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This excerpt taken from the NFX 10-Q filed Apr 24, 2009. Capital
Expenditures. Our
capital expenditures of $368 million for the first quarter of 2009
decreased 28% from our capital expenditures of $513 million during the same
period of 2008. These amounts exclude recorded asset retirement costs of
$1 million in both 2009 and 2008. Of the $368 million expenditures
during the first quarter of 2009, we invested $285 million in domestic
exploitation and development, $52 million in domestic exploration
(exclusive of exploitation and leasehold activity), $1 million in domestic
leasehold activity and $30 million internationally. Of the
$513 million expenditures during the first quarter of 2008, we invested
$318 million in domestic exploitation and development, $92 million in
domestic exploration (exclusive of exploitation and leasehold activity),
$28 million in domestic leasehold activity and $75 million
internationally.
We budgeted $1.45 billion for capital expenditures in 2009, including $130
million of estimated capitalized interest and overhead. Today,
approximately 47% of the budget before capitalized interest and overhead is
allocated to the Mid-Continent, 17% to the Rocky Mountains, 15% to the Gulf of
Mexico, 12% to onshore Texas, and 9% to international projects. See
Item 1, “
Business — Our Properties and Plans for 2009,” in our
annual report on Form 10-K for the year ended December 31, 2008. The
2009 budget is based on our commitment to operate within expected cash flow from
operations. Actual levels of capital expenditures may vary significantly due to
many factors, including drilling results, oil and gas prices, industry
conditions, the prices and availability of goods and services and the extent to
which properties are acquired. We continue to screen for attractive acquisition
opportunities; however, the timing and size of acquisitions are
unpredictable.
This excerpt taken from the NFX 10-Q filed Oct 24, 2008. Capital
Expenditures. Our
capital spending for the first nine months of 2008 was $1.8 billion, a 15%
decrease from our $2.1 billion in capital spending during the same period
of 2007. These amounts exclude recorded asset retirement costs of
$3 million in 2008 and $16 million in 2007. Of the $1.8 billion
spent in 2008, we invested $963 million in domestic exploitation and
development, $275 million in domestic exploration (exclusive of
exploitation and leasehold activity), $346 million in domestic leasehold
activity (includes the acquisition of properties in South Texas) and
$171 million internationally. Of the $2.1 billion spent in the first
nine months of 2007, we invested $1.1 billion in domestic exploitation and
development, $182 million in domestic exploration (exclusive of
exploitation and leasehold activity), $646 million for acquisitions and
domestic leasehold activity (including $578 million for the Rocky Mountain
assets acquired from Stone Energy) and $165 million
internationally.
Our 2008
capital budget is $2.2 billion. The budget excludes
$115 million of capitalized interest and overhead. Approximately
35% of the capital budget is allocated to the Mid-Continent, 15% to the Rocky
Mountains, 40% to onshore Texas and the Gulf of Mexico and 10% to international
projects. Since our 2008 capital budget exceeds forecasted net cash flow from
operations, we have made up the shortfall with cash on hand and borrowings under
our credit arrangements. We anticipate funding the remaining $500
million of our 2008 capital program with cash flows from operations and
borrowings under our credit arrangements.
In light
of the current economic outlook and commodity prices, we intend to limit our
2009 capital expenditures to a level that can be funded with cash flow from
operations, thereby preserving liquidity under our credit
arrangements. Our 2009 capital budget, which at this time is
expected to be approximately $1.65 billion, will focus on those projects
that we believe will generate and lay the foundation for production
growth. We have the operational flexibility to react quickly with our
capital expenditures to changes in our cash flows from
operations. Actual levels of capital expenditures in any year may
vary significantly due to many factors, including the extent to which properties
are acquired, drilling results, oil and gas prices, industry conditions and the
prices and availability of goods and services.
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