Newfield Exploration (NFX) 10-K 26 Feb 10 2009 FY Annual report Financial data

CONSOLIDATED BALANCE SHEET

CONSOLIDATED BALANCE SHEET (USD $)
In Millions	Dec. 31, 2009	Dec. 31, 2008
Current assets:
Cash and cash equivalents	$78	$24
Accounts receivable	339	375
Inventories	84	96
Derivative assets	269	663
Other current assets	123	48
Total current assets	893	1,206
Property and equipment, at cost, based on the full cost method of accounting for oil and gas properties	10,406	10,349
Less - accumulated depreciation, depletion and amortization	(5,159)	(4,591)
Total property and equipment, net	5,247	5,758
Derivative assets	19	247
Long-term investments	55	72
Deferred taxes	26	0
Other assets	14	22
Total assets	6,254	7,305
Current liabilities:
Accounts payable	83	103
Accrued liabilities	640	672
Advances from joint owners	51	73
Asset retirement obligation	10	11
Derivative liabilities	2	0
Deferred taxes	87	226
Total current liabilities	873	1,085
Other liabilities	55	22
Derivative liabilities	5	0
Long-term debt	2,037	2,213
Asset retirement obligation	82	70
Deferred taxes	434	658
Total long-term liabilities	2,613	2,963
Stockholders' equity:
Preferred stock	0	0
Common stock	1	1
Additional paid-in capital	1,389	1,335
Treasury stock (at cost)	(33)	(32)
Accumulated other comprehensive income (loss):
Unrealized loss on investments	(11)	(13)
Unrealized gain on post-retirement benefits	0	2
Retained earnings	1,422	1,964
Total stockholders' equity	2,768	3,257
Total liabilities and stockholders' equity	$6,254	$7,305

PARENTHETICAL DATA TO THE CONSO

PARENTHETICAL DATA TO THE CONSOLIDATED BALANCE SHEET (USD $)
In Millions, except Share data	Dec. 31, 2009	Dec. 31, 2008
Statement Of Financial Position Abstract
Oil and gas properties excluded from amortization (full cost method of accounting)	$1,223	$1,303
Preferred stock, par value	0.01	0.01
Preferred stock, shares authorized	5,000,000	5,000,000
Common stock, par value	0.01	0.01
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	134,493,670	133,985,751
Treasury stock, shares	1,488,968	1,908,243

CONSOLIDATED STATEMENT OF INCOM

CONSOLIDATED STATEMENT OF INCOME (USD $)
In Millions, except Per Share data	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Income Statement Abstract
Oil and gas revenues	$1,338	$2,225	$1,783
Operating expenses:
Lease operating	259	265	314
Production and other taxes	63	157	101
Depreciation, depletion and amortization	587	697	682
General and administrative	144	141	155
Ceiling test and other impairments	1,344	1,863	0
Other	8	4	0
Total operating expenses	2,405	3,127	1,252
Income (loss) from operations	(1,067)	(902)	531
Other income (expense):
Interest expense	(126)	(112)	(102)
Capitalized interest	51	60	47
Commodity derivative income (expense)	252	408	(188)
Other	5	11	6
Total other income (expense)	182	367	(237)
Income (loss) from continuing operations before income taxes	(885)	(535)	294
Income tax provision (benefit):
Current	48	36	92
Deferred	(391)	(198)	30
Total income tax provision (benefit)	(343)	(162)	122
Income (loss) from continuing operations	(542)	(373)	172
Income from discontinued operations, net of tax	0	0	278
Net income (loss)	($542)	($373)	$450
Basic -
Income (loss) from continuing operations	-4.18	-2.88	1.35
Income from discontinued operations	$0	$0	2.17
Net income (loss)	-4.18	-2.88	3.52
Diluted -
Income (loss) from continuing operations	-4.18	-2.88	1.32
Income from discontinued operations	$0	$0	2.12
Net income (loss)	-4.18	-2.88	3.44
Weighted average number of shares outstanding for basic earnings per share	130	129	128
Weighted average number of shares outstanding for diluted earnings per share	130	129	131

CONSOLIDATED STATEMENT OF CASH

CONSOLIDATED STATEMENT OF CASH FLOWS (USD $)
In Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Cash flows from operating activities:
Net income (loss)	($542)	($373)	$450
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Income from discontinued operations, net of tax	0	0	(278)
Depreciation, depletion and amortization	587	697	682
Deferred tax provision (benefit)	(391)	(198)	30
Stock-based compensation	28	26	23
Commodity derivative (income) expense	(252)	(408)	188
Cash receipts (payments) on derivative settlements	883	(750)	180
Ceiling test and other impairments	1,344	1,863	0
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable	36	(44)	(13)
Increase in inventories	(3)	(16)	(34)
Increase in commodity derivative assets	0	(65)	(2)
(Increase) decrease in other current assets	(75)	6	27
(Increase) decrease in other assets	4	(3)	(8)
Increase (decrease) in accounts payable and accrued liabilities	(23)	84	(22)
Increase (decrease) in advances from joint owners	(22)	29	(46)
Increase (decrease) in other liabilities	4	6	(11)
Net cash provided by continuing activities	1,578	854	1,166
Net cash used in discontinued activities	0	0	(12)
Net cash provided by operating activities	1,578	854	1,154
Cash flows from investing activities:
Additions to oil and gas properties	(1,392)	(2,067)	(1,930)
Acquisitions of oil and gas properties	(9)	(223)	(658)
Proceeds from sales of oil and gas properties	33	9	1,344
Proceeds from sale of UK subsidiaries, net of cash on hand at sale date	0	0	491
Additions to furniture, fixtures, and equipment	(8)	(20)	(13)
Purchases of investments	0	(22)	(271)
Redemption of investments	20	70	172
Net cash used in continuing activities	(1,356)	(2,253)	(865)
Net cash used in discontinued activities	0	0	(41)
Net cash used in investing activities	(1,356)	(2,253)	(906)
Cash flows from financing activities:
Proceeds from borrowings under credit arrangements	1,040	2,579	2,909
Repayments of borrowings under credit arrangements	(1,216)	(2,018)	(2,909)
Net proceeds from issuance of senior subordinated notes	0	592	0
Repayment of senior notes	0	0	(125)
Payments to discontinued operations	0	0	(38)
Proceeds from issuances of common stock	9	20	32
Stock-based compensation excess tax benefit	0	0	14
Purchases of treasury stock, net	(1)	0	0
Net cash provided by (used in) continuing activities	(168)	1,173	(117)
Net cash provided by discontinued activities	0	0	38
Net cash provided by (used in) financing activities	(168)	1,173	(79)
Effect of exchange rate changes on cash and cash equivalents	0	0	1
Increase (decrease) in cash and cash equivalents	54	(226)	170
Cash and cash equivalents from continuing operations, beginning of period	24	250	52
Cash and cash equivalents from discontinued operations, beginning of period	24	250	28
Cash and cash equivalents, end of period	$78	$24	$250

