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Deutsche Banks 19th Annual Leveraged Finance Conference – Bill Barrett Corp.

Bill Barrett Corp. · Oct 13, 2011 · 55 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 Banks 19th Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 1
    Deutsche Bank Leveraged Finance Conference October 2011 1
  2. Deutsche Banks 19th Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 2
    1 Reasons to Invest in BBG
  3. Deutsche Banks 19th Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 3
    Reasons to Invest in Bill Barrett Corporation Strategic position in the Rockies Track record of profitable growth Growth visibility Sizable upside exposure: oil and natural gas Operational expertise and disciplined cost…
  4. Deutsche Banks 19th Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 4
    Who We Are Premier E & P growth story, focused on prolific Rocky Mountain oil and gas region Proven management team with expertise in the area Long-term record of profitable, sustainable growth 1.7 billion market capitalization / 2.5…
  5. Deutsche Banks 19th Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 5
    Financial Strength: Balance Sheet & Hedging Strong balance sheet offers flexibility and illustrates financial discipline 745 million available liquidity currently 700 million current borrowing base, expect to increase October 2011…
  6. Deutsche Banks 19th Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 6
    Financial Flexibility Maintain strong, stable capitalization Maintain BB/Ba or better leverage metrics Ample liquidity of 745 million under the bank line of credit plus invested cash Market capitalization 1.7 billion LIQUIDITY…
  7. Deutsche Banks 19th Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 7
    Financial Strength: Pro Forma Capitalization ( in millions) Actual Preliminary 6/30/2011 9/30/2011 Cash & Cash Equivalents 40 110 Revolving Credit Facility due 2014 (700mm) 145 - (1) Borrowing Base 800 700 (2) 5.000%…
  8. Deutsche Banks 19th Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 8
    Debt Instruments Senior (secured) revolving credit facility 700 million commitments 700 million borrowing base, expect to expand October 2011 Currently undrawn (26 million letter of credit outstanding) Matures April 2014 5%…
  9. Deutsche Banks 19th Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 9
    Credit Ratios - History EBITDAX to Interest Total Debt to Proved Reserves (/Mcfe) 21.2x 16.0x 2007 2008 2009 2007 2008 2009 2010 Total Debt to EBITDAX 32% 2010 30% Total Debt to Book Capitalization Total Debt to EBITDAX…
  10. Deutsche Banks 19th Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 10
    Low Finding & Development Costs Lower risk reserve additions from development properties Drilling efficiencies Focus on cost discipline Three-year average all-in F& D ( per Mcfe) 1.99 1.74 1.76 2008 2009 2010 One Year…
  11. Deutsche Banks 19th Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 11
    Disciplined Cost Structure: 2 Rank for Low Breakeven Costs BBG Ranks 2 among 41 E&Ps Breakeven calculation: All-in costs*, adjustments for percentage PUDs and differential to NYMEX All-in Breakeven Cost All-in Breakeven E&P…
  12. Deutsche Banks 19th Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 12
    Hedging Provides Price Predictability Hedges reduce volatility and support cash flow for capital program Hedge natural gas at Rockies sales point indices (CIG and others) Emphasis on summer months Opportunistically add to positions…
  13. Deutsche Banks 19th Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 13
    Strategic Position in the Rockies Expertise in the Rockies Management experience: geology, operations, regulatory Leadership: established track record in the region Excellent reputation Rockies offer resource optionality Large,…
  14. Deutsche Banks 19th Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 14
