DENVER, Nov. 3, 2016
/PRNewswire/ -- Bill Barrett Corporation (the "Company") (NYSE:
BBG) reports third quarter of 2016 financial and operating results,
including these highlights:
- Production sales volumes of 1.6 MMBoe (65% oil)
- DJ Basin oil price differential narrowed to $2.21 per barrel, representing a 54% sequential
improvement from the second quarter of 2016
- LOE averaged $3.06 per Boe,
representing a 42% sequential improvement from the second quarter
of 2016
- LOE guidance lowered to $29-$31
million from $31-$34 million
to reflect cost reductions and the sale of higher operating cost
properties in the Uinta Basin
- 2016 capital expenditures expected to total approximately
$100 million; anticipate cash flow to
be in excess of capital expenditures for the year
- Extended reach lateral ("XRL") development program in the
Denver-Julesburg ("DJ") Basin resumed with up to 15
gross wells expected to spud prior to year-end
- Completed sale of Uinta Basin properties for net cash proceeds
of approximately $30 million
- Exited the quarter financially well positioned with a cash
position of $174 million and an
undrawn credit facility that provides additional liquidity
Chief Executive Officer and President Scot Woodall commented, "Our team has done an
excellent job of maintaining positive financial and operational
momentum in a challenging environment, which translated into solid
results for the third quarter. Production sales volumes were near
the upper end of guidance and EBITDA was better than expected as DJ
Basin oil price differentials improved and we are seeing continued
improvement in costs across the spectrum. Our XRL development
program resumed in September and we have spud six wells with plans
to spud up to 15 gross XRL wells by the end of the year. This
results in an increasing production profile as the wells begin
contributing to production during 2017. We are seeing consistent
results across our acreage and our operations team has incorporated
several new concepts that we believe will translate into improved
well performance. The XRL drilling program generates attractive
economic returns in the current commodity price environment and we
are pursuing further capital efficiency measures designed to
improve well costs and enhance economic returns. We continue to
efficiently invest our capital and expect cash flow to be in excess
of capital expenditures based on current internal projections. Our
liquidity remains strong with a significant cash position, an
undrawn credit facility and a solid hedge position."
OPERATING AND FINANCIAL RESULTS
The following table summarizes certain operating and financial
results for the third quarter of 2016 and 2015 and the second
quarter of 2016:
|
Three Months
Ended
September
30,
|
|
Three Months
Ended
June
30,
|
|
2016
|
|
2015
|
|
Change
|
|
2016
|
|
Change
|
Combined production
sales volumes (MBoe)
|
1,566
|
|
|
1,699
|
|
|
(8)
|
%
|
|
1,607
|
|
|
(3)
|
%
|
Net cash provided by
(used in) operating activities ($ millions)
|
$
|
67.4
|
|
|
$
|
74.8
|
|
|
(10)
|
%
|
|
$
|
8.3
|
|
|
712
|
%
|
Discretionary cash
flow ($ millions) (1)
|
$
|
36.5
|
|
|
$
|
53.5
|
|
|
(32)
|
%
|
|
$
|
32.8
|
|
|
11
|
%
|
Combined realized
prices with hedging (per Boe)
|
$
|
45.06
|
|
|
$
|
55.77
|
|
|
(19)
|
%
|
|
$
|
44.84
|
|
|
—
|
%
|
Net income (loss) ($
millions)
|
$
|
(26.2)
|
|
|
$
|
(410.3)
|
|
|
94
|
%
|
|
$
|
(48.4)
|
|
|
46
|
%
|
Per share,
basic
|
$
|
(0.44)
|
|
|
$
|
(8.49)
|
|
|
95
|
%
|
|
$
|
(0.93)
|
|
|
53
|
%
|
Per share,
diluted
|
$
|
(0.44)
|
|
|
$
|
(8.49)
|
|
|
95
|
%
|
|
$
|
(0.93)
|
|
|
53
|
%
|
Adjusted net income
(loss) ($ millions) (1)
|
$
|
(6.2)
|
|
|
$
|
(4.4)
|
|
|
(41)
|
%
|
|
$
|
(6.7)
|
|
|
7
|
%
|
Per share,
basic
|
$
|
(0.10)
|
|
|
$
|
(0.09)
|
|
|
(11)
|
%
|
|
$
|
(0.13)
|
|
|
23
|
%
|
Per share,
diluted
|
$
|
(0.10)
|
|
|
$
|
(0.09)
|
|
|
(11)
|
%
|
|
$
|
(0.13)
|
|
|
23
|
%
|
Weighted average
shares outstanding, basic (in thousands)
|
58,852
|
|
|
48,340
|
|
|
22
|
%
|
|
51,832
|
|
|
14
|
%
|
Weighted average
shares outstanding, diluted (in thousands)
|
58,852
|
|
|
48,340
|
|
|
22
|
%
|
|
51,832
|
|
|
14
|
%
|
EBITDAX ($ millions)
(1)
|
$
|
49.8
|
|
|
$
|
68.3
|
|
|
(27)
|
%
|
|
$
|
47.3
|
|
|
5
|
%
|
|
|
(1)
|
Discretionary cash
flow, adjusted net income (loss) and EBITDAX are non-GAAP
(Generally Accepted Accounting Principles) measures. Please
reference the reconciliations to GAAP financial statements at the
end of this release.
|
Oil, natural gas and natural gas liquids ("NGL") production
totaled approximately 1.6 million barrels of oil equivalent
("MMBoe") in the third quarter of 2016 and was at the upper end of
the guidance range of 1.5-1.6 MMBoe. Lower production sales volumes
relative to the comparable 2015 period were primarily the result of
non-core asset sales in the DJ Basin and Uinta Basin that were
completed during 2015 and 2016.
