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SIMMONS 14TH ANNUAL ENERGY CONFERENCE – Bill Barrett Corp.

Bill Barrett Corp. · Feb 27, 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. SIMMONS 14TH ANNUAL ENERGY CONFERENCE – Bill Barrett Corp. – slide 1
    SIMMONS 14TH ANNUAL ENERGY CONFERENCE FEBRUARY 2014
  2. SIMMONS 14TH ANNUAL ENERGY CONFERENCE – Bill Barrett Corp. – slide 2
    Key Discussion Points Company Overview 2013 Successes Commodity Balance Oil Growth Debt Reduction Development Expansion 2014 Plan Strategy Guidance Major Asset Descriptions DJ Basin Uinta Oil Program 3
  3. SIMMONS 14TH ANNUAL ENERGY CONFERENCE – Bill Barrett Corp. – slide 3
    Company Overview Business Model: Commodity balanced resource development company, currently 60% liquids 2.2 billion enterprise value 1.2 billion market cap Proved reserves: 197 MMBoe 42% oil; 42% proved developed Total…
  4. SIMMONS 14TH ANNUAL ENERGY CONFERENCE – Bill Barrett Corp. – slide 4
    Company Strategy Strategy to drive profitable growth in cash flows: Exploit large existing oil drilling inventory, more than 4,800 gross oil locations Allocate capital to highest return assets, with current focus on two core oil…
  5. SIMMONS 14TH ANNUAL ENERGY CONFERENCE – Bill Barrett Corp. – slide 5
    2013 Successes Delivered on key 2013 objectives Achieved Commodity Balance Exit rate production 40% oil Proved reserves: 40% oil, 18% NGLs, 42% gas Built substantial growth in oil reserves and oil production 30% oil production…
  6. SIMMONS 14TH ANNUAL ENERGY CONFERENCE – Bill Barrett Corp. – slide 6
    2013 Successes: Balanced Portfolio Commodity balance by production and reserves 2012 Production: 2013* 9% Oil 20% Gas 42% 40% NGL 71% 18% 2012 2013 Reserves: 26% Oil 42% 40% 58% Gas 16% NGL 18% 7 * 2013 Exit rate…
  7. SIMMONS 14TH ANNUAL ENERGY CONFERENCE – Bill Barrett Corp. – slide 7
    2013 Successes: Oil Growth Achieving excellent growth in oil reserves and production More than 40% CAGR projected for oil production 2010-2014 65% increase in proved oil reserves year-end 2013 over year-end 2012 More than 4,800 gross…
  8. SIMMONS 14TH ANNUAL ENERGY CONFERENCE – Bill Barrett Corp. – slide 8
    2013 Successes: 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…
  9. SIMMONS 14TH ANNUAL ENERGY CONFERENCE – Bill Barrett Corp. – slide 9
    2013 Successes : Low-risk, Long-term Growth Portfolio 88% growth in proved reserves at three active oil programs 80% growth in risked resources at three active oil programs Year-end 2013 Proved + Proved Risked Gross/Net Proved…
  10. SIMMONS 14TH ANNUAL ENERGY CONFERENCE – Bill Barrett Corp. – slide 10
    2013 Successes Financial Strength and Flexibility Year-end 2013 long-term debt reduced by 189 million to 984 million Debt:EBITDAX 2.7X Successful sale of West Tavaputs asset for 369 million, proceeds used to pay down debt Borrowing…
  11. SIMMONS 14TH ANNUAL ENERGY CONFERENCE – Bill Barrett Corp. – slide 11
    Value Creation: 2014 Plan 2014 Objectives Capitalize on commodity balance by allocating capital to highest returning assets and achieving high margins Unlock and deliver unrealized value from 75,000+ net acres in DJ Basin Strengthen…
  12. SIMMONS 14TH ANNUAL ENERGY CONFERENCE – Bill Barrett Corp. – slide 12
    2014 Guidance Profitable growth from core oil programs and maintaining capital discipline Total capital expenditures of 500 - 550 million, 75% to DJ Basin Production: 11.0-12.2 MMBoe 62 - 67 million lease operating expense 43 - 48…
  13. SIMMONS 14TH ANNUAL ENERGY CONFERENCE – Bill Barrett Corp. – slide 13
    2014 Guidance Capital program 100% directed at oil growth Total capital of 500-550 million Finance through discretionary cash flow and 2014 Capex % by Area credit facility Capex allocation Uinta Oil 75% DJ Basin 15-20% Uinta…
