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Bank of America Merrill Lynch Leveraged Finance Conference – Bill Barrett Corp.

Bill Barrett Corp. · Dec 2, 2011 · 51 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. Bank of America Merrill Lynch Leveraged Finance Conference – Bill Barrett Corp. – slide 1
    Bank of America Merrill Lynch Leveraged Finance Conference December 2011 1
  2. Bank of America Merrill Lynch Leveraged Finance Conference – Bill Barrett Corp. – slide 2
    Who We Are Premier E & P growth story, strategically focused on prolific Rocky Mountain oil and gas region Growth visibility from development assets Proven management team with expertise in the area Long-term record of profitable,…
  3. Bank of America Merrill Lynch Leveraged Finance Conference – Bill Barrett Corp. – slide 3
    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…
  4. Bank of America Merrill Lynch Leveraged Finance Conference – Bill Barrett Corp. – slide 4
    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…
  5. Bank of America Merrill Lynch Leveraged Finance Conference – Bill Barrett Corp. – slide 5
    1 Reasons to Invest in BBG
  6. Bank of America Merrill Lynch Leveraged Finance Conference – Bill Barrett Corp. – slide 6
    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,…
  7. Bank of America Merrill Lynch Leveraged Finance Conference – Bill Barrett Corp. – slide 7
    Development Programs Commodity balance Expanding oil Uinta and DJ Basins NGL exposure Piceance and DJ Basins Gas growth Uinta Basin Low risk reserves; high working interest; 98% operated Growth on demand Lower risk 3P Target…
  8. Bank of America Merrill Lynch Leveraged Finance Conference – Bill Barrett Corp. – slide 8
    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…
  9. Bank of America Merrill Lynch Leveraged Finance Conference – Bill Barrett Corp. – slide 9
    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…
  10. Bank of America Merrill Lynch Leveraged Finance Conference – Bill Barrett Corp. – slide 10
    Sizable Upside Exposure Extensive portfolio active projects 1.2 million net undeveloped acres Commitment to exploration Exploratory stepouts: Extensions Typhon Grass root, large scale, resource plays McRae Shale exposure (oil…
  11. Bank of America Merrill Lynch Leveraged Finance Conference – Bill Barrett Corp. – slide 11
    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 1.76…
  12. Bank of America Merrill Lynch Leveraged Finance Conference – Bill Barrett Corp. – slide 12
    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…
  13. Bank of America Merrill Lynch Leveraged Finance Conference – Bill Barrett Corp. – slide 13
    Financial Strength and Flexibility: Balance Sheet & Hedging Strong balance sheet offers flexibility and illustrates financial discipline Maintain strong, stable capitalization Maintain BB/Ba or better leverage metrics 874 million…
  14. Bank of America Merrill Lynch Leveraged Finance Conference – Bill Barrett Corp. – slide 14
    Financial Strength: Pro Forma Capitalization ( in millions) Actual Actual 6/30/2011 9/30/2011 Cash & Cash Equivalents 40 105 Revolving Credit Facility due 2016 145 - (1) Borrowing Base as of November 30, 2011 800 1,100 (2)…
  15. Bank of America Merrill Lynch Leveraged Finance Conference – Bill Barrett Corp. – slide 15
    Debt Instruments Senior (secured) revolving credit facility 900 million commitments 1.1 billion borrowing base Currently undrawn (26 million letter of credit outstanding) Matures October 2016 5% convertible senior notes Unsecured,…
  16. Bank of America Merrill Lynch Leveraged Finance Conference – Bill Barrett Corp. – slide 16
    2 Property Descriptions
  17. Bank of America Merrill Lynch Leveraged Finance Conference – Bill Barrett Corp. – slide 17
    Piceance Basin Gibson Gulch Significant NGL Exposure Williams Fork Formation High liquids content Silt N increases revenue 3-Component 3-D Seismic Proved reserves: 634 Bcfe Net production: 138 Gibson Gulch MMcfe/d 3P reserves 0.8…
  18. Bank of America Merrill Lynch Leveraged Finance Conference – Bill Barrett Corp. – slide 18
    Uinta Basin West Tavaputs Proved reserves: 345 Bcfe Shallow Wasatch, Mesaverde Net production: 100 Questar MMcfe/d Interconnect N Prickly Dry Canyon Plan 100 wells 2011 Pear Questar Interconnect Compressor Site 1.3 Tcfe1 3P…
  19. Bank of America Merrill Lynch Leveraged Finance Conference – Bill Barrett Corp. – slide 19
    Uinta Oil Program Growing Oil Development N Projected oil fairway Proved reserves: Altamont/Bluebell 7MM Boe Cum: 312 MMBo/539 Bcf + 5MM Boe East Blacktail Ridge Roosevelt East Bluebell Acquisition Bluebell acquisition Net…
  20. Bank of America Merrill Lynch Leveraged Finance Conference – Bill Barrett Corp. – slide 20
    Uinta Oil Program Blacktail Ridge/Lake Canyon Wasatch, Green River Formations 15-10-36 BTR Blacktail Ridge Multi-pay fractured oil 540 MBOE EUR N Mahogany Test Infill Strategy Significant horizontal upside High Gas Area Successful…
  21. Bank of America Merrill Lynch Leveraged Finance Conference – Bill Barrett Corp. – slide 21
    DJ Basin Acquisition 50 Miles Expands our oil footprint Wattenberg production, vertical Sagebrush primarily from Codell and Niobrara 7 MMBoe net proved reserves Silo Field 28,000 net acres acquired Chalk Bluffs Lower risk…
  22. Bank of America Merrill Lynch Leveraged Finance Conference – Bill Barrett Corp. – slide 22
    3 Looking Ahead
  23. Bank of America Merrill Lynch Leveraged Finance Conference – Bill Barrett Corp. – slide 23
    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…
  24. Bank of America Merrill Lynch Leveraged Finance Conference – Bill Barrett Corp. – slide 24
