DENVER, May 5, 2016
/PRNewswire/ -- Bill Barrett Corporation (the "Company")
(NYSE: BBG) reports first quarter of 2016 financial and operating
results, including these highlights:
- Production sales volumes of 1.4 MMBoe (65% oil), at the
high-end of first quarter guidance range
- Capital expenditures of $46
million, 20% below the mid-point of the first quarter
guidance range
- 2016 capital expenditures reduced to $90-$135 million from $100-$150 million as a result of lower well
costs
- Reported discretionary cash flow of $0.50 per share and EBITDAX of $39 million
- Affirmed borrowing base at $335
million with no change to terms or conditions
- Exited the first quarter of 2016 with $106 million of cash and an undrawn credit
facility
- Executed agreement to divest a portion of Uinta Basin assets
for approximately $30 million
Chief Executive Officer and President Scot Woodall commented, "Our team continues to
execute and we posted another solid quarter of operational and
financial results. The positive results were due in part to
production coming in at the upper end of our guidance range,
tightening oil differentials, and a 26% year-over-year decrease in
per unit LOE. In addition, G&A expense declined 17% compared to
the first quarter of 2015. We continue to maintain a capital
disciplined approach as first quarter spending was 20% below the
mid-point of our guidance range as we captured further XRL well
cost savings. This gives us the confidence to lower our full-year
2016 capital expenditure guidance, while reaffirming our production
guidance. The second quarter is off to a good start and we continue
to be encouraged by the results of our XRL development program and
the associated contribution to our increasing production profile
this year. We are in the process of completing and placing on
initial flowback the remainder of the wells that have been drilled.
Our balance sheet remains strong as we ended the quarter with a
cash position of $106 million, an
undrawn credit facility, and a favorable hedge position which
provides ample liquidity. The Uinta Basin non-core asset sale will
further bolster our balance sheet by increasing our cash
position."
OPERATING AND FINANCIAL RESULTS
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.
Discretionary cash flow in the first quarter of 2016 was
$24.4 million, or $0.50 per share, compared to $48.1 million, or $1.00 per share, in the first quarter of 2015.
Discretionary cash flow in the first quarter of 2016 compared to
2015 was impacted by lower revenues due to a 14% decline in
production volumes as a result of asset sales and a 17% decline in
realized oil prices including hedges.
Adjusted net loss for the first quarter of 2016 was $13.7 million, or $0.28 per share, compared with adjusted net loss
for the first quarter of 2015 of $5.9
million, or $0.12 per share.
Adjusted net income (loss) removes the effect of unrealized
derivative gains and losses and non-recurring charges such as
impairment expenses, property sales and certain one-time items.
EBITDAX was $39.4 million for the
first quarter of 2016 compared to $63.2
million for the first quarter of 2015. Lower EBITDAX is
primarily a result of lower commodity prices and a decline in
production volumes as a result of asset sales, as discussed
above.
|
Three Months
Ended
March
31,
|
|
2016
|
|
2015
|
Discretionary Cash
Flow ($ millions)
|
$
|
24.4
|
|
|
$
|
48.1
|
|
Discretionary Cash
Flow per share
|
0.50
|
|
|
1.00
|
|
Adjusted Net Loss ($
millions)
|
(13.7)
|
|
|
(5.9)
|
|
Adjusted Net Loss per
share
|
(0.28)
|
|
|
(0.12)
|
|
EBITDAX ($
millions)
|
39.4
|
|
|
63.2
|
|
Oil, natural gas and natural gas liquids ("NGL") production from
the Denver-Julesburg ("DJ") Basin and Uinta Oil Program
("UOP") totaled 1.4 million barrels of oil equivalent
("MMBoe") in the first quarter of 2016, which was at the high-end
of the Company's guidance range of 1.3-1.4 MMBoe. Lower production
sales volumes to the comparable 2015 period were primarily the
result of non-core asset sales in the DJ Basin and UOP that were
completed during 2015.
