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Wells Fargo Securities 3rd Annual Exploration and Production Forum – Bill Barrett Corp.

Bill Barrett Corp. · Mar 13, 2012 · 44 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. Wells Fargo Securities 3rd Annual Exploration and Production Forum – Bill Barrett Corp. – slide 1
    Wells Fargo Forum March 2012 1
  2. Wells Fargo Securities 3rd Annual Exploration and Production Forum – Bill Barrett Corp. – slide 2
    Who We Are Premier E & P growth company, focused on prolific oil and gas resources in the Rocky Mountains Proven management team with expertise in the area Long-term record of profitable, sustainable growth in production and…
  3. Wells Fargo Securities 3rd Annual Exploration and Production Forum – Bill Barrett Corp. – slide 3
    Continuing to Deliver a Track Record of Profitable Growth Proved Reserves1 (Bcfe) Production (Bcfe) 382% 436% 264% 263% 331% Reserve replacement ratio2 Discretionary Cash Flow3 (in millions) Adjusted Net Income (in…
  4. Wells Fargo Securities 3rd Annual Exploration and Production Forum – Bill Barrett Corp. – slide 4
    Solid Reserve Replacement Reflects Asset Quality 22% reserve growth (oil +135%) 331% reserve replacement 600 million increase in PV10 Net Bcfe 250 1,365 1,118 -107 98 6 Price Engineering 2011 Acquisitions revisions revisions…
  5. Wells Fargo Securities 3rd Annual Exploration and Production Forum – Bill Barrett Corp. – slide 5
    Value Creation: Next 3 years Bill Barrett Corporation is driving value creation through: 1. Transformative Oil & Liquids Growth 2. Transformative Cash Flow Growth 3. Big Upside While maintaining: 1. Financial strength and…
  6. Wells Fargo Securities 3rd Annual Exploration and Production Forum – Bill Barrett Corp. – slide 6
    Transformative Oil & Liquids Growth Our portfolio has the flexibility to increase liquids proportion to 40% Successfully transitioned from 6% to 27% oil and NGLs from 2008 to 20111 Driving significant oil growth going forward % of…
  7. Wells Fargo Securities 3rd Annual Exploration and Production Forum – Bill Barrett Corp. – slide 7
    Oil & Liquids Growth - Rebalancing the Portfolio Strong growth trajectory Target nearly 80% growth in oil production for 2012 Proved Oil Reserves (MMBoe) Oil and NGL Sales Volumes1 (MMBoe) NGLs Oil 30.6 13.0 7.8 5.7…
  8. Wells Fargo Securities 3rd Annual Exploration and Production Forum – Bill Barrett Corp. – slide 8
    Oil & Liquids Growth - 2012 Capital Allocation 2012 Capital budget: 800-900 million 85% targeting oil or liquids 100% of exploration and other targeting oil 2012 Capital Budget by Area 2012 Capital Budget by Resource DJ Piceance…
  9. Wells Fargo Securities 3rd Annual Exploration and Production Forum – Bill Barrett Corp. – slide 9
    Significant Exposure to Leading Oil and Liquids Plays Long-term development inventory heavily weighted toward oil and NGLs 1,400 net locations: (2,675 gross) Uinta Oil Play, Piceance NGLs, DJ Basin Oil & NGLs 67% 700 net…
  10. Wells Fargo Securities 3rd Annual Exploration and Production Forum – Bill Barrett Corp. – slide 10
    Low Risk 3P Reserves Proved Probable & Possible (2011) Proved 3P Gross Drilling Bcfe Bcfe Locations West Tavaputs, 461 1,171 622 Uinta1 Uinta Oil 173 787 1,688 Program (oil) Gibson Gulch, Piceance1 (NGLs) 596 733 626…
  11. Wells Fargo Securities 3rd Annual Exploration and Production Forum – Bill Barrett Corp. – slide 11
