10% higher than production in the fourth quarter of 2007.

          “We have kicked off 2008 with strong production growth,” said David Trice, Newfield Chairman, President and CEO. “Our first quarter production was above the upper end of our guidance range. We sold significant assets in 2007, making year-over-year comparisons difficult,” Trice added. “However, when adjusting volumes for assets sold and acquired, our first quarter 2008 production was up more than 20% over pro forma production in the first quarter of 2007. We are raising our full-year 2008 guidance to account for better than expected production and a recent bolt-on acquisition in South Texas. Our new guidance is 224-234 Bcfe.” Newfield’s previous 2008 guidance was 215-230 Bcfe.

          For the first quarter of 2008, Newfield reported a net loss of $64 million, or $0.50 per diluted share (all per share amounts are on a diluted basis). The loss for the first quarter of 2008 includes a net unrealized loss on commodity derivatives of $281 million ($169 million after-tax), or $1.30 per share. In addition to the net unrealized loss on commodity derivatives, the Company also paid $15 million to reset a portion of its 2010 crude oil hedges. The after-tax effect of the reset was $9 million, or $0.07 per share.

          Without the effects of these items, net income was $114 million, or $0.87 per diluted share.

          Revenues in the first quarter of 2008 were $515 million. Net cash provided by operating activities before changes in operating assets and liabilities was $316 million. See “Explanation and Reconciliation of Non-GAAP Financial Measures” found after the financial statements in this release.

          Capital expenditures in the first quarter of 2008 were $514 million, in line with the Company’s first quarter budget.

Operational Update

     The Woodford — Newfield has entered the development phase in the Woodford. As a result, the Company is seeing significantly lower drilling and completion costs. Recent highlights include:

§   Newfield’s Woodford production set a recent high of 187 MMcfe/d (gross operated). This represents an increase of nearly 15% since year-end 2007. Newfield expects its gross Woodford production to exceed 250 MMcfe/d by year end 2008, representing a more than 50% increase in production when compared to 2007 exit rates.

§	Newfield has 20 extended lateral wells producing today, some of which have as much as 450 days of production. In addition, the Company has six extended laterals that commenced production in the last week and are cleaning up after fracture stimulation. There are 10 additional extended lateral wells that have been drilled and will commence production in the next 30 days. An updated horizontal well performance and type curve chart can be found in the @NFX publication on Newfield’s website at http://www.newfield.com.
§	Newfield recently signed an agreement to increase its firm transportation on the MidContinent Express Pipeline (MEP) by 100,000 dekatherms per day (dth/d). Newfield now has 300,000 dth/d of firm transportation on the MEP and has dedicated up to an additional 150,000 dth/d of natural gas production as it becomes available which may increase the Company’s firm capacity to 450,000 dth/d on MEP. Under a previously announced separate agreement, Newfield also has 40,000 dth/d of firm capacity in 2008, increasing to 50,000 dth/d in 2009, with Laclede Energy Resources, Inc.
§	The Company is currently operating 11 rigs in the Woodford. Based on the success of recent drilling and cost reductions, a twelfth drilling rig is being added for the remainder of the year. For 2008, Newfield expects to drill approximately 120,000 more lateral feet than in 2007. Extended lateral completions are improving capital efficiency.
§	Eight of the 11 Newfield operated rigs are drilling from multi-well pads. Pad drilling has significantly decreased completed well costs. Newfield expects that about 80% of the operated wells it plans to drill in 2008 will be drilled from multi-well pads. This is up from a beginning of the year estimate of 50%.
§	More than 80% of the wells planned for 2008 will be extended lateral completions. This is up from a beginning of the year estimate of 50%. Processing of recent 3-D seismic indicates that a significantly greater portion of the Company’s acreage can be developed with extended lateral wells. Most recent wells have horizontal lengths of up to 4,700 feet and are completed with nine fracture stimulation stages.
§	The most recent extended lateral wells have had initial gross production rates of more than 7 MMcfe/d, were drilled and completed for approximately $6.7 million (gross) and have estimated ultimate gross recoveries of more than 4.5 Bcfe.
§	Costs for standard wells (less than 3,000 feet of horizontal section) averaged approximately $5.7 million (gross) in 2007. The Company’s most recent standard lateral wells drilled from common pads have averaged less than $5 million (gross). About 20% of the planned wells in 2008 will be standard lateral completions.
§	Newfield has 16 spacing pilots planned in 2008 to determine optimal development spacing. Ten of the pilots are being drilled on 40-acre spacing, four on 60-acre spacing and two on 80-acre spacing. To date, Newfield has drilled and placed on production five development pilots that consist of 18 wells on varying development spacing, including 40, 60 and 80-acres. The production performance from these 18 wells is in line with our expectations.
§	As of year-end 2007, Newfield had booked approximately 600 Bcfe in proved reserves in the Woodford. The Company believes that its net reserve potential on its 165,000 net acre Woodford position is 4-8 Tcfe.
§	The Woodford remains the most active play in Oklahoma with a record 46 industry rigs currently running. To date, Newfield has spud 183 horizontal wells and the industry as a whole has spud 548 horizontal wells.

     Monument Butte Oil Field — Based on the continued success of development drilling, higher oil prices and increased demand for black wax crude oil, Newfield recently added a fifth drilling rig in its Monument Butte field, located in the Uinta Basin of northeast Utah. The field is producing approximately 15,000 BOPD gross and is now expected to exit 2008 producing in excess of 16,000 BOPD gross. Increased demand for black wax crude allowed the Company to recently enter into additional term sales agreements with area refiners. Newfield expects to drill approximately 240 wells in the Monument Butte field during 2008.

     Newfield continues to have success with its 20-acre infill drilling program at Monument Butte. To date, the Company has drilled 65 wells on 20-acre spacing, which indicates the potential to drill an additional 1,000-2,500 wells in the field. This is in addition to the more than 1,000 locations remaining to be drilled on 40-acre spacing. Newfield has drilled 680 wells in the field since acquiring it in 2004. The field has more than 1,000 producing oil wells.