First quarter of 2016 production was 65% oil, 20% natural gas
and 15% NGLs, which was consistent with guidance.
|
Three Months
Ended
March
31,
|
|
Three Months
Ended
December
31,
|
|
2016
|
|
2015
|
|
Change
|
|
2015
|
|
Change
|
Production Sales
Data:
|
|
|
|
|
|
|
|
|
|
Oil
(MBbls)
|
886
|
|
|
1,125
|
|
|
(21)%
|
|
|
1,090
|
|
|
(19)%
|
|
Natural gas
(MMcf)
|
1,626
|
|
|
1,764
|
|
|
(8)%
|
|
|
1,986
|
|
|
(18)%
|
|
NGLs
(MBbls)
|
210
|
|
|
162
|
|
|
30%
|
|
|
264
|
|
|
(20)%
|
|
Combined volumes
(MBoe)
|
1,367
|
|
|
1,581
|
|
|
(14)%
|
|
|
1,685
|
|
|
(19)%
|
|
Daily combined
volumes (Boe/d)
|
15,022
|
|
|
17,567
|
|
|
(14)%
|
|
|
18,315
|
|
|
(18)%
|
|
Cash operating costs (lease operating expense ("LOE"),
gathering, transportation and processing costs and production tax
expense) were $6.81 per Boe in the
first quarter of 2016 compared to $6.54 per Boe in the fourth quarter of 2015 and
$10.92 per Boe in the first quarter
of 2015. Higher cash operating costs on a per unit basis compared
to the fourth quarter of 2015 were primarily a result of lower
production sales volumes due to asset sales and higher seasonal
operating costs during the first quarter of 2016. Cash operating
costs were lower compared to the first quarter of 2015 primarily as
a result of improved operational efficiencies and lease operating
cost reductions in both the DJ Basin and the UOP.
The decrease in production tax expense in the first quarter of
2016 is related to an annual adjustment of Colorado ad valorem tax based on actual
assessments and of the related Colorado severance tax credit adjustment based
on the annual severance tax calculation. Normalized production
taxes are expected to approximate 9% of pre-hedge revenue for the
remainder of 2016.
|
Three Months
Ended
March
31,
|
|
Three Months
Ended
December
31,
|
|
2016
|
|
2015
|
|
Change
|
|
2015
|
|
Change
|
Average Costs (per
Boe):
|
|
|
|
|
|
|
|
|
|
Lease operating
expenses
|
$
|
6.46
|
|
|
$
|
8.72
|
|
|
(26)%
|
|
|
$
|
4.70
|
|
|
37%
|
|
Gathering,
transportation and processing expense
|
0.58
|
|
|
0.60
|
|
|
(3)%
|
|
|
0.55
|
|
|
5%
|
|
Production tax
expenses
|
(0.23)
|
|
|
1.60
|
|
|
(114)%
|
|
|
1.29
|
|
|
(118)%
|
|
Depreciation,
depletion and amortization
|
30.74
|
|
|
33.05
|
|
|
(7)%
|
|
|
27.06
|
|
|
14%
|
|
Uinta Basin Asset Sale
The Company announced on May 2,
2016, that it entered into an agreement with an unaffiliated
third party to sell certain non-core assets located in the UOP for
cash proceeds of approximately $30
million. The transaction is expected to close on or before
June 30, 2016, and is subject to
customary closing conditions. The assets produced approximately
1,000 Boe/d (63% oil) during the first quarter of 2016 and had
estimated proved reserves of 2 MMBoe (87% proved developed) as of
December 31, 2015. Based on the
Company's internal estimates, the expected 2016 operating cash flow
from the divested properties will be less than $2 million based on current strip pricing.
Debt and Liquidity
At March 31, 2016, the principal
balance of long-term debt was $803.2
million and cash and cash equivalents were $105.6 million, resulting in net debt (principal
balance of debt outstanding less the cash and cash equivalents
balance) of $697.6 million.
