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HOWARD WEIL 42ND ANNUAL ENERGY CONFERENCE – Bill Barrett Corp.

Bill Barrett Corp. · Mar 31, 2014 · 41 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. HOWARD WEIL 42ND ANNUAL ENERGY CONFERENCE – Bill Barrett Corp. – slide 1
    HOWARD WEIL 42ND ANNUAL ENERGY CONFERENCE March 2014
  2. HOWARD WEIL 42ND ANNUAL ENERGY CONFERENCE – Bill Barrett Corp. – slide 2
    Company Overview 2.3 billion enterprise value 1.3 billion market cap Proved reserves: 197 MMBoe 42% oil; 42% proved developed Total risked resources: 587 MMBoe Long-term drilling inventory with 5,400 gross oil and gas locations…
  3. HOWARD WEIL 42ND ANNUAL ENERGY CONFERENCE – Bill Barrett Corp. – slide 3
    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,…
  4. HOWARD WEIL 42ND ANNUAL ENERGY CONFERENCE – Bill Barrett Corp. – slide 4
    Driving Transformation Delivered on key 2013 objectives Achieved commodity balance Drove substantial growth in oil reserves and oil production Reduced debt by 189 million Executed at Northeast Wattenberg Executed at Uinta Oil…
  5. HOWARD WEIL 42ND ANNUAL ENERGY CONFERENCE – Bill Barrett Corp. – slide 5
    Oil Focus Delivers High Production and Cash Flow Growth Oil Program Production (MMBoe) Oil Program Operating Cash Flow 8.0 millions 200 4.0 0.0 0 2011 2012 2013 2014e 2011 2012 2013 2014e DJ Basin Uinta Oil Program Powder…
  6. HOWARD WEIL 42ND ANNUAL ENERGY CONFERENCE – Bill Barrett Corp. – slide 6
    Low-risk, Long-term Growth Profile 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 Year-end 2013 Proved…
  7. HOWARD WEIL 42ND ANNUAL ENERGY CONFERENCE – Bill Barrett Corp. – slide 7
    Financial Strength and Flexibility Successfully transitioning to oil-focused portfolio while reducing debt Year-end 2013 long-term debt reduced by 189 million to 984 million Debt:EBITDAX 2.7X Portfolio management focuses operations…
  8. HOWARD WEIL 42ND ANNUAL ENERGY CONFERENCE – Bill Barrett Corp. – slide 8
    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 76,000 net acres in DJ Basin oil…
  9. HOWARD WEIL 42ND ANNUAL ENERGY CONFERENCE – Bill Barrett Corp. – slide 9
    2014 Guidance Capital program 100% directed at oil growth Total capital of 500-550 million Finance through discretionary cash 2014 Capex % by Area flow, asset sales and credit facility Capex allocation 75% DJ Basin Uinta Oil 15-20%…
  10. HOWARD WEIL 42ND ANNUAL ENERGY CONFERENCE – Bill Barrett Corp. – slide 10
    DJ BASIN
  11. HOWARD WEIL 42ND ANNUAL ENERGY CONFERENCE – Bill Barrett Corp. – slide 11
    DJ Basin: Lots of Running Room Niobrara and Codell Formations Prime land position: 76,000 net acres Northeast Wattenberg: 40,500 net acres Wattenberg interior: 13,585 net acres Chalk Bluffs: 22,160 net acres* Target Niobrara and…
  12. HOWARD WEIL 42ND ANNUAL ENERGY CONFERENCE – Bill Barrett Corp. – slide 12
    DJ Basin: Production Growth DJ Basin Net Production and Gross Operated Horizontal Wells Spud 6,000 5,125 Boe/d 4,500 3,000 1,565 1,500 0 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 Wells spud 13 7 2 11 21 27 1Q14: expect to…
  13. HOWARD WEIL 42ND ANNUAL ENERGY CONFERENCE – Bill Barrett Corp. – slide 13