     Newfield is currently drilling the first well under a Deep Gas Exploration Agreement signed earlier this year with Red Technology Alliance. The well is targeting the Mancos Shale and has a planned total depth of 16,600 feet. Prospective targets include the Wasatch, Mesa Verde, Blackhawk and Mancos Shale. The agreement allows for promoted exploratory drilling and progressive earning in approximately 71,000 net acres in which Newfield will retain a greater than 70% interest. Approximately 10,700 net acres in the immediate vicinity of recent deep gas tests drilled by Newfield in 2007 were excluded from the agreement. Newfield retains an 85% average interest in this area, where Newfield is currently participating (NFX 58% WI) in the completion and testing of two Mancos Shale wells. Newfield also expects to drill several operated wells in the excluded area in the second half of 2008.

     Deepwater Gulf of Mexico Exploration Discoveries — Newfield recently drilled two successful exploration wells in the deepwater Gulf of Mexico. The Gladden Prospect, located at Mississippi Canyon 800, found 80 feet of net oil pay. An updip location is being drilled that is expected to be completed in late May. The Anduin West Prospect, located at Mississippi Canyon 754, found 30 feet of net gas and condensate pay. The well is being completed and a production test is planned in the next week. Newfield is the operator of both discoveries and has a 47.5% working interest in Gladden and a 50% working interest in Anduin West. The Company has production handling agreements in place with nearby host facilities and expects first production from both fields in late 2009.

     In the March 2008 Federal OCS Lease Sale, Newfield was the high-bidder on 19 of 28 lease blocks (14 located in deepwater). If all blocks are awarded, the net investment will be approximately $70 million and builds prospect inventory for the next several years in deepwater.

South Texas Acquisition — Newfield recently signed an agreement to acquire a package of South Texas properties from a private company for $227 million. Current net production associated with the properties is approximately 19 MMcfe/d. Risked proved and probable reserves for the acquisition are 100 Bcfe, about half of which is classified as proved under SEC guidelines. Newfield has identified more than 100 drilling locations on the acquired acreage and sees the potential to add more than 200 Bcfe of total reserves from this acquisition. The assets overlap and expand Newfield’s existing operations in the Wilcox and Vicksburg trends, two of Texas’ most prolific producing regions. The acquisition adds 47,000 gross acres (32,000 net acres). Newfield plans to finance the transaction under its $1.25 billion undrawn revolving credit facility. Subject to customary conditions, the transaction is expected to close around May 1, 2008.

     South Texas Joint Venture — Newfield recently drilled its 26th successful well under its joint venture with Exxon-Mobil in South Texas. The most recent well — the B-94 — was a deep discovery that significantly expanded the known limits of the Sarita Field. Last year, Newfield entered into a joint venture with a private company covering 42,000 acres southeast of Sarita and acquired 3-D seismic data. Within the next week, Newfield plans to spud the first of two additional high potential 2008 exploration wells in the Sarita area.

     Production under Newfield’s JV with Exxon-Mobil set a record in the first quarter of 2008 of 85 MMcfe/d gross. Newfield’s interest in this joint venture is approximately 50%. Newfield expects to drill an additional 10-12 wells in the area in 2008. The Company sees at least an additional 20 drilling locations and plans to operate 2-4 rigs throughout the year.

     Offshore China Exploration Discovery — Newfield made an oil discovery during the first quarter of 2008 on its Pearl River Mouth Basin acreage. The LF7-2-1 exploration well found nearly 60 feet of net oil pay. The well tested the first of a series of features on a structural ridge. Additional drilling is planned. Newfield operates the discovery with a 100% interest. Newfield’s interest is subject to the Chinese National Offshore Oil Company’s right to take a 51% interest during development. A separate exploratory well drilled during the quarter, the HZ28-1-1, was not commercial.

     Malaysia — The Puteri production platform, located on PM 318, is undergoing final commissioning and the export pipeline has been installed. Newfield expects the field to commence first oil production in the second quarter and ramp up to 6,000-8,000 BOPD (gross). Newfield recently installed the production facility for the East Belumut and Chermingat fields, located on PM 323. A rig is on location and Newfield expects production from the fields to begin in the second quarter. The combined rate from these fields will ramp up to 15,000 BOPD (gross). The Abu Field, PM 318, has ramped up to a planned production rate of 15,000 BOPD (gross) and the field achieved payout in the first quarter of 2008 — less than 10 months from the date of first production. Newfield has a 50% interest in PM 318 and a 60% operated interest in PM 323.

2008 Capital Budget

     Newfield has increased its 2008 capital budget to $2 billion from an initial $1.6 billion. The budget excludes approximately $115 million of capitalized interest and overhead. The increase reflects the following:

§	the recent $227 million acquisition of properties in South Texas and subsequent development drilling activities;
§	bidding success at the most recent Gulf of Mexico lease sale;
§	development capital for the recent Anduin West and Gladden deepwater GOM discoveries;
§	an additional drilling rig in the Woodford Shale Play; and
§	an additional drilling rig in the Monument Butte field.

          The Company provides information regarding its outstanding hedging positions in its annual and quarterly reports filed with the SEC and in its electronic publication — @NFX. This publication can be found on Newfield’s web page at http://www.newfield.com. Through the web page, you may elect to receive @NFX through e-mail distribution.

          Newfield Exploration Company is an independent crude oil and natural gas exploration and production company. The Company relies on a proven growth strategy of growing reserves through an active drilling program and select acquisitions. Newfield’s domestic areas of operation include the U.S. onshore Gulf Coast, the Anadarko and Arkoma Basins of the Mid-Continent, the Rocky Mountains and the Gulf of Mexico. The Company has international operations in Malaysia and China.

          **The statements set forth in this release regarding estimated or anticipated second quarter 2008 results, estimated full-year 2008 production, drilling and development plans, the timing of activities, the timing of initial production and future rates of production from wells, fields and regions, expected cost reductions in the Woodford Play and the expected ultimate recovery of reserves from wells are forward looking and are 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, the availability of capital resources, the availability of refining capacity for the crude oil Newfield produces from its Monument Butte field in Utah and labor conditions. In addition, the drilling of oil and gas wells and the production of hydrocarbons are subject to governmental regulations and operating risks.

