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Deutsche Bank 21st Annual Leveraged Finance Conference – Bill Barrett Corp.

Bill Barrett Corp. · Oct 2, 2013 · 41 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 21st Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 1
    DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE OCTOBER 2013
  2. Deutsche Bank 21st Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 2
    Company Overview 2.4 billion enterprise value 1.2 billion market cap Proved reserves: 1.04 Tcfe 29% oil; 59% proved developed Risked resources: 2.9 Tcfe Established long-term inventory 4,000 gross drilling locations Nearly…
  3. Deutsche Bank 21st Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 3
    Value Creation Strategy: Exploit large, existing drilling inventory focus on two core oil programs Allocate capital to highest return assets Strive toward operational excellence Uphold high-level standards for health, safety and…
  4. Deutsche Bank 21st Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 4
    First Half 2013 Successes Driving value from core programs Northeast Wattenberg Delineation underway Technology refinements leading to better results Uinta Oil Program 80-acre pilot program in Blacktail Ridge area showing…
  5. Deutsche Bank 21st Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 5
    Financial Strength & Flexibility Balance sheet provides substantial liquidity 825 million credit facility 80 million drawn/26 million letter of credit as of 6/30/13 Redemption of 9.875% senior notes in July through credit facility…
  6. Deutsche Bank 21st Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 6
    Capital Structure ( in millions) 6/30/2013 Revolving Credit Facility due 2016 80 Borrowing Base 825 5.000% Convertible Notes due 2028 (March 2015 Put) (currently callable) 25 9.875% Senior Notes due 2016 (redeemed July 2013)*…
  7. Deutsche Bank 21st Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 7
    Manageable Debt Levels Well-spaced debt maturities Bank credit facility of 825 million, 80 million drawn as of 6/30/13, matures 2016 Redeemed 250 million 9.875% senior notes in mid-July 2013 at 104.938% Pro-forma redemption of senior…
  8. Deutsche Bank 21st Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 8
    Credit Metrics In-line with Peers Debt/TTM EBITDAX 3.2x 3.5x 3.5x 2.6x 2.9x 2.9x 1.6x 2.0x 1.3x SM Energy Oasis Rosetta Berry Bill Barrett Swift Energy Laredo Penn Virginia Forest Oil Petroleum Resources Petroleum Corporation…
  9. Deutsche Bank 21st Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 9
    Hedging Provides Price Predictability Solid 2013 hedge positions, 2H13 70% of production hedged 75% of oil hedged at 97.62/Bbl 75% of natural gas hedged at 3.72/MMBtu 2014 hedges: 44.9 Bcfe hedged at weighted average 8.61/Mcfe…
  10. Deutsche Bank 21st Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 10
    Oil Growth: Successfully Rebalancing Portfolio Achieving excellent growth in oil reserves and production % of Production Proved Oil Reserves (MMBbls) 50.8 2013e 94% 30.6 25% 13.0 Year-end 2012 Gross 7.8 2013 Risked Oil…
  11. Deutsche Bank 21st Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 11
    2013 Guidance: 30-35% Growth in Oil Production Capital program 100% directed at oil growth Total capital of 465-485 million Finance through discretionary 2013 Capex % by Area cash flow and asset divestiture 5% Committed to keeping…
  12. Deutsche Bank 21st Annual Leveraged Finance 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…
  13. Deutsche Bank 21st Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 13
    DJ Basin: Lots Of Running Room Niobrara Formation Prime land position: 76,000 net acres Silo Field Northeast Wattenberg: 39,920 net acres Chalk Bluffs Wattenberg interior: 13,635 net acres Chalk Bluffs/Wyoming border: 22,580 net…
  14. Deutsche Bank 21st Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 14
    DJ Basin: Northeast Wattenberg Focus High growth potential in prime location Niobrara Formation One rig 1Q to four rigs 3Q Three recent wells completed with larger fracs and placed on artificial lift early have higher IP rates:…
  15. Deutsche Bank 21st Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 15
    DJ Basin: Trending in the Right Direction Rapidly increasing activity and moving on the learning curve Net Acreage Horizontal Wells Spud 80,000 60 50 60,000 40 40,000 30 20 20,000 10 0 0 YE11 1H12 YE12 1H13 2H11 1H12 2H12 1H13…
  16. Deutsche Bank 21st Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 16
    Uinta Oil Program: Driving Substantial Oil Growth Expanded acreage in key areas Wasatch, Green River Formations Sizable 150,000 net acres Core positions added in South Altamont N and East Bluebell area Altamont/Bluebell Roosevelt…
  17. Deutsche Bank 21st Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 17
    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 3.6 Dollars (Millions)…
  18. Deutsche Bank 21st Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 18
    Uinta Oil Program: Production Growth Uinta Oil Program growth Net Production (Boe/d) 9,000 6,841 7,500 6,000 4,500 3,320 3,000 1,500 0 2H11 1H12 2H12 1H13 105% increase over past 8 quarters Driving continued…
  19. Deutsche Bank 21st Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 19
    Uinta Oil Program: East Bluebell Execution Expanded acreage offers consistent geology and improved returns East Bluebell Lower Green River target 35,685 gross/21,070 net acres Planned development on 80-acre spacing Matrix…