    Big Upside - Stacking up Liquids Against Dry Gas OIL UPSIDE We are no longer just a gas companythe portfolio is rebalanced NEW OPPORTUNITIES and heavily weighted toward high San Juan Basin: Oil 35,100 Net Acres return upside through…
  12. Wells Fargo Securities 3rd Annual Exploration and Production Forum – Bill Barrett Corp. – slide 12
    Strict Operational Discipline: Driving Efficiencies Success at Piceance = Execute at West Tavaputs & Blacktail Ridge Piceance West Tavaputs Blacktail Ridge Reduced Drilling Days (Spud to rig release) Days Days Days…
  13. Wells Fargo Securities 3rd Annual Exploration and Production Forum – Bill Barrett Corp. – slide 13
    Strict Operational Discipline: 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) 2.18 One Year…
  14. Wells Fargo Securities 3rd Annual Exploration and Production Forum – Bill Barrett Corp. – slide 14
    Financial Strength & Flexibility: Balance Sheet & Hedging Strong balance sheet offers flexibility and illustrates financial discipline 1.1 billion current borrowing base with 900 million in commitments 70 million drawn as of…
  15. Wells Fargo Securities 3rd Annual Exploration and Production Forum – Bill Barrett Corp. – slide 15
    Poised for Continued Strong Execution Year-end 2011: Proved reserves 1.365 Tcfe = 22% Reserve growth 2011 135% growth in oil reserves Proved, probable & possible reserves 3.044 Tcfe Nearly 200% growth in oil 3P reserves 2011…
  16. Wells Fargo Securities 3rd Annual Exploration and Production Forum – Bill Barrett Corp. – slide 16
    2 Property Descriptions
  17. Wells Fargo Securities 3rd Annual Exploration and Production Forum – Bill Barrett Corp. – slide 17
    Development Programs: Long Term, Low Risk Growth Commodity balanced 94% average working interest Flexibility minimal drilling commitments Low cost operations with Uinta Oil DJ Oil/NGLs competitive finding and development costs…
  18. Wells Fargo Securities 3rd Annual Exploration and Production Forum – Bill Barrett Corp. – slide 18
    Uinta Oil Program Growing Oil Development 2011: N 1P reserves up 315% to Projected oil fairway 29 MM Boe Altamont/Bluebell Cum: 312 MMBo/539 Bcf East Bluebell 3P reserves up 244% to Blacktail Ridge Roosevelt Acquisition 131 MM…
  19. Wells Fargo Securities 3rd Annual Exploration and Production Forum – Bill Barrett Corp. – slide 19
    Uinta Basin Blacktail Ridge and Lake Canyon Illustrative Drilling and Completion Costs1 Illustrative Economics2 EUR (Mboe, gross) 290 WTI Oil price per Bbl 95.00 NRI 81% Sales adjustment to WTI (12.25) EUR (Mboe, net) 236 Realized price…
  20. Wells Fargo Securities 3rd Annual Exploration and Production Forum – Bill Barrett Corp. – slide 20
    Uinta Oil Program Uteland Butte Wasatch, Green River Formations Growing Oil Development 15-10-36 BTR Blacktail Ridge 540 MBOE EUR 30-40 thick, highly Mahogany Test Infill Strategy N fractured, carbonaceous Higher GOR zone…
  21. Wells Fargo Securities 3rd Annual Exploration and Production Forum – Bill Barrett Corp. – slide 21
    Uinta Basin Uteland Butte Core Illustrative Drilling and Completion Costs1 Illustrative Economics2 EUR (Mboe, gross) 310 WTI Oil price per Bbl 95.00 NRI 81% Sales adjustment to WTI (12.25) EUR (Mboe, net) 252 Realized price per Bbl…
  22. Wells Fargo Securities 3rd Annual Exploration and Production Forum – Bill Barrett Corp. – slide 22
