DENVER, July 21, 2015 /PRNewswire/ -- Bill Barrett
Corporation (the "Company") (NYSE: BBG) announced today that it is
providing an update on certain second quarter 2015 commodity price
data.
For the second quarter of 2015, West Texas Intermediate ("WTI")
oil prices averaged $57.94 per
barrel, Northwest Pipeline ("NWPL") natural gas prices averaged
$2.38 per MMBtu and NYMEX natural gas
prices averaged $2.65 per
MMBtu. The Company had derivative commodity swaps in place
for the second quarter of 2015 for 11,300 barrels of oil per day
tied to WTI pricing at $90.39 per
barrel, 20,000 MMBtu of natural gas per day tied to NWPL regional
pricing at $4.13 per MMBtu and no
hedges in place for natural gas liquids ("NGLs"). Based on
preliminary results, the Company expects to realize a cash
commodity derivative gain of approximately $36.5 million in the second quarter due to
positive derivative positions and estimates that it will record
approximately $64.2 million in
non-cash, unrealized commodity derivative loss. The Company expects
its second quarter commodity price differentials to benchmark
pricing before commodity derivative gains, related to delivery
location and quality adjustments, to approximate: oil less
$9.26 price per barrel versus WTI;
and natural gas less $0.05 price per
thousand cubic feet versus NWPL. NGL sales are expected to average
22% of WTI price per barrel.
The following table summarizes the Company's hedge positions as
of July 21, 2015:
|
Oil
(WTI)
|
|
Natural Gas
(NWPL)
|
|
|
|
|
|
|
Period
|
Volume
Bbls/d
|
Price
$/Bbl
|
|
Volume
MMBtu/d
|
Price
$/MMBtu
|
|
|
|
|
|
|
3Q15
|
10,800
|
89.81
|
|
20,000
|
4.13
|
4Q15
|
10,800
|
89.81
|
|
20,000
|
4.13
|
1Q16
|
7,300
|
81.65
|
|
5,000
|
4.10
|
2Q16
|
7,300
|
81.65
|
|
5,000
|
4.10
|
3Q16
|
6,250
|
79.11
|
|
5,000
|
4.10
|
4Q16
|
6,250
|
79.11
|
|
5,000
|
4.10
|
1Q17
|
2,250
|
73.88
|
|
--
|
--
|
2Q17
|
2,250
|
73.88
|
|
--
|
--
|
3Q17
|
1,500
|
78.16
|
|
--
|
--
|
4Q17
|
1,500
|
78.16
|
|
--
|
--
|
|
|
|
|
|
|
Realized sales prices will reflect basis differentials from the
index prices to the sales location.
In addition, the Company reported that as of July 21, 2015, it has not issued any shares under
its previously announced "at-the-market" equity offering
program.
FORWARD-LOOKING STATEMENTS
This press release contains 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.
Forward-looking statements are subject to events, risks and
uncertainties that may be outside the Company's control. Actual
results could differ materially from those discussed in the
forward-looking statements. In particular, the Company is providing
preliminary estimates of certain first quarter 2015
results.
These and other forward-looking statements in this release are
based on management's judgment as of this date and are subject to
numerous risks and uncertainties. Actual results may vary
significantly from those indicated in the forward-looking
statements due to, among other things: oil, NGL and natural gas
price volatility, including regional price differentials; changes
in operational and capital plans; costs, availability and timing of
build-out of third party facilities for gathering, processing,
refining and transportation; delays or other impediments to
drilling and completing wells arising from political or judicial
developments at the local, state or federal level, including voter
initiatives related to hydraulic fracturing; development drilling
and testing results; the potential for production decline rates to
be greater than expected; regulatory delays, including seasonal or
other wildlife restrictions on federal lands; exploration risks
such as drilling unsuccessful wells; higher than expected costs and
expenses, including the availability and cost of services and
materials; unexpected future capital expenditures; economic and
competitive conditions; debt and equity market conditions,
including the availability and costs of financing to fund the
Company's operations; the ability to obtain industry partners to
jointly explore certain prospects, and the willingness and ability
of those partners to meet capital obligations when requested;
declines in the values of our oil and gas properties resulting in
impairments; changes in estimates of proved reserves; compliance
with environmental and other regulations; derivative and hedging
activities; risks associated with operating in one major geographic
area; the success of the Company's risk management activities;
title to properties; litigation; and environmental liabilities; and
other factors discussed in the Company's reports filed with the
SEC.
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