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September 2017 Corporate Update – Bill Barrett Corp.

Bill Barrett Corp. · Sep 18, 2017 · 34 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. September 2017 Corporate Update – Bill Barrett Corp. – slide 1
    Corporate Update September 2017
  2. September 2017 Corporate Update – Bill Barrett Corp. – slide 2
    Company Overview
  3. September 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 Improving cost structure has DJ Basin translated into peer…
  4. September 2017 Corporate Update – Bill Barrett Corp. – slide 4
    DJ Basin Economics Rank High Among Oil Plays Average Oil Price Required to Generate a 25% IRR Source: Wall Street Sell-Side Research NYSE: BBG www.billbarrettcorp.com 5
  5. September 2017 Corporate Update – Bill Barrett Corp. – slide 5
    Key Messages Demonstrated execution of focused operational and financial strategy Delivering solid results with basin leading margins Exceeding growth and cost targets that translates into positive guidance revision NE Wattenberg…
  6. September 2017 Corporate Update – Bill Barrett Corp. – slide 6
    Operational Overview
  7. September 2017 Corporate Update – Bill Barrett Corp. – slide 7
    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 stacked-pay horizons…
  8. September 2017 Corporate Update – Bill Barrett Corp. – slide 8
    Demonstrated Ability to Grow Production DJ Basin Track record of delivering 9,000 Net Sales Volumes (Mboe)1 consistent growth despite lower activity levels in challenging 8,000 crude market environment 7,000 Seeing early positive…
  9. September 2017 Corporate Update – Bill Barrett Corp. – slide 9
    Favorable Development Setting Operate in rural area of DJ Basin Favorable regulatory environment Controllable and efficient development NYSE: BBG www.billbarrettcorp.com 10
  10. September 2017 Corporate Update – Bill Barrett Corp. – slide 10
    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 =…
  11. September 2017 Corporate Update – Bill Barrett Corp. – slide 11
    NE Wattenberg Focus Area Early adopters recognizing economic benefit of XRL NE Wattenberg Focus Area development Targeted development of Niobrara horizons throughout acreage position 2 Section 5-62-27 (9 XRL wells) Enhanced…
  12. September 2017 Corporate Update – Bill Barrett Corp. – slide 12
    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 3,500 3,424' 3,000 11.6 2015 7.4 2.8 1.4 Days…
  13. September 2017 Corporate Update – Bill Barrett Corp. – slide 13
    Enhancing Completion Design Increased Proppant 2017 Completion Objectives 300,000 (1,000 vs 1,250) Increase proppant to 1,500 lbs per lateral foot 250,000 from 1,000 lbs per lateral foot +36% BOE (2-stream) Reduction in frac…
  14. September 2017 Corporate Update – Bill Barrett Corp. – slide 14
    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 15
  15. September 2017 Corporate Update – Bill Barrett Corp. – slide 15
    DJ Basin XRL Indicative Economics 700 Mboe EUR 600 Mboe EUR 500 Mboe EUR Pre-Tax EUR PV10 Payout (Mboe) IRR ( millions) (Years) 500 27% 2.1 2.5 600 38% 3.3 2.1 700 45% 4.5 1.9 1 Calculated for an XRL well with a…
  16. September 2017 Corporate Update – Bill Barrett Corp. – slide 16
    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…
  17. September 2017 Corporate Update – Bill Barrett Corp. – slide 17
    Provides Competitive Advantage BBG benefits from having no firm marketing commitments and favorable API gravity crude Oil price differential expected to average 3-4 per barrel below WTI 2Q17 BBG differential averaged 2.16 per…
  18. September 2017 Corporate Update – Bill Barrett Corp. – slide 18
    Best in Class DJ Basin Operating Margins Generating 34% greater unhedged operating margins compared to DJ Basin peers 30 27.17/boe 25 Peer Average - 20.30/boe 20 15 10 5 0 BBG Peer 1 Peer 2 Peer 3 Peer 4…