The Company's semi-annual borrowing base review was completed in
April 2016 with the bank group
setting a borrowing base of $335
million, an 11% reduction from the previous borrowing base
of $375 million. There were no
changes to the terms or conditions of the credit facility and there
are no borrowings outstanding. The revolving credit facility has
$309 million in available capacity,
after taking into account a $26
million letter of credit.
The next regularly scheduled borrowing base redetermination will
occur on or about October 1,
2016.
Capital Expenditures
The Company exhibited continued capital discipline during the
first quarter of 2016 as capital expenditures ("capex") totaled
$45.8 million, which was 20% below
the mid-point of the Company's guidance range of $55-$60 million. This was primarily due to recent
XRL well costs being executed below forecast drilling and
completion cost of $4.75 million.
Capex projects included spudding 4 XRL wells in the DJ Basin and
completing 16 wells, including 15 XRL wells, which began initial
flowback operations during the quarter. Capex included $42.4 million for drilling, $0.8 million for leaseholds, and $2.6 million for infrastructure and corporate
assets. The Company did not spud any new wells in the UOP.
|
Three Months
Ended
March 31,
2016
|
|
Average
Net Daily
Production
(Boe/d)
|
|
Wells
Spud
Net
(1)
|
|
Capital
Expenditures
($
millions)
|
Basin:
|
|
|
|
|
|
Denver-Julesburg
|
11,670
|
|
|
4
|
|
|
$
|
44.1
|
|
Uinta
|
3,341
|
|
|
—
|
|
|
0.7
|
|
Other
|
11
|
|
|
—
|
|
|
1.0
|
|
Total
|
15,022
|
|
|
4
|
|
|
$
|
45.8
|
|
|
|
(1)
|
Includes
operated and non-operated wells
|
OPERATIONAL HIGHLIGHTS
DJ Basin
- Produced an average of 11,670 Boe/d, an increase of 15% from
the first quarter of 2015, excluding production associated with
non-core asset sales completed during 2015.
- The oil price differential averaged $5.61 per barrel less than WTI, a decrease from
the fourth quarter of 2015 of $6.42
per barrel and a decrease from the first quarter of 2015 of
$9.99 per barrel.
- Spud 4 XRL wells and placed 16 wells, including 15 XRL wells,
on initial flowback.
- Expect to place 8 XRL wells on initial flowback during the
second quarter of 2016.
- The Company continues to be encouraged with the initial results
of the development program and has a total of 34 wells, including
32 XRL wells that are currently in various stages of flowback
operations. Activity to date has included utilizing several
modified drilling and completion concepts to determine the optimal
drilling and completion techniques.
- As previously announced, due to the uncertainty of an oil price
recovery during 2016, the Company elected to curtail drilling
activity to preserve capital and released the sole drilling rig
that was operating during the first quarter. Industry conditions
will continue to be monitored to determine the appropriate time to
resume drilling.
- Drilling and completion costs for XRL wells are currently
forecast to average approximately $4.75
million per well, although wells on the most recent
multi-well pad were completed 10-15% below this level.
- Drilling days for the recent XRL wells have consistently
averaged approximately 8 days per well from spud to rig release,
including a best-in-class well drilled in 6.5 days.
Uinta Oil Program
Given the outlook for commodity prices and a focus on its core
DJ Basin assets, the Company has significantly reduced activity in
the UOP and did not drill or complete any wells during the first
quarter of 2016. Operations continue to be focused on improving
operational efficiencies, and associated cost reductions have been
realized as a result of lower lease operating costs.
2016 OPERATING GUIDANCE
The Company is providing the following update to its 2016
operating guidance. In addition, the Company intends to update 2016
operating guidance upon closing of the UOP asset sale. See
"Forward-Looking Statements" below.
- Capital expenditures of $90-$135
million, reduced from $100-$150
million as a result of lower XRL well costs.
- Second quarter capital expenditures are expected to total
approximately $30-$35 million
- Production of 5.8-6.2 MMBoe, unchanged.