CONSOLIDATED STATEMENT OF STOCK

CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (USD $)
In Millions	Common Stock	Treasury Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Total
Balance, shares at Dec. 31, 2006	131.1	-1.9
Balance at Dec. 31, 2006	$1	($30)	$1,198	$1,887	$6	$3,062
Issuances of common and restricted stock			32			32
Issuances of common and restricted stock, shares	1.4
Stock-based compensation			34			34
Stock-based compensation, shares	0.7
Treasury stock, at cost		(2)				(2)
Stock-based compensation excess tax benefit			14			14
Comprehensive income (loss):
Net income (loss)				450		450
Foreign currency translation adjustment, net of tax					(14)	(14)
Reclassification adjustments for settled hedging positions, net of tax					(3)	(3)
Reclassification adjustments for discontinued cash flow hedges, net of tax					2	2
Changes in fair value of outstanding hedging positions, net of tax					6	6
Balance at Dec. 31, 2007	1	(32)	1,278	2,337	(3)	3,581
Balance, shares at Dec. 31, 2007	133.2	-1.9
Issuances of common and restricted stock			20			20
Issuances of common and restricted stock, shares	0.9
Stock-based compensation			37			37
Stock-based compensation, shares	-0.1
Comprehensive income (loss):
Net income (loss)				(373)		(373)
Unrealized gain (loss) on investments, net of tax					(13)	(13)
Unrealized gain on post-retirement benefits, net of tax					5	5
Balance at Dec. 31, 2008	1	(32)	1,335	1,964	(11)	3,257
Balance, shares at Dec. 31, 2008	134	-1.9
Issuances of common and restricted stock			9			9
Issuances of common and restricted stock, shares	0.5
Stock-based compensation			45			45
Treasury stock, at cost		(1)				(1)
Treasury stock, shares		0.4
Comprehensive income (loss):
Net income (loss)				(542)		(542)
Unrealized gain (loss) on investments, net of tax					2	2
Realized loss on post-retirement benefits, net of tax					(2)	(2)
Balance at Dec. 31, 2009	$1	($33)	$1,389	$1,422	($11)	$2,768
Balance, shares at Dec. 31, 2009	134.5	-1.5

PARENTHETICAL DATA TO THE STATE

PARENTHETICAL DATA TO THE STATEMENT OF STOCKHOLDERS' EQUITY (USD $)
In Millions	1/1/2009 - 12/31/2009	1/1/2008 - 12/31/2008	1/1/2007 - 12/31/2007
PARENTHETICAL DATA TO THE STATEMENT OF STOCKHOLDERS' EQUITY
Foreign currency translation adjustment tax			$7
Reclassification adjustments for settled hedging positions tax			2
Reclassification adjustments for discontinued cash flow hedges tax			(1)
Changes in fair value of outstanding hedging positions tax			(4)
Unrealized gain (loss) on investments tax	(1)	6
Unrealized gain on post-retirement benefits tax		(3)
Realized loss on post-retirement benefits tax	$1

1. Organization and Summary of

1. Organization and Summary of Significant Accounting Policies
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Financial Statements [Abstract]
Organization and Summary of Significant Accounting Policies:	1. Organization and Summary of Significant Accounting Policies: Organization and Principles of Consolidation We are an independent oil and gas company engaged in the exploration, development and acquisition of oil and gas properties. Our domestic areas of operation include the Anadarko and Arkoma Basins of the Mid-Continent, the Rocky Mountains, onshore Texas and the Gulf of Mexico. Internationally, we are active in Malaysia and China. Our financial statements include the accounts of Newfield Exploration Company, a Delaware corporation, and its subsidiaries. We proportionately consolidate our interests in oil and gas exploration and production ventures and partnerships in accordance with industry practice. All significant intercompany balances and transactions have been eliminated. Unless otherwise specified or the context otherwise requires, all references in these notes to Newfield, we, us or our are to Newfield Exploration Company and its subsidiaries. In October 2007, we sold all of our interests in the U.K. North Sea for $511million in cash and recorded a gain of $341million. As a result, the historical results of our U.K. North Sea operations are reflected in our financial statements as discontinued operations. See Note3, Discontinued Operations. Except where noted, discussions in these notes relate to our continuing operations only. Dependence on Oil and Gas Prices As an independent oil and gas producer, our revenue, profitability and future rate of growth are substantially dependent on prevailing prices for oil and gas. Historically, the energy markets have been very volatile, and there can be no assurance that oil and gas prices will not be subject to wide fluctuations in the future. A substantial or extended decline in oil or gas prices could have a material adverse effect on our financial position, results of operations, cash flows and access to capital and on the quantities of oil and gas reserves that we can economically produce. Use of Estimates The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires our management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, the reported amounts of revenues and expenses during the reporting period and the reported amounts of proved oil and gas reserves. Actual results could differ from these estimates. Our most significant financial estimates are associated with our estimated proved oil and gas reserves and fair value of our derivative positions. Reclassifications Certain reclassifications have been made to prior years reported amounts in order to conform with the current year presentation. These reclassifications did not impact our net income, stockholders equity or cash flows. Revenue Recognition Substantially all of our oil and gas production is sold to a variety of purchasers under short-term (less than 12months) contracts at market sensitive prices. We record revenue when we deliver our production to the customer and coll

