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Shareholder Analyst Call – Bill Barrett Corp.

Bill Barrett Corp. · May 12, 2011 · 42 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. Shareholder Analyst Call – Bill Barrett Corp. – slide 1
    Annual Shareholders Meeting May 12, 2011 1
  2. Shareholder Analyst Call – Bill Barrett Corp. – slide 2
    Francis Barron Executive Vice President - General Counsel and Secretary
  3. Shareholder Analyst Call – Bill Barrett Corp. – slide 3
    Agenda Shareholder Meeting Introductions Fred Barrett Shareholder Business Meeting Francis Barron Company Overview Company Strategy Fred Barrett Operations Scot Woodall Financial Overview Bob Howard Wrap-Up and Q&A Fred…
  4. Shareholder Analyst Call – Bill Barrett Corp. – slide 4
    Fred Barrett Chairman, Chief Executive Officer and President
  5. Shareholder Analyst Call – Bill Barrett Corp. – slide 5
    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 1.9 billion market capitalization / 2.4…
  6. Shareholder Analyst Call – Bill Barrett Corp. – slide 6
    Reasons to Invest in Bill Barrett Corporation Strategic position in the Rockies Growth visibility Sizable upside exposure: oil and natural gas Disciplined cost structure Financial strength Asset quality Value creation 7
  7. Shareholder Analyst Call – Bill Barrett Corp. – slide 7
    Since our Last Meeting West Tavaputs EIS finalized with development in full gear = huge growth potential Confirmed Blacktail Ridge = significant new oil play Leveraged NGLs at Piceance program = big uplift to revenues Maintained best…
  8. Shareholder Analyst Call – Bill Barrett Corp. – slide 8
    Who We Are: 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…
  9. Shareholder Analyst Call – Bill Barrett Corp. – slide 9
    Growth Visibility: Development Programs Commodity balance Expanding oil Blacktail Ridge, Uinta NGLs exposure Gibson Gulch, Piceance Gas growth West Tavaputs, Uinta Low risk reserves High working interest 98% operated Growth on…
  10. Shareholder Analyst Call – Bill Barrett Corp. – slide 10
    Sizable Upside Exposure Extensive portfolio 1.3 million net undeveloped acres Predicament Focus on pure play Red Pt. Commitment to exploration Typhon Plan to participate in 15-20 Bonefish wells in 7-10 areas in 2011 Diaga…
  11. Shareholder Analyst Call – Bill Barrett Corp. – slide 11
    Upside Exposure: Natural Gas Exploration Extensive portfolio 900,000+ net undeveloped acres targeting gas Shale gas and basin centered gas prospects Red Pt. Rockies Pipeline capacity 9.4 Bcfe + 1.9 Bcfe expansions 2011 Diaga…
  12. Shareholder Analyst Call – Bill Barrett Corp. – slide 12
    Upside Exposure: Oil Exploration Extensive portfolio 400,000+ net undeveloped acres targeting oil Multiple shale and reservoir challenged oil targets in multiple Predicament basins New technology at existing plays Typhon…
  13. Shareholder Analyst Call – Bill Barrett Corp. – slide 13
    Scot Woodall Chief Operating Officer
  14. Shareholder Analyst Call – Bill Barrett Corp. – slide 14
    Growth Visibility: Strong Targeted Production Growth 2011: 10% to 14% production growth Target 15% - 20% annual growth for 3 to 4 years Development programs and extension properties Solid economics in current commodity price…
  15. Shareholder Analyst Call – Bill Barrett Corp. – slide 15
    Growth Visibility: Low Risk 3P Reserves Drive Growth 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…
  16. Shareholder Analyst Call – Bill Barrett Corp. – slide 16
    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…
  17. Shareholder Analyst Call – Bill Barrett Corp. – slide 17
    Disciplined Cost Structure: Driving Operations Efficiencies Success at Piceance = Opportunity at West Tavaputs Piceance West Tavaputs Reduced Drilling Days (Spud to rig release) 12.8 12.8 11.2 11.6 10.1 10.7 9.3 8.5 Days Days…
  18. Shareholder Analyst Call – Bill Barrett Corp. – slide 18
    Disciplined Cost Structure: 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…
  19. Shareholder Analyst Call – Bill Barrett Corp. – slide 19
    Disciplined Cost Structure: Capital Allocation Lower risk reserve additions 2011 plan approximately 88% from development properties development/12% exploration Drilling efficiencies Expand West Tavaputs infrastructure Focus on cost…
  20. Shareholder Analyst Call – Bill Barrett Corp. – slide 20
    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: 137 MMcfe/d Gibson Gulch 3P reserves 0.8…
  21. Shareholder Analyst Call – Bill Barrett Corp. – slide 21
