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The Company is transitioning to an organization capable of delivering sustainable double-digit production growth within cash flow in the future. Over the next three years, we expect to achieve double-digit CAGRs in both domestic oil and total domestic production in a $50 per barrel (NYMEX WTI), $3 per MMBtu (HH) and higher economic environment. This growth outlook assumes a relatively constant 10-rig program in the Anadarko Basin as we high- grade development of our extensive drilling inventory. DOMESTIC PRODUCTION ANADARKO BASIN PRODUCTION (MBOEPD) (MBOEPD) 10-15% CAGR 190-210 170-180 20-25% CAGR 150-160 35% 150-170 137 125-135 35% 105-115 88 65% 65% 4Q16* 4Q17e 4Q18e 4Q19e 4Q16 4Q17e 4Q18e 4Q19e * Excludes production associated with LIQUIDS GAS Eagle Ford and south Texas asset sale. MARCH 10, 2017 DEAR STOCKHOLDERS: Commodity price uncertainty is the only certainty in the energy business. For Newfield, success is defined by how we successfully navigate through uncertainty and mitigate the inherent risks in our business. The last two plus years in the energy business have been immensely challenging; in fact, the most dire crude oil price correction our industry has experienced since 1986. Through this price trough, Newfield again demonstrated its ability to adapt, innovate and make sound, forward-looking business decisions. The proactive and quick actions we initiated in late 2014 and early 2015 not only enabled the Company to survive, but thrive—delivering significant value to our stockholders. As you can see in the attached Form 10-K, our stock has performed very well in comparison to our peer group over the last several years. Today, we enter 2017 with an improved asset portfolio, a stronger capital structure, lower operating costs and a more efficient workforce consolidated into one central location. Newfield is prepared to compete and win again on the road ahead! We continued our multi-year run of solid performance—accomplishing our four key priorities for 2016: 1) maintaining a strong balance sheet; 2) holding our Anadarko Basin STACK acreage by production; 3) enhancing returns and progressing STACK toward full-field development; and 4) selling non-strategic assets. LEE K. BOOTHBY We have taken a number of key steps over the past two years to ensure our continued success. Chairman, President & CEO • Improved our balance sheet—through the issuance of equity, asset sales and subsequent long- term debt reductions, we have maintained our net debt / adjusted EBITDA coverage ratio of approximately 2x throughout the downturn. • Captured a premium asset—due to our strong liquidity position, we were able to acquire a high-quality “bolt-on” acquisition with approximately 40,000 additional net acres within our core STACK area. • Sold non-strategic assets—improved our operating cost structure and progressed the transformation of our portfolio to one focused on domestic, liquids-rich plays of scale. • Continued portfolio assessment—constant optimization of the Newfield portfolio of assets with focus on top-tier economic returns, resource potential and proactive decisions on whether to grow, hold or divest. • High-graded investments—capital investments were high-graded and reduced significantly from prior historical levels. Capital is now focused on high-return, economically-resilient plays like SCOOP and STACK. • Reduced operating expenses—we lowered our domestic lease operating expenses on a unit- of-production-basis by approximately 45% compared to 2014 levels. • Consolidated our workforce—through a multi-year consolidation of our domestic workforce to The Woodlands, we lowered our forecasted 2017 domestic net general and administrative expenses by about $40 million compared to 2014. Realignments in personnel have improved our organizational structure and strengthened team proficiency. DELIVERING GROWTH 01 2016 Financial and Operating Performance 2017 Outlook and Beyond Our financial and operating performance in 2016 was strong. Newfield’s outlook is bright and we are transitioning to an Our 2016 domestic net production increased 7% over 2015 organization that can sustainably grow its annual production levels, driven by the continued growth of our Anadarko Basin by double-digits while living within cash flow. As we move assets. Importantly, when adjusting our production volumes for more of our annual investments toward SCOOP and STACK the sale of our Eagle Ford and South Texas assets, our domestic infill developments, we are forecasting 2017 – 2019 compound net production grew 15% year-over-year. Our 2016 consolidated annual growth rates for our domestic crude oil production net production, for which guidance was raised each quarter and our domestic total production of 15 – 20% and 10 – 15%, during the year, was 59.6 MMBOE. respectively. This growth is being driven by the Anadarko Basin which is expected to grow to an average fourth quarter As a company that uses full-cost accounting, we recognized 2019 rate of 150,000 to 170,000 BOEPD net. This is impressive non-cash ceiling test impairments in the first