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Howard Weil 39th Annual Energy Conference – Bill Barrett Corp.

Bill Barrett Corp. · Mar 27, 2011 · 49 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 Weil 39th Annual Energy Conference – Bill Barrett Corp. – slide 1
    Howard Weil 2011 Energy Conference March 2011 1
  2. Howard Weil 39th Annual Energy Conference – Bill Barrett Corp. – slide 2
    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 1.8 billion market capitalization / 2.3…
  3. Howard Weil 39th Annual Energy Conference – Bill Barrett Corp. – slide 3
    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…
  4. Howard Weil 39th Annual Energy Conference – Bill Barrett Corp. – slide 4
    1 Reasons to Invest in BBG
  5. Howard Weil 39th Annual Energy Conference – Bill Barrett Corp. – slide 5
    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 6
  6. Howard Weil 39th Annual Energy Conference – Bill Barrett Corp. – slide 6
    Strategic Position in the Rockies Expertise in the Rockies Management experience: geology, operations, regulatory Leadership: pioneers in the region Reputation Rockies offer resource optionality Large, untapped oil resources:…
  7. Howard Weil 39th Annual Energy Conference – Bill Barrett Corp. – slide 7
    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…
  8. Howard Weil 39th Annual Energy Conference – Bill Barrett Corp. – slide 8
    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…
  9. Howard Weil 39th Annual Energy Conference – Bill Barrett Corp. – slide 9
    Growth Visibility: Increasing Liquids Production NGL processing added 0.71 per Mcfe to 2010 realized price Oil production from Blacktail Ridge-Lake Canyon more than doubled in 2010 Oil production is expected to increase approximately…
  10. Howard Weil 39th Annual Energy Conference – Bill Barrett Corp. – slide 10
    Growth Visibility: Low Risk 3P Reserves Drive Growth Appx. Gross Proved Proved1 3P1 Drilling Probable & Possible Bcfe Bcfe Locations West Tavaputs, 345 1,295 700 Uinta2 Gibson Gulch, Piceance3 (NGLs) 634 797 750 Blacktail…
  11. Howard Weil 39th Annual Energy Conference – Bill Barrett Corp. – slide 11
    Sizable Upside Exposure Extensive portfolio 1.3 million net undeveloped acres Predicament Commitment to exploration Red Pt. Plan to participate in 15-20 Typhon wells in 7-10 areas in 2011 Bonefish Multiple, large scale…
  12. Howard Weil 39th Annual Energy Conference – Bill Barrett Corp. – slide 12
    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…
  13. Howard Weil 39th Annual Energy Conference – Bill Barrett Corp. – slide 13
    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 Bonefish…
  14. Howard Weil 39th Annual Energy Conference – Bill Barrett Corp. – slide 14
    Upside Exposure: Significant Resource Potential1 2.5 Tcfe proved, probable and possible; 16% oil 6+ Tcfe unrisked upside1 9+ Tcfe total resource potential Net Gas Upside (Tcfe) Approximate 3P Gas Reserves1 Total 3P Plus Unrisked Gas…
  15. Howard Weil 39th Annual Energy Conference – Bill Barrett Corp. – slide 15
    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…
  16. Howard Weil 39th Annual Energy Conference – Bill Barrett Corp. – slide 16
    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…
  17. Howard Weil 39th Annual Energy Conference – 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. Howard Weil 39th Annual Energy Conference – Bill Barrett Corp. – slide 18
    Financial Strength: Offers Flexibility Strong balance sheet offers flexibility to be opportunistic 700 mm revolving line of credit undrawn Interest coverage 11X Well within debt covenants and target ratios Total Debt to Book…
