DENVER, Oct. 18, 2016 /PRNewswire/ -- Bill Barrett
Corporation (the "Company") (NYSE: BBG) announced today that it is
providing an update on certain third quarter of 2016 items,
including commodity price and derivatives data and the weighted
average basic and diluted shares outstanding for the third quarter
of 2016.
For the third quarter of 2016, West Texas Intermediate ("WTI")
oil prices averaged $44.94 per
barrel, Northwest Pipeline ("NWPL") natural gas prices averaged
$2.51 per MMBtu and NYMEX natural gas
prices averaged $2.75 per MMBtu. The
Company had derivative commodity swaps in place for the third
quarter of 2016 for 7,750 barrels of oil per day tied to WTI
pricing at $72.57 per barrel, 5,000
MMBtu of natural gas per day tied to NWPL regional pricing at
$4.10 per MMBtu and no hedges in
place for NGLs.
Based on preliminary unaudited results, the Company expects to
realize a cash commodity derivative gain of $20.4 million in the third quarter due to
positive derivative positions. The Company expects its third
quarter commodity price differentials to benchmark pricing – before
commodity derivative gains and in relation to delivery
location and quality adjustments – to approximate: oil less
$3.02 price per barrel versus WTI;
and natural gas less $0.29 per
thousand cubic feet ("Mcf") compared to NWPL. The Denver-Julesburg ("DJ') Basin oil price differential
averaged $2.21 per barrel as the
Company continues to benefit from having no firm transportation
agreements as local infrastructure expands. NGL prices averaged 30%
of WTI price per barrel.
For the fourth quarter of 2016, approximately 7,750 barrels per
day of oil is hedged at an average WTI price of $72.57 per barrel. The following table summarizes
the Company's hedge position for the fourth quarter of 2016 and
2017 as of October 18, 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
|
5,250
|
59.73
|
|
10,000
|
2.96
|
2Q17
|
5,375
|
59.57
|
|
10,000
|
2.96
|
3Q17
|
3,375
|
63.14
|
|
10,000
|
2.96
|
4Q17
|
3,375
|
63.14
|
|
10,000
|
2.96
|
Realized sales prices will reflect basis differentials from the
index prices to the sales location.
The Company estimates that the weighted average common basic and
diluted shares for the third quarter will be approximately 58.9
million.
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.
Forward-looking statements in this release relate to, among other
things, third quarter commodity derivative gains, commodity price
differentials, number of shares outstanding, future financial
performance and business expectations.
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. 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. Risks also include potential
differences between expected reported results and actual reported
results after the Company's financial statements and related
reviews are finalized. 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.
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SOURCE Bill Barrett Corporation