Skip to main content JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. Investor Presentation | Shale Experts
Loading...
Pm

JANUARY 2012 INVESTOR DAY – Bill Barrett Corp.

Bill Barrett Corp. · Jan 24, 2012 · 103 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. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 1
    INVESTOR DAY January 2012 1
  2. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 2
    Welcome Speaking today: Fred Barrett, Chairman, CEO and President Kurt Reinecke, EVP Exploration Anna Young, Senior Reservoir Engineer (Uinta Basin) Scot Woodall, Chief Operating Officer With us today: Bob Howard, Chief Financial…
  3. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 3
    Agenda 7:30 Kick-off Opening Comments Uinta Oil Program Uinta Oil Q&A 9:30-10:00 Break Actual timing of webcast break may vary 10:00 Total Company Outlook Review of Key Assets and Exploration Portfolio Corporate Strategy, Plan &…
  4. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 4
    Introduction Fred Barrett
  5. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 5
    Key Messages 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 flexibility 2.…
  6. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 6
    Transformative Oil & Liquids Growth: Successfully Repositioning Portfolio Long-term development inventory heavily weighted toward oil and NGLs Substantial 3P inventory supports growth Approximately 700 net locations: (825 Dry Gas…
  7. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 7
    Transformative Oil & Liquids Growth Our portfolio has the flexibility to increase liquids proportion to 40% 27% oil and NGLs 2011 Driving significant oil growth 2011 Production Oil NGLs 7% 20% Dry Gas 73% 8
  8. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 8
    Transformative Cash Flow Growth Increasing scale and delivering step change growth in cash flow 1000 Recent Price Volatility (millions) 500 0 2011 2012 2013 2014 Capex Cash Flow Forecast spending gap next two…
  9. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 9
    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…
  10. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 10
    Maintain Financial Strength & Flexibility Utilize leverage to drive step change growth yet maintain modest debt metrics Debt:EBITDAX approximately 2.5X at peak Peer average 2.9X Debt : EBITDAX 2.5X 2.3X 2. 1X 1.7X 2011e…
  11. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 11
    Strict Operational Discipline Focused on Strong Cash Margins Maintaining strong margins despite difficult commodity prices Discretionary Cash Flow per Mcfe 6.00 4.40-5.10 4.84 4.25-4.90 5.00 4.43-4.48 0.06 1.40 0.67 3.80-4.20…
  12. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 12
    Announced this morning: Strong 2011 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 300% growth in oil reserves 2011…
  13. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 13
    Continuing to Deliver a Track Record of Profitable Growth Proved Reserves1 (Bcfe) Production (Bcfe) 1365 1118 106.8 965 96.5 818 89.7 558 77.6 61.2 Dec 2007 Dec 2008 Dec 2009 Dec 2010 Dec 2011E 382% 436% 264% 263% 331% 2007…
  14. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 14
    Uinta Oil Program Kurt Reinecke & Anna Young
  15. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 15
    Uinta Oil Program Discussion Agenda Kurt Reinecke Take aways BBG history in area Geology Depositional environment Basin chronology Basin geology Anna Young Opening comments History and development to date Uteland Butte 3P…
  16. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 16
    Uinta Oil Program Key Take Aways 1. This is Altamont-Bluebell, not Monument Butte 2. Thick in-place Green River and Wasatch oil column yet to be recovered 3. Large prospective oil area to be developed 4. Sizable oil upside via new…
  17. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 17
    Uinta Oil Program Building BBGs Position Long-term expertise in area 1980s Huge resource potential (1996 DOE study) OOIP estimated at 20mmbo/mi2 along Altamont-Bluebell trend Primary recovery 4-6% Altamont-Bluebell covers 477 mi2 (…
  18. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 18
    Depositional Environment: Wasatch/Green River Formations are 34-56 mya Altamont Deposition of Paleo-Lake trends Bluebell southwest from known fields Denver Altamont-Bluebell development targets northern shore facies Monument…
  19. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 19
    Depositional Environment: Lake Levels Oscillate, Reservoirs Stack Alluvial fan deltas Monument Butte: North Sand Thinner dunes Targets Lake Mud Uinta flats Shallow shelf Altamont- South Bluebell: Thick Carbonate…
  20. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 20