2. Earnings per Share

2. Earnings per Share
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Financial Statements [Abstract]
Earnings per Share:	2. Earnings Per Share: Basic earnings per share (EPS) is calculated by dividing net income (the numerator) by the weighted average number of shares of common stock (other than unvested restricted stock and restricted stock units) outstanding during the period (the denominator). Diluted earnings per share incorporates the dilutive impact of outstanding stock options and unvested restricted stock and restricted stock units (using the treasury stock method). Under the treasury stock method, the amount the employee must pay for exercising stock options, the amount of unrecognized compensation expense related to unvested stock-based compensation grants and the amount of excess tax benefits that would be recorded when the award becomes deductible are assumed to be used to repurchase shares. See Note11, Stock-Based Compensation. The following is the calculation of basic and diluted weighted average shares outstanding and EPS for each of the years in the three-year period ended December31, 2009: 2009 2008 2007 (In millions, except per share data) Income (numerator): Income (loss) from continuing operations $ (542 ) $ (373 ) $ 172 Income from discontinued operations, net of tax 278 Net income (loss) basic and diluted $ (542 ) $ (373 ) $ 450 Weighted average shares (denominator): Weighted average shares basic 130 129 128 Dilution effect of stock options and unvested restricted stock and restricted stock units outstanding at end of period(1)(2) 3 Weighted average shares diluted 130 129 131 Earnings per share: Basic Income (loss) from continuing operations $ (4.18 ) $ (2.88 ) $ 1.35 Income from discontinued operations 2.17 Basic earnings (loss) per share $ (4.18 ) $ (2.88 ) $ 3.52 Diluted Income (loss) from continuing operations $ (4.18 ) $ (2.88 ) $ 1.32 Income from discontinued operations 2.12 Diluted earnings (loss) per share $ (4.18 ) $ (2.88 ) $ 3.44 (1) The effect of stock options and unvested restricted stock and restricted stock units outstanding has not been included in the calculation of shares outstanding for diluted EPS for the years ended December31, 2009 and 2008 as their effect would have been anti-dilutive. Had we recognized net income for these periods, incremental shares attributable to the assumed exercise of outstanding stock options and the assumed vesting of unvested restricted stock and restricted stock units would have increased diluted weighted average shares outstanding by 2million shares and 3million shares for th

3. Discontinued Operations

3. Discontinued Operations
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Financial Statements [Abstract]
Discontinued Operations	3. Discontinued Operations: In October 2007, we sold all of our interests in the U.K. North Sea for $511million in cash and recorded a gain of $341million. As a result, the historical results of our U.K. North Sea operations are reflected in our financial statements as discontinued operations. The summarized financial results of the discontinued operations are as follows: Year Ended December31, 2007 (In millions) Revenues $ 8 Operating expenses(1) (62 ) Loss from operations (54 ) Commodity derivative expense (5 ) Gain on sale 341 Other expense(2) (4 ) Income before income taxes 278 Income tax provision(3) Income from discontinued operations, net of tax $ 278 (1) Operating expenses include a ceiling test writedown of $47million recorded in the first quarter of 2007. (2) Other expense primarily consists of U.K. withholding tax expense with respect to interest on intercompany loans. (3) In October 2007, Newfield International Holdings (a Bahamian entity) sold the stock of the parent of our U.K. North Sea subsidiaries and realized a gain of $341million. Because the Bahamas is a non-income taxing jurisdiction, no income tax provision was recorded in 2007.

4. Oil and Gas Assets

4. Oil and Gas Assets
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Financial Statements [Abstract]
Oil and Gas Assets:	4. Oil and Gas Assets: Property and Equipment Property and equipment consisted of the following at: December31, 2009 2008 2007 (In millions) Oil and Gas Properties: Subject to amortization $ 9,090 $ 8,961 $ 8,602 Not subject to amortization: Exploration in progress 243 207 250 Development in progress 92 71 30 Capitalized interest 131 129 103 Fee mineral interests 23 23 23 Other capital costs: Incurred in 2009 155 Incurred in 2008 180 328 Incurred in 2007 172 242 342 Incurred in 2006 and prior 227 303 441 Total not subject to amortization 1,223 1,303 1,189 Gross oil and gas properties 10,313 10,264 9,791 Accumulated depreciation, depletion and amortization (5,108 ) (4,550 ) (3,868 ) Net oil and gas properties 5,205 5,714 5,923 Other property and equipment 93 85 66 Accumulated depreciation and amortization (51 ) (41 ) (31 ) Net other property and equipment 42 44 35 Total property and equipment, net $ 5,247 $ 5,758 $ 5,958 Oil and gas properties not subject to amortization represent investments in unproved properties and major development projects in which we own an interest. These unproved property costs include unevaluated leasehold acreage, geological and geophysical data costs associated with leasehold or drilling interests, costs associated with wells currently drilling and capitalized interest. We exclude these costs on a country-by-country basis until proved reserves are found or until it is determined that the costs are impaired. Unproved property costs are grouped by major prospect area where individual property costs are not significant and are assessed individually when individual costs are significant. Costs associated with wells in progress are transferred to the amortization base upon the determination of whether proved reserves can be assigned to the properties, which is generally based on drilling results. All other costs excluded from the amortization base are reviewed quarterly to determine if impairment has occurred. The amount of any impairment is transferred to the amortization base or a charge is made against earnings for international operations if a reserve base has not yet been established. We believe that our evaluation activities related to substantially all of the properties associated with other capital costs not currently subject to amortization will be completed within four years except the Monument Butte field. Because of its size, evaluation o