Third quarter of 2016 production was 65% oil, 18% natural gas
and 17% NGLs, which is consistent with guidance.
|
Three Months
Ended
September
30,
|
|
Three Months
Ended
June
30,
|
|
2016
|
|
2015
|
|
Change
|
|
2016
|
|
Change
|
Production Sales
Data:
|
|
|
|
|
|
|
|
|
|
Oil
(MBbls)
|
1,016
|
|
|
1,066
|
|
|
(5)
|
%
|
|
1,023
|
|
|
(1)
|
%
|
Natural gas
(MMcf)
|
1,734
|
|
|
2,214
|
|
|
(22)
|
%
|
|
1,944
|
|
|
(11)
|
%
|
NGLs
(MBbls)
|
261
|
|
|
264
|
|
|
(1)
|
%
|
|
260
|
|
|
—
|
%
|
Combined volumes
(MBoe)
|
1,566
|
|
|
1,699
|
|
|
(8)
|
%
|
|
1,607
|
|
|
(3)
|
%
|
Daily combined
volumes (Boe/d)
|
17,022
|
|
|
18,467
|
|
|
(8)
|
%
|
|
17,659
|
|
|
(4)
|
%
|
Cash operating costs (lease operating expense ("LOE"),
gathering, transportation and processing costs and production tax
expense) averaged $5.81 per Boe in
the third quarter of 2016, down 26% compared to the second quarter
of 2016, when average cash operating costs were $7.85 per Boe.
LOE averaged $3.06 per Boe in the
third quarter of 2016, a 42% improvement to the second quarter of
2016 and 46% lower than the third quarter of 2015. LOE for the DJ
Basin averaged $2.45 per Boe in the
third quarter of 2016 compared to $3.74 per Boe in the second quarter of 2016 and
$3.96 per Boe in the third quarter of
2015. The reduction in total LOE was primarily a result of an
improvement in operating efficiencies, the DJ Basin becoming a
greater component of corporate operations, and the sale of Uinta
Basin properties that had a higher operating cost component. LOE
per Boe is anticipated to be higher in the fourth quarter of 2016
relative to the third quarter due to greater seasonal operating
costs that are typically experienced during colder months.
Production taxes are expected to approximate 8% of pre-hedge
revenue for the fourth quarter of 2016.
|
Three Months
Ended
September
30,
|
|
Three Months
Ended
June
30,
|
|
2016
|
|
2015
|
|
Change
|
|
2016
|
|
Change
|
Average Costs (per
Boe):
|
|
|
|
|
|
|
|
|
|
Lease operating
expenses
|
$
|
3.06
|
|
|
$
|
5.67
|
|
|
(46)
|
%
|
|
$
|
5.28
|
|
|
(42)
|
%
|
Gathering,
transportation and processing expense
|
0.30
|
|
|
0.40
|
|
|
(25)
|
%
|
|
0.38
|
|
|
(21)
|
%
|
Production tax
expenses
|
2.45
|
|
|
2.16
|
|
|
13
|
%
|
|
2.19
|
|
|
12
|
%
|
Depreciation,
depletion and amortization
|
27.51
|
|
|
32.22
|
|
|
(15)
|
%
|
|
27.05
|
|
|
2
|
%
|
Debt and Liquidity
At September 30, 2016, the
principal debt balance was $718.8
million, while cash and cash equivalents were $174.3 million, resulting in net debt (principal
balance of debt outstanding less the cash and cash equivalents
balance) of $544.5 million. Cash and
cash equivalents were reduced subsequent to the end of the quarter
as the Company made regularly scheduled interest payments of
approximately $26 million related to
its Senior Notes due 2019 and 2022.
The Company's semi-annual borrowing base review was completed in
October 2016 with the lenders setting
a borrowing base of $300 million, a
10% reduction due to the sale of non-core assets and the effect of
a lower derivative position. There were no changes to the terms or
conditions of the credit facility and there are no borrowings
outstanding. The revolving credit facility has $274 million in available capacity, after taking
into account a $26 million letter of
credit.
Uinta Basin Asset Sale
The Company closed the sale of certain non-core assets located
in the Uinta Basin on July 14, 2016,
for net cash proceeds of approximately $30
million. The proceeds from the sale were used for general
corporate purposes and to enhance the Company's liquidity
position.
Capital Expenditures
Capital expenditures ("capex") for the third quarter of 2016
totaled $8.1 million as the Company
did not operate a drilling rig for much of the quarter and no wells
were completed. The DJ Basin XRL drilling program resumed during
September and 3 XRL wells spud prior to the end of the quarter.
