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BARCLAYS CEO ENERGY CONFERENCE – Bill Barrett Corp.

Bill Barrett Corp. · Sep 4, 2014 · 46 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. BARCLAYS CEO ENERGY CONFERENCE – Bill Barrett Corp. – slide 1
    BARCLAYS CEO ENERGY CONFERENCE September 2014
  2. BARCLAYS CEO ENERGY CONFERENCE – Bill Barrett Corp. – slide 2
    Company Overview 2.2 billion enterprise value 1.1 billion market cap Proved reserves: 197 MMBoe 42% oil; 42% proved developed Total risked resources: 587 MMBoe Long-term drilling inventory with 5,400 gross oil and gas locations…
  3. BARCLAYS CEO ENERGY CONFERENCE – Bill Barrett Corp. – slide 3
    Company Vision and Strategy Build a sustainable oil and gas resource development business with an asset portfolio that offers enough concentration, scale and optionality to realize high operational efficiency, provide competitive growth,…
  4. BARCLAYS CEO ENERGY CONFERENCE – Bill Barrett Corp. – slide 4
    Delivering High Growth from Core Oil Programs Production (MMBoe) Operating Cash Flow* (MM) 8 400 6 300 4 200 2 100 0 0 2010 2011 2012 2013 2014e 2010 2011 2012 2013 2014e DJ UOP DJ UOP Focused capital program on…
  5. BARCLAYS CEO ENERGY CONFERENCE – Bill Barrett Corp. – slide 5
    Increasing Oil Production Drives Increasing Profitability Proved Reserves (MMBoe) Operating Margin/Boe () 50 200 40 30 DJ 100 UOP Piceance* 20 10 0 2009 2010 2011 2012 2013 0 2012 2013 2014e Operating margin up…
  6. BARCLAYS CEO ENERGY CONFERENCE – Bill Barrett Corp. – slide 6
    Financial Strength and Flexibility Successfully transitioned to oil-focused portfolio Borrowing base of 625 million (re-affirmed Spring 2014) with 349 million of liquidity Growing proportion of revenue from liquids positions Company…
  7. BARCLAYS CEO ENERGY CONFERENCE – Bill Barrett Corp. – slide 7
    Hedging Provides Price Predictability Hedge on a 12-month forward basis to reduce risk and support capital expenditure program 2H14: 4.1 MMBoe; Oil: 10,600 Bbls/d at 93.93/Bbl; natural gas: 68,315 MMBtu/d at 3.95/MMBtu 2015: 5.2…
  8. BARCLAYS CEO ENERGY CONFERENCE – Bill Barrett Corp. – slide 8
    Value Creation: 2014 Plan 2014 Objectives Capitalize on commodity balance by allocating capital to highest return assets and achieving increased profit margins Deliver unrealized value from DJ Basin oil development Strengthen returns…
  9. BARCLAYS CEO ENERGY CONFERENCE – Bill Barrett Corp. – slide 9
    DJ BASIN
  10. BARCLAYS CEO ENERGY CONFERENCE – Bill Barrett Corp. – slide 10
    DJ Basin: Lots of Running Room Niobrara and Codell Formations Prime land position: 76,300 net acres Northeast Wattenberg: 40,875 net acres Chalk Bluffs: 22,360 net acres Wattenberg interior: 13,050 net acres Target Niobrara and…
  11. BARCLAYS CEO ENERGY CONFERENCE – Bill Barrett Corp. – slide 11
    Northeast Wattenberg: Prime Position Among Peers Excellent position yet to be fully valued Located between BCEI positions Niobrara Formation Adjacent to NBL Wells Ranch East Pony/ BCEI Redtail Successful extended reach SYRG…
  12. BARCLAYS CEO ENERGY CONFERENCE – Bill Barrett Corp. – slide 12
