DENVER, Sept. 5, 2017 /PRNewswire/ -- Bill Barrett
Corporation (the "Company") (NYSE: BBG) today announced an update
to its 2017 operating guidance, including higher production and
lower lease operating expense ("LOE") and capital
expenditures.
Driven by a combination of early positive results from its
enhanced completion program in the Denver-Julesburg ("DJ") Basin, strong results from a
nine well recompletion program in the Uinta Oil Program and the
expected timing of well completions during the second half of 2017,
the Company is raising its 2017 production guidance range from
6.0-6.5 million barrels of oil equivalent ("MMBoe") to 6.4-6.6
MMBoe. This represents a 4% increase at the mid-point from
previously released 2017 production guidance and a level that is
approximately 12% higher at the mid-point than pro forma 2016
production sales volumes, excluding asset sales. Third quarter 2017
production sales volume guidance has been increased from a range of
1.55-1.65 MMBoe to approximately 1.75 MMBoe, representing an
increase of approximately 9%.
The Company is delivering greater drilling and completion
efficiencies with respect to its capital program that have
partially offset forecasted service cost increases for 2017. As a
result, it is now expected that capital expenditures will total
$250-$270 million, down from an
earlier estimate of $255-$285
million. The Company anticipates that 70-75 wells will be
spud in 2017, which is unchanged from the previous forecast despite
capital expenditure guidance being reduced by approximately 4% at
the mid-point. Third quarter 2017 capital expenditures are expected
to total $65-$75 million, which is
unchanged from previous guidance. The Company is currently
operating two drilling rigs in the DJ Basin and expects to continue
to do so for the remainder of 2017. However, this plan is subject
to change based on any material movement in crude
prices.
The Company continues to build on operational efficiencies at
the field level and as a result is decreasing its LOE guidance for
2017 from $27-$30 million to
$24-$26 million, representing a
decrease of 12% at the mid-point. The Company continues to pursue
additional cost reducing synergies in an effort to further reduce
LOE.
Commenting on the updated operating guidance, Chief Executive
Officer and President Scot Woodall
said, "We have done an excellent job of executing on our
operational plan this year and the effort of our team is reflected
in our updated guidance. We remain encouraged by the early results
of our enhanced completions in the DJ Basin, which combined with
faster drilling and completion cycle time allows us to deliver a
higher growth profile. We are focused on the items within our
control and exhibiting an increased level of operating efficiency
to offset inflationary pressure, as evidenced by lower LOE and
capital expenditure guidance. We maintain excellent operational
flexibility with an anticipated level of planned activity that
allows us to deliver a strong growth profile in
2018."
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
projections for certain 2017 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, 2016 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.
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SOURCE Bill Barrett Corporation