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Deutsche Bank Leverage Finance Conference – Bill Barrett Corp.

Bill Barrett Corp. · Sep 30, 2015 · 43 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. Deutsche Bank Leverage Finance Conference – Bill Barrett Corp. – slide 1
    DEUTSCHE BANK LEVERAGED FINANCE CONFERENCE SEPTEMBER 30, 2015
  2. Deutsche Bank Leverage Finance Conference – Bill Barrett Corp. – slide 2
    Key Message Delivering results in 2015 XRL wells initial production exceeding early time expectations 1H15 production beat consensus estimates; guidance raised three times 2Q15 LOE 20% lower than 1Q15 2015 production guidance…
  3. Deutsche Bank Leverage Finance Conference – Bill Barrett Corp. – slide 3
    COMPANY OVERVIEW
  4. Deutsche Bank Leverage Finance Conference – Bill Barrett Corp. – slide 4
    Bill Barrett Corporation Overview YE2014 Proved Reserves: 122 MMBoe 3P Reserves: 477 MMBoe 2Q15 Production: 17,890 Boe/d 2015E Production Growth: 25%1 Uinta Basin DJ Basin 160,000+ net acres 98,188 net acres 2Q15 Production:…
  5. Deutsche Bank Leverage Finance Conference – Bill Barrett Corp. – slide 5
    Delivering Strong Growth Core assets delivering consistent production and reserve growth Production (MMBoe)1 Proved Reserves (MMBoe)1 6.3-6.5 6 140 122 27% 120 100 4 45% 40% 45% 80 60 2 73% 55% 40 55% 60% 20 0 0…
  6. Deutsche Bank Leverage Finance Conference – Bill Barrett Corp. – slide 6
    Capital Disciplined Approach Capital Expenditures (mm)1 Production (MMBoe)1 600 8 500 400 6 300 4 200 2 100 0 0 2014 2015E 2016E 2014 2015E 2016E DJ UOP DJ UOP Maintain operational flexibility while prudently managing…
  7. Deutsche Bank Leverage Finance Conference – Bill Barrett Corp. – slide 7
    2015 and 2016 Outlook Period Comment Production guidance of 1.5 MMBoe; spud 12 XRL wells; 8 XRL wells begin initial flow-back; operate 3Q15 two drilling rigs 4Q15 Spud 8 XRL wells; 10 XRL wells begin initial flow-back; 10 XRL wells…
  8. Deutsche Bank Leverage Finance Conference – Bill Barrett Corp. – slide 8
    Strategic Financial Objectives Manage capital resources to align with strategic objectives Modest use of leverage Balance capital expenditure program with financial resources Maintain significant liquidity Monitor markets and…
  9. Deutsche Bank Leverage Finance Conference – Bill Barrett Corp. – slide 9
    Capitalization Table ( millions) 06/30/15 Outstanding Balance Revolving Credit Facility - 7.625% Senior Notes due 2019 400.0 7.000% Senior Notes due 2022 400.0 5.000% Convertible Senior Notes 0.6 Lease Financing Obligation 3.4…
  10. Deutsche Bank Leverage Finance Conference – Bill Barrett Corp. – slide 10
    Credit Metrics as Compared to our Peers Net Debt / EBITDAX* 2.6X FANG PDCE CRZO BCEI LPI SN PVA CWEI CRK BBG B+/B1 B+/B1 B+/B1 B/B2 B+/B1 B/B2 B-/Caa1 B/B3 B-/Caa1 B+/B1 Net Debt / Average Daily Production (Boe/d)*…
  11. Deutsche Bank Leverage Finance Conference – Bill Barrett Corp. – slide 11
    Robust Hedging Program Provides Predictability 2015: 80% of oil and natural gas production hedged for remainder of the year at an average price of 89.81/Bbl and 4.13/MMBtu 2016: 6,771 Bbls/d of crude oil hedged at an average price…
  12. Deutsche Bank Leverage Finance Conference – Bill Barrett Corp. – slide 12
    Financially Well Positioned for 2015 and Beyond Borrowing base of 375 million with zero drawn and 101 million of cash and short term investments Borrowing base was reaffirmed at fall redetermination meeting Replaced total debt…
  13. Deutsche Bank Leverage Finance Conference – Bill Barrett Corp. – slide 13
    DJ BASIN
  14. Deutsche Bank Leverage Finance Conference – Bill Barrett Corp. – slide 14
    DJ Basin: Operating in our Backyard Large, contiguous acreage position provides substantial development opportunity 98,188 total net acres with 2,000 total locations Targeted development of stacked-pay horizons within Niobrara…
  15. Deutsche Bank Leverage Finance Conference – Bill Barrett Corp. – slide 15
