"Our second quarter results show the diligent efforts of our employees to lower costs and improve margins throughout our focus areas," said President & CEO Lee K. Boothby. "We are seeing cost reductions throughout our operations. A combination of improving efficiencies in drilling and completions, falling service costs and a strong hedge position in 2009-2010 provides us with an advantage in today's challenging environment. Our production volumes are strong. In fact, we expect to be in the top half of our guidance range for 2009 AND we intend to continue deferring completions in the Woodford, as well as defer completions on the remainder of our planned Granite Wash wells in 2009.

"We are intensely focused on how we are allocating capital in our business units today, ensuring that dollars are flowing to the areas with the best returns and the highest growth prospects. We intend to meet our production targets in 2009 and are confident that our portfolio will allow us to grow production at similar percentage levels, within cash flow, in 2010-11."

Second Quarter 2009

For the second quarter of 2009, Newfield recorded a net loss of $39 million, or $0.30 per diluted share (all per share amounts are on a diluted basis). The loss reflects a net unrealized loss on commodity derivatives of $322 million ($208 million after-tax), or $1.58 per share.

Without the effect of this item, net income for the second quarter of 2009 would have been $169 million, or $1.28 per share.

Revenues in the second quarter of 2009 were $287 million. Net cash provided by operating activities before changes in operating assets and liabilities was $417 million. See "Explanation and Reconciliation of Non-GAAP Financial Measures" found after the financial statements in this release.

Newfield's production in the second quarter of 2009 was 65 Bcfe, an increase of 12% over the second quarter of 2008. An additional 1 Bcfe was produced in Malaysia during the second quarter of 2009 but was not lifted due to timing of liftings. Capital expenditures in the second quarter of 2009 were $300 million.

   Highlights   --  Mid-Continent Update - Gross operated production from the       Mid-Continent division has been running ahead of beginning of the year       expectations, primarily due to increased production from the Granite       Wash play. Current gross production from the Mid-Continent is 400       MMcfe/d, or 292 MMcfe/d net.       --  Horizontal Drilling Success at Stiles Ranch - Newfield's first           seven horizontal wells in the Granite Wash play had an average           initial production rate of 22 MMcfe/d. All of the wells to date           have been drilled in the Stiles Ranch field, located in Wheeler           County, Texas. In the second quarter of 2009, Newfield increased           its activity in the field and is today running three operated           drilling rigs, all drilling horizontal wells. Newfield has an           approximate 80% working interest in Stiles Ranch and substantially           all of the acreage is held-by-production. A complete update on the           Granite Wash activities can be found in a separate news release           issued earlier today.       --  Woodford Shale  - Since the beginning of the year, Newfield has           released three operated rigs in the Woodford. The Company now has           10 operated rigs running under term contracts, with four of the           remaining rigs rolling off of term contracts in the second half of           2009. The timing of rig contract expirations and the fact that           more than 90% of the Company's 165,000 net acres are now           held-by-production provides flexibility. Due to the recent           weakness in natural gas prices, Newfield has been intentionally           slowing its pace of new well completions. Newfield has an           inventory of about 25 wells that have been drilled but not           completed. The timing of these completions largely depends on           natural gas prices. Gross operated production in the Woodford is           approximately 240 MMcfe/d, or about equal to the first quarter           2009 exit rate.       --  Woodford Gas Sales Now Flowing Through Mid-Continent Express -           Last week, Newfield initiated firm gas sales through the new           Arkoma Connector and into the Mid-Continent Express pipeline.           Today, 100% of the Company's Woodford gas is being sold under firm           transportation agreements. Newfield's realized prices for           Mid-Continent properties are expected to improve to 75-85% of the           Henry Hub Index as the Company utilizes firm transportation           agreements that provide guaranteed pipeline capacity at a fixed           price to move its natural gas production to the Perryville,           Louisiana markets.   --  Deepwater Gulf of Mexico Update - Newfield recently announced two       discoveries in the deepwater Gulf of Mexico -- Pyrenees and Winter.       Since the beginning of 2008, Newfield has drilled seven successful       wells out of eight exploration attempts in the deepwater Gulf and now       has seven deepwater developments underway, providing significant       future production growth.       --  Pyrenees Sidetrack Underway - Located at Garden Banks (GB) Block           293 in approximately 2,100' of water, Pyrenees encountered           approximately 125' of net hydrocarbon pay in three separate           intervals. Newfield and its partners recently contracted a           deepwater rig and are in the process of sidetracking the well to           test both shallower and deeper objectives. Newfield operates the           development with a 40% working interest.       --  Additional Prospects Around Pyrenees Added Through Recent GOM           Lease Sale - In the most recent GOM lease sale, Newfield picked up           four additional lease blocks associated with the "Pyrenees           Complex." New prospects include Mastiff (GB 338, 382) and Saluki           (GB 381, 425) where Newfield operates with an 85% and a 100%           working interest, respectively. The Company is in the process of           selling down a portion of its interest in these prospects on a           promoted basis. Exploratory drilling could occur as early as 2010.       --  Winter - Winter (GB 605) is located in approximately 3,400' of           water. The well encountered approximately 44' of net hydrocarbon           pay in two sands and was temporarily abandoned. Partners are           considering various development options, with first production           anticipated in 2011. Newfield is the operator with a 30% working           interest.   --  Monument Butte Update - Gross oil production from Monument Butte,       located in the Uinta Basin of Utah, is about 16,000 BOPD.       Differentials have narrowed recently to $12-$13 per barrel below WTI       (including transportation expense). Newfield is running a three-rig       program in the Monument Butte field today and plans to add a fourth       operated rig in the third quarter of 2009. The Monument Butte field       area covers approximately 180,000 gross acres, substantially all held       by production.    --  Williston Basin Update -The Company has approximately 500,000 net       acres, with nearly 200,000 acres in prospective development areas.       Newfield has drilled 11 successful oil wells in the North Dakota       portion of the Williston Basin and gross operated production is about       4,000 BOEPD. Newfield is currently running one operated rig in the       basin. The most recent completion was the Moberg 1-29H well, located       in McKenzie County, North Dakota. The well had initial production of       1,200 BOEPD. Newfield operates the well with a 72% working interest.    

Newfield Exploration Company is an independent crude oil and natural gas exploration and production company. The Company relies on a proven growth strategy of growing reserves through an active drilling program and select acquisitions. Newfield's domestic areas of operation include the Mid-Continent, the Rocky Mountains, onshore Texas and the Gulf of Mexico. The Company has international operations in Malaysia and China.

**This release contains forward-looking information. All information other than historical facts included in this release, such as information regarding estimated or anticipated third quarter 2009 results, estimated 2009 capital expenditures, cash flow, production and cost reductions, drilling and development plans and the timing of activities, is forward-looking information.