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DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Bill Barrett Corp.

Bill Barrett Corp. · Sep 30, 2014 · 48 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Bill Barrett Corp. – slide 1
    DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE September 2014
  2. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Bill Barrett Corp. – slide 2
    Company Vision and Strategy Build a sustainable oil and gas resource development business with an asset portfolio that offers enough concentration, scale and optionality to realize high operational efficiency, provide competitive growth,…
  3. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Bill Barrett Corp. – slide 3
    September Transactions Summary 1. Sold remaining interest in the Gibson Gulch natural gas program 2. Sold the majority of Powder River Basin oil exploration program 3. Acquired acreage/working interest in operated Northeast Wattenberg 4.…
  4. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Bill Barrett Corp. – slide 4
    Strategic Transactions Detail Terms Sold Gibson Gulch remaining interests for 561 million (including lease financing obligation) 12,000 net acres 80 MMcfe/d production (2Q14) 438 Bcfe proved reserves (YE 2013) Effective date of…
  5. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Bill Barrett Corp. – slide 5
    September Transactions Executing on Strategic Objectives 1. Simplified portfolio 2 areas of operations down from 4 2. Focused on highest return assets DJ and Uinta Basins offer highest returns in portfolio 70% v. 39% oil production…
  6. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Bill Barrett Corp. – slide 6
    Company Overview Before transaction: 4 areas of operation Production 39% oil Proved reserves 197 MMBoe 12/31/13 42% oil; 42% proved developed After transaction: 2 areas of operation Uinta Oil Program, Utah DJ Basin, Colorado &…
  7. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Bill Barrett Corp. – slide 7
    Delivering High Growth from Core Oil Programs Production (MMBoe) Operating Cash Flow* (MM) 8 400 6 300 4 200 2 100 0 0 2010 2011 2012 2013 2014e 2010 2011 2012 2013 2014e DJ UOP DJ UOP Focused capital program on…
  8. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Bill Barrett Corp. – slide 8
    2014 Adjusted Guidance Capital program 100% directed at oil growth Total capital expenditures of 525 550 million Total production of 9.4 9.8 MMBoe 2014 exit rate 21 Mboe/d Third quarter guidance 2.6 2.7 MMBoe 26% growth in oil…
  9. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Bill Barrett Corp. – slide 9
    Post-transaction: Focusing on Higher Margin Projects 2014 Exit Rate Product 2015 Basin Cash Flow Margin per BOE Mix 60 49.84 5% 50 45.74 46.64 40 25% /Boe 30 70% 20 10 0 Oil Gas NGL DJ UOP BBG 2015…
  10. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Bill Barrett Corp. – slide 10
    Value Creation: 2014 Plan 2014 Objectives Capitalize on commodity balance by allocating capital to highest return assets and achieving increased profit margins Deliver unrealized value from DJ Basin oil development Strengthen returns…
  11. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Bill Barrett Corp. – slide 11
    Strategic Financial Objectives Manage capital resources to align with strategic growth objectives Manage leverage to be less than 2.5x EBITDAX over a long-term basis Invest in a portfolio that provides profitable cash flow growth…
  12. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Bill Barrett Corp. – slide 12
    Capital Structure Net debt cut by more than 50% As of 6/30/2014 6/30/2014 Revolving Credit Facility due 2016 250 - Borrowing Base 625 375 5.000% Convertible Notes due 2028 (March 2015 Put) (currently callable) 25 25 7.625% Senior…
  13. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Bill Barrett Corp. – slide 13
    Manageable Debt Levels Well-spaced debt maturities Proforma liquidity as of September 30, 2014: Approximately 575 million Proceeds of asset sales utilized to pay off credit facility (280 million at September 26, 2014) and to partially…
  14. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Bill Barrett Corp. – slide 14
    Credit Metrics Modest Compared to Peers Debt/TTM EBITDAX 3.1x 3.4x 2.5x 2.9x 2.1x 2.3x 1.3x 1.5x WLL BCEI PDCE CRK KOG PVA XCO BBG PF Ba2/BB+ B2/B B2/B B2/B B2/B+ B3/B+ B1/B B1/B+ Debt/Average Daily Production 60,860…
  15. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Bill Barrett Corp. – slide 15
    Recent Ratings Actions S & P: B+ corporate (stable); B- unsecured notes (stable) Moodys: B1 corporate; B2 unsecured notes Recent downgrades due to BBG company size and limited diversity: S&P comment: despite expected improvement in…
  16. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Bill Barrett Corp. – slide 16