    Uinta Oil Program Upside Still to Go Beyond 3P: 80 acre infill Multiple Wasatch horizontals Mahogany Shale horizontals Black Shale horizontals Secondary recovery options Our 3P assumptions may be conservative Green River…
  23. Wells Fargo Securities 3rd Annual Exploration and Production Forum – Bill Barrett Corp. – slide 23
    Piceance Basin Gibson Gulch Significant NGL Exposure Williams Fork Formation Silt High liquids content increases N 3-Component revenue (+1.23/Mcf to 3-D Seismic company natural gas realized price in 2011) Gibson Gulch Proved…
  24. Wells Fargo Securities 3rd Annual Exploration and Production Forum – Bill Barrett Corp. – slide 24
    Piceance Basin Gibson Gulch Illustrative Drilling and Completion Costs1 Illustrative Economics2 EUR (Bcfe, gross) 0.83 CIG gas price per MMBtu 4.00 NRI 82% MMBtu sale adjustment/NGLs/Oil 3.57 EUR (Bcfe, net) 0.68 Realized price per Mcfe…
  25. Wells Fargo Securities 3rd Annual Exploration and Production Forum – Bill Barrett Corp. – slide 25
    DJ Basin Building a 4th key development program 50 miles Acquisition assets expand oil footprint Silo Field Acreage located in current Chalk Bluffs production fairways extending from Hereford Area: Niobrara Production…
  26. Wells Fargo Securities 3rd Annual Exploration and Production Forum – Bill Barrett Corp. – slide 26
    Upside Exposure Oil: Key Exploratory Plays 2012 active exploration areas, multiple other prospects being evaluated Extensive portfolio S. Alberta Oil Extensive acreage positions targeting oil Rockies oil -Applying new technologies to…
  27. Wells Fargo Securities 3rd Annual Exploration and Production Forum – Bill Barrett Corp. – slide 27
    Upside Exposure: Natural Gas Extensive portfolio of sizable, long-term natural gas projects Extension plays offer multi-Tcf upside Shale gas and basin centered gas prospects Current extension plays Cottonwood Gulch* Cottonwood…
  28. Wells Fargo Securities 3rd Annual Exploration and Production Forum – Bill Barrett Corp. – slide 28
    Strategic Objectives 3 Year Plan Meet 10-20% CAGR Low risk growth from core Flexibility to adjust growth development programs Meaningful scale increase Increase liquids to 35-40% Accelerate liquids growth Triple daily oil production…
  29. Wells Fargo Securities 3rd Annual Exploration and Production Forum – Bill Barrett Corp. – slide 29
    Outlook Stand-alone growth visibility Operating discipline Expansive upside potential Strong realized pricing Continued financial strength 30
  30. Wells Fargo Securities 3rd Annual Exploration and Production Forum – Bill Barrett Corp. – slide 30
    Appendix
  31. Wells Fargo Securities 3rd Annual Exploration and Production Forum – Bill Barrett Corp. – slide 31
    Uinta Basin West Tavaputs Proved reserves: 461 Bcfe Shallow Wasatch, Mesaverde 3P reserves: 1,171 Bcfe Questar Interconnect N Locations: 622 Prickly Dry Canyon Questar Compressor Site Pear Interconnect Net production: 104…
  32. Wells Fargo Securities 3rd Annual Exploration and Production Forum – Bill Barrett Corp. – slide 32
    Uinta Basin West Tavaputs Illustrative Drilling and Completion Costs1 Illustrative Economics2 EUR (Bcfe, gross) 1.89 CIG gas price per MMBtu 4.00 NRI 83% Contribution from oil/NGL 0.20 EUR (Bcfe, net) 1.57 MMBtu sale adjustment 0.50…
  33. Wells Fargo Securities 3rd Annual Exploration and Production Forum – Bill Barrett Corp. – slide 33