    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…
  25. Bank of America Merrill Lynch Leveraged Finance Conference – Bill Barrett Corp. – slide 25
    THANK YOU
  26. Bank of America Merrill Lynch Leveraged Finance Conference – Bill Barrett Corp. – slide 26
    a Appendix Additional Property Detail
  27. Bank of America Merrill Lynch Leveraged Finance Conference – Bill Barrett Corp. – slide 27
    Upside Exposure: Natural Gas Exploration Extensive portfolio 600,000+ 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…
  28. Bank of America Merrill Lynch Leveraged Finance Conference – Bill Barrett Corp. – slide 28
    Upside Exposure: Oil Exploration Extensive portfolio Nearly 600,000 net undeveloped acres targeting oil Multiple shale and reservoir challenged oil targets in multiple basins New technology at existing plays Typhon Rockies oil…
  29. Bank of America Merrill Lynch Leveraged Finance Conference – Bill Barrett Corp. – slide 29
    Uinta Oil Program Numerous Upside Depth Producing Intervals Opportunities Blacktail Ridge Altamont- Monument Butte Bluebell Region Region Increased density Black Wax New horizontal technology applications Up to 7 Uteland…
  30. Bank of America Merrill Lynch Leveraged Finance Conference – Bill Barrett Corp. – slide 30
    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 Silt field trend Grand Valley Rulison 1,149 Bcfe cum. prod. 855 Bcfe…
  31. Bank of America Merrill Lynch Leveraged Finance Conference – Bill Barrett Corp. – slide 31
    Yellow Jacket/Green Jacket Shale Gas Prospects Expansive Prospect Area Gothic & Hovenweep Shales Current Program Increased working interest in prospect to 100% (347,000 net undeveloped acres); Rose well completed 7/10; 30-day IP 1.4…
  32. Bank of America Merrill Lynch Leveraged Finance Conference – Bill Barrett Corp. – slide 32
    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…
  33. Bank of America Merrill Lynch Leveraged Finance Conference – Bill Barrett Corp. – slide 33
    Powder River Basin - CBM Current Program Big George Coal Proved reserves: 61 Bcf Net production: 38 MMcf/d Acreage 9/11: 40,400 net undeveloped Big George Low-risk drilling, primarily Big George Play coals Gillette, WY Cat Creek…
  34. Bank of America Merrill Lynch Leveraged Finance Conference – Bill Barrett Corp. – slide 34
    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: 14 MMcfe/d WI: 50-100% BBG…
  35. Bank of America Merrill Lynch Leveraged Finance Conference – Bill Barrett Corp. – slide 35
    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+…
  36. Bank of America Merrill Lynch Leveraged Finance Conference – Bill Barrett Corp. – slide 36
    b Appendix Illustrative Economics & Financial Data
  37. Bank of America Merrill Lynch Leveraged Finance Conference – Bill Barrett Corp. – slide 37
    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…
  38. Bank of America Merrill Lynch Leveraged Finance Conference – Bill Barrett Corp. – slide 38
    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)…
  39. Bank of America Merrill Lynch Leveraged Finance Conference – Bill Barrett Corp. – slide 39
    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…
  40. Bank of America Merrill Lynch Leveraged Finance Conference – Bill Barrett Corp. – slide 40
    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:…
  41. Bank of America Merrill Lynch Leveraged Finance Conference – Bill Barrett Corp. – slide 41
    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…
  42. Bank of America Merrill Lynch Leveraged Finance 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. Bank of America Merrill Lynch Leveraged Finance Conference – Bill Barrett Corp. – slide 43
    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…
  44. Bank of America Merrill Lynch Leveraged Finance Conference – Bill Barrett Corp. – slide 44
    Natural Gas and Oil Hedges - Equivalents As of October 31, 2011 Swaps & Collars Period Natural Gas / NGLs Oil Equivalent Volume Price Volume Price Volume Price (MMBtu/d) (MMBtu) (Bbl/d) (/Bbl) (MMcfe) (/Mcfe) 4Q11 202,221 5.82…
  45. Bank of America Merrill Lynch Leveraged Finance Conference – Bill Barrett Corp. – slide 45
    Additional Swap/Collar Data As of October 31, 2011 Natural Gas Period Swaps Collars Basis Volume Price Volume Floor Ceiling Volume Price (BBtu/d) (/MMBtu) (BBtu/d) (/MMBtu) (MMBtu) (BBtu/d) (/MMBtu) 4Q11 182.6 5.14 3.4 4.75 6.00…
  46. Bank of America Merrill Lynch Leveraged Finance Conference – Bill Barrett Corp. – slide 46
    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…
  47. Bank of America Merrill Lynch Leveraged Finance Conference – Bill Barrett Corp. – slide 47
    Competitive Gas Prices Regional pricing differential currently (0.20)/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…
  48. Bank of America Merrill Lynch Leveraged Finance Conference – Bill Barrett Corp. – slide 48
    c Appendix Reserves & Land
  49. Bank of America Merrill Lynch Leveraged Finance Conference – Bill Barrett Corp. – slide 49
    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…
  50. Bank of America Merrill Lynch Leveraged Finance Conference – Bill Barrett Corp. – slide 50
    Land Summary As of September 2011 Gross Net Undeveloped Average Gross Average BBG Area Acreage Acreage Project NRI Working Interest Development Piceance Gibson Gulch 17,790 6,480 81% 96% Uinta West Tavaputs 39,820 21,280 83% 97%…
  51. Bank of America Merrill Lynch Leveraged Finance Conference – Bill Barrett Corp. – slide 51
    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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