    DJ Basin Undeveloped Location Inventory 844 Net Undeveloped Locations Total Gross: 1,697 94 130 Core Wattenberg 43 NE Wattenberg (North) NE Wattenberg (South) 228 NE Wattenberg 349 (Western) Chalk Bluffs Based on…
  13. BARCLAYS CEO ENERGY CONFERENCE – Bill Barrett Corp. – slide 13
    DJ Basin: Production Growth DJ Basin Net Production and Gross Operated Horizontal Wells Spud 8,000 7,125 6,000 Boe/d 4,000 1,565 2,000 0 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 Operated Wells spud 13 7 2 10 21…
  14. BARCLAYS CEO ENERGY CONFERENCE – Bill Barrett Corp. – slide 14
    DJ Basin Operating Efficiencies Average 4,000 Lateral Drilling Average Drilling Cost per Foot Days 18 17.1 200 173 11.8 150 12 10.1 108 97 100 6 50 0 2012 2013 2014 YTD 0 2012 2013 2014 YTD Standard reach…
  15. BARCLAYS CEO ENERGY CONFERENCE – Bill Barrett Corp. – slide 15
    Northeast Wattenberg Driving Value Through Downspacing 5,280 Actively evaluating four downspacing pilots Two 9,000 lateral B Bench wells Two 9,000 lateral C Bench wells staggered beneath B Bench locations All testing areas on…
  16. BARCLAYS CEO ENERGY CONFERENCE – Bill Barrett Corp. – slide 16
    Northeast Wattenberg Driving Growth and Returns with XRLs Extended Reach Lateral Program Northern Block 23 extended reach laterals spud year-to-date 12 in Northern Block Western Block 11 in Southern Block 4-well pad: 7,500 laterals…
  17. BARCLAYS CEO ENERGY CONFERENCE – Bill Barrett Corp. – slide 17
    UINTA OIL PROGRAM
  18. BARCLAYS CEO ENERGY CONFERENCE – Bill Barrett Corp. – slide 18
    Uinta Oil Program Large, Scalable Program: 150,000 net acres Wasatch, Green River Formations East Bluebell: 23,030 net acres Blacktail Ridge/Lake Canyon: 107,650* net acres South Altamont: 20,520 net acres Driving Steady Growth…
  19. BARCLAYS CEO ENERGY CONFERENCE – Bill Barrett Corp. – slide 19
    Uinta Basin: Well Positioned Among Peers Wasatch, Green River Formations DVN EP CPG CPG QEP NFX UPL NFX LINN 10 Miles BBG Acreage New entrants driving growth and technological change in basin 20
  20. BARCLAYS CEO ENERGY CONFERENCE – Bill Barrett Corp. – slide 20
    UOP: Undeveloped Location Inventory Risked Resources (171 MMBoe) 785 Net Drilling Locations (Gross 1,795) 124 42 137 92 37 524 Blacktail Ridge/Lake Canyon Blacktail Ridge/Lake Canyon East Bluebell East Bluebell South…
  21. BARCLAYS CEO ENERGY CONFERENCE – Bill Barrett Corp. – slide 21
    UOP: East Bluebell Execution East Bluebell Program Offers Substantial Upside 37,480 gross/23,030 net acres Lower Green River Planned development on 80-acre spacing with further downspacing potential Vertical wells targeting Lower…
  22. BARCLAYS CEO ENERGY CONFERENCE – Bill Barrett Corp. – slide 22
    UOP: East Bluebell Production Growth East Bluebell Net Production and Gross Operated Wells Spud 4,000 3,030 3,000 Boe/d 2,000 1,435 1,000 0 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 Operated Wells spud 4 3 6 9 5 0…
  23. BARCLAYS CEO ENERGY CONFERENCE – Bill Barrett Corp. – slide 23
    East Bluebell Production Efficiencies Average Drilling Days Average Drilling Cost per Foot 20.0 200 18.1 184 15.0 14.3 150 113 10.0 10.0 100 93 5.0 50 0.0 0 2012 2013 2014 YTD 2012 2013 2014 YTD Operating…