For information, contact:
Investor Relations: Steve Campbell (281) 847-6081
Media Relations: Keith Schmidt (281) 674-2650
Email: info@newfield.com

1Q08 Actual Results and 2Q08 Estimates

	1Q08 Actuals							2Q08 Guidance
	Domestic		Int’l		Total			Domestic		Int’l		Total
Production/Liftings
Natural gas-Bcf		40.4		—		40.4			40.7 - 43.5		—		40.7 - 43.5
Oil and condensate-MMBbl		1.4		1.0		2.4			1.3 - 1.4		0.75 - 0.85		2.0 - 2.2
Total Bcfe		48.9		6.2		55.1			48.5 - 51.9		4.5 - 5.1		53 - 57
Average Realized Prices Note 1
Natural gas-$/Mcf	$	7.89	$	—	$	7.89		Note 2
Crude oil-$/Bbl	$	47.16	$	85.38	$	63.28		Note 3		Note 4
Mcf equivalent-$/Mcfe	$	7.88	$	14.23	$	8.60
Operating Expenses:
Lease operating
Recurring ($MM)	$	38.6	$	12.5	$	51.1		$	39.9 - $44.1	$	10.5 - $11.6	$	50.4 - $55.7
per/Mcfe	$	0.79	$	2.01	$	0.93		$	0.81 - $0.87	$	2.17 - $2.45	$	0.93 - $1.00
Major (workovers, repairs, etc) ($MM)	$	7.9	$	—	$	7.9		$	5.3 - $5.9	$	0.8 - $0.9	$	6.1 - $6.8
per/Mcfe	$	0.16	$	—	$	0.14		$	0.11 - $0.12	$	0.17 - $0.19	$	0.11 - $0.12
Production and other taxes ($MM)Note 5	$	21.7	$	29.3	$	51.1		$	29.3 - $32.4	$	21.6 - $23.9	$	51.0 - $56.3
per/Mcfe	$	0.44	$	4.71	$	0.93		$	0.60 - $0.64	$	4.47 - $5.06	$	0.94 - $1.01
General and administrative (G&A), net ($MM)	$	30.8	$	0.8	$	31.6		$	33.1 - $36.6	$	1.3 - $1.5	$	34.4 - $38.1
per/Mcfe	$	0.63	$	0.13	$	0.57		$	0.67 - $0.72	$	0.28 - $0.31	$	0.63 - $0.68
Capitalized G&A ($MM)					$	(15.5	)					$	(15.5 - $17.1	)
per/Mcfe					$	(0.28	)					$	(0.29 - $0.31	)
Interest expense ($MM)					$	19.3						$	18.4 - $20.4
per/Mcfe					$	0.35						$	0.34 - $0.37
Capitalized interest ($MM)					$	(13.4	)					$	(13.4 - $14.8	)
per/Mcfe					$	(0.24	)					$	(0.25 - $0.27	)
Effective tax rate (%)						40.4	%						39.0	%
Income taxes (%)
Current						24	%						22% - 25	%
Deferred						76	%						75% - 78	%

Note 1: Actual average realized prices include the effects of hedging contracts. If the effects of these contracts were excluded, the average realized price for total gas would have been $7.54 per Mcf and the total oil and condensate average realized price would have been $85.18 per barrel.

Note 2: Gas prices in the Mid-Continent, after basis differentials, transportation and handling charges, typically average 75-85% of the Henry Hub Index. Gas prices in the Gulf Coast, after basis differentials, transportation and handling charges, are expected to average $0.40-$0.60 per MMBtu less than the Henry Hub Index.

Note 3: Oil prices in the Gulf Coast typically average about $5 per barrel below the NYMEX WTI price. Rockies oil prices average about $13-$15 per barrel below WTI. Oil production from the Mid-Continent typically sells at a $1.00-$1.50 per barrel below WTI.

Note 4: Oil in Malaysia typically sells at Tapis, or about 95% of WTI. Oil production from China typically sells at $10-$15 per barrel below WTI.

Note 5: Guidance for production taxes determined using $100/Bbl oil and $10/MMBtu gas.

CONSOLIDATED STATEMENT OF INCOME
(Unaudited, in millions, except per share data)

	For the
	Three Months Ended
	March 31,
	2008			2007
Oil and gas revenues	$	515		$	440
Operating expenses:
Lease operating		59			111
Production and other taxes		51			17
Depreciation, depletion and amortization		157			180
General and administrative		32			39
Total operating expenses		299			347
Income from operations		216			93
Other income (expenses):
Interest expense		(19	)		(23	)
Capitalized interest		13			11
Commodity derivative expense		(321	)		(158	)
Other		3			1
		(324	)		(169	)
Loss from continuing operations before income taxes		(108	)		(76	)
Income tax benefit		(44	)		(29	)
Loss from continuing operations		(64	)		(47	)
Loss from discontinued operations, net of tax		—			(49	)
Net loss	$	(64	)	$	(96	)
Earnings (loss) per share:
Basic —
Loss from continuing operations	$	(0.50	)	$	(0.37	)
Loss from discontinued operations, net of tax		—			(0.38	)
	$	(0.50	)	$	(0.75	)
Diluted —
Loss from continuing operations	$	(0.50	)	$	(0.37	)
Loss from discontinued operations, net of tax		—			(0.38	)
	$	(0.50	)	$	(0.75	)
Weighted average number of shares outstanding for basic earnings (loss) per share		129			127
Weighted average number of shares outstanding for diluted earnings (loss) per share		129			127

CONDENSED CONSOLIDATED BALANCE SHEET
(Unaudited, in millions)

	March 31,			December 31,
	2008			2007
ASSETS
Current assets:
Cash and cash equivalents	$	80		$	250
Short-term investments		77			120
Other current assets		700			557
Total current assets		857			927
Oil and gas properties, net (full cost method)		6,290			5,923
Other assets		142			136
Total assets	$	7,289		$	6,986
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities	$	1,216		$	929
Other liabilities		34			18
Derivative liabilities		254			248
Long-term debt		1,052			1,050
Asset retirement obligation		59			56
Deferred taxes		1,137			1,104
Total long-term liabilities		2,536			2,476
Commitments and contingencies		—			—
STOCKHOLDERS’ EQUITY
Common stock		1			1
Additional paid-in capital		1,298			1,278
Treasury stock		(32	)		(32	)
Accumulated other comprehensive loss		(3	)		(3	)
Retained earnings		2,273			2,337
Total stockholders’ equity		3,537			3,581
Total liabilities and stockholders’ equity	$	7,289		$	6,986

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited, in millions)