  14. SIMMONS 14TH ANNUAL ENERGY CONFERENCE – Bill Barrett Corp. – slide 14
    PROPERTY DESCRIPTIONS: CORE OIL DEVELOPMENT PROGRAMS
  15. SIMMONS 14TH ANNUAL ENERGY CONFERENCE – Bill Barrett Corp. – slide 15
    Core Oil Development Programs Uinta Basin, Uinta Oil Program DJ Basin, Northeast Wattenberg Focus 2013 year-end reserves increase 10% to 2013 year-end reserves increase more 53 MMBoe than 350% to 66 MMBoe Year-over-year…
  16. SIMMONS 14TH ANNUAL ENERGY CONFERENCE – Bill Barrett Corp. – slide 16
    DJ Basin: Lots Of Running Room Niobrara Formation Prime land position: 75,000 net acres Silo Field Northeast Wattenberg: 40,500 net acres Chalk Bluffs Wattenberg interior: 13,585 net acres Chalk Bluffs/Wyoming border: 22,025 net…
  17. SIMMONS 14TH ANNUAL ENERGY CONFERENCE – Bill Barrett Corp. – slide 17
    2013 Successes: DJ Basin Execution Niobrara Formation 2013 Activity Proves Quality of Acreage 70% of NE Wattenberg net acreage delineated based on proved reserves (90% confidence level) Southern acreage results prove quality of…
  18. SIMMONS 14TH ANNUAL ENERGY CONFERENCE – Bill Barrett Corp. – slide 18
    DJ Basin: 2014 Activity Niobrara Formation 2014 Plans: Drives Estimated 40% Rate of Return Silo Field Expand program to Core Wattenberg and Chalk Chalk Bluffs Bluffs 85 gross operated wells at 70% working interest Northeast…
  19. SIMMONS 14TH ANNUAL ENERGY CONFERENCE – Bill Barrett Corp. – slide 19
    DJ Basin: Production Growth DJ Basin Growth Net Production (Boe/d) 6,000 5,125 4,500 3,000 1,565 1,500 0 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 Driving continued growth 20
  20. SIMMONS 14TH ANNUAL ENERGY CONFERENCE – Bill Barrett Corp. – slide 20
    Uinta Oil Program Large, Scalable Program Proved reserves up 10% to 53 Wasatch, Green River Formations MMBoe N Proved + risked resources increases Altamont/Bluebell to 171 MMBoe Roosevelt East Bluebell Blacktail Ridge South…
  21. SIMMONS 14TH ANNUAL ENERGY CONFERENCE – Bill Barrett Corp. – slide 21
    2013 Successes: Uinta Oil Program Execution 2013 Activity 57 wells drilled and completed Wasatch, Green River Formations Successful 80-acre downspacing tests N in Blacktail Ridge-Lake Canyon Altamont/Bluebell Tests led directly to…
  22. SIMMONS 14TH ANNUAL ENERGY CONFERENCE – Bill Barrett Corp. – slide 22
    Uinta Oil Program: East Bluebell Execution Growing Production: 2,645 Boe/d (4Q13) 2014 plan: 25 gross wells East Bluebell 35,480 gross/22,950 net acres Development on 80-acre spacing Reduced well costs 50% since acquisition Total…
  23. SIMMONS 14TH ANNUAL ENERGY CONFERENCE – Bill Barrett Corp. – slide 23
    Powder River Deep Program: New Program, Exciting Results Stacked oil play providing early positive test results 2013 Program: 162,040 gross/67,835 net acres 5 Shannon Wells BBG Non-Op: (30-day IPs) Parkman Well: Production: 1,500…
  24. SIMMONS 14TH ANNUAL ENERGY CONFERENCE – Bill Barrett Corp. – slide 24
    Value Creation Opportunity Execution, Execution, Execution Deliver strong growth in oil production focused in expanded DJ program; positioning company for increased production, margins and cash flow in 2015 Realize value of DJ…
  25. SIMMONS 14TH ANNUAL ENERGY CONFERENCE – Bill Barrett Corp. – slide 25
    APPENDIX
  26. SIMMONS 14TH ANNUAL ENERGY CONFERENCE – Bill Barrett Corp. – slide 26
    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 Volume (MMBoe) Price (/Boe) 2.0 80 Volume (MMBoe) 1.5…
  27. SIMMONS 14TH ANNUAL ENERGY CONFERENCE – Bill Barrett Corp. – slide 27
    Natural Gas and Oil Hedges As of February 25, 2014 Swaps Period Natural Gas NGLs* Oil Volume NWPL Price Volume Price Volume WTI Price (MMBtu/d) (MMBtu) Bbls/d (/Bbl) (Bbls/d) (/Bbl) 1Q14 65,000 4.02 866 54.84 9,000 94.27 2Q14…
  28. SIMMONS 14TH ANNUAL ENERGY CONFERENCE – Bill Barrett Corp. – slide 28