5. Derivative Financial Instrum

5. Derivative Financial Instruments
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Financial Statements [Abstract]
Derivative Financial Instruments:	5. Derivative Financial Instruments: Commodity Derivative Instruments We utilize swap, floor, collar and three-way collar derivative contracts to hedge against the variability in cash flows associated with the forecasted sale of our future oil and gas production. While the use of these derivative instruments limits the downside risk of adverse price movements, their use also may limit future revenues from favorable price movements. With respect to a swap contract, the counterparty is required to make a payment to us if the settlement price for any settlement period is less than the swap price, and we are required to make payment to the counterparty if the settlement price for any settlement period is greater than the swap price. For a floor contract, the counterparty is required to make a payment to us if the settlement price for any settlement period is below the floor price. We are not required to make any payment in connection with the settlement of a floor contract. For a collar contract, the counterparty is required to make a payment to us if the settlement price for any settlement period is below the floor price, we are required to make payment to the counterparty if the settlement price for any settlement period is above the ceiling price and neither party is required to make a payment to the other party if the settlement price for any settlement period is equal to or greater than the floor price and equal to or less than the ceiling price. A three-way collar contract consists of a standard collar contract plus a put sold by us with a price below the floor price of the collar. This additional put requires us to make a payment to the counterparty if the settlement price for any settlement period is below the put price. Combining the collar contract with the additional put results in us being entitled to a net payment equal to the difference between the floor price of the standard collar and the additional put price if the settlement price is equal to or less than the additional put price. If the settlement price is greater than the additional put price, the result is the same as it would have been with a standard collar contract only. This strategy enables us to increase the floor and the ceiling price of the collar beyond the range of a traditional no cost collar while defraying the associated cost with the sale of the additional put. None of our derivative contracts contain collateral posting requirements; however, two of our derivative contracts contain a provision that would permit the counterparty, in certain circumstances, to request adequate assurance of our performance under the contract. All of our derivative contracts are carried at their fair value on our consolidated balance sheet under the captions Derivative assets and Derivative liabilities. Substantially all of our oil and gas derivative contracts are settled based upon reported prices on the NYMEX. The estimated fair value of these contracts is based upon various factors, including closing exchange prices on the NYMEX, over-the-counter quotations, volatility and, in the case of collars and floors, the time value of options. The calculation of the fair

6. Accounts Receivable

6. Accounts Receivable
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Financial Statements [Abstract]
Accounts Receivable:	6. Accounts Receivable: As of the indicated dates, our accounts receivable consisted of the following: December31, 2009 2008 (In millions) Revenue $ 214 $ 157 Joint interest 114 197 Other 17 26 Allowance for doubtful accounts (6 ) (5 ) Total accounts receivable $ 339 $ 375

7. Accrued Liabilities

7. Accrued Liabilities
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Financial Statements [Abstract]
Accrued Liabilities:	7. Accrued Liabilities: As of the indicated dates, our accrued liabilities consisted of the following: December31, 2009 2008 (In millions) Revenue payable $ 55 $ 75 Accrued capital costs 289 319 Accrued lease operating expenses 47 50 Employee incentive expense 61 73 Accrued interest on long-term debt 25 25 Taxes payable 101 69 Other 62 61 Total accrued liabilities $ 640 $ 672

8. Fair Value Measurements

8. Fair Value Measurements
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Financial Statements [Abstract]
Fair Value Measurements:	8. Fair Value Measurements: Effective January1, 2008, we adopted the authoritative guidance that applies to all financial assets and liabilities required to be measured and reported on a fair value basis. Beginning January1, 2009, we also applied the guidance to non-financial assets and liabilities. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The guidance requires disclosure that establishes a framework for measuring fair value, expands disclosure about fair value measurements and requires that fair value measurements be classified and disclosed in one of the following categories: Level1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. We consider active markets as those in which transactions for the assets or liabilities occur with sufficient frequency and volume to provide pricing information on an ongoing basis. Level2: Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability. This category includes those derivative instruments that we value using observable market data. Substantially all of these inputs are observable in the marketplace throughout the full term of the derivative instrument, can be derived from observable data or supported by observable levels at which transactions are executed in the market place. Instruments in this category include non-exchange traded derivatives such as over-the-counter commodity price swaps, certain investments and interest rate swaps. Level3: Measured based on prices or valuation models that require inputs that are both significant to the fair value measurement and less observable from objective sources (i.e., supported by little or no market activity). Our valuation models for derivative contracts are primarily industry-standard models (i.e., Black-Scholes) that consider various inputs including: (a)quoted forward prices for commodities, (b)time value, (c)volatility factors, (d)counterparty credit risk and (e)current market and contractual prices for the underlying instruments, as well as other relevant economic measures. Our valuation methodology for investments is a discounted cash flow model that considers various inputs including: (a)the coupon rate specified under the debt instruments, (b)the current credit ratings of the underlying issuers, (c)collateral characteristics and (d)risk adjusted discount rates. Level3 instruments primarily include derivative instruments, such as basis swaps, commodity price collars and floors and some financial investments. Although we utilize third party broker quotes to assess the reasonableness of our prices and valuation techniques, we do not have sufficient corroborating market evidence to support classifying these assets and liabilities as Level2. Financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value meas

