How The Pieces Fit Together

What Makes NFX Different?

Consistent ReturnsConsistent Returns Excellent Track RecordExcellent Track Record

– Proven Plan – Diversified Asset BaseProven Plan – Diversified Asset Base– Consistency: Deliver on Growth, Earnings ProjectionsConsistency: Deliver on Growth, Earnings Projections– Proven Management Team, Deep BenchProven Management Team, Deep Bench

Quality “Bread and Butter” AssetsQuality “Bread and Butter” Assets Exploration Option Value (30% of Cap-Ex)Exploration Option Value (30% of Cap-Ex)

– We Still Explore!We Still Explore!– Deepwater MalaysiaDeepwater Malaysia– Deepwater GOMDeepwater GOM– Treasure Island / Treasure BayTreasure Island / Treasure Bay– BrazilBrazil

Visible Organic Growth From Large, In-Hand Visible Organic Growth From Large, In-Hand Development ProjectsDevelopment Projects

Financial DisciplineFinancial Discipline– Strong Balance SheetStrong Balance Sheet– Liquidity, CapacityLiquidity, Capacity

Our Strategy: Stay the Course!

Focus on Organic GrowthFocus on Organic Growth– Inventory in PlaceInventory in Place

Maintain a Balanced PortfolioMaintain a Balanced Portfolio– Balance Risk / RewardBalance Risk / Reward– Balance Onshore / Offshore / InternationalBalance Onshore / Offshore / International– ““Take a Few Swings for the Fence”Take a Few Swings for the Fence”

Take Advantage of Diversified Asset BaseTake Advantage of Diversified Asset Base– Diversification Worked!Diversification Worked!– Flexibility to Invest in Highest Return ProjectsFlexibility to Invest in Highest Return Projects

Motivate WorkforceMotivate Workforce– Attract, Maintain the Best EmployeesAttract, Maintain the Best Employees

Manage for “The Long Haul”Manage for “The Long Haul”

Maintain Financial DisciplineMaintain Financial Discipline

0

200

400

600

800

1000

1200

1400

1600

1800

2000

1999 2000 2001 2002 2003 2004

NFX Proved Reserves

RockiesMid ConInt'lOnshore GCGOM

Balanced Assets

2003 2004 2005e 2006e 2007e

244

OilGas

221

Visible Growth - Expected Production (Bcfe)

262-286

310-350

FACTS:FACTS: 2005 Hurricanes Defer 18-20 2005 Hurricanes Defer 18-20

BCFEBCFE Major Growth Projects on TrackMajor Growth Projects on Track Organic Growth!Organic Growth!

245-248

Domestic Development Opportunities Quality Assets, Growth Potential

T E X A S

N E W M E X I C O

O K L A H O M A

U T A H

VAL VERDE BASINVAL VERDE BASINVAL VERDE BASINVAL VERDE BASIN 100,000 Gross Acres100,000 Gross Acres Low-risk TargetsLow-risk Targets 20 – 30 Wells/Year20 – 30 Wells/Year Active Field Active Field

DevelopmentsDevelopments High WIHigh WI

100,000 Gross Acres100,000 Gross Acres Low-risk TargetsLow-risk Targets 20 – 30 Wells/Year20 – 30 Wells/Year Active Field Active Field

DevelopmentsDevelopments High WIHigh WI

SOUTH TEXASSOUTH TEXASSOUTH TEXASSOUTH TEXAS 200,000 Acres200,000 Acres 60 – 70 Wells/Year60 – 70 Wells/Year Recent XOM JVRecent XOM JV

−52,000 Acres52,000 Acres−Around NFX Core AreasAround NFX Core Areas−3-Rig Program, 3-Year 3-Rig Program, 3-Year

JVJV

200,000 Acres200,000 Acres 60 – 70 Wells/Year60 – 70 Wells/Year Recent XOM JVRecent XOM JV

−52,000 Acres52,000 Acres−Around NFX Core AreasAround NFX Core Areas−3-Rig Program, 3-Year 3-Rig Program, 3-Year

JVJV

MONUMENT BUTTEMONUMENT BUTTEMONUMENT BUTTEMONUMENT BUTTE 3,000+ Locations, 3,000+ Locations,

110,000 acres110,000 acres Decade-long Decade-long

InventoryInventory 200+ Wells/Year200+ Wells/Year 4 Active Rigs4 Active Rigs Low-risk, RepeatableLow-risk, Repeatable Recent Deals Expand Recent Deals Expand

