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Macquarie Future of Energy 2011 Global Energy Conference – Bill Barrett Corp.

Bill Barrett Corp. · May 26, 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. Macquarie Future of Energy 2011 Global Energy Conference – Bill Barrett Corp. – slide 1
    Macquarie Global Energy Conference May 2011 1
  2. Macquarie Future of Energy 2011 Global 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 1.9 billion market capitalization / 2.4…
  3. Macquarie Future of Energy 2011 Global 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. Macquarie Future of Energy 2011 Global Energy Conference – Bill Barrett Corp. – slide 4
    1 Reasons to Invest in BBG
  5. Macquarie Future of Energy 2011 Global 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. Macquarie Future of Energy 2011 Global 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. Macquarie Future of Energy 2011 Global 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. Macquarie Future of Energy 2011 Global 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. Macquarie Future of Energy 2011 Global Energy Conference – Bill Barrett Corp. – slide 9
    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…
  10. Macquarie Future of Energy 2011 Global Energy Conference – Bill Barrett Corp. – slide 10
    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…
  11. Macquarie Future of Energy 2011 Global Energy Conference – Bill Barrett Corp. – slide 11
    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…
  12. Macquarie Future of Energy 2011 Global 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. Macquarie Future of Energy 2011 Global 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…
  14. Macquarie Future of Energy 2011 Global 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, growing oil resource exposure Net Gas Upside (Tcfe) Approximate 3P Gas…
  15. Macquarie Future of Energy 2011 Global 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. Macquarie Future of Energy 2011 Global 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. Macquarie Future of Energy 2011 Global 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. Macquarie Future of Energy 2011 Global Energy Conference – Bill Barrett Corp. – slide 18
    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…
  19. Macquarie Future of Energy 2011 Global Energy Conference – Bill Barrett Corp. – slide 19
    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…
  20. Macquarie Future of Energy 2011 Global Energy Conference – Bill Barrett Corp. – slide 20
    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…
  21. Macquarie Future of Energy 2011 Global Energy Conference – Bill Barrett Corp. – slide 21
    2 Property Descriptions
  22. Macquarie Future of Energy 2011 Global Energy Conference – Bill Barrett Corp. – slide 22
    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…
  23. Macquarie Future of Energy 2011 Global Energy Conference – Bill Barrett Corp. – slide 23
    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…
  24. Macquarie Future of Energy 2011 Global Energy Conference – Bill Barrett Corp. – slide 24
    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…
  25. Macquarie Future of Energy 2011 Global 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 N Infill Strategy Net production: High 2,450 Boe/d Gas Area 13-26-36 BTR…
  26. Macquarie Future of Energy 2011 Global Energy Conference – Bill Barrett Corp. – slide 26
    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…
  27. Macquarie Future of Energy 2011 Global Energy Conference – Bill Barrett Corp. – slide 27
    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…
  28. Macquarie Future of Energy 2011 Global Energy Conference – Bill Barrett Corp. – slide 28
    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+…
  29. Macquarie Future of Energy 2011 Global Energy Conference – Bill Barrett Corp. – slide 29
    3 Looking Ahead
  30. Macquarie Future of Energy 2011 Global Energy Conference – Bill Barrett Corp. – slide 30
    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…
  31. Macquarie Future of Energy 2011 Global Energy Conference – Bill Barrett Corp. – slide 31
    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…
  32. Macquarie Future of Energy 2011 Global Energy Conference – Bill Barrett Corp. – slide 32
    THANK YOU
  33. Macquarie Future of Energy 2011 Global Energy Conference – Bill Barrett Corp. – slide 33
    a Appendix Additional Property Detail
  34. Macquarie Future of Energy 2011 Global Energy Conference – Bill Barrett Corp. – slide 34
    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 field Silt trend Grand Valley 1,149 Bcfe cum. prod. Gibson Area of…
  35. Macquarie Future of Energy 2011 Global Energy Conference – Bill Barrett Corp. – slide 35
    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…
  36. Macquarie Future of Energy 2011 Global Energy Conference – Bill Barrett Corp. – slide 36
    Powder River Basin - CBM Current Program Big George Coal Proved reserves: 61 Bcf Net production: 36 MMcf/d Acreage 12/10: 92,500 net (42,345 net undeveloped) Big George Low-risk drilling, primarily Big George coals Play Gilette,…
  37. Macquarie Future of Energy 2011 Global Energy Conference – Bill Barrett Corp. – slide 37
    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: 16 MMcfe/d WI: 50-100% BBG…
  38. Macquarie Future of Energy 2011 Global Energy Conference – Bill Barrett Corp. – slide 38
    b Appendix Economics
  39. Macquarie Future of Energy 2011 Global Energy Conference – Bill Barrett Corp. – slide 39
    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…
  40. Macquarie Future of Energy 2011 Global Energy Conference – Bill Barrett Corp. – slide 40
    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…
  41. Macquarie Future of Energy 2011 Global Energy Conference – Bill Barrett Corp. – slide 41
    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…
  42. Macquarie Future of Energy 2011 Global Energy Conference – Bill Barrett Corp. – slide 42
    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:…
  43. Macquarie Future of Energy 2011 Global Energy Conference – Bill Barrett Corp. – slide 43
    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…
  44. Macquarie Future of Energy 2011 Global Energy Conference – Bill Barrett Corp. – slide 44
    Natural Gas and Oil Hedges - Equivalents As of April 29, 2011 Swaps & Collars Period Natural Gas / NGLs Oil Equivalent Volume Price Volume Price Volume Price (MMBtu/d) (MMBtu) (Bbl/d) (/Bbl) (Mmcfe) (/Mcfe) 2Q11 187,013 6.23 2,900…
  45. Macquarie Future of Energy 2011 Global Energy Conference – Bill Barrett Corp. – slide 45
    Additional Swap/Collar Data As of April 29, 2011 Natural Gas Period Swaps Collars Basis Volume Price Volume Floor Ceiling Volume Price (BBtu/d) (/MMBtu) (BBtu/d) (/MMBtu) (MMBtu) (BBtu/d) (/MMBtu) 2Q11 155.9 5.49 10.0 4.75 6.00…
  46. Macquarie Future of Energy 2011 Global Energy 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. Macquarie Future of Energy 2011 Global Energy Conference – Bill Barrett Corp. – slide 47
    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…
  48. Macquarie Future of Energy 2011 Global Energy Conference – Bill Barrett Corp. – slide 48
    c Appendix Reserves & Land
  49. Macquarie Future of Energy 2011 Global Energy 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. Macquarie Future of Energy 2011 Global Energy Conference – Bill Barrett Corp. – slide 50
    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%…
  51. Macquarie Future of Energy 2011 Global Energy Conference – Bill Barrett Corp. – slide 51
    54 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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