    NE Wattenberg Provides a Strategic Advantage Concentrated acreage position allows for NE Wattenberg 49,359 net acres efficient and economic development Contiguous nature of acreage is favorable for XRL development 9 XRL/1 SRL wells…
  16. Deutsche Bank Leverage Finance Conference – Bill Barrett Corp. – slide 16
    Operating In the Right Basin at the Right Time XRL program ranks as the highest play Internal Rate of Return (IRR) BBG NE Wattenberg XRL wells generate 30% ROR at 50/bbl1 Year: 2015 2016 2017 2018 2019 2020 2021 2022+ WTI…
  17. Deutsche Bank Leverage Finance Conference – Bill Barrett Corp. – slide 17
    DJ Basin XRL Economics 60% 50% IRR (5.6 mm CWC)* 40% IRR 30% 700 Mboe (2-Stream) EUR, 5.6 mm D&C Flat WTI Pre-Tax Oil Price PV10 Payout 20% /bbl IRR (millions) (Years) 45 23% 2.2 3.1 50 30% 3.4 2.4 10% 55 38% 4.6…
  18. Deutsche Bank Leverage Finance Conference – Bill Barrett Corp. – slide 18
    Plug-and-Perf Completions Yielding Impactful Results Plug-and-perf completions1 proving to be a 1,000 game changer 55% increase in performance Controlled flow back resulting in similar early through initial 10 months Avg.…
  19. Deutsche Bank Leverage Finance Conference – Bill Barrett Corp. – slide 19
    Driving XRL Well Costs Lower Increased efficiencies allows us to drill 30 XRL wells/per year with one rig 10,000 9,000 350 650 1,550 8,000 8,250 7,000 150 250 350 6,000 6,250 50 (thousands) 5,600 5,000 4,000 1H15…
  20. Deutsche Bank Leverage Finance Conference – Bill Barrett Corp. – slide 20
    UINTA OIL PROGRAM
  21. Deutsche Bank Leverage Finance Conference – Bill Barrett Corp. – slide 21
    Uinta Oil Program Large, Scalable Program: 160,000+ net acres* Wasatch, Green River Formations 2,300 feet stacked play prospective for the Green River and Wasatch formations 50+ rig year inventory East Bluebell Production: 5,300…
  22. Deutsche Bank Leverage Finance Conference – Bill Barrett Corp. – slide 22
    Why Bill Barrett Corporation Leading DJ Basin acreage position in a Top 5 Basin Focused XRL development program with demonstrated results Executing on the items we can control Delivering excellent well results Increased capital…
  23. Deutsche Bank Leverage Finance Conference – Bill Barrett Corp. – slide 23
    APPENDIX
  24. Deutsche Bank Leverage Finance Conference – Bill Barrett Corp. – slide 24
    Northeast Wattenberg: Prime Position Among Peers Excellent position yet to be fully valued Adjacent to NBL Wells Ranch Niobrara Formation Successful extended reach East Pony/ laterals within 2 miles of BCEI Redtail BBG position…
  25. Deutsche Bank Leverage Finance Conference – Bill Barrett Corp. – slide 25
    XRL Evolution DJ Basin development moves from 640-acre to 1,280-acre spacing (Gross operated wells spud by year) 2013 2014 2015E 61 64 35-40 640 640 1,120 1,280 1,280 No XRLs drilled in 2013 40 stages transitioned to 55 stages…
  26. Deutsche Bank Leverage Finance Conference – Bill Barrett Corp. – slide 26
    DJ Drilling and Completions Evolution Evolution to XRLs completed with plug-and-perf technique and more proppant More Frac Stages Combined with Increasing Proppant Per Lateral Foot as BBG Evolves Towards Full-Scale XRL Development…
  27. Deutsche Bank Leverage Finance Conference – Bill Barrett Corp. – slide 27
    Controlled Flowback of XRL Well Providing Better Results Leads to shallower declines and improved EURs 28
  28. Deutsche Bank Leverage Finance Conference – Bill Barrett Corp. – slide 28
    DJ Basin Rate-of-Return Assumptions Flat WTI Flat HH Pre-Tax Payout Oil Price Gas Price IRR PV10 (Years) Description Assumptions /bbl /mmbtu (millions) WTI Oil Price (/Bbl) 55.00 45 2.50 23% 2.2 3.1 Oil Differential (/Bbl) (8.00) 50…
  29. Deutsche Bank Leverage Finance Conference – Bill Barrett Corp. – slide 29
    Enhancing XRL Cost Efficiencies XRL Well Drilling Days XRL Well Average Ft./Day Drilled 2,500 2,226' 18.3 2014 11.7 3.9 2.7 Days 2,000 1,800' 1,500 12.7 1,343' Feet/Day 1H15 8.9 2.2 1.6 Days 1,000 9.8…
  30. Deutsche Bank Leverage Finance Conference – Bill Barrett Corp. – slide 30