    Track Record of Profitable Growth Proved Reserves1 (Bcfe) Production (Bcfe) 1118 106-110 965 96.5 818 89.7 558 77.6 428 61.2 Dec 2006 Dec 2007 Dec 2008 Dec 2009 Dec 2010 267% 382% 436% 264% 263% 2007 2008 2009 2010 2011e…
  15. Deutsche Banks 19th Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 15
    Growth Visibility: Low Risk 3P Reserves Just the tip of the iceberg Approx. Gross Proved Proved1 3P1 Drilling Probable & Possible Bcfe Bcfe Locations West Tavaputs, 345 1,295 700 Uinta2 Gibson Gulch, 634 797 750 Piceance3…
  16. Deutsche Banks 19th Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 16
    Strong Targeted Production & Revenue Growth 2011: 10% to 14% production growth Target 15% to 20% annual growth for 3 to 4 years Development programs and extension properties Solid economics in current commodity price environment…
  17. Deutsche Banks 19th Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 17
    Disciplined Cost Structure: 2011 Capital Allocation Guidance: 685 to 705 million Lower risk reserve additions including activity on acquired from development properties properties; excludes acquisitions of 2011 plan approximately 88%…
  18. Deutsche Banks 19th Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 18
    Development Programs Commodity balance Expanding oil Uinta and DJ Basins NGL exposure Piceance and DJ Basins Gas growth West Tavaputs, Uinta Low risk reserves High working interest 98% operated Growth on demand Lower risk 3P…
  19. Deutsche Banks 19th Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 19
    Sizable Upside Exposure Extensive portfolio active projects 1.3 million net undeveloped acres Commitment to exploration Exploratory stepouts: Extensions Grass root, large scale, resource Typhon plays McRae Shale exposure (oil…
  20. Deutsche Banks 19th Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 20
    2 Property Descriptions
  21. Deutsche Banks 19th Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 21
    Piceance Basin Gibson Gulch Significant NGL Exposure Williams Fork Formation High liquids content increases Silt N revenue 3-Component 3-D Seismic Proved reserves: 634 Bcfe Net production: 131 MMcfe/d Gibson Gulch 3P reserves 0.8…
  22. Deutsche Banks 19th Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 22
    Uinta Basin West Tavaputs Proved reserves: 345 Bcfe Shallow Wasatch, Mesaverde Net production: 107 MMcfe/d Questar Interconnect N Strong economics Prickly Dry Canyon Questar Compressor Site Pear Plan 100 wells 2011 Interconnect…
  23. Deutsche Banks 19th Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 23
    Blacktail Ridge / Lake Canyon Growing Oil Development Wasatch, Green River Formations 15-10-36 BTR Blacktail Ridge Proved reserves: 7MM Boe 424 MBOE EUR N Mahogany Test Infill Strategy Net production: High 3,200 Boe/d Gas Area…
  24. Deutsche Banks 19th Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 24
    East Bluebell Bolt on Acquisition Expands our oil footprint Blacktail Ridge/Altamont N bolt on Projected oil fairway 20,155 net acres Altamont/Bluebell Cum: 312 MMBo/539 Bcf 750 Boe/d net production Roosevelt East Bluebell…
  25. Deutsche Banks 19th Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 25
    DJ Basin Acquisition 50 Miles Expands our oil footprint 650 Boe/d Wattenberg production, vertical primarily from Codell and Sagebrush Niobrara 7 MMBoe net proved reserves Silo 28,000 net acres acquired Field Lower risk…
  26. Deutsche Banks 19th Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 26
    3 Looking Ahead
  27. Deutsche Banks 19th Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 27
    2011 Key Action Items Execution Increase NGL revenue through accelerated program at Gibson Gulch Expand Uinta oil position execute bolt-on acquisition Bring West Tavaputs into full gear, realizing increased operating efficiencies…
  28. Deutsche Banks 19th Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 28
