2. 1997-03 C H I N A U. K. NORTH SEA 2001 A Balanced Portfolio of Assets 1989-98 …Didn’t Happen Overnight! T E X A S L O U I S I A N A N E W M E X I C O O K L A H O M A 2000-02 2002-04 T. ISLE U T A H M A L A Y S I A 2004

3. 2004 Pro forma Inland Newfield – A Diversified Company Onshore Gulf Coast 3% 97% Gulf of Mexico 1999 RESERVES Onshore Gulf Coast 4% 96% PRODUCTION RLI increases to 7 years Gulf of Mexico RESERVES ~ 1.7 TCFE 27% 21% 33% 19% Malaysia Rockies Mid-Cont. Onshore Gulf Coast 4% PRODUCTION (MMcfe/d) 32% 17% 40% 7% Malaysia Rockies Onshore Gulf Coast 4% Mid-Cont. Gulf of Mexico 5 year RLI

4. The Growth of NFX Gulf of Mexico Net Production (BCFE) Mid-Continent Onshore GC International

5. Newfield and EPA Gas STAR  Recently join Gas STAR in June of this year.  Prior, NFX didn’t feel they had the internal resources to focus and drive the program.  Now, we’re actively looking for ways to increase profitability through methane emission reductions.

6. Pro – Op Process Related Opportunity - Optimization  PRO-OP – a systematic approach to increase production efficiencies and profitability through evaluating process components whereby methane emissions are reduced on a cost effective basis.  New Designs (platform, facility, production trains)  Modifications / Repairs  Ongoing Facility Evaluation

7. Strategy: 1.Cost effectively eliminate emission source 2.Cost effectively capture for sales 3.Flare (destruction) Increase Profitability…..Emission Management

8. HPLP FLASHFLASH CONTACTORCONTACTOR TESTTEST Oil Treating Water Handling OIL SURGE/STORAGE TANK Sales Point 100 units Pro – Op ENGINE COMP

9. Pro - Op Process -> Onshore LP To Comp OIL ENGINE COMP Separator Pressure? ENGINE VRU Vent FLAREFLARE Flash Emissions To Sales HP PSV Integrity Circulation Rates Flash Separator Non-Condensables Fuel Efficiencies Seals High Bleed vs. Low Bleed HT Separator Temperature?

10. Develop Template –Onshore Facilities –Offshore Facilities Attention to Details….Increases Profitability NEW FACILITIES Evaluate –Each Device –Alternatives –Cost Efficiencies MODIFICATIONS / REPAIRS Opportunities Opportunities –Flash –Glycol Circulation Rates –Separator Optimization –Other Efficiencies ONGOING FACILITY EVALUATIONS

11. Other Participation Supplying data and reviewing proposed Lessons Learn on separator optimization and floatation cells Participating in STAR sponsored Pro – OP for several NFX offshore facilities