- Second quarter production sales volumes are expected to
approximate 1.4 MMBoe
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 hedge positions as of May 5,
2016:
|
|
Oil (WTI)
|
|
Natural Gas
(NWPL)
|
Period
|
|
Volume
Bbls/d
|
|
Price
$/Bbl
|
|
Volume
MMBtu/d
|
|
Price
$/MMBtu
|
2Q16
|
|
7,300
|
|
81.65
|
|
5,000
|
|
4.10
|
3Q16
|
|
7,250
|
|
74.27
|
|
5,000
|
|
4.10
|
4Q16
|
|
7,250
|
|
74.27
|
|
5,000
|
|
4.10
|
1Q17
|
|
3,250
|
|
65.40
|
|
—
|
|
—
|
2Q17
|
|
3,250
|
|
65.40
|
|
—
|
|
—
|
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.
UPCOMING EVENTS
First Quarter Conference Call and Webcast
The Company plans to host a conference call on Friday,
May 6, 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 90845487. The webcast will remain on the
Company's website for approximately 30 days and a replay of the
call will be available through May 13, 2016 at (855) 859-2056
((404) 537-3406 international) with passcode 90845487.
DISCLOSURE STATEMENTS
Forward-Looking Statements
All statements in this press release, other than statements of
historical fact, may be deemed to be 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, the closing of, and proceeds from the planned asset sale
and future capital expenditures, 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
March
31,
|
|
2016
|
|
2015
|
Production
Data:
|
|
|
|
Oil
(MBbls)
|
886
|
|
|
1,125
|
|
Natural gas
(MMcf)
|
1,626
|
|
|
1,764
|
|
NGLs
(MBbls)
|
210
|
|
|
162
|
|
Combined volumes
(MBoe)
|
1,367
|
|
|
1,581
|
|
Daily combined
volumes (Boe/d)
|
15,022
|
|
|
17,567
|
|
|
|
|
|
Average Sales Prices
(before the effects of realized hedges):
|
Oil (per
Bbl)
|
$
|
27.60
|
|
|
$
|
37.12
|
|
Natural gas (per
Mcf)
|
1.66
|
|
|
2.60
|
|
NGLs (per
Bbl)
|
9.43
|
|
|
13.31
|
|
Combined (per
Boe)
|
21.30
|
|
|
30.68
|
|
|
|
|
|
Average Realized
Sales Prices (after the effects of realized hedges):
|
Oil (per
Bbl)
|
$
|
63.69
|
|
|
$
|
76.28
|
|
Natural gas (per
Mcf)
|
2.26
|
|
|
3.92
|
|
NGLs (per
Bbl)
|
9.43
|
|
|
13.31
|
|
Combined (per
Boe)
|
45.42
|
|
|
60.01
|
|
|
|
|
|
Average Costs (per
Boe):
|
|
|
|
Lease operating
expenses
|
$
|
6.46
|
|
|
$
|
8.72
|
|
Gathering,
transportation and processing expense
|
0.58
|
|
|
0.60
|
|
Production tax
expenses
|
(0.23)
|
|
|
1.60
|
|
Depreciation,
depletion and amortization
|
30.74
|
|
|
33.05
|
|
General and
administrative expense, excluding long-term incentive compensation
expense (1)
|
6.21
|
|
|
6.50
|
|
|
|
(1)
|
This separate
presentation is a non-GAAP measure. Management believes the
separate presentation of the long-term incentive compensation
component of general and administrative expense is useful because
it provides a better understanding of current period general and
administrative expenses. Management also believes that this
disclosure may allow for a more accurate comparison to the
Company's peers.