    Outlook Stand-alone growth visibility Strong realized pricing From existing, lower-risk Benefit from NGLs development assets Increasing oil production West Tavaputs full-field Substantial hedge positions development Reduced basis…
  29. Deutsche Banks 19th Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 29
    THANK YOU
  30. Deutsche Banks 19th Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 30
    a Appendix Additional Property Detail
  31. Deutsche Banks 19th Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 31
    Upside Exposure: Natural Gas Exploration Extensive portfolio 900,000+ net undeveloped acres targeting gas Shale gas and basin centered gas prospects Rockies Pipeline capacity 10.5 Bcf v. outflow peak of 8.3 Bcf Basis differential…
  32. Deutsche Banks 19th Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 32
    Upside Exposure: Oil Exploration Extensive portfolio 400,000+ net undeveloped acres targeting oil Multiple shale and reservoir challenged oil targets in multiple basins New technology at existing plays Typhon Rockies oil McRae…
  33. Deutsche Banks 19th Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 33
    Upside Exposure: Significant Resource Potential1 2.5 Tcfe proved, probable and possible; 16% oil 6+ Tcfe unrisked upside1 9+ Tcfe total resource potential, growing oil resource exposure Net Gas Upside (Tcfe) Approximate 3P Gas…
  34. Deutsche Banks 19th Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 34
    Blacktail Ridge / Lake Canyon: Horizontal Potential Numerous Upside Measures Depth Producing Intervals Increased density Blacktail Ridge Monument Altamont- Butte Bluebell Region Region New horizontal technology applications…
  35. Deutsche Banks 19th Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 35
    Piceance Basin Cottonwood Gulch 60 million acquisition in June 2009 N 90% working interest in 40,300 contiguous acres Cottonwood Gulch along main Rulison gas field Silt trend Grand Valley Rulison 1,149 Bcfe cum. prod. 855 Bcfe…
  36. Deutsche Banks 19th Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 36
    Hornfrog: West Tavaputs Extension Play Area of Expertise Shallow Wasatch, North Horn, Price River Drill to earn 55% working West Tavaputs N interest in up to 30,700 acres. UBFS pipeline Development Area Tribal surface and…
  37. Deutsche Banks 19th Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 37
    McRae Gap Niobrara Oil Niobrara McRae Gap Prospect Legacy Wind River Land Position 118,900 gross, 103,000 net acres, in N Niobrara fairway; third party has ability to earn-in 25% Waltman 2011 Plan up to 2 wells Arch Up to 300+…
  38. Deutsche Banks 19th Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 38
    Yellow Jacket/Green Jacket Shale Gas Prospects Expansive Prospect Area Gothic & Hovenweep Shales Current Program Increased working interest in prospect to 100% (359,000 net undeveloped acres); Rose well completed 7/10; 30-day IP 1.4…
  39. Deutsche Banks 19th Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 39
    Powder River Basin - CBM Current Program Big George Coal Proved reserves: 61 Bcf Net production: 36 MMcf/d Acreage 12/10: 92,500 net (37,200 net undeveloped) Big George Low-risk drilling, primarily Big George coals Play Gillette,…
  40. Deutsche Banks 19th Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 40
    Wind River Basin Current Program Fort Union, Lance, Raderville, Niobrara, Frontier, Muddy, Lakota Formations Proved reserves: 35 Bcfe BBG Cave Gulch (Wind River total) Development N Net production: 15 MMcfe/d WI: 50-100% BBG…
  41. Deutsche Banks 19th Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 41
    b Appendix Illustrative Economics & Financial Data
  42. Deutsche Banks 19th Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 42
    Piceance Basin Gibson Gulch Illustrative Drilling and Completion Costs1 Illustrative Economics2 EUR (Bcfe, gross) 0.93 CIG gas price per MMBtu 5.00 NRI 82% MMBtu sale adjustment/NGLs/Oil 2.99 EUR (Bcfe, net) 0.76 Realized price per Mcfe…