    Hedging Provides Price Predictability Hedge on a 12-month forward basis to reduce risk and support capital expenditure program 4Q14: 3.3 MMBoe; Oil: 10,600 Bbls/d at 93.93/Bbl; natural gas: 19,158 MMBtu/d at 3.55/MMBtu 2015: 5.2…
  17. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Bill Barrett Corp. – slide 17
    DJ BASIN
  18. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Bill Barrett Corp. – slide 18
    DJ Basin: Lots of Running Room Added 7,856 net acres September 2014 to total 84,100 Niobrara and Codell Formations Northeast Wattenberg: 48,700 net acres, up 20% Chalk Bluffs: 22,360 net acres Wattenberg interior: 13,050 net acres…
  19. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Bill Barrett Corp. – slide 19
    DJ Basin Year-end 2013 Undeveloped Location Inventory 844 Net Undeveloped Locations Total Gross: 1,697 94 130 Core Wattenberg 43 NE Wattenberg (North) NE Wattenberg (South) 228 NE Wattenberg 349 (Western) Chalk Bluffs…
  20. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Bill Barrett Corp. – slide 20
    DJ Basin: Production Growth DJ Basin Net Production and Gross Operated Horizontal Wells Spud 8,000 7,125 6,000 Boe/d 4,000 1,565 2,000 0 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 Operated Wells spud 13 7 2 10 21…
  21. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Bill Barrett Corp. – slide 21
    Northeast Wattenberg: Prime Position Among Peers Excellent position yet to be fully valued Located between BCEI positions Niobrara Formation Adjacent to NBL Wells Ranch East Pony/ BCEI Redtail Successful extended reach SYRG…
  22. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Bill Barrett Corp. – slide 22
    Northeast Wattenberg Driving Growth and Returns with XRLs Extended Reach Lateral Program Northern Block 23 extended reach laterals spud year-to-date 12 in Northern Block Western Block 11 in Southern Block 4-well pad: 7,500 laterals…
  23. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Bill Barrett Corp. – slide 23
    UINTA OIL PROGRAM
  24. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Bill Barrett Corp. – slide 24
    Uinta Oil Program Large, Scalable Program: 150,000 net acres Wasatch, Green River Formations East Bluebell: 23,030 net acres Blacktail Ridge/Lake Canyon: 107,650* net acres South Altamont: 20,520 net acres Driving Steady Growth…
  25. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Bill Barrett Corp. – slide 25
    UOP: Undeveloped Location Inventory Risked Resources (171 MMBoe) 785 Net Drilling Locations (Gross 1,795) 124 42 137 92 37 524 Blacktail Ridge/Lake Canyon Blacktail Ridge/Lake Canyon East Bluebell East Bluebell South…
  26. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Bill Barrett Corp. – slide 26
    Uinta Basin: Well Positioned Among Peers Wasatch, Green River Formations DVN EP CPG CPG QEP NFX UPL NFX LINN 10 Miles BBG Acreage New entrants driving growth and technological change in basin 27
  27. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Bill Barrett Corp. – slide 27
    UOP: East Bluebell Execution East Bluebell Program Offers Substantial Upside 37,480 gross/23,030 net acres Lower Green River Planned development on 80-acre spacing with further downspacing potential Vertical wells targeting Lower…
  28. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Bill Barrett Corp. – slide 28
    UOP: East Bluebell Production Growth East Bluebell Net Production and Gross Operated Wells Spud 4,000 3,030 3,000 Boe/d 2,000 1,435 1,000 0 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 Operated Wells spud 4 3 6 9 5 0…
  29. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Bill Barrett Corp. – slide 29
    Value Creation Opportunity Execution, Execution, Execution Capitalize on commodity balance by allocating capital to highest return assets and achieving increased profit margins Deliver unrealized value from DJ Basin oil development…
  30. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Bill Barrett Corp. – slide 30
    APPENDIX
  31. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Bill Barrett Corp. – slide 31
    Northeast Wattenberg: 70% Delineated Based on Proved Reserves Northern Block: Net Acreage 17,700 % Delineated* 95% Proved Reserves (MMBoe) 39.1 Risked Resources (MMBoe): 73.7 Undrilled Locations Western Block: Northern Block…
  32. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Bill Barrett Corp. – slide 32
    DJ Basin Niobrara Acreage Quality B bench of the Niobrara is the primary target and is present in and surrounding BBG leasehold B bench appears to have good hydrocarbon saturation across all acreage with additional accumulation in…
  33. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Bill Barrett Corp. – slide 33
    Northeast Wattenberg Driving Value Through Downspacing 5,280 Actively evaluating four downspacing pilots Two 9,000 lateral B Bench wells Two 9,000 lateral C Bench wells staggered beneath B Bench locations All testing areas on…