  24. BARCLAYS CEO ENERGY CONFERENCE – Bill Barrett Corp. – slide 24
    UOP: East Bluebell 2014 Results Lower Green River 2014 Wells with 90-day IP Rates to-date: (Bbls/d) 30-day IP 60-day IP 90-day IP 14 well 189 177 165 average 2014 D & C costs down 20% v 2013 Expanded 2014 program to 44…
  25. BARCLAYS CEO ENERGY CONFERENCE – Bill Barrett Corp. – slide 25
    East Bluebell: Unlocking Value with Continued Delineation Fort Duschene Fort Duchesne Aurora Year-end 2013: Year-end 2013: Net Acreage (2Q): 17,000 Net Acreage (2Q): 6,030 % Delineated: 30% % Delineated: 60% Proved Reserves*…
  26. BARCLAYS CEO ENERGY CONFERENCE – Bill Barrett Corp. – slide 26
    Compelling Valuation Enterprise value approximates Proved PV10 1.9B Proved PV10* Plus unrecognized additional value from + 273 MMBoe probable, possible, risked resources at DJ and UOP programs + 2014 Drilling adds + Upside potential…
  27. BARCLAYS CEO ENERGY CONFERENCE – Bill Barrett Corp. – slide 27
    Value Creation Opportunity Execution, Execution, Execution Capitalize on commodity balance by allocating capital to highest return assets and achieving increased profit margins Deliver unrealized value from DJ Basin oil development…
  28. BARCLAYS CEO ENERGY CONFERENCE – Bill Barrett Corp. – slide 28
    APPENDIX
  29. BARCLAYS CEO ENERGY CONFERENCE – Bill Barrett Corp. – slide 29
    2014 Guidance Capital program 100% directed at oil growth Total capital of 500-550 million Finance through discretionary cash 2014 Capital % by Area flow, asset sales and credit facility Capex allocation 75% DJ Basin Uinta Oil 20%…
  30. BARCLAYS CEO ENERGY CONFERENCE – Bill Barrett Corp. – slide 30
    Natural Gas and Oil Hedges As of August 28, 2014 Swaps Period Oil Natural Gas NGLs* Volume WTI Price Volume NWPL Price Volume Price (Bbls/d) (/Bbl) (MMBtu/d) (MMBtu) Bbls/d (/Bbl) 3Q14 10,600 93.98 65,000 4.02 1,029 60.18 4Q14…
  31. BARCLAYS CEO ENERGY CONFERENCE – Bill Barrett Corp. – slide 31
    Capital Structure As of 6/30/2014 Revolving Credit Facility due 2016 250 Borrowing Base 625 5.000% Convertible Notes due 2028 (March 2015 Put) (currently callable) 25 7.625% Senior Notes due 2019 (callable 10/15) 400 7.000%…
  32. BARCLAYS CEO ENERGY CONFERENCE – Bill Barrett Corp. – slide 32
    Manageable Debt Levels Well-spaced debt maturities Bank credit facility of 625 million, 250 million drawn (as of 6/30/14) Liquidity: 349 million (as of 6/30/14) Debt Maturity Schedule 450 7.000% Lease Notes 400 Financing 350…
  33. BARCLAYS CEO ENERGY CONFERENCE – Bill Barrett Corp. – slide 33
    DJ Basin Infrastructure Existing local oil refining capacity and rail infrastructure 350mbbls/d Capacity Capacity Expansion Projects Timing (MBbls/d) Pony Express Pipeline 230 3Q14 White Cliffs Expansion 75 3Q14 Pony Express DJ…
  34. BARCLAYS CEO ENERGY CONFERENCE – Bill Barrett Corp. – slide 34
    DJ Basin Infrastructure Expected Capacities Cheyenne Crude Terminal 52mbbls/d Pony Express Conversion 3Q14: 230-320mbbls/d Pony Express NE CO Lateral 1Q15: 90mbbls/d Suncor Refinery: 96MBbls/d White Cliffs Pipeline…
  35. BARCLAYS CEO ENERGY CONFERENCE – Bill Barrett Corp. – slide 35