9. Debt

9. Debt
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Financial Statements [Abstract]
Debt:	9. Debt: As of the indicated dates, our debt consisted of the following: December31, 2009 2008 (In millions) Senior unsecured debt: Revolving credit facility: LIBOR based loans $ 384 $ 514 Total revolving credit facility 384 514 Money market lines of credit(1) 47 Total credit arrangements 384 561 75/8%Senior Notes due 2011 175 175 Fair value of interest rate swap(2) 3 2 Total senior unsecured notes 178 177 Total senior unsecured debt 562 738 65/8%Senior Subordinated Notes due 2014 325 325 65/8%Senior Subordinated Notes due 2016 550 550 71/8%Senior Subordinated Notes due 2018 600 600 Total debt $ 2,037 $ 2,213 (1) Because capacity under our credit facility was available to repay borrowings under our money market lines of credit as of the indicated dates, amounts outstanding under these obligations, if any, are classified as long-term. (2) We have hedged $50million principal amount of our $175million 75/8%Senior Notes due 2011. The hedge provides for us to pay variable and receive fixed interest payments. See Note5, Derivative Financial Instruments Interest Rate Swap. Credit Arrangements We have a revolving credit facility which provides for loan commitments of $1.25billion from a syndicate of more than 15 financial institutions, led by JPMorgan Chase Bank, as agent, and matures June 2012. However, the amount that we can borrow under the facility could be limited by changing expectations of future oil and gas prices because the maximum amount that we can borrow under the facility is determined by our lenders annually each May (and may be adjusted at the option of our lenders in the case of certain acquisitions or divestitures) using a process that takes into account the value of our estimated reserves and hedge position and the lenders commodity price assumptions. In the future, total loan commitments under the facility could be increased to a maximum of $1.65billion if the existing lenders increase their individual loan commitments or new financial institutions are added to the facility. We do not believe we could access such additional capacity in the current credit market. As of December31, 2009, the largest commitment was 16% of total commitments. Loans under the credit facility bear interest, at our option, equal to (a)a rate per annum equal to the higher of the prime rate announced from time to time by JPMorgan Chase Bank or the weighted average of the rates on overnight federal funds transactions with members of the Federal Reserve System during the last preceding business day plus 50basis points or (b)a base Eurodollar rate substantially equal to the London Interbank Offered Rate, plus a margin that is based on a grid of our debt rating (87.5basis points per annum at December

10. Income Taxes

10. Income Taxes
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Financial Statements [Abstract]
Income Taxes:	10. Income Taxes: For the indicated periods, income (loss) before income taxes consisted of the following: For the Year Ended December31, 2009 2008 2007 (In millions) U.S. $ (1,033 ) $ (572 ) $ 269 Foreign 148 37 25 Total income (loss) before income taxes $ (885 ) $ (535 ) $ 294 For the indicated periods, the total provision (benefit) for income taxes consisted of the following: For the Year Ended December31, 2009 2008 2007 (In millions) Current taxes: U.S. federal $ 4 $ 1 $ 85 U.S. state 3 Foreign 44 35 4 Deferred taxes: U.S. federal (352 ) (165 ) 7 U.S. state (28 ) (34 ) 8 Foreign (11 ) 1 15 Total provision (benefit) for income taxes $ (343 ) $ (162 ) $ 122 The provision (benefit) for income taxes for each of the years in the three-year period ended December31, 2009 was different than the amount computed using the federal statutory rate (35%) for the following reasons: For the Year Ended December31, 2009 2008 2007 (In millions) Amount computed using the statutory rate $ (310 ) $ (187 ) $ 103 Increase (decrease) in taxes resulting from: State and local income taxes, net of federal effect (18 ) (22 ) 7 Net effect of different tax rates in non-U.S. jurisdictions 5 (1 ) 10 Goodwill impairment 22 Valuation allowance (24 ) 24 Other 4 2 2 Total provision (benefit) for income taxes $ (343 ) $ (162 ) $ 122 As of the indicated dates the components of our deferred tax asset and deferred tax liability were as follows: December31, 2009 December31, 2008 U.S. Foreign Total U.S. Foreign Total (In millions) Deferred tax asset: Net operating loss carryforwards $ 377 $ 6 $ 383 $ 324 $ 6 $ 330 Alternative minimum tax credit 90 90 84 84 Stock compensation 28 28 23 23 Marketable securities 6 6 6 6 Oil and gas properties 26 26 24 24 Valuation allowance (6 ) (6 ) (30 ) (30 ) Other 28 28 3 3

11. Stock-Based Compensation

11. Stock-Based Compensation
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Financial Statements [Abstract]
Stock-Based Compensation:	11. Stock-Based Compensation: On May7, 2009, at our 2009 annual meeting of stockholders, our stockholders approved the Newfield Exploration Company 2009 Omnibus Stock Plan (the 2009 Omnibus Stock Plan), and our 2000 omnibus stock plan, 2004 omnibus stock plan and 2007 omnibus stock plan (which were used for equity grants to employees) were terminated such that no new grants will be made under those previous plans. On May7, 2009, at our 2009 annual meeting of stockholders, our stockholders also approved the Newfield Exploration Company 2009 Non-Employee Director Restricted Stock Plan, and our previous plan for restricted stock awards to non-employee directors was terminated such that no new grants will be made under the previous plan. Outstanding awards under those previous plans were not impacted by the termination of those previous plans. We utilize the Black-Scholes option pricing model to measure the fair value of stock options and a lattice-based model for our performance and market-based restricted stock and restricted stock units. Historically, we have used unissued shares of stock when stock options are exercised. Beginning in 2009, we began to utilize treasury shares when stock options are exercised, restricted stock is issued or restricted stock units vest. Shares available for grant under our 2009 Omnibus Stock Plan are reduced by 1.5 times the number of shares of restricted stock or restricted stock units awarded under the plan, and are reduced by 1 times the number of shares subject to stock options awarded under the plan. At December31, 2009, we had approximately (1)2.4million additional shares available for issuance pursuant to our existing employee and director plans if all future employee awards under our 2009 Omnibus Stock Plan are stock options, or (2)1.7million additional shares available for issuance pursuant to our existing employee and director plans if all future employee awards under our 2009 Omnibus Stock Plan are restricted stock or restricted stock units. Thus far, all awards under our 2009 Omnibus Stock Plan have been restricted stock unit awards. For the years ended December31, 2009, 2008 and 2007, we recorded stock-based compensation expense of $45million, $37million and $34million, respectively, for all plans. Of these amounts, $17million, $11million and $10million, respectively, were capitalized in oil and gas properties. The excess tax benefit realized from stock options exercised is recognized as a credit to additional paid in capital and is calculated as the amount by which the tax deduction we receive exceeds the deferred tax asset associated with recorded stock compensation expense. We did not realize an excess tax benefit from stock compensation for 2009 or 2008 because we do not anticipate having sufficient taxable income to fully realize the deduction. The amount credited to additional paid in capital for 2007 was $14million. As of December31, 2009, we had approximately $56million of total unrecognized compensation expense related to unvested stock-based compensation awards. This compensation expense is expected to be recognized on a straight-line basis over the applicable

