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January 2018 Corporate Presentation – Bill Barrett Corp.

Bill Barrett Corp. · Jan 22, 2018 · 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. January 2018 Corporate Presentation – Bill Barrett Corp. – slide 1
    Corporate Update January 2018
  2. January 2018 Corporate Presentation – Bill Barrett Corp. – slide 2
    Transaction Highlights Creates Leading DJ Basin Pure Play Focused on Rural, Oily Portion of Basin Highlights Strategic combination with Fifth Creek Energy (Fifth Creek) Leading Pure Play Asset Base materially expands DJ Basin…
  3. January 2018 Corporate Presentation – Bill Barrett Corp. – slide 3
    Transaction Overview 100 mm shares to be issued to Fifth Creek Combined company initial equity value in excess of Fifth Creek Offset Operators Transaction Terms 1.0 billion BBG Unsecured Notes will be left outstanding 81,000 net…
  4. January 2018 Corporate Presentation – Bill Barrett Corp. – slide 4
    Strategic Rationale Merger consistent with strategic focus on highquality, lowrisk oilweighted properties in the DJ Basin Continues preference for rural, open space assets that allow for XRL development Dramatically increases scale…
  5. January 2018 Corporate Presentation – Bill Barrett Corp. – slide 5
    Successfully Increases Scale & Value DJ Basin Net Acres YE 2016 Proved Reserves (MMBoe)(1) Q3 2017 Production (MBoe/d) +112% +206% +14% (1) f (2) d (3) D Gross Undeveloped Locations Net Location CountIndicative Economics…
  6. January 2018 Corporate Presentation – Bill Barrett Corp. – slide 6
    Pro Forma Capitalization Improved Leverage & Ample Liquidity to Fund HighReturn Development Plan Overview of Announced Financings Pro Forma Capitalization (Excludes Fifth Creek Assumed Debt) Uinta sale announced in November 2017 for…
  7. January 2018 Corporate Presentation – Bill Barrett Corp. – slide 7
    Credit Accretive Transaction Track Record of Debt Reduction Significant debt reduction accomplished in challenging commodity price environment Completed April 2017 debt offering that reduced gross debt by 6% Completed December…
  8. January 2018 Corporate Presentation – Bill Barrett Corp. – slide 8
    Complementary Rural Position Combined acreage position is rural in nature with no urban exposure or associated development complexities Favorable Development Setting Rural Positioning Laramie Operate in rural area of DJ…
  9. January 2018 Corporate Presentation – Bill Barrett Corp. – slide 9
    Fifth Creek Acreage Position Hereford Field Meets All Key Geologic Criteria Significant Well Control Hereford Field is where the horizontal Niobrara play Silo Field kicked off with the Jake well in 2009 Fifth Creek position lies…
  10. January 2018 Corporate Presentation – Bill Barrett Corp. – slide 10
    Primary Targets Consistent Across Acreage Consistent geology from Colorado Hereford Field to Wyoming Fairway Field W BBC Talmadge Continuity and consistency of primary targets across acreage position Core Well Niobrara B bench…
  11. January 2018 Corporate Presentation – Bill Barrett Corp. – slide 11
    Strong Well Results Validate Hereford Field Position Initial Well Performance Ranks Among the Best in the DJ Basin 1 20 Jubilee 1541034H (Aug2014) Critter Creek 2781527H (Sep2017) Legend IP30: 1,032 Boe/d 90% Oil IP30: 1,249 Boe/d…
  12. January 2018 Corporate Presentation – Bill Barrett Corp. – slide 12
    Fifth Creek Undeveloped Well Economics Deep Inventory of High Return Niobrara & Codell Locations Fifth Creek XRL (9,500') Illustrative Economics Niobrara Codell 2Phase EUR (MBoe) 400 475 475 575 % Oil 78% 78% D&C (mm) 5.1…
  13. January 2018 Corporate Presentation – Bill Barrett Corp. – slide 13
    Implement Development Efficiencies Hereford Field Development Plan BBG NE Wattenberg XRL D&C Cost (mm) Initiate full DSU development 8.25 Drill 100% XRL wells (9,500 lateral 6.25 length) 4.75 4.75 Replicate cost efficiencies…
  14. January 2018 Corporate Presentation – Bill Barrett Corp. – slide 14
    DJ Basin Infrastructure DJ Basin Infrastructure / NE Wattenburg Addition of Saddlehorn / Grand Mesa oil pipeline in 2016 significantly increased takeaway capacity to 650 MBbls/d(1) DJ Basin oil production currently in excess of 350…
  15. January 2018 Corporate Presentation – Bill Barrett Corp. – slide 15
    Preliminary 2018 Outlook Drilling and Completion Capital Net Sales Production (MMBoe) Anticipate operating 3 rigs in 2018 2018E capital expenditures of 500 600 mm Capital will be allocated to the highest return inventory across the…
  16. January 2018 Corporate Presentation – Bill Barrett Corp. – slide 16
    Value Proposition to BBG Shareholders Combination creates leading DJ Basin pureplay with highquality, oily, rural acreage that is consistent with strategic focus Unique opportunity to add a large, undeveloped acreage position at an…