ProgramProgram

3,000+ Locations, 3,000+ Locations, 110,000 acres110,000 acres

Decade-long Decade-long InventoryInventory

200+ Wells/Year200+ Wells/Year 4 Active Rigs4 Active Rigs Low-risk, RepeatableLow-risk, Repeatable Recent Deals Expand Recent Deals Expand

ProgramProgram

GULF OF MEXICOGULF OF MEXICOGULF OF MEXICOGULF OF MEXICO 2,000,000 Acres2,000,000 Acres 413 Shelf Blocks413 Shelf Blocks 80 Deepwater 80 Deepwater

BlocksBlocks Maintain 3-Rig Shelf Maintain 3-Rig Shelf

ProgramProgram

2,000,000 Acres2,000,000 Acres 413 Shelf Blocks413 Shelf Blocks 80 Deepwater 80 Deepwater

BlocksBlocks Maintain 3-Rig Shelf Maintain 3-Rig Shelf

ProgramProgram

MID-CONTINENTMID-CONTINENTMID-CONTINENTMID-CONTINENT Gas-MiningGas-Mining 250-300 Wells/Year250-300 Wells/Year Double Digit GrowthDouble Digit Growth Significant UpsideSignificant Upside Valuable AcreageValuable Acreage

− > 700,000 Gross > 700,000 Gross AcresAcres

− ~ 500,000 Net ~ 500,000 Net AcresAcres

Gas-MiningGas-Mining 250-300 Wells/Year250-300 Wells/Year Double Digit GrowthDouble Digit Growth Significant UpsideSignificant Upside Valuable AcreageValuable Acreage

− > 700,000 Gross > 700,000 Gross AcresAcres

− ~ 500,000 Net ~ 500,000 Net AcresAcres

Domestic Resource Plays - Multi-year Inventory

PlayPlay Net AcresNet AcresPotential # Potential # LocationsLocations

Gross Gross BCFE / WellBCFE / Well

Net BCFE Net BCFE PotentialPotential

NFX MC “Mining”NFX MC “Mining” 106,000106,000 1,0301,030 1 – 21 – 2 420420

NFX MC “Assessment”NFX MC “Assessment” 109,000109,000 2,8002,800 1 – 21 – 2 1,5001,500

Rocky MountainsRocky Mountains 120,000120,000 3,5003,500 0.50.5 1,150 1,150

International Developments - Significant International Growth 2005-08

CHINA (Bohai Bay)CHINA (Bohai Bay)• CFD 12-1, 12-1SCFD 12-1, 12-1S

• 50-100 MMBbls50-100 MMBbls• Development UnderwayDevelopment Underway• IP: Late 2006IP: Late 2006• 3,500 BOPD Net3,500 BOPD Net• NFX WI: 12% of UnitNFX WI: 12% of Unit

CHINA (Bohai Bay)CHINA (Bohai Bay)• CFD 12-1, 12-1SCFD 12-1, 12-1S

• 50-100 MMBbls50-100 MMBbls• Development UnderwayDevelopment Underway• IP: Late 2006IP: Late 2006• 3,500 BOPD Net3,500 BOPD Net• NFX WI: 12% of UnitNFX WI: 12% of Unit

NORTH SEANORTH SEA• Grove FieldGrove Field

• 75 – 100 BCFE + Upside75 – 100 BCFE + Upside• Development UnderwayDevelopment Underway• IP: Oct. 2006IP: Oct. 2006• 60 MMCF/D60 MMCF/D• NFX WI: 100%NFX WI: 100%

NORTH SEANORTH SEA• Grove FieldGrove Field

• 75 – 100 BCFE + Upside75 – 100 BCFE + Upside• Development UnderwayDevelopment Underway• IP: Oct. 2006IP: Oct. 2006• 60 MMCF/D60 MMCF/D• NFX WI: 100%NFX WI: 100%

MALAYSIAMALAYSIA• 2 Shallow Water Blocks: PM 318, 3232 Shallow Water Blocks: PM 318, 323

• Multiple DiscoveriesMultiple Discoveries• Developments UnderwayDevelopments Underway• 13,000 BOPD (Gross) ’0513,000 BOPD (Gross) ’05• 40,000 BOPD (Gross) ’0840,000 BOPD (Gross) ’08• Exploitation UpsideExploitation Upside• NFX WI: 50 – 60%NFX WI: 50 – 60%

MALAYSIAMALAYSIA• 2 Shallow Water Blocks: PM 318, 3232 Shallow Water Blocks: PM 318, 323