    Northeast Wattenberg Well Results 2013 Appraisal program tests multiple concepts Northern Block Delineated and proved 70% of acreage Western 61 wells drilled / 41 wells with 30-day production data Block Tested Niobrara B, Niobrara…
  14. HOWARD WEIL 42ND ANNUAL ENERGY CONFERENCE – Bill Barrett Corp. – slide 14
    DJ Basin 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 Long-term…
  15. HOWARD WEIL 42ND ANNUAL ENERGY CONFERENCE – Bill Barrett Corp. – slide 15
    Northeast Wattenberg: 70% Delineated Based on Proved Reserves Northern Block: Net Acreage 17,600 % Delineated* 95% Proved Reserves (MMBoe) 39.1 Risked Resources (MMBoe): 73.7 Undrilled Locations Western Block: Northern Block…
  16. HOWARD WEIL 42ND ANNUAL ENERGY CONFERENCE – Bill Barrett Corp. – slide 16
    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…
  17. HOWARD WEIL 42ND ANNUAL ENERGY CONFERENCE – Bill Barrett Corp. – slide 17
    DJ Basin: 2014 Activity 2014 Plan: Drives Estimated 40% Rate of Return Niobrara and Codell Formations Exploit 76,000 acre position 85 gross operated wells at 70% WI Participation in 45 non-operated wells, 20% WI Drilling program…
  18. HOWARD WEIL 42ND ANNUAL ENERGY CONFERENCE – Bill Barrett Corp. – slide 18
    UINTA OIL PROGRAM
  19. HOWARD WEIL 42ND ANNUAL ENERGY CONFERENCE – Bill Barrett Corp. – slide 19
    Uinta Oil Program Large, Scalable Program: 160,000 net acres Wasatch, Green River Formations East Bluebell: 22,950 net acres Blacktail Ridge/Lake Canyon: 108,000* net acres South Altamont: 23,050 net acres Driving Rapid Growth…
  20. HOWARD WEIL 42ND ANNUAL ENERGY CONFERENCE – Bill Barrett Corp. – slide 20
    Uinta: 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…
  21. HOWARD WEIL 42ND ANNUAL ENERGY CONFERENCE – Bill Barrett Corp. – slide 21
    Uinta Oil Program: East Bluebell Execution East Bluebell Program Offers Substantial Upside Lower Green River 35,480 gross/22,950 net acres Early delineation phase: 20 wells drilled and completed in 2013 Production: 2,645 Boe/d (4Q13)…
  22. HOWARD WEIL 42ND ANNUAL ENERGY CONFERENCE – Bill Barrett Corp. – slide 22
    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…
  23. HOWARD WEIL 42ND ANNUAL ENERGY CONFERENCE – Bill Barrett Corp. – slide 23
    Uinta Basin: 2014 Activity 2014 Plans: Capture Value at East Bluebell Wasatch, Green River Formations 35 gross operated wells (25 net) Average 1-2 rig program 25 gross wells in East Bluebell Development on 80-acre spacing Further…
  24. HOWARD WEIL 42ND ANNUAL ENERGY CONFERENCE – Bill Barrett Corp. – slide 24
    POWDER DEEP OIL
  25. HOWARD WEIL 42ND ANNUAL ENERGY CONFERENCE – Bill Barrett Corp. – slide 25
    Powder Deep Oil Program Stacked oil play providing positive results, but not part of long-term future 163,424 gross / 69,094 net acres * Production: 1,500 Boe/d (4Q13) Multiple oil plays show good results in Shannon, Sussex,…
  26. HOWARD WEIL 42ND ANNUAL ENERGY CONFERENCE – Bill Barrett Corp. – slide 26
    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 76,000 net acres in DJ…
  27. HOWARD WEIL 42ND ANNUAL ENERGY CONFERENCE – Bill Barrett Corp. – slide 27
    APPENDIX