	For the
	Three Months Ended
	March 31,
	2008			2007
Cash flows from operating activities:
Net loss	$	(64	)	$	(96	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Loss from discontinued operations, net of tax		—			49
Depreciation, depletion and amortization		157			180
Stock-based compensation		5			4
Commodity derivative expense		321			158
Cash (payments) receipts on derivative settlements		(40	)		91
Deferred taxes		(63	)		(38	)
		316			348
Changes in operating assets and liabilities		(44	)		(9	)
Net cash provided by continuing activities		272			339
Net cash used in discontinued activities		—			(4	)
Net cash provided by operating activities		272			335
Cash flows from investing activities:
Additions to oil and gas properties and other		(501	)		(506	)
Purchases of short-term investments		(22	)		—
Redemption of short-term investments		68			24
Net cash used in continuing activities		(455	)		(482	)
Net cash used in discontinued activities		—			(38	)
Net cash used in investing activities		(455	)		(520	)
Cash flows from financing activities:
Net proceeds under credit arrangements		—			127
Payments to discontinued operations		—			(15	)
Proceeds from issuances of common stock		9			3
Stock-based compensation excess tax benefit		4			1
Net cash provided by continuing activities		13			116
Net cash provided by discontinued activities		—			15
Net cash provided by financing activities		13			131
Decrease in cash and cash equivalents		(170	)		(54	)
Cash and cash equivalents from continuing operations, beginning of period		250			52
Cash and cash equivalents from discontinued operations, beginning of period		—			28
Cash and cash equivalents, end of period	$	80		$	26

Explanation and Reconciliation of Non-GAAP Financial Measures

          Earnings stated without the effects of certain items is a non-GAAP financial measure. Earnings without the effects of these items are presented because they affect the comparability of operating results from period to period. In addition, earnings without the effects of these items are more comparable to earnings estimates provided by securities analysts.

          A reconciliation of earnings for the first quarter of 2008 stated without the effects of certain items to net income is shown below:

	1Q08
	(in millions)
Net loss	$	(64	)
Net unrealized loss on commodity derivatives(1)		281
Hedge reset		15
Income tax adjustment for above items		(118	)
Earnings stated without the effect of the above items	$	114

⁽¹⁾ The determination of “Net unrealized loss on commodity derivatives” for the first quarter of 2008 is as follows:

	1Q08
	(in millions)
Commodity derivative expense	$	(321	)
Cash payments (receipts) on derivative settlements		40
Net unrealized loss on commodity derivatives	$	(281	)

          Net cash provided by operating activities before changes in operating assets and liabilities is presented because of its acceptance as an indicator of an oil and gas exploration and production company’s ability to internally fund exploration and development activities and to service or incur additional debt. This measure should not be considered as an alternative to net cash provided by operating activities as defined by generally accepted accounting principles. A reconciliation of net cash provided by operating activities before changes in operating assets and liabilities to net cash provided by operating activities is shown below:

	1Q08
	(in millions)
Net cash provided by operating activities	$	272
Net change in operating assets and liabilities		44
Net cash provided by operating activities before changes in operating assets and liabilities	$	316

EX-99.2

Exhibit 99.2

@NFX is periodically published to keep shareholders aware of current operating activities at Newfield. It may include estimates of expected production volumes, costs and expenses, recent changes to hedging positions and commodity pricing.

April 23, 2008

This edition of @NFX includes:

• Highlights from the first quarter of 2008

• Additional full year and second quarter 2008 guidance

• Updated tables detailing complete hedging positions

1Q08 HIGHLIGHTS

1)	First quarter production of 55.1 Bcfe exceeds upper end of guidance range
2)	We raised 2008 production guidance to 224-234 Bcfe, an increase of 18-23% over pro forma 2007 production (previous guidance was 215-230 Bcfe)
3)	The Woodford development reaches production high of 187 MMcfe/d gross; extended lateral completions demonstrate superior economics; more than 80% of planned ‘08 wells will be extended laterals and drilled from multi-well pads; we signed additional firm transportation for our growing production
4)	We announced three exploration discoveries — 2 in deepwater GOM and one in the Pearl River Mouth Basin offshore China
5)	The Monument Butte field is producing a record 15,000 BOPD gross
6)	We drilled a significant well in our South Texas Sarita field, extended the limits of the field, setting up additional development locations and increasing the potential of a recent JV with a private company to the south of this field.
7)	We recently agreed to acquire a package of South Texas properties from a private company for $227 million.

PRODUCTION GUIDANCE

Our production in the first quarter of 2008 was 55.1 Bcfe. Production results exceeded the upper end of earlier guidance due to higher than expected production volumes from the Woodford, increased oil sales from Malaysia and better than expected production from the deepwater Gulf of Mexico. All of our business units are growing in 2008. Production in the first quarter of 2008 was 10% higher than production in the fourth quarter of 2007 and 20% above the same period of last year (adjusted for asset sales and acquisitions).

We increased our 2008 production forecast to 224-234 Bcfe, up 18-23% over pro forma 2007 production. Previous 2008 guidance was 215-230 Bcfe. The increase reflects the strength of current production, a recently signed agreement for a bolt-on acquisition in South Texas (adds 4.5 Bcfe to estimated ‘08 production) and additional rigs in the Woodford and Monument Butte. The South Texas acquisition is expected to close around May 1 and current net production is 19 MMcfe/d.

MID-CONTINENT

The Mid-Continent region is our largest division with approximately 1.1 Tcfe of proved reserves at year-end 2007. Our most significant area of activity remains the Woodford Shale play, located in southeastern Oklahoma. We are the leader in the Woodford with 165,000 net acres. We also have approximately 50,000 acres in the Mountain Front Wash play, located in the Texas Panhandle and western Oklahoma.

THE WOODFORD

A record 46 active industry rigs in the Woodford — The Woodford remains the most active play in Oklahoma with a record 46 industry rigs currently running. To date, we have spud 183 horizontal wells. Industry has spud more than 548 horizontal wells and at the current pace 100 new horizontal wells are being spud per quarter in the Woodford.

Our Woodford production is growing — Since year-end 2007, our production in the Woodford Shale has increased nearly 15%. Our gross operated daily production is 187 MMcfe/d. We expect that our gross operated production will exit 2008 at more than 250 MMcfe/d, an increase of more than 50% over year-end 2007 production.