• Multiple DiscoveriesMultiple Discoveries• Developments UnderwayDevelopments Underway• 13,000 BOPD (Gross) ’0513,000 BOPD (Gross) ’05• 40,000 BOPD (Gross) ’0840,000 BOPD (Gross) ’08• Exploitation UpsideExploitation Upside• NFX WI: 50 – 60%NFX WI: 50 – 60%

2005 Significant Exploratory Success

• Grove

• Puteri

• Wrigley

• Anduin

• La Femme

• Val Verde

• Grove

• Puteri

• Wrigley

• Anduin

• La Femme

• Val Verde

UKNS

Malaysia

US Deepwater

US Deepwater

US Deepwater

Gulf Coast

UKNS

Malaysia

US Deepwater

US Deepwater

US Deepwater

Gulf Coast

75-100

90-180

55-85

75-90

50-80

60-100

75-100

90-180

55-85

75-90

50-80

60-100

Q4 2006

Q1 2008

Q2 2006

-

-

Q2 2005

Q4 2006

Q1 2008

Q2 2006

-

-

Q2 2005

ProjectProject AreaArea BCFEBCFE DOFPDOFP CommentsComments

Needs AppraisalNeeds Appraisal

Needs AppraisalNeeds Appraisal

3 RecentDiscoveries3 Recent

Discoveries

2007 - BEYOND2007 - BEYONDFollow-upProjects

Follow-upProjects

Follow-up(BCFE)

Follow-up(BCFE) RiskRisk

1414

55

1313

3131

6363

4,6704,670

1,0771,077

445445

158158

6,3506,350

Very HighVery High

High – Very High

High – Very High

MediumMedium

MediumLow

MediumLow

20062006Net Unrisked

(BCFE)Net Unrisked

(BCFE)Risk

CapexRisk

Capex#

Wells#

Wells

389389

504504

112112

242242

1,2471,247

88

1212

7070

137137

227227

11

11

55

5151

5858

TI/TB

Sarawak/Sarawak/BrazilBrazil

US GOM DeepwaterUS GOM Deepwater

US GOM DW SubsaltUS GOM DW Subsalt

Southern North SeaSouthern North Sea

US GOM ShelfUS GOM Shelf

US Onshore Gulf CoastUS Onshore Gulf Coast

Shallow Malay BasinShallow Malay Basin

Monument Butte, Mid ContinentMonument Butte, Mid Continent

Gulf Coast, etc.Gulf Coast, etc.

(2-10 years of inventory)(2-10 years of inventory)

What we “count on”What we

“count on”

“option value”±10% of exploration

budget each year

Growth Pyramid - Balanced Exploration Portfolio

J F M A M J J A S O N DJ F M A M J J A S O N D

International Drilling Calendar

MALAYSIAMALAYSIA

PM 318PM 318

PM 323PM 323

Block 2CBlock 2C

Block 05/36Block 05/36(Phase I)(Phase I)

Cleaver Cleaver Bank Area Bank Area

West Sole West Sole AreaArea

Kansas Granby

Newark

Grove West GroveGrove Central Fault Block

Paus

12-1 South12-1 East

Penara Puteri devel.

W. Belumut LerekExpl.Expl. E. Belumut Phase I Chermin.

Abu FldAbu K.A. SW

20052005 20062006 20072007

Korbu Diwan

J F M A M J J A S O N D

PuteriAbu FldBubuLuzkut Pad. Putera

CHINACHINA

UK UK NORTH NORTH

SEASEA

CFD 12-1 Core Area

Grove CFB

Auburn Newsham

DevelopmentDevelopment AppraisalAppraisal ExplorationExploration

International Production Profile

International Production Forecast: Proved + RiskProbable

84.7

63.8

7.15.4

15.8

0

10

20

30

40

50

60

70

80

90

100

2004 2005 2006 2007 2008

Year

An

nu

al (

bcf

e)

0

20

40

60

80

100

120

140

160

180

200

Cu

mu

lati

ve (

bcf

e)

China 2PChinaUK New shamUK WCutterUK AuburnUK W. GroveUK GrovePM323 W. BelumetPM323 E. BelumetPM323 ChermingatPM318 2PPM318 PuteriPM318 AbuPM318 PNL2P Cumulative1P CumulativeTotal

International Production Forecast: Proved + RiskProbable

84.7

63.8

7.15.4

15.8

0

10

20

30

40

50

60

70

80

90

100

2004 2005 2006 2007 2008

Year

An

nu

al (

bcf

e)

0

20

40

60

80

100

120

140

160

180

200

Cu

mu

lati

ve (

bcf

e)