12. Pension Plan Obligation

12. Pension Plan Obligation
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Financial Statements [Abstract]
Pension Plan Obligation:	12. Pension Plan Obligation: As a result of our acquisition of EEX Corporation in November 2002, we assumed responsibility for a defined benefit pension plan for current and former employees of EEX and its subsidiaries. The plan was amended, effective March31, 2003, to cease all future retirement benefit accruals. We filed for a standard termination with a proposed plan termination date of April30, 2008. A favorable determination letter was received on March16, 2009 from the Internal Revenue Service. During the second half of 2009, we completed the formal termination process and all participants received full payment of their obligation through an annuity purchase or a lump sum payment. Curtailment accounting was applied for year-end 2009 resulting in a charge of $3million recorded to general and administrative expense associated with changes in the pension liability due to actual plan termination costs. The following tables summarize changes in the benefit obligation, the plan assets and the funded status of our pension plan as well as the components of net periodic benefit costs, including key assumptions. The measurement dates for plan assets and obligations were December31, 2009 and 2008. 2009 2008 (In millions) Change in benefit obligation: Benefit obligation at beginning of year $ (34 ) $ (34 ) Interest cost (2 ) (2 ) Settlements 40 Benefits paid 1 2 Actuarial loss (5 ) Benefit obligation at end of year $ $ (34 ) Change in plan assets: Fair value of plan assets at beginning of year $ 39 $ 29 Actual return on plan assets 10 Employer contributions 2 2 Settlements (40 ) (1 ) Benefits paid (1 ) (1 ) Fair value of plan assets at end of year $ $ 39 Minimum liability recognition: Accumulated benefit obligation (ABO) $ (34 ) Fair value of plan assets 39 Funded ABO $ 5 Reconciliation of funded status: Projected benefit obligation (PBO) $ (34 ) Fair value of plan assets 39 Funded status 5 Unrecognized net gain (5 ) Accrued pension liability (before minimum liability recognition) Transition adjustment required to recognize minimum liability: Accumulated other comprehensive gain 5 Accrued pension asset (after minimum liability recognition) $ 5 Check on reconciliation of accrued pension cost: Accrued pension asset (liability) at beginning of year $ 5 $ (5 ) Company contributions 2 Change in accumulated other comprehensive (income) loss (5 )

13. Employee Benefit Plans

13. Employee Benefit Plans
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Financial Statements [Abstract]
Employee benefit plans	13. Employee Benefit Plans: Post-Retirement Medical Plan We sponsor a post-retirement medical plan that covers all retired employees until they reach age65. At December31, 2009, both our accumulated benefit obligation and our accrued benefit costs were $6million. Our net periodic benefit cost has been approximately $1million per year. The expected future benefit payments under our post-retirement medical plan for the next ten years are as follows (in millions): 2010 2014 $ 1 2015 2019 3 Incentive Compensation Plan Our 2003 incentive compensation plan provides for the creation each calendar year of an award pool that is generally equal to 5% of our adjusted net income (as defined in the plan) plus the revenues attributable to an overriding royalty interest bearing on the interests of investors that participate in certain of our activities. The plan is administered by the Compensation Management Development Committee of our Board of Directors and award amounts (other than for the chief executive officer) are recommended by our chief executive officer. The plan provides the committee with the discretion to make adjustments to our adjusted net income, as defined in the plan, for purposes of determining the annual award pool. Adjustments may be made for extraordinary or other unusual items or other items not contemplated at the time the plan was adopted, such as changes in generally accepted accounting principles, ceiling test writedowns or other non-recurring items, as the committee determines in its sole discretion. All employees are eligible for awards if employed on both October 1 and December 31 of the performance period. Awards under the plan may have both a current and a long-term component. Long-term cash awards are paid in four annual installments, each installment consisting of 25% of the long-term award, plus interest. Total expense under the plan for the years ended December31, 2009, 2008 and 2007 was $28million, $35million and $51million, respectively. 401(k) and Deferred Compensation Plans We sponsor a 401(k) profit sharing plan under Section401(k) of the Internal Revenue Code. This plan covers all of our employees other than employees of our foreign subsidiaries. We match $1.00 for each $1.00 of employee deferral, with our contribution not to exceed 8% of an employees salary, subject to limitations imposed by the Internal Revenue Service. We also sponsor a highly compensated employee deferred compensation plan. This non-qualified plan allows an eligible employee to defer a portion of his or her salary or bonus on an annual basis. We match $1.00 for each $1.00 of employee deferral, with our contribution not to exceed 8% of an employees salary, subject to limitations imposed by the plan. Our contribution with respect to each participant in the deferred compensation plan is reduced by the amount of contribution made by us to our 401(k) plan for that participant. Our combined contributions to these two plans totaled $5million for the years ended December31, 2009 and 2008 and $4million for the year ended December31, 2007.