Capex for the third quarter consisted of $4.6 million for drilling, $1.4 million for leaseholds, and $2.1 million for infrastructure and corporate
assets.
|
Three Months
Ended
September 30,
2016
|
|
Nine Months
Ended
September 30,
2016
|
|
Average
Net Daily
Production
(Boe/d)
|
|
Wells
Spud
Net
|
|
Capital
Expenditures
($
millions)
|
|
Average
Net Daily
Production
(Boe/d)
|
|
Wells
Spud
Net
|
|
Capital
Expenditures
($
millions)
|
Basin:
|
|
|
|
|
|
|
|
|
|
|
|
Denver-Julesburg
|
14,543
|
|
|
3
|
|
|
$
|
7.7
|
|
|
13,467
|
|
|
7
|
|
|
$
|
67.0
|
|
Uinta
|
2,457
|
|
|
—
|
|
|
0.1
|
|
|
3,058
|
|
|
—
|
|
|
1.1
|
|
Other
|
22
|
|
|
—
|
|
|
0.3
|
|
|
44
|
|
|
—
|
|
|
1.4
|
|
Total
|
17,022
|
|
|
3
|
|
|
$
|
8.1
|
|
|
16,569
|
|
|
7
|
|
|
$
|
69.5
|
|
OPERATIONAL HIGHLIGHTS
DJ Basin
- Produced an average of 14,543 Boe/d (62% oil) in the third
quarter of 2016, which represents an increase of 3% from the second
quarter of 2016 and an increase of 11% from the third quarter of
2015, pro forma for asset sales.
- Oil volumes averaged 8,989 Bbls/d during the third quarter of
2016, an increase of 5% from the second quarter of 2016 and an 18%
increase from the third quarter of 2015, pro forma for asset
sales.
- The XRL drilling program resumed in September and 6 wells have
spud, including 3 wells that spud in October. No wells were
completed during the quarter. Current plans are to drill up to 15
wells and complete 5 of the wells during the remainder of the
year.
- Efficiencies have been maintained since resuming the program as
drilling times averaged approximately 8 days per well (spud to rig
release) for the most recent wells.
- Drilling and completion costs for the most recent drilling and
spacing unit ("DSU") are expected to average $4.25 million per well, which incorporates an
increased proppant loading of approximately 1,350 pounds of sand
per lateral foot. The Company continues to pursue additional
capital efficiency measures designed to improve drilling and
completion costs and enhance economic returns.
- The following provides a synopsis of the current DSU
activity:
- Section 5-62-22 - the DSU is located within the central
area of NE Wattenberg and includes 15 XRL wells that began initial
flowback in April 2016. The wells are
performing consistently during initial flowback and have not yet
reached an initial peak rate.
- Section 4-62-9 - the DSU is located within the southern
area of NE Wattenberg and includes 8 XRL wells that began initial
flowback in June 2016. The wells are
performing consistently during initial flowback and have not yet
reached an initial peak rate.
- Section 4-62-20 - the DSU is located within the southern
area of NE Wattenberg and includes 5 XRL wells that recently
finished drilling to the Niobrara "B", Niobrara "C" and Codell
horizons. It is expected that the wells will be completed in late
2016 and placed on initial flowback in early 2017. The wells will
incorporate increased proppant of approximately 1,350 pounds of
sand per lateral foot.
- Section 5-62-27 - the DSU is located within the central
area of NE Wattenberg and includes 9 XRL wells that will target the
Niobrara "B" and Niobrara "C" horizons. Drilling operations have
commenced and it is expected that the wells will be completed
during the first quarter of 2017 and placed on initial flowback
during the second quarter of 2017. This DSU will include a
combination of wells that incorporates enhanced proppant loading
and monobores.
- DJ Basin oil price differentials averaged $2.21 per barrel during the third quarter of
2016, a 54% improvement from the second quarter of 2016 average of
$4.82 per barrel and a 70% decrease
from the third quarter of 2015 average of $7.43 per barrel. The Company's oil pricing
continues to benefit from having no firm takeaway capacity
commitments as regional infrastructure has improved. The fourth
quarter of 2016 oil differential is expected to average
approximately $3.00 per barrel less
than WTI.
- DJ Basin LOE averaged $2.45 per
barrel during the third quarter of 2016, a 34% improvement from the
second quarter of 2016 average of $3.74 per barrel and a 38% decrease from the
third quarter of 2015 average of $3.96 per barrel. The reduction in LOE was
primarily a result of an improvement in operating
efficiencies.
Uinta Oil Program
Production sales volumes averaged 2,457 Boe/d (83% oil) during
the third quarter of 2016. The Company expects to have minimal
activity related to the Uinta Basin for the remainder of 2016.
2016 OPERATING GUIDANCE
The Company is providing the following update to its 2016
operating guidance. See "Forward-Looking Statements" below.
- Capital expenditures of approximately $100 million, which was updated to reflect
drilling activity associated with the XRL drilling program that
resumed in September 2016.