  34. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Bill Barrett Corp. – slide 34
    DJ Basin Operating Efficiencies Average 4,000 Lateral Drilling Average Drilling Cost per Foot Days 18 17.1 200 173 11.8 150 12 10.1 108 97 100 6 50 0 2012 2013 2014 YTD 0 2012 2013 2014 YTD Standard reach…
  35. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Bill Barrett Corp. – slide 35
    DJ Basin Illustrative Economics Illustrative Economics: Illustrative Economics: Illustrative Economics: EUR (MBoe, Gross) 450 EUR (MBoe, Gross) 337 EUR (MBoe, Gross) 883 Total D&C Capital (MM) 4.2 Total D&C Capital (MM) 4.2 Total…
  36. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Bill Barrett Corp. – slide 36
    Northeast Wattenberg Results NE Wattenberg 4,000 Lateral Average* 30-day Rates by Area and Target Zone (Boe/d) Northern Block Southern Block Western Block Total Nio. B 366 467 688 417 Nio. C 303 364 551 497 Codell - - 420 420 Total…
  37. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Bill Barrett Corp. – slide 37
    DJ Basin Infrastructure Existing local oil refining capacity and rail infrastructure 350mbbls/d Capacity Capacity Expansion Projects Timing (MBbls/d) Pony Express Pipeline 230 3Q14/Line Fill White Cliffs Expansion 75 3Q14/Open Season…
  38. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Bill Barrett Corp. – slide 38
    DJ Basin Infrastructure Expected Capacities Cheyenne Crude Terminal 52 MBbls/d Pony Express Conversion 3Q14: 230-320 MBbls/d Pony Express NE CO Lateral 1Q15: 90 MBbls/d Suncor Refinery: 96 MBbls/d White Cliffs Pipeline…
  39. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Bill Barrett Corp. – slide 39
    East Bluebell: Unlocking Value with Continued Delineation Fort Duschene Fort Duchesne Aurora Year-end 2013: Year-end 2013: Net Acreage (2Q): 17,000 Net Acreage (2Q): 6,030 % Delineated: 30% % Delineated: 60% Proved Reserves*…
  40. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Bill Barrett Corp. – slide 40
    UOP: East Bluebell 2014 Results Lower Green River 2014 Wells with 90-day IP Rates to-date: (Bbls/d) 30-day IP 60-day IP 90-day IP 14 well 189 177 165 average 2014 D & C costs down 20% v 2013 Expanded 2014 program to 44…
  41. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Bill Barrett Corp. – slide 41
    East Bluebell Production Efficiencies Average Drilling Days Average Drilling Cost per Foot 20.0 200 18.1 184 15.0 14.3 150 113 10.0 10.0 100 93 5.0 50 0.0 0 2012 2013 2014 YTD 2012 2013 2014 YTD Operating…
  42. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Bill Barrett Corp. – slide 42
    East Bluebell Economics Illustrative Economics: EUR (MBoe, Gross) 212 Total D&C Capital (MM) 2.5 Rate of Return 60% WTI for 10% ROR 52.50 1st year decline 60% Terminal decline 7% Vertical Well Depth 9,000 Oil: 97%; Gas…
  43. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Bill Barrett Corp. – slide 43
    Uinta Oil Program Operator Current Black/Yellow Black/Yellow Capacity Capacity (MBbls/d) Expansions (MBbls/d) Chevron 15,000 5,000 Tesoro 15,000-20,000 20,000 Holly Frontier 10,000 14,000 Big West 15,000 - Silver Eagle 12,000 -…
  44. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Bill Barrett Corp. – slide 44
    Solid, Low-Cost Reserve Replacement 350 million increase in Pretax PV10 8.30/Boe 2013 F&D cost 400% production replacement 65% proved oil reserve growth Net MMBoe 195.0 -14.5 57.0 197.0 -40.5 2013 Production 1.4 Billion…
  45. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Bill Barrett Corp. – slide 45
    Low-risk, Long-term Growth Profile Year-end 2013 88% growth in proved reserves at three active oil programs 80% growth in risked resources at three active oil programs 350 million increase in Pretax PV10 8.30/Boe 2013 F&D cost…
  46. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Bill Barrett Corp. – slide 46
    Debt Instruments 5% convertible senior notes Senior (secured) revolving credit facility (Pro forma) Unsecured, subs guarantee 900 million commitments Principal amount - 25.3 million Expect 375 million borrowing base pro forma asset…
  47. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Bill Barrett Corp. – slide 47
    Natural Gas and Oil Hedges As of September 24, 2014 Swaps Period Oil Natural Gas NGLs* Volume WTI Price Volume NWPL Price Volume Price (Bbls/d) (/Bbl) (MMBtu/d) (MMBtu) Bbls/d (/Bbl) 3Q14 10,600 93.98 65,000 4.02 1,029 60.18…
  48. DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE – Bill Barrett Corp. – slide 48
    Land Summary As of June 30, 2014 Average Gross Project Average BBG Working Area Gross Acreage Net Acreage NRI Interest Active Oil Properties Uinta Basin Uinta Oil Program Blacktail Ridge/Lake Canyon 126,985 56,710 82% 51% Minimum to…

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