  19. September 2017 Corporate Update – Bill Barrett Corp. – slide 19
    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 allowed for renegotiation of…
  20. September 2017 Corporate Update – Bill Barrett Corp. – slide 20
    Financial Overview
  21. September 2017 Corporate Update – Bill Barrett Corp. – slide 21
    Track Record of Debt Reduction Net Debt (mm) 1,200 Significant debt reduction 1,000 accomplished in challenging 800 commodity price environment 600 April 2017 debt offering reduced gross debt 400 by 6% 200 Undrawn…
  22. September 2017 Corporate Update – Bill Barrett Corp. – slide 22
    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 50-70% of production on Crude Oil a forward 12-month to…
  23. September 2017 Corporate Update – Bill Barrett Corp. – slide 23
    2017 Operating Guidance Update Driven by positive well results, the timing of well completions and an greater operating efficiencies Production sales volumes increased to 6.4-6.6 MMBoe from 6.0-6.5 MMBoe Increase driven by early…
  24. September 2017 Corporate Update – Bill Barrett Corp. – slide 24
    Summary Core DJ Basin acreage position is in rural location and within a top-tier basin Execution of operational plan translates into beat and raise with increased growth profile Solid financial position with cash and undrawn…
  25. September 2017 Corporate Update – Bill Barrett Corp. – slide 25
    Appendix
  26. September 2017 Corporate Update – Bill Barrett Corp. – slide 26
    2Q17 Highlights Production of 1.53 MMBoe, high-end of guidance range 59% oil, 21% natural gas and 20% NGLs DJ Basin oil price differential narrowed to a basin leading 2.16 per barrel 55% improvement from second quarter of 2016…
  27. September 2017 Corporate Update – Bill Barrett Corp. – slide 27
    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 &…
  28. September 2017 Corporate Update – Bill Barrett Corp. – slide 28
    2016 Proved Reserves Pro forma reserve growth of Proved Reserves Summary YE 2015 YE 2016 8%, adjusted for technical reserves 90.4 +8% YE 2016 proved reserves were 83.7 lower due to commodity price- related and other revisions…
  29. September 2017 Corporate Update – Bill Barrett Corp. – slide 29
    Oil and Natural Gas Hedge Summary 2017 and 2018 hedge position, as of September 5, 2017 Swaps Period Oil Natural Gas Volume WTI Price Volume NWPL Price (Bbls/d) (/Bbl) (MMBtu/d) (MMBtu) 3Q17 7,125 58.77 10,000 2.96 4Q17 8,125…
  30. September 2017 Corporate Update – Bill Barrett Corp. – slide 30
    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…
  31. September 2017 Corporate Update – Bill Barrett Corp. – slide 31
    Three and Six month Financial Results Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Net cash provided by operating activities ( millions) .1 8.3 38.2 48.8 Discretionary cash flow ( millions)1 21.6 32.8…
  32. September 2017 Corporate Update – Bill Barrett Corp. – slide 32
    Non-GAAP Reconciliation (Unaudited) EBITDAX Reconciliation Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 (in thousands) Net Income (Loss) (18,447) (48,419) (31,562) (94,915) Adjustments to reconcile to…
  33. September 2017 Corporate Update – Bill Barrett Corp. – slide 33
    Non-GAAP Reconciliation (Unaudited) Discretionary Cash Flow Reconciliation Three Months Ended Six Months Ended June 30, December 31, 2017 2016 2017 2016 (in thousands) Net Cash Provided by (Used in) Operating Activities 101 8,264…
  34. September 2017 Corporate Update – Bill Barrett Corp. – slide 34
    1099 Eighteenth Street, Suite 2300 Denver, CO 80202 303.293.9100 Website: www.billbarrettcorp.com Investor Relations Contact: Larry C. Busnardo (303) 312-8514 lbusnardobillbarrettcorp.com

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