    The Producing Interval: Geology Changes from South to North Monument Butte Discontinuous sands Altamont/Bluebell/BTR West Tavaputs Sourced from down dip. Northerly sourced reservoirs S Updip too cool to flow pinch out southward and…
  21. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 21
    Pay Intervals Significantly Thicker to the North Thickness of completion interval: Despite moderately thick gross interval at Monument Butte, MB A/B only selected zones are targeted while in the Altamont-Bluebell trend a higher…
  22. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 22
    TD v. Time Plot Altamont Bluebell and Blacktail Ridge Bbls TD Oil/day TD of Infill to Monument 2 wells Butte per 640 acres 100,000 Humble (49) 10,000 1,000 100 Shell (70) 10 23
  23. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 23
    Other Operators Concentrated Ownership El Paso Ute EB SA QEP BTR Ute LC Anadarko Newfield Berry EOG XTO WTP HF BBG Acreage Gas Production Oil Production 24
  24. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 24
    Basin Drill Depths: Deeper to the North 11,000 TVD 6,000 TVD 1,000 TVD Top of Lower Green River (CI=1,000) 25
  25. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 25
    Basin Cums (MBoe) Due to well age, cums close to EUR Altamont-Bluebell cums 250MBoe are common, many over 1,000MBoe Cums in Monument Butte…
  26. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 26
    Gas/Oil Ratio in Blacktail Ridge Area Altamont-Bluebell GORs regionally increase updip southward to 2,000 scf/bbl BBG GORs are 4,000scf/bbl Brundage Canyon/ Monument Butte GORs increase westward (updip), with some Green…
  27. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 27
    Basin Reservoir Pressures Derived using mud weight as a proxy for pressure gradients Wasatch gradients in Altamont-Bluebell 0.6-0.8 psi/ft At east and west ends of field gradients are 0.45- 0.55 psi/ft Along the Brundage…
  28. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 28
    New Areas: South Altamont & East Bluebell South Altamont Lies directly south of historical Wasatch production Drilling was discontinued due to oil prices East Bluebell East Bluebell Lies in transitional area where Green…
  29. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 29
    Uinta Oil Program: Outline Historical development Land summary Uteland Butte results 3P Reserve Summary Type wells Operations overview Permitting through refining Future development 2012 activity 3 year outlook 30
  30. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 30
    Uinta Oil Program: Key Points 2011 Execution and value creation (YE2010 vs. YE2011) 1P reserves up 317% to 29 MMBoe 3P reserves up 244% to 131 MMBoe 3P gross locations up from 383 to 1,688 Acreage position up by 27,000 ac. (net)…
  31. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 31
    Uinta Oil Program: BBG Development BBG development began in 2005 (Black Tail Ridge / Lake Canyon) 2005: 1 well 2007: 5 wells 2008: 13 wells 2009: 1 well 75 Wells 2010: 20 wells 2011: 35 wells Blacktail Ridge Mean vertical EUR: 322…
  32. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 32
    Uinta Oil: Land Summary NET GROSS Undeveloped Earning Obligation Acres Acres BlackTail Ridge 71,862 25,600 8 wells/yr (over 5 yrs) 2 wells/yr (over 4 yrs) + 14 Lake Canyon 165,258 61,945 optional wells East Bluebell 39,133 14,898…
  33. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 33
    Uinta Oil: Uteland Butte 13H-20-46 30-40 thick, highly fractured, carbonaceous zone E TVD Correlative and consistent producing interval in south part of field W 4,560 Excellent oil and gas shows Average of 1 fracture every 2.6 ft. 7…
  34. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 34
    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…
  35. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 35
    Uinta Oil: Uteland Butte EUR estimate MBO MBOE High 275 425 Mid 200 310 Low 150 200 36
  36. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 36
    Uinta Oil: Blacktail Ridge / Lake Canyon - 3P buildout 11 well penetrations in Lake Canyon extension 1952-1980 vintage wells Old log suites Some DSTs A few completion attempts Extended 3P locations into 500 bbl oil (WS) this…
  37. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 37
    Uinta Oil: 3P assumptions All acreage (Blacktail Ridge, Lake Canyon, South Altamont, East Bluebell) 4 vertical wells per section (160 acre density) All working interest parties assumed to consent Uteland Butte prospective area…
  38. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 38
    Uinta Oil: Type wells Risked Risked Risked Avg Avg Oil Avg Gas Equiv EUR EUR EUR (mboe) (mbo) (mmcf) GREEN RIVER / WASATCH (VERTICAL) 1,244 gross locations Lake Canyon Extension 150 350 210 Blacktail Ridge / Lake Canyon 205 490…
  39. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 39