  43. Deutsche Banks 19th Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 43
    Uinta Basin West Tavaputs Illustrative Drilling and Completion Costs1 Illustrative Economics2 EUR (Bcfe, gross) 2.20 CIG gas price per MMBtu 5.00 NRI 83% Contribution from oil 0.05 EUR (Bcfe, net) 1.83 MMBtu sale adjustment (1100) 0.57…
  44. Deutsche Banks 19th Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 44
    Uinta Basin Blacktail Ridge Illustrative Drilling and Completion Costs1 Illustrative Economics2 EUR (Mboe, gross) 323.0 WTI Oil price per Bbl 85.00 NRI 81% Sales adjustment to WTI (9.64) EUR (Mboe, net) 261.6 Realized price per Bbl…
  45. Deutsche Banks 19th Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 45
    Typical Well Production Profiles West Tavaputs, Uinta Basin, Utah Piceance Basin, Colorado 1.60 IP-Instantaneous: 2840 Mcf/d IP-Instantaneous: 1735 Mcf/d IP-30 day: 2441 Mcf/d 1.40 IP-30 day: 1431 Mcf/d 3.00 EUR: 2.2 Bcfe 1.20 EUR:…
  46. Deutsche Banks 19th Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 46
    Disciplined Cost Structure: Driving Operations Efficiencies Success at Piceance = Opportunity at West Tavaputs & Blacktail Ridge Piceance West Tavaputs Blacktail Ridge Reduced Drilling Days (Spud to rig release) 12.8 12.8 11.2…
  47. Deutsche Banks 19th Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 47
    Proved Reserve Price Sensitivities Pricing Sensitivities Year-end 2010 Due to the change in guidelines and the particularly low natural gas price used to calculate reserves compared with prior years, the Company believes it would be…
  48. Deutsche Banks 19th Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 48
    Natural Gas and Oil Hedges - Equivalents As of September 30, 2011 Swaps & Collars Period Natural Gas / NGLs Oil Equivalent Volume Price Volume Price Volume Price (MMBtu/d) (MMBtu) (Bbl/d) (/Bbl) (MMcfe) (/Mcfe) 3Q11 214,183 6.02…
  49. Deutsche Banks 19th Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 49
    Additional Swap/Collar Data As of September 30, 2011 Natural Gas Period Swaps Collars Basis Volume Price Volume Floor Ceiling Volume Price (BBtu/d) (/MMBtu) (BBtu/d) (/MMBtu) (MMBtu) (BBtu/d) (/MMBtu) 3Q11 182.3 5.32 10.0 4.75…
  50. Deutsche Banks 19th Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 50
    Realized Natural Gas Price Components of Realized Price 1Q11 Example Henry Hub 1Q IFERC 4.09 MMBtu Differential (0.26) MMBtu CIG 1Q IFERC 3.83 MMBtu Average hedge price 6.14 MMBtu Percent hedged 63% Percent unhedged 37% Average price…
  51. Deutsche Banks 19th Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 51
    Competitive Gas Prices Regional pricing differential currently (0.25)/MMBtu on 12-mo forward strip Basis differential collapsed mid-2009 with new pipeline takeaway capacity Current capacity of 10.5 Bfc/d will keep differential to a…
  52. Deutsche Banks 19th Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 52
    c Appendix Reserves & Land
  53. Deutsche Banks 19th Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 53
    Solid Reserve Replacement Reflects Asset Quality and Operating Costs 185.1 1,118.3 Bcfe 964.8 -96.5 39.8 Bcfe 27.4 -2.3 Drilling Engineering additions 2010 Acquisitions Price revisions Production net of revisions…
  54. Deutsche Banks 19th Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 54
    Land Summary As of June 2011 Gross Net Undeveloped Average Gross Average BBG Area Acreage Acreage Project NRI Working Interest Development Piceance Gibson Gulch 17,660 6,520 81% 96% Uinta West Tavaputs 41,620 23,400 83% 97% Uinta…
  55. Deutsche Banks 19th Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 55
    1099 18th Street, Suite 2300 Thank you for your interest in Denver, Colorado 80202 303.293.9100, fax 303.291.0420 www.billbarrettcorp.com NYSE: BBG Investor Relations contact: Jennifer Martin jmartinbillbarrettcorp.com…

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