Call us 713-876-7700

Rig Count | Production Guidance/Forecast | Capital Expenditure | Capex Decrease | Capital Expenditure - 2017

Bill Barrett Ups 2017 Production Guidance on Strong Wells; Lowers Capex

emailEmail    |    printPrint    |    bookmarkBookmark
   |    Tuesday,September 05,2017

[Summary: Bill Barrett has updated its 2017 production guidance and capex.

- Raised its 2017 production guidance range from 6.0-6.5 MMBOE to 6.4-6.6 MMBOE (represents a 4% increase at the mid-point)

  • The guidance was raised due to the company's enhanced DJ Basin completions as well as strong results from its 9 well recompletion program in the Uinta Basin

- Decreased Capex: 2017 spending will total $250-$270 million, down ~4% from an earlier estimate of $255-$285 million.

The Company is currently operating two drilling rigs in the DJ Basin and expects to continue to do so for the remainder of 2017.]

Original Release:

Bill Barrett Corporation announced an update to its 2017 operating guidance, including higher production and lower lease operating expense ("LOE") and capital expenditures.

Driven by a combination of early positive results from its enhanced completion program in the Denver-Julesburg ("DJ") Basin, strong results from a nine well recompletion program in the Uinta Oil Program and the expected timing of well completions during the second half of 2017, the Company is raising its 2017 production guidance range from 6.0-6.5 million barrels of oil equivalent ("MMBoe") to 6.4-6.6 MMBoe. This represents a 4% increase at the mid-point from previously released 2017 production guidance and a level that is approximately 12% higher at the mid-point than pro forma 2016 production sales volumes, excluding asset sales. Third quarter 2017 production sales volume guidance has been increased from a range of 1.55-1.65 MMBoe to approximately 1.75 MMBoe, representing an increase of approximately 9%.

The Company is delivering greater drilling and completion efficiencies with respect to its capital program that have partially offset forecasted service cost increases for 2017. As a result, it is now expected that capital expenditures will total $250-$270 million, down from an earlier estimate of $255-$285 million. The Company anticipates that 70-75 wells will be spud in 2017, which is unchanged from the previous forecast despite capital expenditure guidance being reduced by approximately 4% at the mid-point. Third quarter 2017 capital expenditures are expected to total $65-$75 million, which is unchanged from previous guidance. The Company is currently operating two drilling rigs in the DJ Basin and expects to continue to do so for the remainder of 2017. However, this plan is subject to change based on any material movement in crude prices.

The Company continues to build on operational efficiencies at the field level and as a result is decreasing its LOE guidance for 2017 from $27-$30 million to $24-$26 million, representing a decrease of 12% at the mid-point. The Company continues to pursue additional cost reducing synergies in an effort to further reduce LOE.

Commenting on the updated operating guidance, Chief Executive Officer and President Scot Woodall said, "We have done an excellent job of executing on our operational plan this year and the effort of our team is reflected in our updated guidance. We remain encouraged by the early results of our enhanced completions in the DJ Basin, which combined with faster drilling and completion cycle time allows us to deliver a higher growth profile. We are focused on the items within our control and exhibiting an increased level of operating efficiency to offset inflationary pressure, as evidenced by lower LOE and capital expenditure guidance. We maintain excellent operational flexibility with an anticipated level of planned activity that allows us to deliver a strong growth profile in 2018."


Search Data From Bill Barrett Corp. Latest Presentations

Key Slides found in this Presentation
Acquisitions & Divestitures
        Transaction Details
        Transaction Metrics
Capital & Finance
        CapEx 2018
        Capital Expenditures
        Rates of Return/ IRR
        Well Economics
        Debt Maturity Schedule
        Debt
Data & Charts
        Line Chart
        Pie Chart
        Peer Comparison
Geology & Geoscience
        Well / Type Log(s)
Land & Legal
        Acreage & Land
        Locations/Inventory
Maps
        Leasehold Map
        Areas of Operations
        GIP / GOR Map
        All Maps
        Portfolio Map
Midstream
        Pipelines & Facilities
Portfolio & Operations
        Production Forecast
        IP Rates
        Drilling - Rig Count
        IP Rates 30-Day
        Leasehold-ShaleExperts
        Drilling Program
        Corporate Production Rates
        Key Wells & Discoveries
        Production Rates
Well Information
        Well Cost
        Well EUR
        Frac Design - Frac Stages
        Well Lateral Length
        Frac Design - Stage Spacing


Related    Guidance / Forecast

ad

Niobrara - DJ Basin News >>>


Uinta Basin Play News >>>