- Assumes up to 15 XRL wells are spud and 5 wells are completed
prior to the end of the year
- Anticipate being free cash flow positive as cash flows from
operations are expected to exceed capital expenditures
- Production of 6.0-6.2 MMBoe, with the low end of guidance
increased to reflect actual production sales volumes for the first
nine months of 2016.
- LOE of $29-$31 million, decreased
from $31-$34 million to reflect cost
reductions and the sale of higher operating cost properties in the
Uinta Basin.
- LOE per Boe is anticipated to be higher in the fourth quarter
of 2016 relative to the third quarter due to greater seasonal
operating costs that are typically experienced during colder
months
- General and administrative expenses of $30-$33 million, unchanged
- Gathering, transportation and processing costs of $2-$4 million, unchanged
COMMODITY HEDGES UPDATE
Generally, it is the Company's strategy to hedge 50%-70% of
production on a forward 12-month to 18-month basis to reduce the
risks associated with unpredictable future commodity prices to
provide certainty for a portion of its cash flow and to support its
capital expenditure program.
The following table summarizes the hedge position as of
November 3, 2016:
|
|
Oil (WTI)
|
|
Natural Gas
(NWPL)
|
Period
|
|
Volume
Bbls/d
|
|
Price
$/Bbl
|
|
Volume
MMBtu/d
|
|
Price
$/MMBtu
|
4Q16
|
|
7,750
|
|
|
72.57
|
|
|
5,000
|
|
|
4.10
|
|
1Q17
|
|
5,750
|
|
|
59.17
|
|
|
10,000
|
|
|
2.96
|
|
2Q17
|
|
5,875
|
|
|
59.04
|
|
|
10,000
|
|
|
2.96
|
|
3Q17
|
|
3,375
|
|
|
63.14
|
|
|
10,000
|
|
|
2.96
|
|
4Q17
|
|
3,375
|
|
|
63.14
|
|
|
10,000
|
|
|
2.96
|
|
1Q18
|
|
750
|
|
|
52.58
|
|
|
|
|
|
2Q18
|
|
750
|
|
|
52.58
|
|
|
|
|
|
3Q18
|
|
500
|
|
|
53.88
|
|
|
|
|
|
4Q18
|
|
500
|
|
|
53.88
|
|
|
|
|
|
Realized sales prices will reflect basis differentials from the
index prices to the sales location.
UPCOMING EVENTS
Third Quarter Conference Call and Webcast
The Company plans to host a conference call on Friday,
November 4, 2016, to discuss the results and management's
outlook for the future. The call is scheduled at 10:00 a.m. Eastern time (8:00 a.m. Mountain time). Please join the webcast
conference call live or for replay via the Internet at
www.billbarrettcorp.com, accessible from the home page. To join by
telephone, call (855) 760-8152 ((631) 485-4979 international
callers) with passcode 1407243. The webcast will remain on the
Company's website for approximately 7 days and a replay of the call
will be available through November 11, 2016 at (855) 859-2056
((404) 537-3406 international) with passcode 1407243.
DISCLOSURE STATEMENTS
Forward-Looking Statements
All statements in this press release, other than statements of
historical fact, are forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. Words such
as expects, forecast, guidance, anticipates, intends, plans,
believes, seeks, estimates and similar expressions or variations of
such words are intended to identify forward-looking statements
herein; however, these are not the exclusive means of identifying
forward-looking statements. In particular, the Company is providing
"2016 Operating Guidance," which contains projections for certain
2016 operational and financial metrics. Additional forward-looking
statements in this release relate to, among other things, future
capital expenditures, costs, projects and opportunities.
These and other forward-looking statements in this press release
are based on management's judgment as of the date of this release
and are subject to numerous risks and uncertainties. Actual results
may vary significantly from those indicated in the forward-looking
statements. Please refer to the Company's Annual Report on Form
10-K for the year ended December 31, 2015 filed with the SEC,
and other filings, including our Current Reports on Form 8-K and
Quarterly Reports on Form 10-Q, all of which are incorporated by
reference herein, for further discussion of risk factors that may
affect the forward-looking statements. The Company encourages you
to consider the risks and uncertainties associated with projections
and other forward-looking statements and to not place undue
reliance on any such statements. In addition, the Company assumes
no obligation to publicly revise or update any forward-looking
statements based on future events or circumstances.
ABOUT BILL BARRETT CORPORATION
Bill Barrett Corporation (NYSE: BBG), headquartered in
Denver, Colorado, develops oil and
natural gas in the Rocky Mountain region of the United States. Additional information
about the Company may be found on its website
www.billbarrettcorp.com.