  19. Howard Weil 39th Annual Energy Conference – Bill Barrett Corp. – slide 19
    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…
  20. Howard Weil 39th Annual Energy Conference – Bill Barrett Corp. – slide 20
    Financial Strength: Better Pricing Differential reduced: CIG to NYMEX (0.38) per MMBtu for 2011-2013 Significant excess capacity plus planned expansion 2011 West Coast Ruby 1.5 Bcf/d and Kern River .4 Bcf/d Premium market access:…
  21. Howard Weil 39th Annual Energy Conference – Bill Barrett Corp. – slide 21
    2 Property Descriptions
  22. Howard Weil 39th Annual Energy Conference – Bill Barrett Corp. – slide 22
    Piceance Basin Gibson Gulch Significant NGL Exposure Williams Fork Formation High liquids content increases Silt 3-Component revenue 3-D Seismic Proved reserves: 634 Bcfe Net production: 135 MMcfe/d 3P reserves 0.8 Tcfe*…
  23. Howard Weil 39th Annual Energy Conference – Bill Barrett Corp. – slide 23
    Uinta Basin West Tavaputs Proved reserves: 345 Bcfe Shallow Wasatch, Mesaverde Net production: 64 MMcfe/d Questar Interconnect Strong economics Prickly Dry Canyon Questar Compressor Site Pear Plan 100 wells 2011 Interconnect…
  24. Howard Weil 39th Annual Energy Conference – Bill Barrett Corp. – slide 24
    Hornfrog: WTP Extension Play Area of Expertise Shallow Wasatch, North Horn, Price River Drill to earn 55% working West Tavaputs interest in up to 30,700 acres. UBFS pipeline Development Area Plan up to 4 well program 2011…
  25. Howard Weil 39th Annual Energy Conference – Bill Barrett Corp. – slide 25
    Blacktail Ridge / Lake Canyon Growing Oil Development Wasatch, Green River Formations 15-10-36 BTR Blacktail Ridge Proved reserves: 7MM Boe 424 MBOE EUR Net production: Infill Strategy High 2,300 Boe/d Gas Area 13-26-36 BTR 7-6-45…
  26. Howard Weil 39th Annual Energy Conference – Bill Barrett Corp. – slide 26
    Blacktail Ridge / Lake Canyon: Horizontal Potential Numerous Upside Measures Producing Intervals Increased density Altamont- Bluebell New horizontal technology BTR-LC applications Up to 4 Uteland Butte horizontal wells 2011…
  27. Howard Weil 39th Annual Energy Conference – Bill Barrett Corp. – slide 27
    McRae Gap Niobrara Oil Niobrara McRae Gap Prospect Legacy Wind River Land Position 101,500 gross, 90,800 net acres, in Niobrara fairway; third party has ability to earn-in 25% Waltman Plan up to 2 wells in 2011 Arch Up to 300+…
  28. Howard Weil 39th Annual Energy Conference – Bill Barrett Corp. – slide 28
    3 Looking Ahead
  29. Howard Weil 39th Annual Energy Conference – Bill Barrett Corp. – slide 29
    2011 Key Action Items Execution Increase NGL revenue through accelerated program at Gibson Gulch Seek to expand Uinta oil position Bring West Tavaputs into full gear, realizing increased operating efficiencies Drive 3P…
  30. Howard Weil 39th Annual Energy Conference – Bill Barrett Corp. – slide 30
    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…
  31. Howard Weil 39th Annual Energy Conference – Bill Barrett Corp. – slide 31
    THANK YOU
  32. Howard Weil 39th Annual Energy Conference – Bill Barrett Corp. – slide 32
    a Appendix Additional Property Detail
  33. Howard Weil 39th Annual Energy Conference – Bill Barrett Corp. – slide 33
    Piceance Basin Cottonwood Gulch 60 million acquisition in June 2009 90% working interest in 40,300 contiguous acres Cottonwood Gulch along main Rulison gas field Silt trend Grand Valley 1,149 Bcfe cum. prod. Gibson Area of…
  34. Howard Weil 39th Annual Energy Conference – Bill Barrett Corp. – slide 34