  17. January 2018 Corporate Presentation – Bill Barrett Corp. – slide 17
    Appendix
  18. January 2018 Corporate Presentation – Bill Barrett Corp. – slide 18
    Bill Barrett Corporation Overview Large, contiguous acreage position Rural setting in oil rich mature areas Largely fee acreage High inventory of 40%+ ROR wells Returns focused strategy translates into peer leading operating…
  19. January 2018 Corporate Presentation – Bill Barrett Corp. – slide 19
    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 second positive guidance revision NE…
  20. January 2018 Corporate Presentation – Bill Barrett Corp. – slide 20
    3Q17 Achievements Production of 1.92 MMBoe, 26% sequential growth Exceeded guidance by 10% with oil volumes growing 33% sequentially 4Q17 production expected to grow 10% sequentially Corporate oil price differential narrowed to 2.12…
  21. January 2018 Corporate Presentation – Bill Barrett Corp. – slide 21
    Demonstrated Ability to Grow Production Track record of delivering consistent DJ Basin growth despite lower activity levels in Net Sales Volumes (Mboe)1 9,000 challenging crude market environment +30% Met or exceeded guidance for 12…
  22. January 2018 Corporate Presentation – Bill Barrett Corp. – slide 22
    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 =…
  23. January 2018 Corporate Presentation – Bill Barrett Corp. – slide 23
    Current XRL Development NE Wattenberg Focus Area Section 56120 (8 XRL wells) Enhanced proppant (1,500 lbs/lateral foot) Frac stage spacing of 120 (82stages) 7 Initial flowback in 4Q17 Section 46229 and 46232 (10 XRL wells per…
  24. January 2018 Corporate Presentation – Bill Barrett Corp. – slide 24
    Significant Improvement in Cycle Times 4.75 mm current XRL well cost Drill Days Frac Days 20 14 16 12 10 12 8 8 6 4 4 2 0 0 2014 2015 2016 2017 2014 2015 2016 2017 Drill Out Days Combined Cycle Time 9 40 35 6 30 25 20 15 3…
  25. January 2018 Corporate Presentation – Bill Barrett Corp. – slide 25
    Enhanced Completions Optimizing Results 2017 Completions Increase proppant to 1,500 lbs per lateral foot from 1,000 lbs per lateral foot Reduction in frac stage spacing from 175 feet to 100120 feet between stages Adjust fluid…
  26. January 2018 Corporate Presentation – Bill Barrett Corp. – slide 26
    DJ Basin XRL Indicative Economics 600 Mboe EUR Based on 50/Bbl: PreTax EUR PV10 Payout (Mboe) IRR ( millions) (Years) 500 29% 2.4 2.4 600 44% 4.1 1.8 700 52% 5.0 1.6 Calculated for an XRL well with a 9,500 lateral,…
  27. January 2018 Corporate Presentation – Bill Barrett Corp. – slide 27
    Best in Class DJ Basin Operating Margins Generating 31% greater unhedged operating margins compared to DJ Basin peers Source: Company filings and calculated for third quarter 2017 results Peers include: BCEI, PDCE, SRCI, XOG…
  28. January 2018 Corporate Presentation – Bill Barrett Corp. – slide 28
    Hedging Program Protects Cash Flow Actively manage hedge portfolio to support Legacy BBG Crude Oil Hedges capital program, protect future cash flow 12,000 and reduce commodity price risk 53.28 52.99 Strategy is to hedge 5070% of…
  29. January 2018 Corporate Presentation – Bill Barrett Corp. – slide 29
    Legacy BBG Oil and Natural Gas Hedge Summary 2018-2019 hedge position, as of January 19, 2018 Swaps Period Oil Natural Gas Volume WTI Price Volume NWPL Price (Bbls/d) (/Bbl) (MMBtu/d) (MMBtu) 1Q18 9,250 52.99 5,000 2.68 2Q18…
  30. January 2018 Corporate Presentation – Bill Barrett Corp. – slide 30
    2017 Operating Guidance Driven by positive well results, the timing of well completions and greater operating efficiencies Production sales volumes of 6.97.1 MMBoe Represents 21% production growth at the midpoint compared to pro…
  31. January 2018 Corporate Presentation – Bill Barrett Corp. – slide 31
    Three and Nine month Financial Results Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Net cash provided by operating activities ( millions) 57.2 67.4 95.4 116.2 Discretionary cash flow (…
  32. January 2018 Corporate Presentation – Bill Barrett Corp. – slide 32
    NonGAAP Reconciliation (Unaudited) EBITDAX Reconciliation Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 (in thousands) Net Income (Loss) (28,842) (26,186) (60,404) (121,101) Adjustments to…
  33. January 2018 Corporate Presentation – Bill Barrett Corp. – slide 33
    NonGAAP Reconciliation (Unaudited) Discretionary Cash Flow Reconciliation Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 (in thousands) Net Cash Provided by (Used in) Operating Activities…
  34. January 2018 Corporate Presentation – 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) 3128514 lbusnardobillbarrettcorp.com

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