We signed additional firm transportation for our growing Woodford production — We recently signed an agreement to increase our firm transportation on the MidContinent Express Pipeline (MEP) by 100,000 dekatherms per day (dth/d). We now have 300,000 dth/d of firm transportation on the MEP and we dedicated up to an additional 150,000 dth/d of natural gas production as it becomes available, which may increase our firm capacity to 450,000 dth/d on the MEP. Under a previously announced separate agreement, we also have firm transportation of 40,000 dth/d in 2008, increasing to 50,000 dth/d in 2009, with Laclede Energy Resources, Inc.

>80% of our planned wells in 2008 will be extended lateral completions — Extended laterals are significantly lowering our cost to find and develop reserves. Drilling results and recently processed 3-D seismic data indicate that we can drill more than 80% of our 2008 wells as extended laterals — up from an estimate of 50% at the beginning of 2008.

We are now producing from 20 extended lateral completions — We now have 20 extended lateral wells producing today — some of which have as much as 450 days of production. In addition, we have 6 extended laterals that commenced production in the last week and are cleaning up after fracture stimulation. There are 10 additional long laterals that have been drilled and will commence production in the next 30 days. The chart below illustrates performance from the 20 wells on-line today:

We are increasing our operated rig count — Currently, we are operating 11 rigs in the Woodford. Based on the success of recent drilling and cost reductions, a 12^th drilling rig is being added for the remainder of 2008. We expect to drill nearly 120,000 feet of additional lateral in 2008 compared to 2007.

80% of our 2008 wells will be drilled from pads — Eight of our 11 operated rigs are drilling from multi-well pads. Pad drilling has helped to significantly decrease completed well costs through the elimination of roads, and by minimizing rig mobilization days between spuds. In addition, pads allow for the use of common fracture stimulation sites that further reduce completion costs. We expect that about 80% of our planned operated wells in 2008 will be drilled from multi-well pads, up from our beginning of the year estimate of 50%.

We continue to reduce the cost of our extended lateral wells — The most recent extended lateral wells have had initial gross production rates of more than 7 MMcfe/d and were drilled and completed for approximately $6.7 million (gross). Estimated ultimate gross recoveries are more than 4.5 Bcfe. Our recent wells have had lateral lengths of up to 4,700’ and are completed with nine fracture stimulation stages.

Standard lateral drill and complete costs down 15% — We also continue to reduce costs associated with our standard lateral completions (those with less than 3000’ of horizontal section). Our standard wells averaged approximately $5.7 million (gross) in 2007. Our most recent standard lateral wells, drilled from common pads, have averaged less than $5 million (gross). About 20% of

the wells we plan to drill in 2008 will be standard lateral completions.

Multiple spacing pilots ongoing throughout the acreage — We are conducting 16 spacing pilots in 2008 to determine optimal development well spacing. Ten of the pilots are being drilled on 40-acre spacing, four on 60-acre spacing and two on 80-acre spacing. To date, we have drilled and placed on production five development pilots that consist of 18 wells on varying development spacing, including 40, 60 and 80-acres. The production performance from these 18 wells is in line with our expectations.

Typical Woodford Well Economic Assumptions

Lease Burden:		19.0	%
Fixed LOE ($/MCF):	$	0.45
Production Tax (% of Rev):		7.09	%
- Production Tax During Credit Period (% of Rev):		1.09	%
- Production Tax — Credit Period (Months):		48
Wellhead Pricing vs. Henry Hub ($MCF)	-$	0.75
Total Fuel Gas %:		8.0	%

MOUNTAIN FRONT WASH

Our production in the Mountain Front Wash set a record in Q1 — We continue to grow our production in the Mountain Front Wash Play, located in the Texas Panhandle and western Oklahoma. Our production from the region set a new high of 110 MMcfe/d (gross) during the first quarter of 2008. Our interest is predominately 100% and we have approximately 50,000 net acres in the area.

ROCKY MOUNTAINS

Monument Butte

Increased black wax demand leads to addition of fifth drilling rig — Demand for black wax crude has increased and we entered into additional firm sales agreements with area refiners. We have added a fifth drilling rig in the field and expect to drill approximately 240 wells in 2008.

Monument Butte production reaches record 15,000 BOPD — Current production at Monument Butte is approximately 15,000 BOPD gross. We have drilled 680 wells in the field and doubled production since acquiring it in late 2004. The field has more than 1,000 producing oil wells. Production is expected to exit the year at more than 16,000 BOPD.

Success continues with our 20-acre spacing program — To date, we have drilled 65 wells on 20-acre spacing. Results indicate the potential to drill an additional 1,000-2,500 wells on 20-acre spacing. These well locations are in addition to the more than 1,000 locations remaining to drill the field down to 40-acre spacing.

Mancos Shale — We are drilling the first of several deep Mancos Shale tests beneath Monument Butte under a Deep Gas Exploration Agreement signed earlier this year with Red Technology Alliance. The well is being drilled to a total depth of 16,600 feet. In addition to the Mancos Shale, other prospective targets include the Wasatch, Mesa Verde and Blackhawk formations. All of these are known gas producers in the region. The agreement allows for promoted exploratory drilling and progressive earning in approximately 71,000 net acres in which we will retain a greater than 70% interest. Approximately 10,700 net acres in the immediate vicinity of recent deep gas tests were excluded from the agreement. We plan to drill several operated Mancos Shale prospects in the excluded area in the second half of 2008 (NFX WI: 85%). Under a separate JV, we are currently participating in the completion and testing of two Mancos Shale wells in the area.

Williston Basin

We now have nearly 250,000 gross acres in the Williston Basin — We have assembled 244,000 gross acres (160,000 net acres) in the Williston Basin. Our acreage position, which was built over the last three years, has prospective targets that include the Bakken, as well as the Madison and Red River formations. We expect to drill 10 operated wells in the area in 2008 and to participate in several outside operated wells. Our current net production from the area is about 2,550 BOEPD.

We have several alliances and joint ventures throughout the region and are drilling our third Bakken well along the Nesson Anticline. This well is on our Lost Bear Prospect area. A separate structure is currently testing. We expect to have results from these wells in the second quarter.

Pinedale Field, Green River Basin

Through an agreement reached in 2007 with BP, we retained operatorship of our interests in the Pinedale field and increased our working interest to 85%. Year-to-date, we have completed four new wells with flow rates between 5 and 8 MMcfe/d. Our current production from Pinedale is approximately 25 MMcf/d net. We plan to drill 6-7 wells here in 2008.