BILL BARRETT
CORPORATION
|
Selected Operating
Highlights
|
(Unaudited)
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Production
Data:
|
|
|
|
|
|
|
|
Oil
(MBbls)
|
1,016
|
|
|
1,066
|
|
|
2,925
|
|
|
3,311
|
|
Natural gas
(MMcf)
|
1,734
|
|
|
2,214
|
|
|
5,298
|
|
|
5,772
|
|
NGLs
(MBbls)
|
261
|
|
|
264
|
|
|
732
|
|
|
635
|
|
Combined volumes
(MBoe)
|
1,566
|
|
|
1,699
|
|
|
4,540
|
|
|
4,908
|
|
Daily combined
volumes (Boe/d)
|
17,022
|
|
|
18,467
|
|
|
16,569
|
|
|
17,978
|
|
|
|
|
|
|
|
|
|
Average Sales Prices
(before the effects of realized hedges):
|
Oil (per
Bbl)
|
$
|
41.92
|
|
|
$
|
38.71
|
|
|
$
|
36.88
|
|
|
$
|
41.54
|
|
Natural gas (per
Mcf)
|
2.29
|
|
|
2.08
|
|
|
1.81
|
|
|
2.31
|
|
NGLs (per
Bbl)
|
13.65
|
|
|
11.17
|
|
|
12.05
|
|
|
12.24
|
|
Combined (per
Boe)
|
32.02
|
|
|
28.73
|
|
|
27.82
|
|
|
32.33
|
|
|
|
|
|
|
|
|
|
Average Realized
Sales Prices (after the effects of realized hedges):
|
Oil (per
Bbl)
|
$
|
61.30
|
|
|
$
|
79.15
|
|
|
$
|
62.74
|
|
|
$
|
77.93
|
|
Natural gas (per
Mcf)
|
2.71
|
|
|
3.36
|
|
|
2.34
|
|
|
3.76
|
|
NGLs (per
Bbl)
|
13.65
|
|
|
11.17
|
|
|
12.05
|
|
|
12.24
|
|
Combined (per
Boe)
|
45.06
|
|
|
55.77
|
|
|
45.09
|
|
|
58.58
|
|
|
|
|
|
|
|
|
|
Average Costs (per
Boe):
|
|
|
|
|
|
|
|
Lease operating
expenses
|
$
|
3.06
|
|
|
$
|
5.67
|
|
|
$
|
4.87
|
|
|
$
|
7.10
|
|
Gathering,
transportation and processing expense
|
0.30
|
|
|
0.40
|
|
|
0.41
|
|
|
0.52
|
|
Production tax
expenses
|
2.45
|
|
|
2.16
|
|
|
1.55
|
|
|
2.04
|
|
Depreciation,
depletion and amortization
|
27.51
|
|
|
32.22
|
|
|
27.64
|
|
|
32.53
|
|
General and
administrative expense (1)
|
5.86
|
|
|
6.49
|
|
|
6.95
|
|
|
7.95
|
|
|
|
(1)
|
Includes long-term
cash and equity incentive compensation of $1.37 per Boe and $1.18
per Boe for the three months ended September 30, 2016 and
2015, respectively, and $1.91 per Boe and $1.59 per Boe for the
nine months ended September 30, 2016 and 2015,
respectively.
|
BILL BARRETT
CORPORATION
|
Consolidated
Condensed Balance Sheets
|
(Unaudited)
|
|
|
As of
September
30,
|
|
As of
December
31,
|
|
2016
|
|
2015
|
|
(in
thousands)
|
Assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
174,263
|
|
|
$
|
128,836
|
|
Other current assets
(1)
|
62,597
|
|
|
145,481
|
|
Property and
equipment, net
|
1,081,066
|
|
|
1,170,684
|
|
Other noncurrent
assets (1)
|
17,627
|
|
|
61,519
|
|
Total
assets
|
$
|
1,335,553
|
|
|
$
|
1,506,520
|
|
|
|
|
|
Liabilities and
Stockholders' Equity:
|
|
|
|
Current
liabilities
|
$
|
99,782
|
|
|
$
|
145,231
|
|
Long-term debt, net
of debt issuance costs
|
711,544
|
|
|
794,652
|
|
Other long-term
liabilities (1)
|
15,048
|
|
|
17,221
|
|
Stockholders'
equity
|
509,179
|
|
|
549,416
|
|
Total liabilities and
stockholders' equity
|
$
|
1,335,553
|
|
|
$
|
1,506,520
|
|
|
|
(1)
|
At September 30,
2016, the estimated fair value of all of the Company's commodity
derivative instruments was a net asset of $33.8 million, comprised
of $30.7 million of current assets, $3.3 million of non-current
assets and $0.3 million of non-current liabilities. This amount
will fluctuate based on estimated future commodity prices and the
current hedge position.