    Uinta Oil: 3P Summary YE10 YE11 YE10 YE11 YE10 YE11 1P Net 1P Net 3P Net 3P Net 3P Gross 3P Gross Reserves Reserves Reserves Reserves Undrilled Undrilled (mmboe) (mmboe) (mmboe) (mmboe) locations locations Blacktail Ridge / 6.9 23.2…
  40. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 40
    Uinta Oil: Permitting (Manageable Process) Complex ownership requires forward planning 6 to 9 month regulatory process Process often includes multiple federal and tribal agencies. Surface and mineral ownerships often different…
  41. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 41
    Uinta Oil : Drilling (Blacktail Ridge example) 1 well per pad Wells are drilled with limited directional kick Effective artificial lift 9 5/8 Surface casing set at 2,000-3,000 9 5/8 casing 2,000-3,000 Eliminated intermediate…
  42. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 42
    Uinta Oil : Completions (Blacktail Ridge example) Surface facilities constructed between rig move and completion Complete the Lower Green River and Wasatch Formations Completed interval of 2,000 2,500 Typically 9 stages/well 250…
  43. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 43
    Uinta Oil : Uteland Butte Drilling / Completion Drilling Drill to top of black shale marker (kick-off point) Build curve into Uteland Butte, set 7 intermediate string Drill lateral 3,300 Run 4 liner hanger with swell packers + stim…
  44. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 44
    Uinta Oil: Typical Well Production Scenario Typical well site Equipment Separator Water tank, oil tanks, flare tank Artificial lift system Rod Lift, ESP, gas lift, etc. Gas goes to sales via gas gathering system o Oil is heated…
  45. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 45
    Uinta Oil: Oil Parameters 46
  46. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 46
    Uinta Oil: Marketing Black/yellow wax Trucked to Salt Lake City refineries Average 17%-20% discount to WTI including approximate 4.50 trucking charge Currently in discussions to extend and expand marketing agreements to support…
  47. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 47
    Uinta Oil: 2012 activity BBC Operated - 3.5 rig program 2012 Uinta Oil Program 70 gross operated wells Production (net mmboe) 2.1 mmboe 57 vertical GR/WS wells 8 horizontal UB wells LOE (boe) 9.18/boe 2 vertical Mahogany tests 2012…
  48. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 48
    Uinta Oil: 3-yr Development 49
  49. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 49
    Uinta Oil Program: Summary 2011 increased project value Both 1P/3P reserves up significantly Acreage position increased by acquisition and leasing Successfully tested Uteland Butte horizontally Continued development into 2012+…
  50. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 50
    Recovering the Oil in Place Included in 3P Buildout Vertical Wasatch drilled to 160 acre density (4 wells per section); capitalizing on poor historical practices (BTR, S. Altamont, E. Bluebell) Variable historical TDs Bypassing pay…
  51. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 51
    Beyond 3P: Understanding Drainage Pattern = Potential to Increase Recoveries BBG recognized an elliptical drainage pattern from natural fractures (like the Piceance Basin) and infilled from 320s to 160s, waiting on spacing hearing for…
  52. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 52
    Beyond 3P: Other Wasatch Horizontal Targets 9 miles Persistent oil zones cover large areas Have been targeted vertically, but may still have material hydrocarbon remaining (like the Targets Niobrara in the Wattenberg Core)…
  53. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 53
    Beyond 3P: Mahogany Oil Shale Overview BBG Test Well Results Depth range is 2,500 to 5,500 MD Lower and upper zones are GR Res Por Gas TOC Persistent oil shows communicating with each other No modern completion attempts due to open…
  54. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 54
    Beyond 3P: Black Shale 100-200 thick 8-10% porosity Consistent and widespread shows Horizontal Target BBG to test in 2012 Black Shale Facies Target Interval Castle Peak 55
  55. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 55
    Uinta Oil Program Upside Still to Go Evaluate Beyond 3P ideas (2012)these are strong leadseg. 80 acre spacing Our 3P assumptions may be conservative Green River Build out of Western Extension area, S. Altamont and E. Bluebell…
  56. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 56
    Operational Expertise & Liquids Focused Asset Base Scot Woodall
  57. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 57
    Operations Strategy Execute on Liquids growth Maintain active development portfolio that offers long-term, low risk growth Portfolio flexibility to increase/decrease activity based on commodity price outlook and program returns…
