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CANACCORD GLOBAL RESOURCES CONFERENCE – Bill Barrett Corp.

Bill Barrett Corp. · Oct 13, 2014 · 42 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. CANACCORD GLOBAL RESOURCES CONFERENCE – Bill Barrett Corp. – slide 1
    CANACCORD GLOBAL RESOURCES CONFERENCE October 2014
  2. CANACCORD GLOBAL RESOURCES CONFERENCE – Bill Barrett Corp. – slide 2
    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,…
  3. CANACCORD GLOBAL RESOURCES CONFERENCE – Bill Barrett Corp. – slide 3
    September Transactions Summary 1. Sold remaining interest in the Gibson Gulch natural gas program 2. Sold the majority of Powder River Basin oil exploration program 3. Acquired acreage/working interest in operated Northeast Wattenberg…
  4. CANACCORD GLOBAL RESOURCES CONFERENCE – Bill Barrett Corp. – slide 4
    September Transactions Summary 1. Sold remaining interest in the Gibson Gulch natural gas program 2. Sold the majority of Powder River Basin oil exploration program 3. Acquired acreage/working interest in operated Northeast Wattenberg…
  5. CANACCORD GLOBAL RESOURCES CONFERENCE – Bill Barrett Corp. – slide 5
    Company Overview Pre announcement 4 areas of operation Production 39% oil Proved reserves197 MMBoe 42% oil; 42% proved developed Post announcement 2 areas of operation Production 70%+ oil Uinta Oil Program, Utah DJ Basin,…
  6. CANACCORD GLOBAL RESOURCES CONFERENCE – Bill Barrett Corp. – slide 6
    September Transactions Executing on Strategic Objectives 1. Simplified portfolio 2. Focused on highest return assets 3. Strengthened balance sheet, materially reduced debt 4. Driving growth in the Northeast Wattenberg Simplified…
  7. CANACCORD GLOBAL RESOURCES CONFERENCE – Bill Barrett Corp. – slide 7
    September Transactions Materially Reducing Debt Net debt cut by more than 50% Uinta Oil Program DJ Basin Pro forma net debt 450 MM Pro forma liquidity at least 575 MM Total capital expenditures of 525-550 MM Borrowing…
  8. CANACCORD GLOBAL RESOURCES CONFERENCE – Bill Barrett Corp. – slide 8
    2014 Adjusted Guidance Capital program 100% directed at oil growth Total capital of 525-550 MM 2014 Capital % by Area Total Production of 9.4 9.8 MMBoe 2014 exit rate 21 Mboe/d Third quarter guidance 2.6 2.7 MMBoe Uinta Oil…
  9. CANACCORD GLOBAL RESOURCES CONFERENCE – Bill Barrett Corp. – slide 9
    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…
  10. CANACCORD GLOBAL RESOURCES CONFERENCE – Bill Barrett Corp. – slide 10
    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…
  11. CANACCORD GLOBAL RESOURCES CONFERENCE – Bill Barrett Corp. – slide 11
    DJ BASIN
  12. CANACCORD GLOBAL RESOURCES CONFERENCE – Bill Barrett Corp. – slide 12
    DJ Basin: Lots of Running Room Added 7,856 net acres September 2014 to total 84,450 Niobrara and Codell Formations Northeast Wattenberg: 49,365 net acres, up 20% Chalk Bluffs: 22,680 net acres Wattenberg interior: 12,400 net acres…
  13. CANACCORD GLOBAL RESOURCES CONFERENCE – Bill Barrett Corp. – slide 13
    DJ Basin: 20% Increase in Northeast Wattenberg Position 7,900 net acres acquired increasing NE Wattenberg 20% to 49,365 net acres Southern Acreage Block Northeast Wattenberg Post- Post- YE2013 Transaction YE2013 Transaction Gross…
  14. CANACCORD GLOBAL RESOURCES CONFERENCE – Bill Barrett Corp. – slide 14
    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…
  15. CANACCORD GLOBAL RESOURCES CONFERENCE – Bill Barrett Corp. – slide 15
    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…
  16. CANACCORD GLOBAL RESOURCES CONFERENCE – Bill Barrett Corp. – slide 16
    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…
  17. CANACCORD GLOBAL RESOURCES CONFERENCE – Bill Barrett Corp. – slide 17
    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…
  18. CANACCORD GLOBAL RESOURCES CONFERENCE – Bill Barrett Corp. – slide 18
    Northeast Wattenberg Driving Growth and Returns with XRLs Extended Reach Lateral Program on Track Northern Block 30 extended reach laterals spud year-to-date 14 in Northern Block Western Block 16 in Southern Block 400,000+ feet…