    Yellow Jacket/Green Jacket Shale Gas Prospects Expansive Prospect Area Gothic & Hovenweep Shales Current Program Increased working interest in prospect to 100% (370,200 net undeveloped acres); Rose well completed 7/10; 30-day IP 1.4…
  35. Howard Weil 39th Annual Energy Conference – Bill Barrett Corp. – slide 35
    Powder River Basin - CBM Current Program Big George Coal Proved reserves: 61 Bcf Net production: 35 MMcf/d Acreage 12/10: 92,500 net (42,345 net undeveloped) Big George Low-risk drilling, primarily Big George coals Play Gilette,…
  36. Howard Weil 39th Annual Energy Conference – Bill Barrett Corp. – slide 36
    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 Net production: 15 MMcfe/d WI: 50-100% BBG…
  37. Howard Weil 39th Annual Energy Conference – Bill Barrett Corp. – slide 37
    b Appendix Economics
  38. Howard Weil 39th Annual Energy Conference – Bill Barrett Corp. – slide 38
    Piceance Basin Gibson Gulch Illustrative Drilling and Completion Costs1 Illustrative Economics2 EUR (Bcfe, gross) 0.93 Gas price per MMBtu 5.00 NRI 82% MMBtu sale adjustment/NGLs/Oil 2.99 EUR (Bcfe, net) 0.76 Realized price per Mcfe…
  39. Howard Weil 39th Annual Energy Conference – Bill Barrett Corp. – slide 39
    Uinta Basin West Tavaputs Illustrative Drilling and Completion Costs1 Illustrative Economics2 EUR (Bcfe, gross) 2.20 Gas price per MMBtu 5.00 NRI 83% Contribution from oil 0.05 EUR (Bcfe, net) 1.83 MMBtu sale adjustment (1100) 0.57…
  40. Howard Weil 39th Annual Energy Conference – Bill Barrett Corp. – slide 40
    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…
  41. Howard Weil 39th Annual Energy Conference – Bill Barrett Corp. – slide 41
    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:…
  42. Howard Weil 39th Annual Energy Conference – Bill Barrett Corp. – slide 42
    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…
  43. Howard Weil 39th Annual Energy Conference – Bill Barrett Corp. – slide 43
    Natural Gas and Oil Hedges - Equivalents As of March 22, 2011 Swaps & Collars Period Natural Gas / NGLs Oil Equivalent Volume Price Volume Price Volume Price (MMBtu/d) (MMBtu) (Bbl/d) (/Bbl) (Mmcfe) (/Mcfe) 1Q11 153,883 6.80 2,038…
  44. Howard Weil 39th Annual Energy Conference – Bill Barrett Corp. – slide 44
    Additional Swap/Collar Format As of March 22, 2011 Natural Gas Period Swaps Collars Basis Volume Price Volume Floor Ceiling Volume Price (MMBtu/d) (/MMBtu) (MMBtu/d) (/MMBtu) (MMBtu) (MMBtu/d) (/MMBtu) 1Q11 137.5 6.14 - - - 20.0…
  45. Howard Weil 39th Annual Energy Conference – Bill Barrett Corp. – slide 45
    Realized Natural Gas Price Components of Realized Price 1Q10 Example Henry Hub 1Q IFERC 5.30 MMBtu Differential (0.16) MMBtu CIG 1Q IFERC 5.14 MMBtu Average hedge price 6.48 MMBtu Percent hedged 69% Percent unhedged 31% Average price…
  46. Howard Weil 39th Annual Energy Conference – Bill Barrett Corp. – slide 46
    c Appendix Reserves & Land
  47. Howard Weil 39th Annual Energy Conference – Bill Barrett Corp. – slide 47
    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…
  48. Howard Weil 39th Annual Energy Conference – Bill Barrett Corp. – slide 48
    Land Summary As of December 2010 Gross Net Undeveloped Average Gross Average BBG Area Acreage Acreage Project NRI Working Interest Development Piceance Gibson Gulch 17,615 6,815 81% 96% Uinta West Tavaputs 44,700 26,400 83% 97%…
  49. Howard Weil 39th Annual Energy Conference – Bill Barrett Corp. – slide 49
    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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