|
BILL BARRETT
CORPORATION
|
Consolidated
Statements of Operations
|
(Unaudited)
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(in thousands, except
per share amounts)
|
Operating and Other
Revenues:
|
|
|
|
|
|
|
|
Oil, gas and
NGLs
|
$
|
50,133
|
|
|
$
|
48,799
|
|
|
$
|
126,279
|
|
|
$
|
158,667
|
|
Other
|
348
|
|
|
880
|
|
|
920
|
|
|
2,664
|
|
Total operating and
other revenues
|
50,481
|
|
|
49,679
|
|
|
127,199
|
|
|
161,331
|
|
Operating
Expenses:
|
|
|
|
|
|
|
|
Lease
operating
|
4,795
|
|
|
9,638
|
|
|
22,101
|
|
|
34,834
|
|
Gathering,
transportation and processing
|
472
|
|
|
684
|
|
|
1,871
|
|
|
2,559
|
|
Production
tax
|
3,832
|
|
|
3,670
|
|
|
7,037
|
|
|
10,020
|
|
Exploration
|
16
|
|
|
20
|
|
|
64
|
|
|
145
|
|
Impairment, dry hole
costs and abandonment
|
974
|
|
|
572,651
|
|
|
1,766
|
|
|
574,996
|
|
(Gain) Loss on
divestitures
|
1,914
|
|
|
(77)
|
|
|
1,206
|
|
|
(759)
|
|
Depreciation,
depletion and amortization
|
43,083
|
|
|
54,738
|
|
|
125,491
|
|
|
159,666
|
|
Unused
commitments
|
4,567
|
|
|
4,388
|
|
|
13,703
|
|
|
13,163
|
|
General and
administrative (1)
|
9,178
|
|
|
11,025
|
|
|
31,535
|
|
|
39,026
|
|
Total operating
expenses
|
68,831
|
|
|
656,737
|
|
|
204,774
|
|
|
833,650
|
|
Operating Income
(Loss)
|
(18,350)
|
|
|
(607,058)
|
|
|
(77,575)
|
|
|
(672,319)
|
|
Other Income and
Expense:
|
|
|
|
|
|
|
|
Interest and other
income
|
72
|
|
|
100
|
|
|
166
|
|
|
519
|
|
Interest
expense
|
(13,991)
|
|
|
(15,754)
|
|
|
(45,160)
|
|
|
(49,574)
|
|
Commodity derivative
gain (loss) (2)
|
6,054
|
|
|
69,133
|
|
|
(7,258)
|
|
|
75,914
|
|
Gain (loss) on
extinguishment of debt
|
29
|
|
|
—
|
|
|
8,726
|
|
|
1,749
|
|
Total other income
and expense
|
(7,836)
|
|
|
53,479
|
|
|
(43,526)
|
|
|
28,608
|
|
Income (Loss) before
Income Taxes
|
(26,186)
|
|
|
(553,579)
|
|
|
(121,101)
|
|
|
(643,711)
|
|
(Provision for)
Benefit from Income Taxes
|
—
|
|
|
143,265
|
|
|
—
|
|
|
177,085
|
|
Net Income
(Loss)
|
$
|
(26,186)
|
|
|
$
|
(410,314)
|
|
|
$
|
(121,101)
|
|
|
$
|
(466,626)
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) per
Common Share
|
|
|
|
|
|
|
|
Basic
|
$
|
(0.44)
|
|
|
$
|
(8.49)
|
|
|
$
|
(2.28)
|
|
|
$
|
(9.67)
|
|
Diluted
|
$
|
(0.44)
|
|
|
$
|
(8.49)
|
|
|
$
|
(2.28)
|
|
|
$
|
(9.67)
|
|
Weighted Average
Common Shares Outstanding
|
|
|
|
|
|
|
|
Basic
|
58,852
|
|
|
48,340
|
|
|
53,082
|
|
|
48,280
|
|
Diluted
|
58,852
|
|
|
48,340
|
|
|
53,082
|
|
|
48,280
|
|
|
|
(1)
|
Includes long-term
cash and equity incentive compensation of $2.1 million and $2.0
million for the three months ended September 30, 2016 and
2015, respectively, and $8.7 million and $7.8 million for the nine
months ended September 30, 2016 and 2015,
respectively.
|
(2)
|
The table below
summarizes the realized and unrealized gains and losses the Company
recognized related to its oil and natural gas derivative
instruments for the periods indicated:
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(in
thousands)
|
Included in commodity
derivative gain (loss):
|
|
|
|
|
|
|
|
Realized gain (loss)
on derivatives (1)
|
$
|
20,412
|
|
|
$
|
45,936
|
|
|
$
|
78,417
|
|
|
$
|
128,834
|
|
Prior year unrealized
(gain) loss transferred to realized (gain) loss
(1)
|
(21,706)
|
|
|
(34,374)
|
|
|
(79,055)
|
|
|
(113,342)
|
|
Unrealized gain
(loss) on derivatives (1)
|
7,348
|
|
|
57,571
|
|
|
(6,620)
|
|
|
60,422
|
|
Total commodity
derivative gain (loss)
|
$
|
6,054
|
|
|
$
|
69,133
|
|
|
$
|
(7,258)
|
|
|
$
|
75,914
|
|
|
|
(1)
|
Realized and
unrealized gains and losses on commodity derivatives are presented
herein as separate line items but are combined for a total
commodity derivative gain (loss) in the Consolidated Statements of
Operations. This separate presentation is a non-GAAP measure.
