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Howard Weils 41st Annual Energy Conference – Bill Barrett Corp.

Bill Barrett Corp. · Mar 18, 2013 · 40 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. Howard Weils 41st Annual Energy Conference – Bill Barrett Corp. – slide 1
    HOWARD WEIL MARCH 2013
  2. Howard Weils 41st Annual Energy Conference – Bill Barrett Corp. – slide 2
    Company Overview 2.2 billion enterprise value 1.0 billion market cap Proved reserves: 1.04 Tcfe 29% oil; 59% proved developed Risked resources: 2.9 Tcfe 4,000 gross drilling locations Nearly 3,000 oil drilling locations…
  3. Howard Weils 41st Annual Energy Conference – Bill Barrett Corp. – slide 3
    BBG Strategy To drive shareholder value we will: Focus on exploitation of existing large asset base Execute disciplined capital allocation program focused on competitive returns in two core oil development programs Drive…
  4. Howard Weils 41st Annual Energy Conference – Bill Barrett Corp. – slide 4
    BBG Strengths Our people and portfolio People SAFETY AND ENVIRONMENT are key priorities in conducting our operations LOW-COST, EFFICIENT OPERATOR REGIONAL EXPERTISE in permitting, geology, marketing, business development APPLICATION…
  5. Howard Weils 41st Annual Energy Conference – Bill Barrett Corp. – slide 5
    2012 Successes Two year transition complete. Portfolio has better commodity balance Higher oil-weighted production profile and resource base 2012 oil production increased 80% 2012 proved oil reserves increased 66% Increased to nearly…
  6. Howard Weils 41st Annual Energy Conference – Bill Barrett Corp. – slide 6
    Oil Growth: Successfully Rebalancing Portfolio Achieving excellent growth trend in oil reserves and production % of Production Proved Oil Reserves (MMBbls) 50.8 2013e 94% 30.6 30% Gross Risked Oil 13.0 7.8 2013 Resource…
  7. Howard Weils 41st Annual Energy Conference – Bill Barrett Corp. – slide 7
    Quality Portfolio Offers Low-risk, Long-term Growth 40% increase in gross oil locations 10% increase in risked resources (pro forma) Proved + Proved Risked Gross/Net Total Risked Resources (2012) Oil Proved Resources Drilling…
  8. Howard Weils 41st Annual Energy Conference – Bill Barrett Corp. – slide 8
    2013 Guidance Focused capital expenditure program and oil growth Total capital of 475-525 million 2013 % Capex by Area 100% allocation to oil development 4 rig program UOP; 2 rig program DJ 5% Uinta Oil Reduction of more than 400…
  9. Howard Weils 41st Annual Energy Conference – Bill Barrett Corp. – slide 9
    Financial Strength & Flexibility Strong balance sheet provides substantial liquidity Liquidity: 825 million bank credit facility, 0 drawn at year-end Debt metrics: In line with peers, Debt/EBITDAX 2.4X (as of 12/31/12) Committed to…
  10. Howard Weils 41st Annual Energy Conference – Bill Barrett Corp. – slide 10
    Hedging Provides Price Predictability Solid 2013 hedge positions: 65% of oil production hedged at 98.02/Bbl 75% of natural gas production hedged at 3.71 MMBtu 2014 hedges: 25 Bcf of natural gas production and 1,315 MBbls of oil…
  11. Howard Weils 41st Annual Energy Conference – Bill Barrett Corp. – slide 11
    PROPERTY DESCRIPTIONS: CORE OIL DEVELOPMENT PROGRAMS
  12. Howard Weils 41st Annual Energy Conference – Bill Barrett Corp. – slide 12
    Core Oil Development Programs Uinta Basin, Uinta Oil Program DJ Basin, Northeast Wattenberg Focus 2012 year-end reserves: 47 MMBoe 2012 year-end reserves:12.5 MMBoe Year-over-year exit rate oil production Year-over-year exit rate oil…
  13. Howard Weils 41st Annual Energy Conference – Bill Barrett Corp. – slide 13
    Growth in Production from Core Oil Programs Uinta Oil Program growth by quarter DJ Basin growth by quarter Net Production (Boe/d) Net Production (Boe/d) 8,000 3,000 6,920 2,575 6,000 2,000 4,000 3,600 1,000 720 2,000 0 0…
  14. Howard Weils 41st Annual Energy Conference – Bill Barrett Corp. – slide 14