  20. Deutsche Bank 21st Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 20
    Powder River Deep Program: New Program, Exciting Results Stacked oil play providing early positive test results BBG 2013 Drilling Program 161,605 gross/68,120 net acres 5 Shannon Wells Peer Results*: Avg. 30-day IP: 516 Boe/d (30-day…
  21. Deutsche Bank 21st Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 21
    Value Creation Opportunity Execution, Execution, Execution Deliver 30-35% growth in oil production 2013 over 2012 Realize value of DJ asset: Delineate 40,000 net acreage position in Northeast Wattenberg Test upside concepts in…
  22. Deutsche Bank 21st Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 22
    APPENDIX
  23. Deutsche Bank 21st Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 23
    BBG Strengths Our people and portfolio People SAFETY AND ENVIRONMENT are key priorities in conducting our operations LOW-COST, EFFICIENT OPERATOR with excellent track record REGIONAL EXPERTISE in permitting, geology, marketing,…
  24. Deutsche Bank 21st Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 24
    DJ Basin Timeline: Rapidly Building a Core Oil Program Value Creation 2011 2012 1H3 2H13 Build Position Implement Technology Delineate Position Average of 3 4-well pads: 30-day IP: 412 Boe/d Delineate Northeast Wattenberg; Drill…
  25. Deutsche Bank 21st Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 25
    Northeast Wattenberg: Prime Position Among Peers Niobrara Formation Excellent position yet to be fully valued WLL Redtail East Pony Neighboring peers seeing NBL 300,000+ EURs Successful NBL extended reach PDCE PDCE laterals within…
  26. Deutsche Bank 21st Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 26
    Northeast Wattenberg Peer Activity Carrizo IP: 725 BO, 166 Mcf/d A wealth of data by year-end BBG Wells/Pads NBL 1280 East Pony BCEI Horizontal Condor IP: 528 BO, 360 Mcf/d BBG 65 well program plus Continental peer activity provide…
  27. Deutsche Bank 21st Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 27
    DJ Basin: Supportive Resistivity and Thermal Mapping Extensive geologic work and mapping done SPC_DATA_ITEMS - MAX_NBRR_RES_COMBINED [SPC] - combined 99% NBRR ILD and max resi Resistivity 20 120 20 100 80 60 40 20 0…
  28. Deutsche Bank 21st Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 28
    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…
  29. Deutsche Bank 21st Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 29
    Uinta Basin Driving Rapid Growth, Improving Efficiencies Green River 150,000 net acres* Altamont Monument East Core positions added in South Altamont and East Bluebell area Bluebell Butte Bluebell Core Upper Green River…
  30. Deutsche Bank 21st Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 30
    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…
  31. Deutsche Bank 21st Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 31
    Uinta Oil Program Marketing Refining capacity is increasing, growing optionality, confident we can sell our production Current marketing agreement 7,500 Bbl/d through 2018 Typical 16-18% price deduct from WTI Oil refined in Salt…
  32. Deutsche Bank 21st Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 32
    DJ Basin Infrastructure Infrastructure additions to double capacity by 2015 Crude pipelines and rail projects Over 450 MBbls/d capacity to come online by 2015 White Cliffs pipeline expansion (Platteville, CO to Cushing, OK) Pony…
  33. Deutsche Bank 21st Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 33
    Powder River Deep Stacked Oil Play with Multiple Horizons 2013 Program Five horizontal Shannon wells 8,800 true vertical depth with 4,000 foot lateral and 17-18 frac stages 7 million well cost 2012 Program Horizontal Sussex well…
  34. Deutsche Bank 21st Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 34
    Piceance Basin: Gibson Gulch Stable Cash Generating Asset Williams Fork Formation High liquids content increases Silt revenue N Ethane rejection in 2013 Cottonwood 4Q12 sale of 18% working interest Gulch in Gibson Gulch…
  35. Deutsche Bank 21st Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 35
    Uinta Basin: West Tavaputs Full-field Natural Gas Development Shallow Wasatch, North Horn, Price River Year-end 2012: West Tavaputs N UBFS pipeline Development Area Proved reserves: 265 Bcfe Prickly Pear Hornfrog…
  36. Deutsche Bank 21st Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 36
    Natural Gas and Oil Hedges As of September 4, 2013 Swaps Period Natural Gas NGLs* Oil Volume NWPL Price Volume Price Volume WTI Price (MMBtu/d) (MMBtu) Bbls/d (/Gal) (Bbls/d) (/Bbl) 3Q13 125,000 3.73 970 71.81 8,300 97.62 4Q13…
  37. Deutsche Bank 21st Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 37
    Portfolio Offers Low-risk, Long-term Growth 40% increase in gross oil locations 10% increase in risked resources (pro forma) Year-end 2012 Proved + Proved Risked Gross/Net Total Risked Resources (2012) Oil Proved Resources…
  38. Deutsche Bank 21st Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 38
    Reserves & Risked Resources: 3-Streams Year-end 2012 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…
  39. Deutsche Bank 21st Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 39
    Land Summary As of June 30, 2013 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 113,700 54,095 82% 51% Minimum…
  40. Deutsche Bank 21st Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 40
  41. Deutsche Bank 21st Annual Leveraged Finance Conference – Bill Barrett Corp. – slide 41

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