    Uinta Basin West Tavaputs Proved reserves: 345 Bcfe Shallow Wasatch, Mesaverde Net production: 90 MMcfe/d Questar Interconnect N Strong economics Prickly Dry Canyon Questar Compressor Site Pear Plan 100 wells 2011 Interconnect…
  22. Shareholder Analyst Call – Bill Barrett Corp. – slide 22
    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 Plan up to 4 well…
  23. Shareholder Analyst Call – 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 Infill Strategy Net production: High 2,450 Boe/d Gas Area 13-26-36 BTR…
  24. Shareholder Analyst Call – Bill Barrett Corp. – slide 24
    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…
  25. Shareholder Analyst Call – Bill Barrett Corp. – slide 25
    Uinta Oil Acquisition Bolt on Assets Expands our oil footprint Blacktail Ridge/Altamont bolt on 20,155 net acres 750 Boepd production 5 MMBoe net proved reserves Upside 25 MMBoe 3P 200+ drilling location inventory Targeting…
  26. Shareholder Analyst Call – Bill Barrett Corp. – slide 26
    McRae Gap Niobrara Oil Niobrara McRae Gap Prospect Legacy Wind River Land Position 114,500 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+…
  27. Shareholder Analyst Call – Bill Barrett Corp. – slide 27
    Sizable Upside Exposure Extensive portfolio 1.3 million net undeveloped acres Predicament Focus on pure play Red Pt. Commitment to exploration Typhon Plan to participate in 15-20 Bonefish wells in 7-10 areas in 2011 Diaga…
  28. Shareholder Analyst Call – Bill Barrett Corp. – slide 28
    Bob Howard Chief Financial Officer
  29. Shareholder Analyst Call – Bill Barrett Corp. – slide 29
    2010 Recap Financial Results Discretionary cash flow 467 million 10.18 per diluted share 4.84 per Mcfe produced Net income 80.5 million Continued strong margins Strong realized pricing through hedging and increased liquids benefit…
  30. Shareholder Analyst Call – Bill Barrett Corp. – slide 30
    Stock Performance: Up 32% in 2010 Up 32% full year 2010; flat year-to-date 2011 2010 ranked 5 in performance compared with peer group and outperformed all natural gas weighted peers Chart visually demonstrates value added from receipt…
  31. Shareholder Analyst Call – Bill Barrett Corp. – slide 31
    Disciplined Cost Structure: 2 Rank for Low Breakeven Costs BBG Ranks 2 among 41 E&Ps (BofAML) Breakeven calculation includes: All-in costs*, adjustments for percentage PUDs and differential to NYMEX All-in Breakeven Cost All-in…
  32. Shareholder Analyst Call – Bill Barrett Corp. – slide 32
    Financial Strength: 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…
  33. Shareholder Analyst Call – Bill Barrett Corp. – slide 33
    Financial Strength: Competitive Gas Prices Regional pricing differential currently 0.39 on forward strip Basis differential collapsed mid-2009 with new pipeline takeaway capacity 1.9 Bcf/d new capacity 2011 will keep differential to a…
  34. Shareholder Analyst Call – Bill Barrett Corp. – slide 34
    Growth Visibility: Increasing Liquids Production NGL processing provides substantial uplift to realized prices: adding 0.71 per Mcfe to 2010 and 1.11 per Mcfe to 1Q11 Oil production from Blacktail Ridge-Lake Canyon more than doubled in…
  35. Shareholder Analyst Call – Bill Barrett Corp. – slide 35
    Financial Strength: Current Capitalization Conservative leverage metrics provide flexibility for growth programs Credit metrics well within all covenant ranges at 3/31/11 (millions) Long-term debt Revolving credit facility - 9…
  36. Shareholder Analyst Call – Bill Barrett Corp. – slide 36
    Financial Strength: Balance Sheet Offers Flexibility Strong balance sheet offers flexibility to be opportunistic 700 mm revolving line of credit Interest coverage 11X Historical practice of conservative credit ratios Total Debt to…
  37. Shareholder Analyst Call – Bill Barrett Corp. – slide 37
    Financial Strength 2011 Competitive sales prices Improving margins with higher NGL and oil production Hedging strategy to support cash flows Cost discipline Strong balance sheet Flexible asset profile Balance growth objectives with…
  38. Shareholder Analyst Call – Bill Barrett Corp. – slide 38
    Looking Ahead
  39. Shareholder Analyst Call – Bill Barrett Corp. – slide 39
    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…
  40. Shareholder Analyst Call – Bill Barrett Corp. – slide 40
    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…
  41. Shareholder Analyst Call – Bill Barrett Corp. – slide 41
    THANK YOU
  42. Shareholder Analyst Call – Bill Barrett Corp. – slide 42
    Thank you for your interest in 1099 18th Street, Suite 2300 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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