    DJ Basin Niobrara Formation Prime land position Silo Field Northeast Wattenberg: 39,730 net acres Chalk Bluffs Wattenberg interior: 13,560 net acres Chalk Bluffs/Wyoming border: 22,995 net acres Northeast Wattenberg Driving…
  15. Howard Weils 41st Annual Energy Conference – Bill Barrett Corp. – slide 15
    DJ Basin: Acreage Quality Consistent geology across acreage 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…
  16. Howard Weils 41st Annual Energy Conference – Bill Barrett Corp. – slide 16
    Northeast Wattenberg Pad Drilling Results Results follow 300 MBoe EUR type curve 12 successful wells on three 4-well pads (green lines) Located in western portion of NE Wattenberg 24-hour peak rates average 742 Boe/d per well Initial…
  17. Howard Weils 41st Annual Energy Conference – Bill Barrett Corp. – slide 17
    DJ Basin: Northeast Wattenberg Focus Niobrara Formation Delineation program underway Single well pad results meet expectations Dutch Lake 24-22H Results confirm geologic model 30-day IP: 437 Boe/d Dutch Lake 22-34H Additional…
  18. Howard Weils 41st Annual Energy Conference – Bill Barrett Corp. – slide 18
    Uinta Oil Program: Driving Substantial Oil Growth Expanded acreage in key areas Wasatch, Green River Formations Sizable 120,800 net undeveloped acres Core positions added in South Altamont N and East Bluebell area…
  19. Howard Weils 41st Annual Energy Conference – Bill Barrett Corp. – slide 19
    Uinta Oil Program Reducing Costs and Delivering Efficiencies BTR/LC Average Drilling Days BTR/LC Average Cost per Well Average Drilling Days Average Cost per Well 30 5.0 4.6 25.1 4.2 4.1 4.1 25 4.0 3.7 Dollars (Millions) 20…
  20. Howard Weils 41st Annual Energy Conference – Bill Barrett Corp. – slide 20
    Uinta Oil Program: Significant Upside 3,000-4,000 feet of stacked oil pay Current development: vertical wells on 160 acre spacing Vertical drilling needed to maximize recoveries from stacked, Green River discontinuous zones…
  21. Howard Weils 41st Annual Energy Conference – Bill Barrett Corp. – slide 21
    Powder River Deep Program Stacked oil play providing early positive test results 155,950 gross and 66,865 net acres 2013: drill 5 operated wells plus participate in non-operated wells Recent results comparable to earlier wells:…
  22. Howard Weils 41st Annual Energy Conference – Bill Barrett Corp. – slide 22
    Value Creation Opportunity Execution, Execution, Execution 100% capital allocation to oil development Deliver 50% growth in oil production Focus on two core oil programs Realize value of DJ asset: delineate acreage position,…
  23. Howard Weils 41st Annual Energy Conference – Bill Barrett Corp. – slide 23
    APPENDIX
  24. Howard Weils 41st Annual Energy Conference – Bill Barrett Corp. – slide 24
    Northeast Wattenberg Economics1 Illustrative Economics Illustrative Margin Analysis4 (/Boe) EUR (MBoe, Gross)2 300 Benchmark price5,6 69.10 NRI 83% Sales Adjustments7 (7.74) EUR (MBoe, Net)2 249 Realized Price 61.36 Total D&C…
  25. Howard Weils 41st Annual Energy Conference – Bill Barrett Corp. – slide 25
    Blacktail Ridge/Lake Canyon Economics Illustrative Economics Illustrative Margin Analysis3 (/Boe) EUR (MBoe, Gross)1 290 Benchmark price4,5 79.64 NRI 81% Sales Adjustments6 (16.15) EUR (MBoe, Net)1 236 Realized Price 63.50…
  26. Howard Weils 41st Annual Energy Conference – Bill Barrett Corp. – slide 26
    Typical Well Production Profiles 1st Year Decline: 74% 1st Year Decline: 80% Terminal Decline: 7% Terminal Decline: 7% Well Depth: average 9,000 Well Depth: 6,400 + 4,000 lateral 27
  27. Howard Weils 41st Annual Energy Conference – Bill Barrett Corp. – slide 27
    Northeast Wattenberg Activity Northeast Wattenberg Peers follow 300 MBoe EUR type curve BCEI wells demonstrate continuation of geologic and geophysical parameters to the east NBL extended reach laterals within two miles of BBG…
  28. Howard Weils 41st Annual Energy Conference – Bill Barrett Corp. – slide 28