  28. HOWARD WEIL 42ND ANNUAL ENERGY CONFERENCE – Bill Barrett Corp. – slide 28
    Hedging Provides Price Predictability 2014 hedges: 3.6 MMBbls oil hedged at 94.09/bbl 23.1 Bcf gas hedged at 4.20/Mcf Opportunistically add to positions over time As of March 17, 2014 Volume (MMBoe) Price (/Boe) 2.5 80…
  29. HOWARD WEIL 42ND ANNUAL ENERGY CONFERENCE – Bill Barrett Corp. – slide 29
    Natural Gas and Oil Hedges As of March 17, 2014 Swaps Period Oil Natural Gas NGLs* Volume WTI Price Volume NWPL Price Volume Price (Bbls/d) (/Bbl) (MMBtu/d) (MMBtu) Bbls/d (/Bbl) 1Q14 9,000 94.27 65,000 4.02 866 54.84 2Q14…
  30. HOWARD WEIL 42ND ANNUAL ENERGY CONFERENCE – Bill Barrett Corp. – slide 30
    Debt Instruments ( in millions) As of 12/31/2013 Revolving Credit Facility due 2016 115 Borrowing Base (adjusted for West Tavaputs sale) 625 5.000% Convertible Notes due 2028 (March 2015 Put) (currently callable) 25 7.625%…
  31. HOWARD WEIL 42ND ANNUAL ENERGY 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 3Q14 White Cliffs Expansion 75 3Q14 Pony Express DJ…
  32. HOWARD WEIL 42ND ANNUAL ENERGY CONFERENCE – Bill Barrett Corp. – slide 32
    DJ Basin Infrastructure Expected Capacities Cheyenne Crude Terminal 52mbbls/d Pony Express Conversion 3Q14: 230-320mbbls/d Pony Express NE CO Lateral 1Q15: 90mbbls/d Suncor Refinery: 96MBbls/d White Cliffs Pipeline…
  33. HOWARD WEIL 42ND ANNUAL ENERGY 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. HOWARD WEIL 42ND ANNUAL ENERGY CONFERENCE – Bill Barrett Corp. – slide 34
    Colorado Hydraulic Fracturing Initiative Anti-Hydraulic Fracturing Initiative Announced 2014 ballot issue that would empower local governments to ban a range of oil and gas activities, not limited to hydraulic fracturing 86,000…
  35. HOWARD WEIL 42ND ANNUAL ENERGY CONFERENCE – Bill Barrett Corp. – slide 35
    Northeast Wattenberg: Prime Position Among Peers Excellent position yet to be fully valued Successful extended reach Niobrara Formation laterals within 2 miles of BBG position East Pony/ Redtail SYRG Successful 40-acre spacing…
  36. HOWARD WEIL 42ND ANNUAL ENERGY CONFERENCE – Bill Barrett Corp. – slide 36
    Uinta Basin: Well Positioned Among Peers Wasatch, Green River Formations DVN EP CPG CPG QEP NFX UPL NFX LINN 10 Miles BBG Acreage 37
  37. HOWARD WEIL 42ND ANNUAL ENERGY 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. HOWARD WEIL 42ND ANNUAL ENERGY CONFERENCE – Bill Barrett Corp. – slide 38
    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…
  39. HOWARD WEIL 42ND ANNUAL ENERGY CONFERENCE – Bill Barrett Corp. – slide 39
    2014 Guidance Profitable growth from core oil programs and maintaining capital discipline Total capital expenditures of 500 - 550 million Production: 11.0-12.2 MMBoe 62 - 67 million lease operating expense 43 - 48 million gathering,…
  40. HOWARD WEIL 42ND ANNUAL ENERGY CONFERENCE – Bill Barrett Corp. – slide 40
    Land Summary As of December 31, 2013 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 128,155 56,630 82% 51% Minimum…
  41. HOWARD WEIL 42ND ANNUAL ENERGY CONFERENCE – Bill Barrett Corp. – slide 41

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