14. Commitments and Contingenci

14. Commitments and Contingencies
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Financial Statements [Abstract]
Commitments and Contingencies:	14. Commitments and Contingencies: Lease Commitments We have various commitments under non-cancellable operating lease agreements for office space, equipment and drilling rigs. The majority of these commitments are related to multi-year contracts for drilling rigs that are accounted for as capital additions to our oil and gas properties. Future minimum payments required under these leases as of December31, 2009 are as follows (in millions): Year Ending December31, 2010 $ 63 2011 11 2012 9 2013 9 2014 9 Thereafter 26 Total minimum lease payments $ 127 Rent expense with respect to our lease commitments for office space for the years ended December31, 2009, 2008 and 2007 was $9million, $8million and $6million, respectively. Other Commitments As is common in the oil and gas industry, we have various contractual commitments pertaining to exploration, development and production activities. We have work-related commitments for, among other things, drilling wells, obtaining and processing seismic data, natural gas transportation and fulfilling other cash commitments. At December31, 2009, these work-related commitments totaled $508million and were comprised of $380million in our domestic business and $128million internationally. Our domestic obligation relates to a 10-year firm transportation agreement for our Mid-Continent production. This obligation is subject to the completion of construction, which is expected during the second quarter of 2010, and upon required regulatory approvals. The timing of maturity of this obligation cannot be accurately predicted. In addition, we have a domestic contractual obligation of $233million for other firm transportation agreements, of which $31million relates to 2010, and the remainder relates to 2011 or thereafter. As of December31, 2009, we have delivery commitments through 2011 to deliver to third party purchasers approximately 100,000MMBtu of our daily production, principally from our Mid-Continent division. Given the size of our proved natural gas reserves and production capacity in our Mid-Continent division, we currently believe that we have sufficient reserves and production to fulfill these delivery commitments. Litigation We have been named as a defendant in a number of lawsuits and are involved in various other disputes, all arising in the ordinary course of our business, such as (1)claims from royalty owners for disputed royalty payments, (2)commercial disputes, (3)personal injury claims and (4)property damage claims. Although the outcome of these lawsuits and disputes cannot be predicted with certainty, we do not expect these matters to have a material adverse effect on our financial position, cash flows or results of operations.

15. Segment Information

15. Segment Information
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Financial Statements [Abstract]
Segment Information:	15. Segment Information: While we only have operations in the oil and gas exploration and production industry, we are organizationally structured along geographic operating segments. Our current operating segments are the United States, Malaysia, China and Other International. The accounting policies of each of our operating segments are the same as those described in Note1, Organization and Summary of Significant Accounting Policies. The following tables provide the geographic operating segment information for the years ended December31, 2009, 2008 and 2007 for our continuing operations. Income tax allocations have been determined based on statutory rates in the applicable geographic segment. Other Domestic Malaysia China International Total (In millions) Year Ended December31, 2009: Oil and gas revenues $ 972 $ 321 $ 45 $ $ 1,338 Operating expenses: Lease operating 203 51 5 259 Production and other taxes 33 25 5 63 Depreciation, depletion and amortization 463 111 13 587 General and administrative 139 4 1 144 Ceiling test writedown 1,344 1,344 Other 8 8 Allocated income taxes (438 ) 49 5 Net income (loss) from oil and gas properties $ (780 ) $ 81 $ 16 $ Total operating expenses 2,405 Loss from operations (1,067 ) Interest expense, net of interest income, capitalized interest and other (70 ) Commodity derivative income 252 Loss before income taxes $ (885 ) Total long-lived assets $ 4,668 $ 379 $ 155 $ 3 $ 5,205 Additions to long-lived assets $ 1,275 $ 98 $ 59 $ $ 1,432 Other Domestic Malaysia China International Total (In millions) Year Ended December31, 2008: Oil and gas revenues $ 1,861 $ 305 $ 59 $ $ 2,225 Operating expenses: Lease operating 210 52 3 265 Production and other taxes 60 86 11 157

16. Supplemental Cash Flow

16. Supplemental Cash Flow
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Financial Statements [Abstract]
Supplemental Cash Flow	16. Supplemental Cash Flow Information: Year Ended December31, 2009 2008 2007 (In millions) Cash payments: Interest payments, net of interest capitalized of $51, $60 and $47 during 2009, 2008 and 2007, respectively $ 74 $ 47 $ 56 Income tax payments 3 6 87 Non-cash items excluded from the statement of cash flows: (Increase) decrease in accrued capital expenditures $ 12 $ 33 $ (24 ) (Increase) decrease in asset retirement costs (19 ) (16 ) 194

17. Related Party Transactions

17. Related Party Transactions
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Financial Statements [Abstract]
Related Party Transactions	17. Related Party Transaction: David A. Trice, our Chairman and former Chief Executive Officer, and Susan G. Riggs, our Treasurer, are minority owners of Huffco International L.L.C. In May 1997, before Mr.Trice and Ms.Riggs joined us, we acquired from Huffco an entity now known as Newfield China, LDC, the owner of a 12% interest in a three field unit located on Blocks 04/36 and 05/36 in Bohai Bay, offshore China. Huffco retained preferred shares of Newfield China that provide for an aggregate dividend equal to 10% of the excess of proceeds received by Newfield China from the sale of oil, gas and other minerals over all costs incurred with respect to exploration and production in Block05/36, plus the cash purchase price we paid Huffco for Newfield China ($6million). During 2009, Newfield China paid $2million of dividends to Huffco on the preferred shares of Newfield China. Based on our estimate of the net present value of the proved reserves associated with Block05/36, the indirect interests (through Huffco) in Newfield Chinas preferred shares held by Mr.Trice and Ms.Riggs had a net present value of approximately $405,000 and $156,000, respectively, at December31, 2009.

18. Stockholders Rights Plan

18. Stockholders Rights Plan
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Financial Statements [Abstract]
Stockholders rights plan	18. Stockholder Rights Plan: In 1999, we adopted a stockholders rights plan. The plan was designed to ensure that all of our stockholders receive fair and equal treatment if a takeover of our company was proposed. It included safeguards against partial or two-tiered tender offers, squeeze-out mergers, and other abusive takeover tactics. The plan expired by its terms on February22, 2009.