    DJ Basin Infrastructure Infrastructure additions to double capacity by 2015 DCP Midstream Mewborn expansion of 35 MMcf/d in 2012 LaSalle Plant with maximum capacity of 160 MMcf/d expected in 2H13 Lucerne II Plant with maximum…
  29. Howard Weils 41st Annual Energy Conference – Bill Barrett Corp. – slide 29
    Uinta Oil Program Marketing Refining capacity in basin is increasing; confident we can sell our growing production Current agreement 7,500 Bbl/d through 2018 Typical 16-18% price deduct from WTI Oil refined in Salt Lake City Salt…
  30. Howard Weils 41st Annual Energy Conference – Bill Barrett Corp. – slide 30
    Powder River Deep Stacked Oil Play with Multiple Horizons Horizontal Shannon well continues to meet expectations 24 hour peak rate: 523 Boe/d 30-day average rate: 429 Boe/d 8,700 feet vertical depth; 3,900 foot lateral; 18 frac…
  31. Howard Weils 41st Annual Energy Conference – Bill Barrett Corp. – slide 31
    Piceance Basin: Gibson Gulch Stable Cash Generating Asset High liquids content increases Williams Fork Formation revenue Silt NGLs will be reported as separate N production in 2013 Ethane rejection in 1H13 Cottonwood Gulch 4Q12…
  32. Howard Weils 41st Annual Energy Conference – Bill Barrett Corp. – slide 32
    Uinta Basin: West Tavaputs Full-field Natural Gas Development Shallow Wasatch, North Horn, Price River Proved reserves: 265 Bcfe West Tavaputs N UBFS pipeline Development Area Proved + risked resources: 885 Bcfe Prickly Pear…
  33. Howard Weils 41st Annual Energy Conference – Bill Barrett Corp. – slide 33
    Debt Instruments ( in millions) 12/31/2012 Revolving Credit Facility due 2016 - Borrowing Base 825 5.000% Convertible Notes due 2028 (March 2015 Put) (currently callable) 25 9.875% Senior Notes due 2016 (callable July 2013)*…
  34. Howard Weils 41st Annual Energy Conference – Bill Barrett Corp. – slide 34
    Manageable Debt Levels Well-spaced debt maturities Completed lease financing agreement of BBG owned facilities at 3.5% 335 million sale of natural gas assets closed December 31, 2012 Bank credit facility with 825 million of…
  35. Howard Weils 41st Annual Energy Conference – Bill Barrett Corp. – slide 35
    Credit Metrics Modest Compared to Peers Debt/TTM EBITDAX 4.0x 4.1x 3.6x 2.4x 2.8x 2.4x 1.4x 1.7x 0.9x SM PVA BRY FST XCO CRK BBG BBG BBG Ba3/BB B2/B Ba3/BB- B1/B+ B1/B B2/B 2010 2011 2012 Debt/Average Daily Production…
  36. Howard Weils 41st Annual Energy Conference – Bill Barrett Corp. – slide 36
    Natural Gas and Oil Hedges As of March 6, 2013 Swaps Period Natural Gas NGLs* Oil Volume NWPL Price Volume Price Volume WTI Price (MMBtu/d) (MMBtu) Gallons (/Gal) (Bopd) (/Bbl) (000s) 1Q13 150,000 3.69 3,375 1.78 7,172 98.00…
  37. Howard Weils 41st Annual Energy Conference – Bill Barrett Corp. – slide 37
    Additional Swap Data As of March 6, 2013 Natural Gas Oil Period Swaps Period Swaps Volume NWPL Volume WTI (BBtu/d) Price (Bbl/d) Price (/MMBtu) (/Bbl) 1Q13 150.0 3.69 1Q13 7,172 98.00 2Q13 127.5 3.74 2Q13 7,500 98.01 3Q13 140.0…
  38. Howard Weils 41st Annual Energy Conference – Bill Barrett Corp. – slide 38
    Reserves & Risked Resources: 3-Streams Proved + Proved Risked Gross/Net Total Risked Resources (2012) Oil Gas Proved Resources Drilling Bcfe Bcfe Locations Uinta Oil Program (oil) 289 980 1,696/639 West Tavaputs, Uinta1 265 885…
  39. Howard Weils 41st Annual Energy Conference – Bill Barrett Corp. – slide 39
    Land Summary As of year-end 2012 Average Gross Average BBG Area Gross Acreage Net Acreage Project NRI Working Interest Active Oil Properties Uinta Basin Uinta Oil Program Blacktail Ridge/Lake Canyon 134,020 58,250 82% 51% Minimum…
  40. Howard Weils 41st Annual Energy Conference – Bill Barrett Corp. – slide 40
    1099 Eighteenth Street, Suite 2300 Investor Relations: Denver, Colorado 80202 Jennifer Martin, Vice President 303.293.9100 303.312.8155 www.billbarrettcorp.com jmartinbillbarrettcorp.com

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