  19. CANACCORD GLOBAL RESOURCES CONFERENCE – Bill Barrett Corp. – slide 19
    UINTA OIL PROGRAM
  20. CANACCORD GLOBAL RESOURCES CONFERENCE – Bill Barrett Corp. – slide 20
    Uinta Oil Program Large, Scalable Program: 150,000 net acres Wasatch, Green River Formations East Bluebell: 23,675 net acres Blacktail Ridge/Lake Canyon: 108,255* net acres South Altamont: 20,200 net acres Driving Steady Growth…
  21. CANACCORD GLOBAL RESOURCES CONFERENCE – Bill Barrett Corp. – slide 21
    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 22
  22. CANACCORD GLOBAL RESOURCES CONFERENCE – Bill Barrett Corp. – slide 22
    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…
  23. CANACCORD GLOBAL RESOURCES CONFERENCE – Bill Barrett Corp. – slide 23
    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…
  24. CANACCORD GLOBAL RESOURCES CONFERENCE – Bill Barrett Corp. – slide 24
    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…
  25. CANACCORD GLOBAL RESOURCES CONFERENCE – Bill Barrett Corp. – slide 25
    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…
  26. CANACCORD GLOBAL RESOURCES CONFERENCE – Bill Barrett Corp. – slide 26
    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*…
  27. CANACCORD GLOBAL RESOURCES 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. CANACCORD GLOBAL RESOURCES CONFERENCE – Bill Barrett Corp. – slide 28
    APPENDIX
  29. CANACCORD GLOBAL RESOURCES CONFERENCE – Bill Barrett Corp. – slide 29
    Hedging Provides Price Predictability Hedge on a 12-month forward basis to reduce risk and support capital expenditure program 4Q14: 1.3 MMBoe; Oil: 10,600 Bbls/d at 93.88/Bbl; natural gas: 19,158 MMBtu/d at 3.55/MMBtu 2015: 5.2…
  30. CANACCORD GLOBAL RESOURCES CONFERENCE – Bill Barrett Corp. – slide 30
    Natural Gas and Oil Hedges As of October 13, 2014 Swaps Period Oil Natural Gas Volume WTI Price Volume NWPL Price (Bbls/d) (/Bbl) (MMBtu/d) (MMBtu) 4Q14 10,600 93.88 19,158 3.55 1Q15 11,800 90.46 20,000 4.13 2Q15 11,300 90.39…
  31. CANACCORD GLOBAL RESOURCES CONFERENCE – Bill Barrett Corp. – slide 31
    DJ Basin Infrastructure Existing local oil refining capacity and rail infrastructure 350mbbls/d Capacity Capacity Expansion Projects Timing (MBbls/d) Pony Express Pipeline 230 In Service White Cliffs Expansion 75 In Service Pony…
  32. CANACCORD GLOBAL RESOURCES CONFERENCE – Bill Barrett Corp. – slide 32
    DJ Basin Infrastructure Expected Capacities Cheyenne Crude Terminal 52mbbls/d Pony Express Conversion In Service: 230-320mbbls/d Pony Express NE CO Lateral 1Q15: 90mbbls/d Suncor Refinery: 96MBbls/d White Cliffs…
  33. CANACCORD GLOBAL RESOURCES CONFERENCE – Bill Barrett Corp. – slide 33
    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 -…
  34. CANACCORD GLOBAL RESOURCES CONFERENCE – Bill Barrett Corp. – slide 34
    DJ Basin Year-end 2013 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…
  35. CANACCORD GLOBAL RESOURCES CONFERENCE – Bill Barrett Corp. – slide 35
    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…
  36. CANACCORD GLOBAL RESOURCES CONFERENCE – Bill Barrett Corp. – slide 36
    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…
  37. CANACCORD GLOBAL RESOURCES CONFERENCE – Bill Barrett Corp. – slide 37
    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…
  38. CANACCORD GLOBAL RESOURCES CONFERENCE – Bill Barrett Corp. – slide 38
    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…
  39. CANACCORD GLOBAL RESOURCES CONFERENCE – Bill Barrett Corp. – slide 39
    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…
  40. CANACCORD GLOBAL RESOURCES CONFERENCE – Bill Barrett Corp. – slide 40
    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…
  41. CANACCORD GLOBAL RESOURCES CONFERENCE – Bill Barrett Corp. – slide 41
    Low-risk, Long-term Growth Profile Year-end 2013 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…
  42. CANACCORD GLOBAL RESOURCES CONFERENCE – Bill Barrett Corp. – slide 42
    Land Summary As of September 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 126,710 58,160 82% 51% Minimum…

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