Management believes the separate presentation of the realized and
unrealized commodity derivative gains and losses is useful because
the realized cash settlement portion provides a better
understanding of the Company's hedge position. The Company
also believes that this disclosure allows for a more accurate
comparison to its peers.
|
BILL BARRETT
CORPORATION
|
Consolidated
Statements of Cash Flows
|
(Unaudited)
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(in
thousands)
|
Operating
Activities:
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
(26,186)
|
|
|
$
|
(410,314)
|
|
|
$
|
(121,101)
|
|
|
$
|
(466,626)
|
|
Adjustments to
reconcile to net cash provided by operations:
|
|
|
|
|
|
|
|
Depreciation,
depletion and amortization
|
43,083
|
|
|
54,738
|
|
|
125,491
|
|
|
159,666
|
|
Impairment, dry hole
costs and abandonment expense
|
974
|
|
|
572,651
|
|
|
1,766
|
|
|
574,996
|
|
Unrealized derivative
(gain) loss
|
14,358
|
|
|
(23,197)
|
|
|
85,675
|
|
|
52,920
|
|
Deferred income tax
benefit
|
—
|
|
|
(142,977)
|
|
|
—
|
|
|
(176,797)
|
|
Incentive
compensation and other non-cash charges
|
1,777
|
|
|
2,068
|
|
|
7,208
|
|
|
7,281
|
|
Amortization of
deferred financing costs
|
573
|
|
|
633
|
|
|
2,075
|
|
|
3,983
|
|
(Gain) loss on sale
of properties
|
1,914
|
|
|
(77)
|
|
|
1,206
|
|
|
(759)
|
|
(Gain) loss on
extinguishment of debt
|
(29)
|
|
|
—
|
|
|
(8,726)
|
|
|
(1,749)
|
|
Change in operating
assets and liabilities:
|
|
|
|
|
|
|
|
Accounts
receivable
|
4,008
|
|
|
3,285
|
|
|
13,552
|
|
|
20,394
|
|
Prepayments and other
assets
|
(66)
|
|
|
878
|
|
|
(968)
|
|
|
(261)
|
|
Accounts payable,
accrued and other liabilities
|
22,846
|
|
|
18,025
|
|
|
18,903
|
|
|
4,347
|
|
Amounts payable to
oil and gas property owners
|
493
|
|
|
(4,161)
|
|
|
(2,894)
|
|
|
(850)
|
|
Production taxes
payable
|
3,683
|
|
|
3,208
|
|
|
(5,980)
|
|
|
(10,644)
|
|
Net cash provided by
(used in) operating activities
|
$
|
67,428
|
|
|
$
|
74,760
|
|
|
$
|
116,207
|
|
|
$
|
165,901
|
|
Investing
Activities:
|
|
|
|
|
|
|
|
Additions to oil and
gas properties, including acquisitions
|
(7,024)
|
|
|
(61,936)
|
|
|
(93,704)
|
|
|
(256,059)
|
|
Additions of
furniture, equipment and other
|
(193)
|
|
|
(158)
|
|
|
(1,184)
|
|
|
(1,036)
|
|
Proceeds from sale of
properties and other investing activities
|
26,796
|
|
|
99
|
|
|
25,571
|
|
|
66,617
|
|
Proceeds from the
sale of short-term investments
|
—
|
|
|
45,000
|
|
|
—
|
|
|
95,000
|
|
Cash paid for
short-term investments
|
—
|
|
|
—
|
|
|
—
|
|
|
(114,883)
|
|
Net cash provided by
(used in) investing activities
|
$
|
19,579
|
|
|
$
|
(16,995)
|
|
|
$
|
(69,317)
|
|
|
$
|
(210,361)
|
|
Financing
Activities:
|
|
|
|
|
|
|
|
Principal payments on
debt
|
(111)
|
|
|
(107)
|
|
|
(329)
|
|
|
(25,083)
|
|
Deferred financing
costs and other
|
(56)
|
|
|
(704)
|
|
|
(1,134)
|
|
|
(3,525)
|
|
Net cash provided by
(used in) financing activities
|
$
|
(167)
|
|
|
$
|
(811)
|
|
|
$
|
(1,463)
|
|
|
$
|
(28,608)
|
|
Increase (Decrease)
in Cash and Cash Equivalents
|
86,840
|
|
|
56,954
|
|
|
45,427
|
|
|
(73,068)
|
|
Beginning Cash and
Cash Equivalents
|
87,423
|
|
|
35,882
|
|
|
128,836
|
|
|
165,904
|
|
Ending Cash and Cash
Equivalents
|
$
|
174,263
|
|
|
$
|
92,836
|
|
|
$
|
174,263
|
|
|
$
|
92,836
|
|
BILL BARRETT
CORPORATION
|
Reconciliation of
Discretionary Cash Flow, Adjusted Net Income (Loss) and
EBITDAX
|
(Unaudited)
|
|
Discretionary Cash
Flow Reconciliation
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(in
thousands)
|
Net Cash Provided by
(Used in) Operating Activities
|
$
|
67,428
|
|
|
$
|
74,760
|
|
|
$
|
116,207
|
|
|
$
|
165,901
|
|
Adjustments to
reconcile to discretionary cash flow:
|
|
|
|
|
|
|
|
Exploration
expense
|
16
|
|
|
20
|
|
|
64
|
|
|
145
|
|
Changes in working
capital
|
(30,964)
|
|
|
(21,235)
|
|
|
(22,613)
|
|
|
(12,986)
|
|
Discretionary Cash
Flow
|
$
|
36,480
|
|
|
$
|
53,545
|
|
|
$
|
93,658
|
|
|
$
|
153,060
|
|
Adjusted Net
Income (Loss) Reconciliation