19. Subsequent Events

19. Subsequent Events
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Financial Statements [Abstract]
Subsequent Events	19. Subsequent Events: On February11, 2010, we acquired certain of TXCO Resources Inc.s assets in the Maverick Basin of southwest Texas for $215million. On January 25, 2010, we sold $700 million of 67/8% Senior Subordinated Notes due 2020 and received net proceeds of $686 million. These notes were issued at 99.109% of par to yield 7%. We used $294 million of the net proceeds to repay all of our then outstanding borrowings under our credit facility, $215 million to fund the acquisition of assets from TXCO Resources Inc. as described above and we tendered for approximately $143 million of our outstanding 75/8% Senior Notes due 2011 as described below. In conjunction with the issuance of the Senior Subordinated Notes described in the immediately preceding paragraph, we announced a cash tender offer and consent solicitation for any, and all, of our $175million aggregate principal amount of 75/8%Senior Notes due 2011. On February19, 2010, we announced that we had accepted for purchase and payment approximately $143million of the Senior Notes pursuant to the tender offer and consent solicitation.

20. Quarterly Results of Operat

20. Quarterly Results of Operations (Unaudited)
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Financial Statements [Abstract]
Quarterly Results of Operations (Unaudited)	20. Quarterly Results of Operations (Unaudited): The results of operations by quarter for the years ended December31, 2009 and 2008 are as follows: 2009 Quarter Ended March31 June30 September30 December31(1) (In millions, except per share data) Oil and gas revenues $ 262 $ 287 $ 375 $ 414 Income (loss) from operations(2) (1,355 ) 39 112 137 Net income (loss) (694 ) (39 ) 78 113 Basic earnings (loss) per common share(3) $ (5.35 ) $ (0.30 ) $ 0.59 $ 0.87 Diluted earnings (loss) per common share $ (5.35 ) $ (0.30 ) $ 0.58 $ 0.86 2008 Quarter Ended March31 June30 September30 December31 (In millions, except per share data) Oil and gas revenues $ 515 $ 691 $ 680 $ 338 Income (loss) from operations(4) 216 378 345 (1,842 ) Net income (loss) (64 ) (244 ) 724 (789 ) Basic earnings (loss) per common share(3) $ (0.50 ) $ (1.89 ) $ 5.59 $ (6.09 ) Diluted earnings (loss) per common share $ (0.50 ) $ (1.89 ) $ 5.48 $ (6.09 ) (1) Effective December31, 2009, we adopted recently revised authoritative accounting and disclosure requirements for oil and gas reserves. As a result, the fourth quarter of 2009 amounts are not on a basis comparable to prior periods. (2) Income (loss) from operations for the first quarter of 2009 includes a full cost ceiling test writedown of $1.3billion. (3) The sum of the individual quarterly earnings (loss) per share may not agree with year-to-date earnings per share as each quarterly computation is based on the income or loss for that quarter and the weighted-average number of shares outstanding during that quarter. (4) Income (loss) from operations for the fourth quarter of 2008 includes a full cost ceiling test writedown of $1.8billion and a goodwill impairment of $62million.

Supplemental Oil and Gas Inform

Supplemental Oil and Gas Information
	12 Months Ended Dec. 31, 2009 USD / shares
Supplemental Oil and Gas Information
Supplementary Oil and Gas Disclosure - Unaudited	Supplementary Oil and Gas Disclosures-Unaudited: Costs Incurred Costs incurred for oil and gas property acquisitions, exploration and development for each of the years in the three-year period ended December31, 2009 are as follows: Other Domestic Malaysia China International Total (In millions) 2009: Property acquisitions: Unproved $ 114 $ $ $ $ 114 Proved 33 33 Exploration(1) 817 38 47 902 Development(2) 311 60 12 383 Total costs incurred(3) $ 1,275 $ 98 $ 59 $ $ 1,432 2008: Property acquisitions: Unproved $ 235 $ 9 $ 1 $ $ 245 Proved 128 128 Exploration(1) 1,294 53 28 1 1,376 Development(2) 408 120 14 542 Total costs incurred(3) $ 2,065 $ 182 $ 43 $ 1 $ 2,291 2007(4): Property acquisitions(5): Unproved $ 258 $ $ 2 $ $ 260 Proved 479 479 Exploration(1) 1,320 47 11 1 1,379 Development(2) 353 169 11 533 Total costs incurred(3) $ 2,410 $ 216 $ 24 $ 1 $ 2,651 (1) Includes $181million, $351million and $240million of domestic costs for non-exploitation activities for 2009, 2008 and 2007, respectively; $21million, $20million and $23million of Malaysia costs for non-exploitation activities for 2009, 2008 and 2007, respectively; $47million, $28million and $11million of China costs for non-exploitation activities for 2009, 2008 and 2007, respectively; and $1million per year of Other International costs for non-exploitation activities for 2008 and 2007. Non-exploitation activities for Other International were immaterial for 2009. (2) Includes $19million, $15million and $21million for 2009, 2008 and 2007, respectively, of asset retirement costs. (3) Other items impacting the capitalized costs of our oil and gas properties which are not included in total costs incurred are as follows: 2009 2008 2007 (In millions) Proceeds from property sales Domestic $ 33 $ 17 $ 1,295 Asset retirement costs associated with property sales 21

Document Information

Document Information
	12 Months Ended Dec. 31, 2009 USD / shares
Document Information [Text Block]
Document Type	10-K
Document Period End Date	2009-12-31
Amendment Flag	false

Entity Information

Entity Information (USD $)
	12 Months Ended Dec. 31, 2009	Feb. 23, 2010
Entity [Text Block]
Entity Registrant Name	NEWFIELD EXPLORATION CO /DE/
Entity Central Index Key	0000912750
Current Fiscal Year End Date	--12-31
Entity Well Known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float	$6,300,000,000
Entity Common Stock Shares Outstanding		133,063,941