GULF COAST

Deepwater GOM Exploration Discoveries — We recently drilled two successful exploration wells in the deepwater Gulf of Mexico. The Gladden prospect, located at Mississippi Canyon 800, found 80 feet of net oil pay. An updip location is being drilled that is expected to be completed in May. The Anduin West prospect, located at Mississippi Canyon 754, found 30 feet of net gas and condensate pay. The well is being completed and a production test is planned in the next week. We are the operator of both discoveries and have a 47.5% working interest in Gladden and a 50% working interest in Anduin West. We have production handling agreements in place with nearby host facilities and expect first production from both fields in late 2009.

Success on 19 of 28 bids in recent OCS Lease Sale — In the March 2008 Federal OCS Lease Sale, we were high-bidder on 19 of 28 lease blocks (14 located in deepwater). If all blocks are awarded, the net investment will be approximately $70 million. We now have an inventory of prospects that will allow us to drill 3-5 wells per year for the next several years. A map of our deepwater inventory and its proximity to infrastructure is shown below:

We agreed to acquire a package of South Texas assets for $227 MM — We recently agreed to acquire a package of South Texas properties from a private company for $227 million. Current net production associated with the properties is approximately 19 MMcfe/d. Risked proved and probable reserves for the acquisition are 100 Bcfe, about half of which is classified as proved under SEC guidelines. Newfield has identified more than 100 drilling locations on the acquired acreage and sees the potential to add more than 200 Bcfe of total reserves from this acquisition. The acquisition is expected to close within a week and will be financed under our $1.25 billion revolver. Some of the transaction’s attributes are outlined below:

• Geographic “fit” — The assets are located in the heart of our South Texas focus area, where we have been active since the late 1990s. The geographic region is known for multi-pay fields and active producing trends, including the Wilcox and Vicksburg formations. The properties can be actively developed without additional personnel.

• Expansion — The acquisition adds 47,000 gross acres (32,000 net acres) in two of Texas’ most prolific producing trends. Lower risk Wilcox drilling opportunities exist in Bee and Live Oak Counties. The transaction adds about 11,000 acres in the Vicksburg Trend in Brooks County, located adjacent to current Newfield activities.

Following the closing of this transaction, we will own interests in more than 400,000 gross acres and nearly 700 producing wells in Texas.

Sarita Field Area

B-94 well a significant extension to Sarita development — We recently drilled our 26th successful well — the B-94 — under our South Texas joint venture with Exxon-Mobil. The B-94 was a 7,000’ step out that significantly expanded the productive area of the Sarita Field. Production under the joint venture set a new high in the first quarter of 85 MMcfe/d (gross). We have a 50% interest and expect to run 2-4 rigs throughout 2008.

Exploration well to spud next week on 42,000 acre JV with private co — Last year, we entered into a joint venture with a private company covering 42,000 acres southeast of Sarita and acquired 3-D seismic data. The success of the B-94 well high grades the potential of this new area. We plan to spud the first of two high potential 2008 exploration wells next week. We have identified prolific targets at depths of up to 20,000’. We have a 50% working interest in the venture.

In the South Texas Lobo Trend, we also had a discovery with the Salinas GU #1 that is currently producing 7 MMcf/d. We just finished drilling an offset, the Salinas GU #2, which confirms the same productive zone as the #1. The Salinas GU #3, another offset, will spud next. We have an 84% working interest in the Salinas wells.

In the Val Verde Basin, we recently extended the Poulter Field with the Poulter 2704 well, which flowed 6 MMcf/d from the Strawn formation. An offset to that well is planned for later this year.

INTERNATIONAL

Offshore China

Offshore China Exploration Discovery — We made an oil discovery during the first quarter of 2008 with the LF7-2-1 exploration well, located in the Pearl River Mouth Basin. The well found nearly 60 feet of net oil pay and tested the first of a series of features on a structural ridge. Additional drilling is planned for late 2008 or early 2009. We operate the discovery with a 100% interest, subject to the Chinese National Offshore Oil Company’s right to take a 51% interest during development. A separate exploratory well drilled during the quarter, the HZ28-1-1, was not commercial.

Malaysia

Puteri, E. Belumut, Chermingat production slated for second quarter — The Puteri production platform, located on PM 318, is undergoing final commissioning and the export pipeline has been installed. We expect the field to commence first oil production in the second quarter and ramp up to 6,000-8,000 BOPD (gross). We recently installed the production facility for the East Belumut and Chermingat fields, located on PM 323. A rig is on location and we expect production from the fields to begin in the second quarter. The combined rate from these fields will ramp up to 15,000

BOPD (gross). The Abu Field, PM 318, has ramped up to a planned production rate of 15,000 BOPD (gross) and the field achieved payout in the first quarter of 2008 — less than 10 months from the date of first production. Newfield has a 50% interest in PM 318 and a 60% operated interest in PM 323.

The Puteri platform, located on PM 318 in Malaysia, is undergoing final commissioning.

2008 CAPITAL BUDGET

Capital expenditures in the first quarter of 2008 were $514 million, in line with our first quarter budget. We increased our 2008 capital budget to $2 billion from an initial budget of $1.6 billion. The budget excludes approximately $115 million of capitalized interest and overhead. The increase reflects the following:

§ the recently signed agreement for a $227 million acquisition of properties in South Texas and subsequent development drilling activities;

§	bidding success at the most recent Gulf of Mexico lease sale;
§	development capital for the recent Anduin West and Gladden deepwater GOM discoveries;
§	an additional drilling rig in the Woodford; and
§	an additional drilling rig in Monument Butte

