Our first quarter operating results were solid and we’re off to a great start in 2009, despite the macro-challenges in our industry today, said President Lee K. Boothby. Our cost and expenses in the first quarter were within or below our guidance levels, reflecting a continuing reduction in service costs and the diligent efforts of our teams to lower costs and maximize returns throughout the Company. We are confident in our ability to deliver on our 2009 production goals (up 6-10% over 2008) while living within cash flow. More importantly, we have the people and prospects in place today to grow production, while again living within cash flow, in 2010-2011.

First Quarter 2009

The net loss reflects the following items:

— A $1.3 billion ($854 million after-tax), or $6.59 per share, decrease in the carrying value of oil and gas properties due to considerably lower gas prices at the end of the first quarter of 2009. This non-cash adjustment resulted from the application of full cost accounting rules. Using the quarter-end natural gas price of $3.63 per MMBtu, Newfield Exploration’s total estimated proved reserves were negatively impacted by about 400 Bcfe. The revision was mainly related to proved undeveloped reserves in the mid-continent and Rocky Mountain areas; and

— A net unrealized gain on commodity derivatives of $73 million ($49 million after-tax), or $0.38 per share.

— Without the effect of the above items, net income for the first quarter of 2009 would have been $112 million, or $0.85 per share.

— Net cash provided by operating activities before changes in operating assets and liabilities was $347 million.

The company’s production for the first quarter of 2009 was 63 Bcfe. Capital expenditures were $369 million for the first quarter of 2009.

Highlights

Williston basin acreage grows, successful drilling results – The company newly added an further 14,400 net acres in the Williston basin of North Dakota. Newfield Exploration has about 500,000 net acres, with nearly 200,000 acres in prospective development areas. The company has drilled 10 successful oil wells in the Williston basin and gross operated production is about 4,800 BOPD. Recent drilling has been focused in North Dakota on the southern end of the Nesson Anticline. Results from the most recent wells are below:

The Gladys 1-9H is a Bakken completion with a 24-hour average gross initial production rate of 1,328 BOEPD. This was a 4,000′ lateral, situated in McKenzie county, North Dakota. The company operates the well with a 48% working interest.

The Wisness 1-4H is a Bakken completion with a 24-hour average gross initial production rate of 1,256 BOEPD. This was a 4,400′ lateral, located in McKenzie county, North Dakota. The company operates the well with a 40% working interest.

The Moberg 1-29H is currently drilling. The well is anticipated to have an 8,500′ lateral completion. The well, situated in McKenzie county, North Dakota, is operated by Newfield Exploration, with a 72% working interest.

Mid-continent region update – Gross operated production from the mid-continent division is about 400 MMcfe/d, or nearly 300 MMcfe/d net.

Stiles ranch field achieves record production – Production from the Stiles Ranch field, situated in the Texas Panhandle, newly reached record gross production of 145 MMcfe/d. Newfield Exploration recently added a rig in the field and has three rigs drilling horizontal wells. Newfield Exploration has an approximate 80% working interest in the field.

Woodford shale update – Newfield Exploration recently released an operated rig in the Woodford and now has 11 operated rigs under term contract in the field, with six of the remaining rigs rolling off of term contract in 2009. The timing of rig contract expirations and the fact that more than 90% of the company’s 165,000 net acres now held-by-production provide Newfield Exploration with operational flexibility in the second half of 2009. Due to the recent weakness in natural gas prices and a continued decline in service costs, the company has been intentionally slowing its pace of new well completions. Gross operated production in the Woodford is about 240 MMcfe/d. The average lateral length in 2009 is anticipated to be over 5,000′ in length.

Mid-continent express to improve realized gas prices – Beginning late in the second quarter of 2009, Newfield Exploration’s realized prices for mid-continent properties are anticipated to progress to 80-85% of the Henry Hub Index as the company commences to utilize firm transportation agreements that provide guaranteed pipeline capacity at a fixed price to move this natural gas production to the Perryville, Louisiana markets.

Monument Butte Update – Gross oil sales from Monument Butte, situated in the Uinta basin of Utah, are at present averaging about 19,000 BOPD, up from about 17,000 BOPD at year-end 2008. The increased sales volumes reflect improved demand for Black Wax crude. Differentials have narrowed recently to about $12 per barrel below WTI (including transportation expense). Newfield Exploration carries on to run a three-rig program in the Monument Butte field area, which covers about 180,000 gross acres. Considerably all of the acreage is held by production.