    Enhancing Cost Efficiencies XRL D&C Costs Down 32%* Building Efficiencies Through Longer Laterals 9 300 8.25 mm 8 250 (Drilling Cost/Lateral Foot) 7 6.25 mm 5.6 mm 6 200 (millions) 5 150 4 3 100 2 50 1 0 0…
  31. Deutsche Bank Leverage Finance Conference – Bill Barrett Corp. – slide 31
    Increasing Geologic Confidence Core analysis confirms geologic position is Prospective for up to Six Stacked Pay Zones consistent across acreage position BBG CB Rudd Core Well Niobrara B consistent across entire acreage position…
  32. Deutsche Bank Leverage Finance Conference – Bill Barrett Corp. – slide 32
    NE Wattenberg Generalized Development Spacing* 1,100 XRL locations in NE Wattenberg * Graphic representation of the expected 1,280-acre development pattern of the NE Wattenberg acreage; actual development may differ 33
  33. Deutsche Bank Leverage Finance Conference – Bill Barrett Corp. – slide 33
    DJ Basin Infrastructure Expected Capacities Cheyenne Crude Terminal 52mbbls/d Pony Express Conversion In Service: 230-320mbbls/d Pony Express NE CO Lateral 2Q15: 90mbbls/d Suncor Refinery: 96MBbls/d White Cliffs…
  34. Deutsche Bank Leverage Finance Conference – Bill Barrett Corp. – slide 34
    DJ Basin Infrastructure Existing local oil refining capacity and rail infrastructure 350mbbls/d Capacity Expansion Projects Capacity (MBbls/d) Timing Pony Express Pipeline 230 In Service White Cliffs Expansion 75 In Service Pony…
  35. Deutsche Bank Leverage Finance Conference – Bill Barrett Corp. – slide 35
    Uinta Basin: Well Positioned Among Peers Wasatch, Green River Formations DVN EPE CPG CPG QEP NFX UPL NFX LINN 10 Miles BBG Acreage 36
  36. Deutsche Bank Leverage Finance Conference – Bill Barrett Corp. – slide 36
    East Bluebell: Increasing Technical Understanding Core Core and Reservoir Characterization Program TGR3 Green River Continue refinement of reservoir and Douglas Creek resource understanding in the Lower Green River Formation…
  37. Deutsche Bank Leverage Finance Conference – Bill Barrett Corp. – slide 37
    RESERVES AND SELECTED FINANCIALS
  38. Deutsche Bank Leverage Finance Conference – Bill Barrett Corp. – slide 38
    Year-End 2014 Reserves Year-end 2014 4.35 per MMBtu HH and 94.99 per barrel WTI pricing used in reserve calculations Proved Probable & Possible Gross/Net Proved Proved Reserves Drilling Total Estimated 3P Reserves MMBoe MMBoe…
  39. Deutsche Bank Leverage Finance Conference – Bill Barrett Corp. – slide 39
    Year-End 2014 3P Reserves by Location DJ 3P Reserves (301 MMBoe) UOP 3P Reserves (151 MMBoe) 56 40 60 39 206 51 NE Wattenberg Chalk Bluffs Core Wattenberg Blacktail Ridge/Lake Canyon East Bluebell South Altamont…
  40. Deutsche Bank Leverage Finance Conference – Bill Barrett Corp. – slide 40
    Natural Gas and Oil Hedges As of August 28, 2015 Swaps Period Oil Natural Gas Volume WTI Price Volume NWPL Price (Bbls/d) (/Bbl) (MMBtu/d) (MMBtu) 3Q15 10,800 89.81 20,000 4.13 4Q15 10,800 89.81 20,000 4.13 1Q16 7,300 81.65…
  41. Deutsche Bank Leverage Finance Conference – Bill Barrett Corp. – slide 41
    Pro Forma Production, Price and Cost Data Pro forma for asset sales largely completed in the fourth quarter of 2013 and third quarter of 2014. Year Ended December 31, 2Q15 1H15 2014 2013 Change Production Data Oil (MBbls) 1,120…
  42. Deutsche Bank Leverage Finance Conference – Bill Barrett Corp. – slide 42
    1H15 Production, Wells Spud and Capital Expenditures 1H 2015 CAPEX and Production Spuds CAPEX Production Operated Non-Operated Total Area millions MBoe Area Gross Net Gross Net Gross Net DJ Basin 159 2,191 DJ Basin 16 15.3 20 5.9 36…
  43. Deutsche Bank Leverage Finance Conference – Bill Barrett Corp. – slide 43
    2015 Guidance 2015 Guidance Capex by Area Total capital of 315-325 million First half 2015 capital of 180 million UOP Total production of 6.36.5 MMBoe 10% 25% YOY growth at the mid-point1 Third quarter guidance of 1.5 MMBoe NE…

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