|
BILL BARRETT
CORPORATION
Consolidated
Condensed Balance Sheets
(Unaudited)
|
|
|
As of
March 31,
|
|
As of
December
31,
|
|
2016
|
|
2015
|
|
(in
thousands)
|
Assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
105,563
|
|
|
$
|
128,836
|
|
Assets classified as
held for sale
|
33,717
|
|
|
—
|
|
Other current assets
(1)
|
114,083
|
|
|
145,481
|
|
Property and
equipment, net
|
1,141,629
|
|
|
1,170,684
|
|
Other noncurrent
assets (1)
|
49,218
|
|
|
61,519
|
|
Total
assets
|
$
|
1,444,210
|
|
|
$
|
1,506,520
|
|
|
|
|
|
Liabilities and
Stockholders' Equity:
|
|
|
|
Liabilities
associated with assets held for sale
|
$
|
4,785
|
|
|
$
|
—
|
|
Other current
liabilities
|
124,798
|
|
|
145,231
|
|
Long-term debt, net
of debt issuance costs
|
794,972
|
|
|
794,652
|
|
Other long-term
liabilities
|
13,678
|
|
|
17,221
|
|
Stockholders'
equity
|
505,977
|
|
|
549,416
|
|
Total liabilities and
stockholders' equity
|
$
|
1,444,210
|
|
|
$
|
1,506,520
|
|
|
|
(1)
|
At March 31,
2016, the estimated fair value of all of the Company's commodity
derivative instruments was a net asset of $95.2 million, comprised
of $80.4 million of current assets and $14.8 million of non-current
assets. 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
March
31,
|
|
2016
|
|
2015
|
|
(in thousands, except
per share amounts)
|
Operating and Other
Revenues:
|
|
|
|
Oil, gas and
NGLs
|
$
|
29,121
|
|
|
$
|
48,486
|
|
Other
|
313
|
|
|
548
|
|
Total operating and
other revenues
|
29,434
|
|
|
49,034
|
|
Operating
Expenses:
|
|
|
|
Lease
operating
|
8,827
|
|
|
13,791
|
|
Gathering,
transportation and processing
|
788
|
|
|
942
|
|
Production
tax
|
(315)
|
|
|
2,534
|
|
Exploration
|
27
|
|
|
33
|
|
Impairment, dry hole
costs and abandonment
|
558
|
|
|
1,255
|
|
(Gain) Loss on
divestitures
|
—
|
|
|
(38)
|
|
Depreciation,
depletion and amortization
|
42,016
|
|
|
52,254
|
|
Unused
commitments
|
4,568
|
|
|
4,388
|
|
General and
administrative (1)
|
8,494
|
|
|
10,279
|
|
Long-term incentive
compensation (1)
|
3,926
|
|
|
3,050
|
|
Total operating
expenses
|
68,889
|
|
|
88,488
|
|
Operating Income
(Loss)
|
(39,455)
|
|
|
(39,454)
|
|
Other Income and
Expense:
|
|
|
|
Interest and other
income
|
37
|
|
|
275
|
|
Interest
expense
|
(15,746)
|
|
|
(16,430)
|
|
Commodity derivative
gain (loss) (2)
|
8,668
|
|
|
34,438
|
|
Gain (loss) on
extinguishment of debt
|
—
|
|
|
2,567
|
|
Total other income
and expense
|
(7,041)
|
|
|
20,850
|
|
Income (Loss) before
Income Taxes
|
(46,496)
|
|
|
(18,604)
|
|
(Provision for)
Benefit from Income Taxes
|
—
|
|
|
6,873
|
|
Net Income
(Loss)
|
$
|
(46,496)
|
|
|
$
|
(11,731)
|
|
|
|
|
|
Net Income (Loss) per
Common Share
|
|
|
|
Basic
|
$
|
(0.96)
|
|
|
$
|
(0.24)
|
|
Diluted
|
$
|
(0.96)
|
|
|
$
|
(0.24)
|
|
Weighted Average
Common Shares Outstanding
|
|
|
|
Basic
|
48,499
|
|
|
48,199
|
|
Diluted
|
48,499
|
|
|
48,199
|
|
|
|
(1)
|
This separate
presentation is a non-GAAP measure. Management believes the
separate presentation of the long-term incentive compensation
component of general and administrative expense is useful because
it provides a better understanding of current period general and
administrative expenses. Management also believes that this
disclosure may allow for a more accurate comparison to the
Company's peers, which may have higher or lower
stock-based/long-term incentive compensation expense.