  58. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 58
    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 Median…
  59. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 59
    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) 2.18 1.74 1.76…
  60. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 60
    Disciplined Cost Structure: Driving Operations Efficiencies Success at Piceance = Execute at West Tavaputs & Blacktail Ridge Piceance West Tavaputs Blacktail Ridge 29 25 Reduced Drilling Days (Spud to rig release) 23 16 13 12.8…
  61. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 61
    Solid Reserve Replacement Reflects Asset Quality 22% reserve growth, 331% reserve replacement and 600 million increase in PV10 Net Bcfe 250 1,365 1,118 -107 98 6 Price Engineering 2011 Acquisitions revisions revisions and…
  62. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 62
    Growth Visibility: Low Risk 3P Reserves Just the tip of the iceberg Proved 3P Gross Drilling Proved Bcfe Bcfe Locations Probable & Possible (2011) West Tavaputs, Uinta1 461 1,171 622 Uinta Oil Program (oil) 173 787 1,688…
  63. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 63
    Development Programs: Long Term, Low Risk Growth 1. Uinta Oil 2. Piceance NGL rich gas 3. DJ Basin oil and NGL rich gas 4. West Tavaputs gas DJ Oil/NGLs Uinta Oil Commodity balanced W. Tav Gas 94% working interest for Piceance…
  64. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 64
    Development Programs 2012 Operations Driving liquids and cash flow growth Capital program directed at oil and NGL development assets 20+% Growth in production Increase oil production to bring liquids component to nearly 30% 9 of 10…
  65. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 65
    DJ Basin Building a 4th key development program 50 Miles Acquisition assets expand oil Silo Field footprint Chalk Bluffs Acreage located in current Hereford Area: Niobrara Production production fairways extending from…
  66. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 66
    Greater Wattenberg Activity Driving Production Growth Initiated activity in the 4th quarter 2011 Began production optimization program Drilled and completed 5 vertical wells targeting J Sand, D Sand, Codell and Niobrara First 3…
  67. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 67
    2012 DJ Basin Program Planning a 41 well horizontal drilling program between Greater Wattenberg area and our exploration acreage Program commenced, with the first 2 exploration wells already drilled Continue re-stimulation of…
  68. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 68
    Piceance Basin Gibson Gulch Williams Fork Formation Significant NGL Exposure High liquids content Silt N increases revenue 3-Component 3-D Seismic Proved reserves: 596 Bcfe Gibson Gulch 3P Reserves: 733 Bcfe Locations: 626…
  69. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 69
    Piceance Basin Gibson Gulch Superior economics 48% return driven by NGLs and oil: 7% oil and 3 gallons NGLs/Mcf Mt. Belvieu pricing: 2012 NGL strip 46/bbl NGL recoveries are forecast to increase 15% in 2012, processing agreement…
  70. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 70
    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…
  71. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 71
    Upside Exposure Oil: Key Exploratory Plays 2012 active exploration in each area, multiple other prospects being evaluated Extensive portfolio S. Alberta Oil Extensive acreage positions targeting oil Rockies oil -Applying new…
  72. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 72
    Upside Exposure: Natural Gas Extensive portfolio Extension play offer multi-Tcf upside Shale gas and basin centered gas prospects Current prospects: extension plays Cottonwood Gulch* Cottonwood WTP Gulch Hornfrog* Mancos…
  73. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 73
    Business Development Strategy Acquisitions Improve portfolio exposure to oil and natural gas liquids Target existing and emerging development projects with lower geologic risk Leverage BBG competitive advantages in Rockies region while…
  74. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 74
    Gas Export Capacity: Rockies are well Positioned Infrastructure in place to move gas in all directions: West Coast to East Coast Current Rockies export capacity 11.1 Bcf/d 3-5 Bcf/d unused pipeline export capacity Rockies…
  75. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 75
    2012 Capital Budget Focused on Liquids Development 90% of rigs targeting By Area oil/NGLs Other 85% of base capital 14% Piceance budget for 29% DJ Basin development projects 12% Maintain momentum for 10-20% production growth…
  76. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 76