    Debt Instruments ( in millions) ESTIMATED 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%…
  29. SIMMONS 14TH ANNUAL ENERGY CONFERENCE – Bill Barrett Corp. – slide 29
    Manageable Debt Levels Well-spaced debt maturities Bank credit facility of 625 million, 115 million drawn as of 12/31/2013, matures 2016 Redeemed 250 million 9.875% senior notes in mid-July 2013 at 104.938% Liquidity: 474 million…
  30. SIMMONS 14TH ANNUAL ENERGY CONFERENCE – Bill Barrett Corp. – slide 30
    Uinta Oil Program Marketing Refining capacity is increasing, growing optionality, confident we can sell our production Current marketing agreement 7,500 Bbl/d through 2018 Sales based upon wax posted prices typically 16-18% price…
  31. SIMMONS 14TH ANNUAL ENERGY CONFERENCE – Bill Barrett Corp. – slide 31
    DJ Basin Infrastructure Infrastructure additions to double capacity by 2015 Crude pipelines and rail projects Over 450 MBbls/d capacity to come online by 2015 White Cliffs pipeline expansion (Platteville, CO to Cushing, OK) 1Q14 Pony…
  32. SIMMONS 14TH ANNUAL ENERGY CONFERENCE – Bill Barrett Corp. – slide 32
    DJ Basin Infrastructure Oil Trucked and sold to local refineries and marketers Cheyenne Crude Terminal 52mbbls/d Gas/NGLs Pony Express Conversion 3Q14: 230-320mbbls/d Sold on POP contracts with DCP and Kerr-Mcgee/APC Lucerne 2…
  33. SIMMONS 14TH ANNUAL ENERGY CONFERENCE – Bill Barrett Corp. – slide 33
    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…
  34. SIMMONS 14TH ANNUAL ENERGY CONFERENCE – Bill Barrett Corp. – slide 34
    Northeast Wattenberg: Prime Position Among Peers Excellent position yet to be fully valued Niobrara Formation Neighboring peers seeing 300,000+ EURs East Pony WLL Redtail NBL Successful NBL extended reach laterals within 2 miles…
  35. SIMMONS 14TH ANNUAL ENERGY CONFERENCE – Bill Barrett Corp. – slide 35
    Northeast Wattenberg Peer Activity Carrizo IP: 725 BO, 166 Mcf/d Surrounded by peer BBG Wells/Pads NBL 1280 East Pony activity BCEI Horizontal Condor IP: 528 BO, 360 Mcf/d Continental Close to NBL Wells Marathon Ranch…
  36. SIMMONS 14TH ANNUAL ENERGY CONFERENCE – Bill Barrett Corp. – slide 36
    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…
  37. SIMMONS 14TH ANNUAL ENERGY CONFERENCE – Bill Barrett Corp. – slide 37
    DJ Basin: Trending in the Right Direction Rapidly increasing activity and moving on the learning curve Drilling Days Horizontal Wells Spud 20 90 15 60 10 30 5 0 0 2H11 1H12 2H12 1H13 2H13 2011 2012 2013 2014e 38
  38. SIMMONS 14TH ANNUAL ENERGY CONFERENCE – Bill Barrett Corp. – slide 38
    Powder River Deep Stacked Oil Play with Multiple Horizons 2013 Program Five horizontal Shannon wells Avg. 30-day IP: 516 Boe/d 2012 Program Horizontal Sussex well Avg. 30-day IP: 477 Boe/d Two producing horizontal Frontier…
  39. SIMMONS 14TH ANNUAL ENERGY CONFERENCE – Bill Barrett Corp. – slide 39
    Piceance Basin: Gibson Gulch Stable Cash Generating Asset Williams Fork Formation Gibson Gulch: 12,615 net acres Silt N Proved reserves: 73 MMBoe Cottonwood Proved + risked resources: 100 Gulch MMBoe Silt Gibson Gross…
  40. SIMMONS 14TH ANNUAL ENERGY CONFERENCE – Bill Barrett Corp. – slide 40
    2013 Exit Rate Production Details Oil (BBls/d) Gas (MMcf/d) NGL (BBls/d) Total (MBoe/d) DJ Basin 3,580 9 980 6.1 Uinta Oil 5,250 8 195 6.7 Program Powder Deep 1,320 1 0 1.5 Oil Piceance 750 53 3,925 13.5 Total 10,900 71 5,100 27.8
  41. SIMMONS 14TH ANNUAL ENERGY CONFERENCE – Bill Barrett Corp. – slide 41
    Land Summary As of December 31, 2013 Average Gross Average BBG Area Gross Acreage Net Acreage Project NRI Working Interest Active Oil Properties Uinta Basin Uinta Oil Program Blacktail Ridge/Lake Canyon 128,155 56,630 82% 51%…
  42. SIMMONS 14TH ANNUAL ENERGY CONFERENCE – Bill Barrett Corp. – slide 42

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