    Hornfrog: West Tavaputs Extension Play Area of Expertise Shallow Wasatch, North Horn, Price River Drill to earn 55% working West Tavaputs N UBFS pipeline interest in up to 30,600 acres. Development Area Tribal surface and…
  34. Wells Fargo Securities 3rd Annual Exploration and Production Forum – Bill Barrett Corp. – slide 34
    Piceance Basin Cottonwood Gulch Potential to significantly increase 3P reserves 40,300 contiguous gross acres along main N Rulison gas field trend. Paid 60mm Cottonwood 90% working interest Gulch Silt Grand Valley Area of…
  35. Wells Fargo Securities 3rd Annual Exploration and Production Forum – Bill Barrett Corp. – slide 35
    Yellow Jacket Shale Prospect Expansive Prospect Area Gothic & Hovenweep Shales Background 100% working interest in 347,000 net undeveloped acres Drilled 10 horizontal wells 2009/10 High IP rates, wells not economic due to intrusion…
  36. Wells Fargo Securities 3rd Annual Exploration and Production Forum – Bill Barrett Corp. – slide 36
    Typical Well Production Profiles West Tavaputs, Uinta Basin, Utah Piceance Basin, Colorado 3.00 1.60 IP-Instantaneous: 2840 Mcf/d IP-Instantaneous: 1561 Mcf/d 2.50 IP-30 day: 2131 Mcf/d 1.40 IP-30 day: 1287 Mcf/d EUR: 1.9 Bcfe…
  37. Wells Fargo Securities 3rd Annual Exploration and Production Forum – Bill Barrett Corp. – slide 37
    Typical Well Production Profiles: Uinta Basin, Utah Uteland Butte Core Blacktail Ridge/Lake Canyon IP-Instantaneous: 800 Bbl/d 350 IP-Instantaneous: 295 Bbl/d IP-30 day: 388 Bbl/d 300 IP-30 day: 253 Bbl/d EUR: 310 Mboe 250 EUR:…
  38. Wells Fargo Securities 3rd Annual Exploration and Production Forum – Bill Barrett Corp. – slide 38
    Uinta Oil: 2011 - Horizontal Uteland Butte Summary 24 hr. pk rate 30 day avg WI / TVD of Lateral of First Well NRI UB Length Stgs prod (bopd) (mcfd) (boepd) (bopd) (mcfd) (boepd) LC Tribal 56.25% / 4,750 3,120 15 5/24/11 1,022…
  39. Wells Fargo Securities 3rd Annual Exploration and Production Forum – Bill Barrett Corp. – slide 39
    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…
  40. Wells Fargo Securities 3rd Annual Exploration and Production Forum – Bill Barrett Corp. – slide 40
    Natural Gas and Oil Hedges - Equivalents As of February 29, 2012 Swaps & Collars Period Natural Gas / NGLs Oil Equivalent Volume Price Volume Price Volume Price (MMBtu/d) (MMBtu) (Bbl/d) (/Bbl) (MMcfe) (/Mcfe) 1Q12 183,798 5.25…
  41. Wells Fargo Securities 3rd Annual Exploration and Production Forum – Bill Barrett Corp. – slide 41
    Additional Swap/Collar Data As of February 29, 2012 Natural Gas Oil Period Swaps Basis Period Swaps Collars Volume Price Volume Price Volume Price Volume Floor Ceiling (BBtu/d) (/MMBtu) (BBtu/d) (/MMBtu) (BBl/d) (/Bbl) (BBl/d) (/Bbl)…
  42. Wells Fargo Securities 3rd Annual Exploration and Production Forum – Bill Barrett Corp. – slide 42
    Competitive Gas Prices Regional pricing differential currently (0.29)/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…
  43. Wells Fargo Securities 3rd Annual Exploration and Production Forum – Bill Barrett Corp. – slide 43
    Land Summary Net Undeveloped Average Gross Average BBG Area Gross Acreage Acreage Project NRI Working Interest Development Properties Piceance Gibson Gulch 17,764 6,351 81% 96% Uinta West Tavaputs 41,598 22,618 83% 97% Uinta…
  44. Wells Fargo Securities 3rd Annual Exploration and Production Forum – Bill Barrett Corp. – slide 44
    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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