1Q08 ACTUAL RESULTS AND 2Q08 ESTIMATES

	1Q08 Actuals							2Q08 Guidance
	Domestic		Int’l		Total			Domestic		Int’l		Total
Production/Liftings
Natural gas-Bcf		40.4		—		40.4			40.7 - 43.5		—		40.7 - 43.5
Oil and condensate-MMBbl		1.4		1.0		2.4			1.3 - 1.4		0.75 - 0.85		2.0 - 2.2
Total Bcfe		48.9		6.2		55.1			48.5 - 51.9		4.5 - 5.1		53 - 57
Average Realized Prices Note 1
Natural gas-$/Mcf	$	7.89	$	—	$	7.89		Note 2
Crude oil-$/Bbl	$	47.16	$	85.38	$	63.28		Note 3		Note 4
Mcf equivalent-$/Mcfe	$	7.88	$	14.23	$	8.60
Operating Expenses:
Lease operating
Recurring ($ MM)	$	38.6	$	12.5	$	51.1		$	39.9 - $44.1	$	10.5 - $11.6	$	50.4 - $55.7
per/Mcfe	$	0.79	$	2.01	$	0.93		$	0.81 - $0.87	$	2.17 - $2.45	$	0.93 - $1.00
Major (workovers, repairs, etc) ($MM)	$	7.9	$	—	$	7.9		$	5.3 - $5.9	$	0.8 - $0.9	$	6.1 - $6.8
per/Mcfe	$	0.16	$	—	$	0.14		$	0.11 - $0.12	$	0.17 - $0.19	$	0.11 - $0.12
Production and other taxes ( $MM)Note 5	$	21.7	$	29.3	$	51.1		$	29.3 - $32.4	$	21.6 - $23.9	$	51.0 - $56.3
per/Mcfe	$	0.44	$	4.71	$	0.93		$	0.60 - $0.64	$	4.47 - $5.06	$	0.94 - $1.01
General and administrative (G&A), net ($MM)	$	30.8	$	0.8	$	31.6		$	33.1 - $36.6	$	1.3 - $1.5	$	34.4 - $38.1
per/Mcfe	$	0.63	$	0.13	$	0.57		$	0.67 - $0.72	$	0.28 - $0.31	$	0.63 - $0.68
Capitalized G&A ($MM)					$	(15.5	)					$	(15.5 - $17.1	)
per/Mcfe					$	(0.28	)					$	(0.29 - $0.31	)
Interest expense ($MM)					$	19.3						$	18.4 - $20.4
per/Mcfe					$	0.35						$	0.34 - $0.37
Capitalized interest ($MM)					$	(13.4	)					$	(13.4 - $14.8	)
per/Mcfe					$	(0.24	)					$	(0.25 - $0.27	)
Effective tax rate (%)						40.4	%						39.0	%
Income taxes (%)
Current						24	%						22% - 25	%
Deferred						76	%						75% - 78	%

Note 1: Actual average realized prices include the effects of hedging contracts. If the effects of these contracts were excluded, the average realized price for total gas would have been $7.54 per Mcf and the total oil and condensate average realized price would have been $85.18 per barrel.

Note 2: Gas prices in the Mid-Continent, after basis differentials, transportation and handling charges, typically average 75-85% of the Henry Hub Index. Gas prices in the Gulf Coast, after basis differentials, transportation and handling charges, are expected to average $0.40-$0.60 per MMBtu less than the Henry Hub Index.

Note 3: Oil prices in the Gulf Coast typically average about $5 per barrel below the NYMEX WTI price. Rockies oil prices average about $13-$15 per barrel below WTI. Oil production from the Mid-Continent typically sells at a $1.00-$1.50 per barrel below WTI.

Note 4: Oil in Malaysia typically sells at Tapis, or about 95% of WTI. Oil production from China typically sells at $10-$15 per barrel below WTI.

Note 5: Guidance for production taxes determined using $100/Bbl oil and $10/MMBtu gas.

NATURAL GAS HEDGE POSITIONS

Please see the tables below for our complete hedging positions.

The following hedge positions for the second quarter of 2008 and beyond are as of April 23, 2008:

Second Quarter 2008

	Weighted Average						Range
Volume	Fixed		Floors		Collars		Floor		Ceiling
25,325 MMMBtus	$	7.96		—		—		—		—
5,715 MMMBtus		—		—	$	7.64-$9.34	$	7.00-$8.00	$	9.00-$9.70
5,460 MMMBtus		—	$	8.64		—	$	8.58-$8.70		—

Third Quarter 2008

	Weighted Average						Range
Volume	Fixed		Floors		Collars		Floor		Ceiling
26,220 MMMBtus	$	7.97		—		—		—		—
5,760 MMMBtus		—		—	$	7.64-$9.34	$	7.00-$8.00	$	9.00-$9.70
5,520 MMMBtus		—	$	8.64		—	$	8.58-$8.70		—

Fourth Quarter 2008

	Weighted Average						Range
Volume	Fixed		Floors		Collars		Floor		Ceiling
9,445 MMMBtus	$	8.04		—		—		—		—
15,965 MMMBtus		—		—	$	8.03-$10.70	$	7.00-$9.00	$	9.00-$17.60
6,100 MMMBtus**		—		—	$	8.70-$13.92	$	8.00-$9.00	$	11.72-$20.10
1,860 MMMBtus		—	$	8.64		—	$	8.58-$8.70		—

First Quarter 2009

	Weighted Average						Range
Volume	Fixed		Floors		Collars		Floor		Ceiling
900 MMMBtus	$	9.00		—		—		—		—
21,150 MMMBtus		—		—	$	8.09-$10.88	$	8.00-$9.00	$	9.67-$17.60
9,000 MMMBtus**		—		—	$	8.70-$13.92	$	8.00-$9.00	$	11.72-$20.10

Second Quarter 2009

	Weighted Average						Range
Volume	Fixed		Floors		Collars		Floor		Ceiling
3,185 MMMBtus	$	8.40		—		—		—		—
4,095 MMMBtus		—		—	$	8.00-$10.50	$	8.00	$	8.97-$13.00

Third Quarter 2009

	Weighted Average						Range
Volume	Fixed		Floors		Collars		Floor		Ceiling
3,220 MMMBtus	$	8.40		—		—		—		—
4,140 MMMBtus		—		—	$	8.00-$10.50	$	8.00	$	8.97-$13.00

Fourth Quarter 2009

	Weighted Average						Range
Volume	Fixed		Floors		Collars		Floor		Ceiling
1,085 MMMBtus	$	8.40		—		—		—		—
1,395 MMMBtus		—		—	$	8.00-$10.50	$	8.00	$	8.97-$13.00

** These 3-way collar contracts are standard natural gas collar contracts with respect to the periods, volumes and prices stated above. The contracts have floor and ceiling prices per MMBtu as per the table above until the price drops below a weighted average price of $7.20 per MMBtu. Below $7.20 per MMBtu, these contracts effectively result in realized prices that are on average $1.50 per MMBtu higher than the cash price that otherwise would have been realized

The following table details the expected impact to pre-tax income from the settlement of our derivative contracts, outlined above, at various NYMEX gas prices, net of premiums paid for these contracts (in millions).