    Summary Economics All 2012 drilling targeting high return programs CIG/WTI Price Required Returns for 10% ROR Piceance Basin - Gibson Gulch 48% 0.00 West Tavaputs - Uinta Basin: 2012 Program 26% 1.95 Uinta Basin - Uteland Butte…
  77. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 77
    2012 Plan and Guidance Not just a Rockies gas company anymore Capital expenditures before acquisitions 900-1,000mm Production 126-130 Bcfe LOE 0.55-0.59 per Mcfe Gathering, processing and transportation 0.90-0.95 per Mcfe G&A before…
  78. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 78
    Strategy, Plan & Outlook Fred Barrett
  79. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 79
    Key Messages Bill Barrett Corporation is driving value through: 1. Transformative Oil & Liquids Growth 2. Transformative Cash Flow Growth 3. Big Upside 80
  80. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 80
    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…
  81. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 81
    Low Risk Growth from Core Development Programs 2012: Approximately 20% production growth Target 10% to 20% annual growth for 3 years Development programs and extension properties Flexibility to adjust growth and optimize cash flow…
  82. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 82
    Accelerating Liquids Growth for Best Returns Successfully balancing commodity mix Oil and NGL production nearly triples Oil and NGL production *NGLs are not separately reported as a production volume for financial reporting…
  83. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 83
    Cash Flow Growth Driving a Step Change Pre-hedge cash flow up more than 4x 2009-2014e pre-hedge CAGR: 30%+ Discretionary Cash Flow 1,000 (mm) 775-900 800 650-750 600 500-550 460 467 474-478 400 200 404 436 332 188 0…
  84. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 84
    Cash Flow Growth Focus on Cash Margins Maintaining strong margins despite difficult commodity prices Hedging, Cost control Commodity mix Discretionary Cash Flow per Mcfe 6.00 4.40-5.10 4.84 4.25-4.90 5.00 4.43-4.48 3.80-4.20…
  85. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 85
    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…
  86. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 86
    Maintain Financial Strength & Flexibility Manage capital resources to align with strategic growth objectives Modest use of leverage Maintain significant liquidity Monitor markets and opportunistically access diverse capital sources…
  87. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 87
    Maintain Financial Strength & Flexibility Utilize leverage to drive step change growth yet maintain better than average debt metrics Debt:EBITDAX approximately 2.5X at peak Peer average 2.9X Debt : EBITDAX 2.5X 2.3X 2.1X…
  88. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 88
    Maintain Financial Strength: Credit Metrics In-Line Debt TTM EBITDAX1 3.6x 4.1x 2.7x 2.9x 2.9x 3.2x 2.5x 2.3x 1.7x 2.1x 0.6x SM FST BRY PXP CRK PVA XCO BBG 2011 BBG 2012 BBG 2013 BBG 2014 Credit Ba3 / Ba3 / B1 / Ba3 / B1 / B1 /…
  89. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 89
    Step Change Cash Flow Growth & Realign Capital to Cash Flow in 3 Years Increasing scale and delivering step change growth in cash flow 1000 Recent Price Volatility (millions) 500 0 2011 2012 2013 2014 Capex Cash…
  90. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 90
    Growth Not Yet Valued by Market Applying peer average EBITDAX multiple to BBG 2013 projections delivers stock price of more than 60 16 14 12 2013 EV/EBITDAX Ratio 10 8 6 Mid-Cap = 5.8 Peer Average 4 2 0 PXP…
  91. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 91
    THANK YOU
  92. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 92
    Appendix
  93. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 93
    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…
  94. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 94
    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…
  95. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 95
    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…
  96. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 96
    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…
  97. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 97
    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…
  98. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 98
    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…
  99. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 99
    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:…
  100. JANUARY 2012 INVESTOR DAY – Bill Barrett Corp. – slide 100
    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…

Showing the first 100 of 103 slides. Open the presentation viewer for the full deck.

From the store

Browse maps, data & reports in the Shale Experts store