|
|
|
(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
March
31,
|
|
2016
|
|
2015
|
|
(in
thousands)
|
Included in commodity
derivative gain (loss):
|
|
|
|
Realized gain (loss)
on derivatives (a)
|
$
|
32,962
|
|
|
$
|
46,375
|
|
Prior year unrealized
(gain) loss transferred to realized (gain) loss
(a)
|
(29,486)
|
|
|
(40,734)
|
|
Unrealized gain
(loss) on derivatives (a)
|
5,192
|
|
|
28,797
|
|
Total commodity
derivative gain (loss)
|
$
|
8,668
|
|
|
$
|
34,438
|
|
|
|
(a)
|
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
March
31,
|
|
2016
|
|
2015
|
|
(in
thousands)
|
Operating
Activities:
|
|
|
|
Net income
(loss)
|
$
|
(46,496)
|
|
|
$
|
(11,731)
|
|
Adjustments to
reconcile to net cash provided by operations:
|
|
|
|
Depreciation,
depletion and amortization
|
42,016
|
|
|
52,254
|
|
Impairment, dry hole
costs and abandonment expense
|
558
|
|
|
1,255
|
|
Unrealized derivative
(gain) loss
|
24,294
|
|
|
11,937
|
|
Deferred income tax
benefit
|
—
|
|
|
(6,873)
|
|
Incentive
compensation and other non-cash charges
|
3,329
|
|
|
2,743
|
|
Amortization of
deferred financing costs
|
639
|
|
|
1,067
|
|
(Gain) loss on sale
of properties
|
—
|
|
|
(38)
|
|
(Gain) loss on
extinguishment of debt
|
—
|
|
|
(2,567)
|
|
Change in operating
assets and liabilities:
|
|
|
|
Accounts
receivable
|
12,413
|
|
|
9,064
|
|
Prepayments and other
assets
|
(591)
|
|
|
(1,364)
|
|
Accounts payable,
accrued and other liabilities
|
12,253
|
|
|
(1,661)
|
|
Amounts payable to
oil and gas property owners
|
(4,036)
|
|
|
6,838
|
|
Production taxes
payable
|
(3,864)
|
|
|
(7,099)
|
|
Net cash provided by
(used in) operating activities
|
$
|
40,515
|
|
|
$
|
53,825
|
|
Investing
Activities:
|
|
|
|
Additions to oil and
gas properties, including acquisitions
|
(61,261)
|
|
|
(111,009)
|
|
Additions of
furniture, equipment and other
|
(782)
|
|
|
(609)
|
|
Proceeds from sale of
properties and other investing activities
|
(1,238)
|
|
|
66,415
|
|
Cash paid for
short-term investments
|
—
|
|
|
(114,883)
|
|
Net cash provided by
(used in) investing activities
|
$
|
(63,281)
|
|
|
$
|
(160,086)
|
|
Financing
Activities:
|
|
|
|
Principal payments on
debt
|
(109)
|
|
|
(24,871)
|
|
Deferred financing
costs and other
|
(398)
|
|
|
(1,000)
|
|
Net cash provided by
(used in) financing activities
|
$
|
(507)
|
|
|
$
|
(25,871)
|
|
Increase (Decrease)
in Cash and Cash Equivalents
|
(23,273)
|
|
|
(132,132)
|
|
Beginning Cash and
Cash Equivalents
|
128,836
|
|
|
165,904
|
|
Ending Cash and Cash
Equivalents
|
$
|
105,563
|
|
|
$
|
33,772
|
|
BILL BARRETT
CORPORATION
Reconciliation of
Discretionary Cash Flow and Adjusted Net Income
(Loss)
(Unaudited)
Discretionary Cash
Flow Reconciliation
|
|
|
Three Months
Ended
March
31,
|
|
2016
|
|
2015
|
|
(in thousands, except
per share amounts)
|
Net Income
(Loss)
|
$
|
(46,496)
|
|
|
$
|
(11,731)
|
|
Adjustments to