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(in thousands, except
per share amounts)
|
Net Income
(Loss)
|
$
|
(26,186)
|
|
|
$
|
(410,314)
|
|
|
$
|
(121,101)
|
|
|
$
|
(466,626)
|
|
Provision for
(Benefit from) income taxes
|
—
|
|
|
(143,265)
|
|
|
—
|
|
|
(177,085)
|
|
Income (Loss) before
income taxes
|
(26,186)
|
|
|
(553,579)
|
|
|
(121,101)
|
|
|
(643,711)
|
|
|
|
|
|
|
|
|
|
Adjustments to net
income (loss):
|
|
|
|
|
|
|
|
Unrealized derivative
(gain) loss
|
14,358
|
|
|
(23,197)
|
|
|
85,675
|
|
|
52,920
|
|
Impairment
expense
|
—
|
|
|
571,863
|
|
|
183
|
|
|
572,366
|
|
(Gain) loss on sale
of properties
|
1,914
|
|
|
(77)
|
|
|
1,206
|
|
|
(759)
|
|
(Gain) loss on
extinguishment of debt
|
(29)
|
|
|
—
|
|
|
(8,726)
|
|
|
(1,749)
|
|
One-time
item:
|
|
|
|
|
|
|
|
West Tavaputs NGL
processing true-up
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,005)
|
|
Expenses relating to
amending credit facility
|
—
|
|
|
—
|
|
|
—
|
|
|
1,617
|
|
Adjusted Income
(Loss) before income taxes
|
(9,943)
|
|
|
(4,990)
|
|
|
(42,763)
|
|
|
(20,321)
|
|
Adjusted (provision
for) benefit from income taxes (1)
|
3,791
|
|
|
632
|
|
|
16,164
|
|
|
2,536
|
|
Adjusted Net Income
(Loss)
|
$
|
(6,152)
|
|
|
$
|
(4,358)
|
|
|
$
|
(26,599)
|
|
|
$
|
(17,785)
|
|
Per share,
diluted
|
$
|
(0.10)
|
|
|
$
|
(0.09)
|
|
|
$
|
(0.50)
|
|
|
$
|
(0.37)
|
|
|
|
(1)
|
Adjusted (provision
for) benefit from income taxes is calculated using the Company's
current effective tax rate prior to applying the valuation
allowance against deferred tax assets.
|
EBITDAX
Reconciliation
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(in
thousands)
|
Net Income
(Loss)
|
$
|
(26,186)
|
|
|
$
|
(410,314)
|
|
|
$
|
(121,101)
|
|
|
$
|
(466,626)
|
|
Adjustments to
reconcile to EBITDAX:
|
|
|
|
|
|
|
|
Depreciation,
depletion and amortization
|
43,083
|
|
|
54,738
|
|
|
125,491
|
|
|
159,666
|
|
Impairment, dry hole
and abandonment expense
|
974
|
|
|
572,651
|
|
|
1,766
|
|
|
574,996
|
|
Exploration
expense
|
16
|
|
|
20
|
|
|
64
|
|
|
145
|
|
Unrealized derivative
(gain) loss
|
14,358
|
|
|
(23,197)
|
|
|
85,675
|
|
|
52,920
|
|
Incentive
compensation and other non-cash charges
|
1,777
|
|
|
2,068
|
|
|
7,208
|
|
|
7,281
|
|
(Gain) loss on sale
of properties
|
1,914
|
|
|
(77)
|
|
|
1,206
|
|
|
(759)
|
|
(Gain) loss on
extinguishment of debt
|
(29)
|
|
|
—
|
|
|
(8,726)
|
|
|
(1,749)
|
|
Interest and other
income
|
(72)
|
|
|
(100)
|
|
|
(166)
|
|
|
(519)
|
|
Interest
expense
|
13,991
|
|
|
15,754
|
|
|
45,160
|
|
|
49,574
|
|
Provision for
(Benefit from) Income Taxes
|
—
|
|
|
(143,265)
|
|
|
—
|
|
|
(177,085)
|
|
EBITDAX
|
$
|
49,826
|
|
|
$
|
68,278
|
|
|
$
|
136,577
|
|
|
$
|
197,844
|
|
|
|
|
Discretionary cash
flow, adjusted net income (loss) and EBITDAX are non-GAAP measures.
These measures are presented because management believes that they
provide useful additional information to investors for analysis of
the Company's ability to internally generate funds for exploration,
development and acquisitions as well as adjusting net income (loss)
for certain items to allow for a more consistent comparison from
period to period. In addition, the Company believes that these
measures are widely used by professional research analysts and
others in the valuation, comparison and investment recommendations
of companies in the oil and gas exploration and production
industry, and that many investors use the published research of
industry research analysts in making investment
decisions.
|
|
|
|
These measures should
not be considered in isolation or as a substitute for net income,
income from operations, net cash provided by operating activities
or other income, profitability, cash flow or liquidity measures
prepared in accordance with GAAP. The definition of these measures
may vary among companies, and, therefore, the amounts presented may
not be comparable to similarly titled measures of other
companies.
|
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SOURCE Bill Barrett Corporation