    Uinta Oil Program Operator Current Black/Yellow Black/Yellow Capacity Capacity (MBbls/d) Expansions (MBbls/d) Chevron 15,000 5,000 Tesoro 15,000-20,000 20,000 Holly Frontier 10,000 14,000 Big West 15,000 - Silver Eagle 12,000 -…
  36. BARCLAYS CEO ENERGY CONFERENCE – Bill Barrett Corp. – slide 36
    Northeast Wattenberg: 70% Delineated Based on Proved Reserves Northern Block: Net Acreage 17,700 % Delineated* 95% Proved Reserves (MMBoe) 39.1 Risked Resources (MMBoe): 73.7 Undrilled Locations Western Block: Northern Block…
  37. BARCLAYS CEO ENERGY CONFERENCE – Bill Barrett Corp. – slide 37
    Northeast Wattenberg Results NE Wattenberg 4,000 Lateral Average* 30-day Rates by Area and Target Zone (Boe/d) Northern Block Southern Block Western Block Total Nio. B 366 467 688 417 Nio. C 303 364 551 497 Codell - - 420 420 Total…
  38. BARCLAYS CEO ENERGY CONFERENCE – Bill Barrett Corp. – slide 38
    DJ Basin Illustrative Economics Illustrative Economics: Illustrative Economics: Illustrative Economics: EUR (MBoe, Gross) 450 EUR (MBoe, Gross) 337 EUR (MBoe, Gross) 883 Total D&C Capital (MM) 4.2 Total D&C Capital (MM) 4.2 Total…
  39. BARCLAYS CEO ENERGY CONFERENCE – Bill Barrett Corp. – slide 39
    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…
  40. BARCLAYS CEO ENERGY CONFERENCE – Bill Barrett Corp. – slide 40
    East Bluebell Economics Illustrative Economics: EUR (MBoe, Gross) 212 Total D&C Capital (MM) 2.5 Rate of Return 60% WTI for 10% ROR 52.50 1st year decline 60% Terminal decline 7% Vertical Well Depth 9,000 Oil: 97%; Gas…
  41. BARCLAYS CEO ENERGY CONFERENCE – Bill Barrett Corp. – slide 41
    Powder Deep Oil Program Stacked oil play providing positive results, but not part of long-term future 161,160 gross / 67,980 net acres Production: 1,650 Boe/d (2Q14) Multiple oil plays show good results in Shannon, Sussex,…
  42. BARCLAYS CEO ENERGY CONFERENCE – Bill Barrett Corp. – slide 42
    Solid, Low-Cost Reserve Replacement 350 million increase in Pretax PV10 8.30/Boe 2013 F&D cost 400% production replacement 65% proved oil reserve growth Net MMBoe 195.0 -14.5 57.0 197.0 -40.5 2013 Production 1.4 Billion…
  43. BARCLAYS CEO ENERGY CONFERENCE – Bill Barrett Corp. – slide 43
    Low-risk, Long-term Growth Profile 88% growth in proved reserves at three active oil programs 80% growth in risked resources at three active oil programs 350 million increase in Pretax PV10 8.30/Boe 2013 F&D cost Year-end 2013 Proved…
  44. BARCLAYS CEO ENERGY CONFERENCE – Bill Barrett Corp. – slide 44
    2014 Guidance Profitable growth from core oil programs and maintaining capital discipline Total capital expenditures of 500 - 550 million Production: 11.0-12.2 MMBoe 62 - 67 million lease operating expense 43 - 48 million gathering,…
  45. BARCLAYS CEO ENERGY CONFERENCE – Bill Barrett Corp. – slide 45
    Land Summary As of June 30, 2014 Average Gross Project Average BBG Working Area Gross Acreage Net Acreage NRI Interest Active Oil Properties Uinta Basin Uinta Oil Program Blacktail Ridge/Lake Canyon 126,985 56,710 82% 51% Minimum to…
  46. BARCLAYS CEO ENERGY CONFERENCE – Bill Barrett Corp. – slide 46

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