China 2PChinaUK New shamUK WCutterUK AuburnUK W. GroveUK GrovePM323 W. BelumetPM323 E. BelumetPM323 ChermingatPM318 2PPM318 PuteriPM318 AbuPM318 PNL2P Cumulative1P CumulativeTotal

2004 Operating Margin (after hedge)

4.764.67 4.59

4.39 4.34 4.15 4.15 4.11 4.10 4.07

3.96 3.90

3.61

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

5.00

NFX PPP THX KMG APA BR EOG APC NBL XTO DVN FST PXD

Mar

gin

($/m

cfe)

Margin Defined As:Upstream Revenues-LOE-Transp.-Prod. Taxes

Average=$4.21/mcfeAverage=$4.21/mcfe

Improving Margins

2.09

3.23

3.8

4.56

0.60.540.49 0.690

1

2

3

4

5

6

7

2002 2003 2004 2005

$/M

CF

E

Cash Margin

Cash Tax

Interest

G&A

Prod Tax / Xport

LOE2.09

3.23

3.8

4.56

0.60.540.49 0.690

1

2

3

4

5

6

7

2002 2003 2004 2005

$/M

CF

E

Cash Margin

Cash Tax

Interest

G&A

Prod Tax / Xport

LOE

Key Take-Aways

In-hand, Organic GrowthIn-hand, Organic Growth

Significant Exploration Exposure – Not Found in Significant Exploration Exposure – Not Found in Peer GroupPeer Group

Return-Driven Decision MakingReturn-Driven Decision Making

– Returns Do Matter!Returns Do Matter!

Execution of Diversification StrategyExecution of Diversification Strategy

– We Have Multiple Growth AreasWe Have Multiple Growth Areas

Proven OperatorProven Operator

– Low Cost Leader in Most Core AreasLow Cost Leader in Most Core Areas

– Excellent MarginsExcellent Margins

Strong Balance Sheet, Financial Fire PowerStrong Balance Sheet, Financial Fire Power

Today’s presentations by the management of Newfield Exploration Company include forward-Today’s presentations by the management of Newfield Exploration Company include forward-looking information. All information other than historical facts included in this presentation, looking information. All information other than historical facts included in this presentation, including information regarding estimated proved reserves, production targets, anticipated including information regarding estimated proved reserves, production targets, anticipated production rates, planned capital expenditures, the number of wells planned to be drilled in the production rates, planned capital expenditures, the number of wells planned to be drilled in the future, the relative risks and potential of planned exploratory wells, the availability of capital future, the relative risks and potential of planned exploratory wells, the availability of capital resources to fund capital expenditures and business strategy and other plans and objectives resources to fund capital expenditures and business strategy and other plans and objectives for future operations, is forward-looking information. Although the Company believes that the for future operations, is forward-looking information. Although the Company believes that the expectations reflected in such forward-looking information are reasonable, such expectations expectations reflected in such forward-looking information are reasonable, such expectations are based upon assumptions and anticipated results that are subject to numerous 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, 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 including drilling results, oil and gas prices, industry conditions, the prices of goods and services, the availability of drilling rigs and other support services and the availability of capital services, the availability of drilling rigs and other support services and the availability of capital resources. In addition, the drilling of oil and gas wells and the production of hydrocarbons are resources. In addition, the drilling of oil and gas wells and the production of hydrocarbons are subject to governmental regulations and operating risks.subject to governmental regulations and operating risks.

There are numerous additional uncertainties inherent in estimating quantities of proved oil and There are numerous additional uncertainties inherent in estimating quantities of proved oil and natural gas reserves, including many factors beyond the control of the Company. Reserve natural gas reserves, including many factors beyond the control of the Company. Reserve engineering is a subjective process of estimating underground accumulations of oil and natural engineering is a subjective process of estimating underground accumulations of oil and natural gas that cannot be measured in an exact way, and the accuracy of any reserve estimate is a gas that cannot be measured in an exact way, and the accuracy of any reserve estimate is a function of the quality of available data and of engineering and geological interpretation and function of the quality of available data and of engineering and geological interpretation and judgment. As a result, estimates made by different engineers often vary from one another. In judgment. As a result, estimates made by different engineers often vary from one another. In addition, results of drilling, testing and production subsequent to the date of an estimate may addition, results of drilling, testing and production subsequent to the date of an estimate may necessitate revisions of such estimates. Accordingly, reserve estimates are generally different necessitate revisions of such estimates. Accordingly, reserve estimates are generally different from quantities of oil and natural gas that are recovered.from quantities of oil and natural gas that are recovered.

Forward-Looking Statements