reconcile to discretionary cash flow:
|
|
|
|
Depreciation,
depletion and amortization
|
42,016
|
|
|
52,254
|
|
Impairment, dry hole
and abandonment expense
|
558
|
|
|
1,255
|
|
Exploration
expense
|
27
|
|
|
33
|
|
Unrealized derivative
(gain) loss
|
24,294
|
|
|
11,937
|
|
Deferred income tax
benefit
|
—
|
|
|
(6,873)
|
|
Incentive
compensation and other non-cash charges
|
3,329
|
|
|
2,743
|
|
Amortization of
deferred financing costs
|
639
|
|
|
1,067
|
|
(Gain) loss on sale
of properties
|
—
|
|
|
(38)
|
|
(Gain) loss on
extinguishment of debt
|
—
|
|
|
(2,567)
|
|
Discretionary Cash
Flow
|
$
|
24,367
|
|
|
$
|
48,080
|
|
Per share,
diluted
|
$
|
0.50
|
|
|
$
|
1.00
|
|
|
Adjusted Net
Income (Loss) Reconciliation
|
|
|
Three Months
Ended
March
31,
|
|
2016
|
|
2015
|
|
(in thousands, except
per share amounts)
|
Net Income
(Loss)
|
$
|
(46,496)
|
|
|
$
|
(11,731)
|
|
(Provision for)
Benefit from income taxes
|
—
|
|
|
6,873
|
|
Income (Loss) before
income taxes
|
(46,496)
|
|
|
(18,604)
|
|
|
|
|
|
Adjustments to net
income (loss):
|
|
|
|
Unrealized derivative
(gain) loss
|
24,294
|
|
|
11,937
|
|
Impairment
expense
|
183
|
|
|
58
|
|
(Gain) loss on sale
of properties
|
—
|
|
|
(38)
|
|
(Gain) loss on
extinguishment of debt
|
—
|
|
|
(2,567)
|
|
Adjusted Income
(Loss) before income taxes
|
(22,019)
|
|
|
(9,214)
|
|
Adjusted (provision
for) benefit from income taxes (1)
|
8,312
|
|
|
3,305
|
|
Adjusted Net Income
(Loss)
|
$
|
(13,707)
|
|
|
$
|
(5,909)
|
|
Per share,
diluted
|
$
|
(0.28)
|
|
|
$
|
(0.12)
|
|
|
|
(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
March
31,
|
|
2016
|
|
2015
|
|
(in thousands, except
per share amounts)
|
Net Income
(Loss)
|
$
|
(46,496)
|
|
|
$
|
(11,731)
|
|
Adjustments to
reconcile to EBITDAX:
|
|
|
|
Depreciation,
depletion and amortization
|
42,016
|
|
|
52,254
|
|
Impairment, dry hole
and abandonment expense
|
558
|
|
|
1,255
|
|
Exploration
expense
|
27
|
|
|
33
|
|
Unrealized derivative
(gain) loss
|
24,294
|
|
|
11,937
|
|
Incentive
compensation and other non-cash charges
|
3,329
|
|
|
2,743
|
|
(Gain) loss on sale
of properties
|
—
|
|
|
(38)
|
|
(Gain) loss on
extinguishment of debt
|
—
|
|
|
(2,567)
|
|
Interest and other
income
|
(37)
|
|
|
(275)
|
|
Interest
expense
|
15,746
|
|
|
16,430
|
|
(Provision for)
Benefit from Income Taxes
|
—
|
|
|
(6,873)
|
|
EBITDAX
|
$
|
39,437
|
|
|
$
|
63,168
|
|
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 one-time or unusual 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.
Because discretionary cash flow, adjusted net income (loss) and
EBITDAX exclude some, but not necessarily all, items that affect
net income (loss) and may vary among companies, the amounts
presented may not be comparable to similarly titled measures of
other companies.
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SOURCE Bill Barrett Corporation