	Gas Prices
	$5.00		$6.00		$7.00		$8.00		$9.00
2008
2nd Quarter	$	110	$	73	$	37	$	3	$	(26	)
3rd Quarter	$	113	$	76	$	38	$	2	$	(27	)
4th Quarter	$	93	$	66	$	39	$	7	$	(9	)
Total 2008	$	316	$	215	$	114	$	12	$	(62	)
2009	$	136	$	97	$	58	$	12	$	(5	)

In conjunction with our recent acquisition of properties in the Rocky Mountains, we hedged basis associated with 50% of the proved producing fields from August 2007 through full-year 2012. The weighted average hedged differential during this period was $(1.18) per Mcf.

Approximately 31% of our natural gas production correlates to Houston Ship Channel, 25% to CenterPoint/East, 19% to Panhandle Eastern Pipeline, 10% to Waha, 7% to Colorado Interstate, 8% to others.

CRUDE OIL HEDGE POSITIONS

The following hedge positions for the second quarter of 2008 and beyond are as of April 23, 2008:

Second Quarter 2008

	Weighted Average						Range
Volume	Fixed		Floors		Collars		Floor		Ceiling
819,000 Bbls**		—		—	$	33.00-$50.29	$	32.00-$35.00	$	49.50-$52.90

Third Quarter 2008

	Weighted Average						Range
Volume	Fixed		Floors		Collars		Floor		Ceiling
828,000 Bbls**		—		—	$	33.00-$50.29	$	32.00-$35.00	$	49.50-$52.90

Fourth Quarter 2008

	Weighted Average						Range
Volume	Fixed		Floors		Collars		Floor		Ceiling
828,000 Bbls**		—		—	$	33.00-$50.29	$	32.00-$35.00	$	49.50-$52.90

First Quarter 2009

	Weighted Average						Range
Volume	Fixed		Floors		Collars		Floor		Ceiling
810,000 Bbls**		—		—	$	33.33-$50.62	$	32.00-$36.00	$	50.00-$54.55

Second Quarter 2009

	Weighted Average						Range
Volume	Fixed		Floors		Collars		Floor		Ceiling
819,000 Bbls**		—		—	$	33.33-$50.62	$	32.00-$36.00	$	50.00-$54.55

Third Quarter 2009

	Weighted Average						Range
Volume	Fixed		Floors		Collars		Floor		Ceiling
828,000 Bbls**		—		—	$	33.33-$50.62	$	32.00-$36.00	$	50.00-$54.55

Fourth Quarter 2009

	Weighted Average						Range
Volume	Fixed		Floors		Collars		Floor		Ceiling
828,000 Bbls**		—		—		$33.33-$50.62		$32.00-$36.00		$50.00-$54.55

First Quarter 2010

	Weighted Average						Range
Volume	Fixed		Floors		Collars		Floor		Ceiling
90,000 Bbls	$	93.40		—		—		—		—
810,000 Bbls**		—		—		$35.22-$51.59		$32.00-$38.00		$50.00-$53.50

Second Quarter 2010

	Weighted Average						Range
Volume	Fixed		Floors		Collars		Floor		Ceiling
90,000 Bbls	$	93.40		—		—		—		—
819,000 Bbls**		—		—	$	35.22-$51.59	$	32.00-$38.00	$	50.00-$53.50

Third Quarter 2010

	Weighted Average						Range
Volume	Fixed		Floors		Collars		Floor		Ceiling
90,000 Bbls	$	93.40		—		—		—		—
828,000 Bbls**		—		—	$	35.22-$51.59	$	32.00-$38.00	$	50.00-$53.50

Fourth Quarter 2010

	Weighted Average						Range
Volume	Fixed		Floors		Collars		Floor		Ceiling
90,000 Bbls	$	93.40		—		—		—		—
828,000 Bbls**		—		—	$	35.22-$51.59	$	32.00-$38.00	$	50.00-$53.50

** These 3-way collar contracts are standard crude oil collar contracts with respect to the periods, volumes and prices stated above. The contracts have floor and ceiling prices per barrel as per the table above until the price drops below a weighted average price of $27.60 per barrel. Below $27.60 per barrel, these contracts effectively result in realized prices that are on average $6.32 per barrel higher than the cash price that otherwise would have been realized.

The following table details the expected impact to pre-tax income from the settlement of our derivative contracts, outlined above, at various NYMEX oil prices, net of premiums paid for these contracts (in millions).

	Oil Prices
	$50.00			$60.00			$70.00			$80.00			$90.00
2008
2nd Quarter	$	—		$	(8	)	$	(16	)	$	(24	)	$	(33	)
3rd Quarter	$	(1	)	$	(9	)	$	(17	)	$	(25	)	$	(33	)
4th Quarter	$	—		$	(8	)	$	(17	)	$	(25	)	$	(33	)
Total 2008	$	(1	)	$	(25	)	$	(50	)	$	(74	)	$	(99	)
2009	$	(1	)	$	(32	)	$	(65	)	$	(97	)	$	(130	)
2010	$	15		$	(16	)	$	(52	)	$	(89	)	$	(125	)

We provide information regarding our outstanding hedging positions in our annual and quarterly reports filed with the SEC and in our electronic publication — @NFX. This publication can be found on Newfield’s web page at http://www.newfield.com. Through the web page, you may elect to receive @NFX through e-mail distribution.

Newfield Exploration Company is an independent crude oil and natural gas exploration and production company. The Company relies on a proven growth strategy of growing reserves through the drilling of a balanced risk/reward portfolio and select acquisitions. Newfield’s domestic areas of operation include the U.S. onshore Gulf Coast, the Anadarko and Arkoma Basins of the Mid-Continent, the Rocky Mountains and the Gulf of Mexico. The Company has international operations in Malaysia and China.

**The statements set forth in this publication regarding estimated or anticipated second quarter 2008 results, estimated full-year 2008 production, drilling and development plans, the timing of activities, the timing of initial production and future rates of production from wells, fields and regions, expected cost reductions in the Woodford Play and the expected ultimate recovery of reserves from wells are forward looking and are 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, the availability of capital resources, the availability of refining capacity for the crude oil we produces from our Monument Butte field in Utah and labor conditions. In addition, the drilling of oil and gas wells and the production of hydrocarbons are subject to governmental regulations and operating risks.