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May 2017 Corporate Update – Bill Barrett Corp.

Bill Barrett Corp. · May 25, 2017 · 33 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. May 2017 Corporate Update – Bill Barrett Corp. – slide 1
    Corporate Update May 2017
  2. May 2017 Corporate Update – Bill Barrett Corp. – slide 2
    Company Overview
  3. May 2017 Corporate Update – Bill Barrett Corp. – slide 3
    Bill Barrett Corporation Overview Large, contiguous acreage position within two core basins DJ Basin located in rural setting that is favorable for oil development Focus on improving cost structure has Uinta Basin translated…
  4. May 2017 Corporate Update – Bill Barrett Corp. – slide 4
    Key Messages Demonstrated execution of focused operational and financial strategy Translates into solid results and strong margins NE Wattenberg located in rural setting that is favorable for oil development 47% rate of return at…
  5. May 2017 Corporate Update – Bill Barrett Corp. – slide 5
    Track Record of Debt Reduction Net Debt (mm) Significant debt reduction 1,200 accomplished in challenging 1,000 commodity price environment 800 Recent debt offering reduced gross debt by 600 6% 400 Undrawn credit facility…
  6. May 2017 Corporate Update – Bill Barrett Corp. – slide 6
    Hedging Program Protects Cash Flow Actively manage hedge portfolio to support capital program, protect future cash flow and reduce commodity price risk Strategy is to hedge 5070% of production on a forward 12month to 18month basis…
  7. May 2017 Corporate Update – Bill Barrett Corp. – slide 7
    2017 Guidance and Outlook Designed to deploy capital with attractive returns, while maintaining flexibility Capital expenditure range of 255285 million Guidance reflects additional drilling rig starting in the second quarter and…
  8. May 2017 Corporate Update – Bill Barrett Corp. – slide 8
    Operational Overview
  9. May 2017 Corporate Update – Bill Barrett Corp. – slide 9
    DJ Basin Provides Strategic Advantage Large, contiguous acreage position provides NE Wattenberg substantial development opportunity 71,900 total net acres favorable for XRL development1 Targeted development of stackedpay horizons…
  10. May 2017 Corporate Update – Bill Barrett Corp. – slide 10
    Favorable Development Setting Operate in rural area of DJ Basin Favorable regulatory environment Controllable and efficient development NYSE: BBG www.billbarrettcorp.com 11
  11. May 2017 Corporate Update – Bill Barrett Corp. – slide 11
    NE Wattenberg Cross Section Detailed core analysis confirms reservoir and resource Avg So = 48% A quality is consistent SoPhiH = 5.5 Net feet 20 Ohmms = 59 Over 920 of core was analyzed from four distinct well locations Avg So =…
  12. May 2017 Corporate Update – Bill Barrett Corp. – slide 12
    NE Wattenberg Focus Area Early adopters recognizing economic benefit of NE Wattenberg Focus Area XRL development 66210 4 XRL wells Targeted development of Niobrara horizons 10 MRL wells throughout acreage position Completing…
  13. May 2017 Corporate Update – Bill Barrett Corp. – slide 13
    Enhancing XRL Cost Efficiencies Drilling rig expected to spud 50 XRL wells per year XRL Well Average Drilling Days XRL Well Average Ft./Day Drilled 4,000 18.3 2014 11.7 3.9 2.7 3,661' 3,500 3,000 11.6 2015 7.4 2.8 1.4 Days…
  14. May 2017 Corporate Update – Bill Barrett Corp. – slide 14
    DJ Basin XRL Indicative Economics 80% 700 Mboe EUR 600 Mboe EUR 60% 500 Mboe EUR 40% PreTax EUR PV10 Payout 2 (Mboe) IRR ( millions) (Years) 20% 500 34% 2.9 2.0 600 47% 4.2 1.8 700 54% 5.6 1.7 0% 45 55 65 Flat…
  15. May 2017 Corporate Update – Bill Barrett Corp. – slide 15
    Enhancing Completion Design Increased Proppant 2017 Completion Objectives 250,000 (1,000 vs 1,250) Increase proppant to 1,500 lbs per lateral foot 200,000 from 1,000 lbs per lateral foot +36% BOE (2stream) 150,000 Reduce frac…
  16. May 2017 Corporate Update – Bill Barrett Corp. – slide 16
    Progression of XRL Completions Controlled Increased Increased Plug and Perf Flowback Proppant Frac Stages Completion design enhancements leads to improved results NYSE: BBG www.billbarrettcorp.com 17
  17. May 2017 Corporate Update – Bill Barrett Corp. – slide 17
    DJ Basin Oil Infrastructure Addition of Saddlehorn/Grand Mesa oil pipeline in 2016 significantly increased takeaway capacity to 650 Mbbls/d DJ Basin oil production currently at 300 Mbbls/d Pipeline infrastructure provides…
  18. May 2017 Corporate Update – Bill Barrett Corp. – slide 18
    Provides Competitive Advantage BBG benefits from having no firm marketing commitments and favorable API gravity crude Oil price differential expected to average 34 per barrel below WTI 1Q17 differential averaged 2.78 per barrel…
  19. May 2017 Corporate Update – Bill Barrett Corp. – slide 19
    Best in Class DJ Basin Operating Margins Generating 39% greater unhedged operating margins compared to DJ Basin peers 35 30.12/boe 30 25 Peer Average 21.70/boe 20 15 10 5 0 BBG Peer 1 Peer 2 Peer 3 Peer 4…
  20. May 2017 Corporate Update – Bill Barrett Corp. – slide 20
    Uinta Oil Program East Bluebell 24,000 net acres Well development targeting Lower Green River formation High oil cut (90%) provides strong margins and steady cash flow Changing market dynamics allows for renegotiation of…
  21. May 2017 Corporate Update – Bill Barrett Corp. – slide 21
    Summary Core DJ Basin acreage position is in rural location and within a toptier basin Solid financial position with cash, attractive hedges and undrawn credit facility Executing on the items within our control to generate…
  22. May 2017 Corporate Update – Bill Barrett Corp. – slide 22
    Appendix
  23. May 2017 Corporate Update – Bill Barrett Corp. – slide 23
    1Q17 Highlights Production of 1.43 MMBoe, highend of guidance range 58% oil, 22% natural gas and 20% NGLs Higher natural gas component due to no new XRL wells being placed online, oil component will increase as additional wells are…
  24. May 2017 Corporate Update – Bill Barrett Corp. – slide 24
    2016 Highlights Production of 6.1 MMBoe was at midpoint of guidance range Net Cash from Operations of 122 million Discretionary Cash Flow of 126 million1 Capital expenditures of 98 million were 22% below discretionary cash flow…
  25. May 2017 Corporate Update – Bill Barrett Corp. – slide 25
    DJ Basin XRL Indicative Economics IRR1 700 Mboe EUR 600 Mboe EUR 500 Mboe EUR 1 Calculated for an XRL well with a 9,500 lateral, 55-stage plug-and-perf, 55/bbl flat WTI, 4.00/bbl WTI differential for 1st two years &…
  26. May 2017 Corporate Update – Bill Barrett Corp. – slide 26
    Delivering Growth Through Execution Track record of delivering sustained production growth DJ Basin Net Sales Volumes (Mboe) Have maintained positive operational 9,000 +3050% momentum in challenging environment 8,000 Growing…
  27. May 2017 Corporate Update – Bill Barrett Corp. – slide 27
    2016 Proved Reserves Proved Reserves Summary Pro forma reserve growth of YE 2015 YE 2016 8%, adjusted for technical 90.4 reserves +8% YE 2016 proved reserves were 83.7 lower due to commodity price related and other revisions…
  28. May 2017 Corporate Update – Bill Barrett Corp. – slide 28
    Oil and Natural Gas Hedge Summary As of May 15, 2017 Swaps Period Oil Natural Gas Volume WTI Price Volume NWPL Price (Bbls/d) (/Bbl) (MMBtu/d) (MMBtu) 1Q17 6,500 58.20 10,000 2.96 2Q17 6,625 58.10 10,000 2.96 3Q17 7,125 58.77…
  29. May 2017 Corporate Update – Bill Barrett Corp. – slide 29
    Core Development Land Summary As of December 31, 2016 Area Gross Acreage Net Acreage Uinta Basin Uinta Oil Program East Bluebell 35,454 24,248 DJ Basin Northeast Wattenberg1 68,996 48,447 Chalk Bluffs 18,973 5,705 Other 7,550…
  30. May 2017 Corporate Update – Bill Barrett Corp. – slide 30
    1Q17 and Full Year 2016 Financial Results Three Months Ended Twelve Months Ended March 31, December 31, 2017 2016 2016 2015 Net cash provided by operating activities ( millions) 38.1 40.5 121.7 193.7 Discretionary cash flow (…
  31. May 2017 Corporate Update – Bill Barrett Corp. – slide 31
    Non-GAAP Reconciliation (Unaudited) EBITDAX Reconciliation Three Months Ended Twelve Months Ended March 31, December 31, 2017 2016 2016 2015 (in thousands) Net Income (Loss) (13,115) (46,496) (170,378) (487,771) Adjustments to…
  32. May 2017 Corporate Update – Bill Barrett Corp. – slide 32
    Non-GAAP Reconciliation (Unaudited) Discretionary Cash Flow Reconciliation Three Months Ended Twelve Months Ended March 31, December 31, 2017 2016 2016 2015 (in thousands) Net Cash Provided by (Used in) Operating Activities 38,098…
  33. May 2017 Corporate Update – Bill Barrett Corp. – slide 33
    1099 Eighteenth Street, Suite 2300 Denver, CO 80202 303.293.9100 Website: www.billbarrettcorp.com Investor Relations Contact: Larry C. Busnardo (303) 3128514 lbusnardobillbarrettcorp.com

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