DENVER, Aug. 4, 2016
/PRNewswire/ -- Bill Barrett Corporation (the "Company")
(NYSE: BBG) reports second quarter of 2016 financial and operating
results, including these highlights:
- Production sales volumes of 1.6 MMBoe (64% oil), representing
an 18% sequential increase compared to the first quarter of 2016
and exceeded second quarter guidance by 14%
- Raised the low end of 2016 production guidance to 5.9-6.2 MMBoe
despite the sale of non-core Uinta Basin assets
- Capital expenditures of $15.6
million compared to second quarter guidance of $30-$35 million
- 2016 planned capital expenditure range reduced to $75-$100 million from $90-$135 million as a result of continued cost
control; represents a 30% decrease from the mid-point of original
guidance; expect to be cash flow positive for 2016
- DJ Basin oil price differential narrowed to $4.82 per barrel, representing a 14% sequential
improvement
- LOE averaged $5.28 per Boe,
representing an 18% sequential improvement
- LOE guidance lowered to $31-$34
million from $33-$36 million
to reflect cost reductions and the sale of higher operating cost
properties in the Uinta Basin
- Exited the second quarter of 2016 with over $100 million of cash (pro forma for Uinta Basin
asset sale of $30 million that closed
in July) and an undrawn credit facility of $335 million
- Debt exchange reduced net debt by $84.7
million or 12% and annual interest expense burden by
approximately $6.5 million or
11%
Chief Executive Officer and President Scot Woodall commented, "Executing on the items
within our control is paying off as we reported very good second
quarter results that were paced by production volumes that were 18%
higher than the first quarter and capital expenditures and
operating costs that were below expectations. We recognized a
significant reduction in well costs during the first half of the
year, allowing us to cut our capital expenditure outlook for the
second time this year. We are raising the low end of our production
outlook despite the loss of production associated with the sale of
non-core Uinta Basin assets. We continue to benefit from having no
firm marketing commitments for our oil volumes and achieved a 14%
sequential improvement to the first quarter in the pricing of our
DJ Basin barrels as regional infrastructure continues to improve.
We have maintained positive momentum with respect to reducing costs
as a result of increased operating efficiencies and expect per unit
LOE to maintain a downward trend. Looking ahead to the remainder of
the year, we are monitoring industry conditions to determine the
appropriate time to resume drilling operations. Based on our
current internal projections and pricing scenarios, we are
positioned to be cash flow positive this year even at the high-end
of our updated capital range. We remain financially well positioned
with a cash position in excess of $100
million (pro forma for the Uinta Basin asset sale), an
undrawn credit facility, and a solid hedge position that provides
ample liquidity."
OPERATING AND FINANCIAL RESULTS
The following table summarizes the operating and financial
results for the second quarter of 2016 and 2015 and the first
quarter of 2016:
|
Three Months
Ended
June 30,
|
|
Three Months
Ended
March 31,
|
|
2016
|
|
2015
|
|
Change
|
|
2016
|
|
Change
|
|
Combined production
sales volumes (MBoe)
|
1,607
|
|
|
1,628
|
|
|
(1)
|
%
|
|
1,367
|
|
|
18
|
%
|
|
Net cash provided by
(used in) operating activities ($ millions)
|
$
|
8.3
|
|
|
$
|
37.3
|
|
|
(78)
|
%
|
|
$
|
40.5
|
|
|
(80)
|
%
|
|
Discretionary cash
flow ($ millions) (1)
|
$
|
32.8
|
|
|
$
|
51.4
|
|
|
(36)
|
%
|
|
$
|
24.4
|
|
|
34
|
%
|
|
Combined realized
prices with hedging (per Boe)
|
$
|
44.84
|
|
|
$
|
60.13
|
|
|
(25)
|
%
|
|
$
|
45.42
|
|
|
(1)
|
%
|
|
Net income (loss) ($
millions)
|
$
|
(48.4)
|
|
|
$
|
(44.6)
|
|
|
(9)
|
%
|
|
$
|
(46.5)
|
|
|
(4)
|
%
|
|
Per share,
basic
|
$
|
(0.93)
|
|
|
$
|
(0.92)
|
|
|
(1)
|
%
|
|
$
|
(0.96)
|
|
|
3
|
%
|
|
Per share,
diluted
|
$
|
(0.93)
|
|
|
$
|
(0.92)
|
|
|
(1)
|
%
|
|
$
|
(0.96)
|
|
|
3
|
%
|
|
Adjusted net income
(loss) ($ millions) (1)
|
$
|
(6.7)
|
|
|
$
|
(4.0)
|
|
|
(68)
|
%
|
|
$
|
(13.7)
|
|
|
51
|
%
|
|
Per share,
basic
|
$
|
(0.13)
|
|
|
$
|
(0.08)
|
|
|
(63)
|
%
|
|
$
|
(0.28)
|
|
|
54
|
%
|
|
Per share,
diluted
|
$
|
(0.13)
|
|
|
$
|
(0.08)
|
|
|
(63)
|
%
|
|
$
|
(0.28)
|
|
|
54
|
%
|
|
Weighted average
shares outstanding, basic (in thousands)
|
51,832
|
|
|
48,299
|
|
|
7
|
%
|
|
48,499
|
|
|
7
|
%
|
|
Weighted average
shares outstanding, diluted (in thousands)
|
51,832
|
|
|
48,299
|
|
|
7
|
%
|
|
48,499
|
|
|
7
|
%
|
|
EBITDAX ($ millions)
(1)
|
$
|
47.3
|
|
|
$
|
66.4
|
|
|
(29)
|
%
|
|
$
|
39.4
|
|
|
20
|
%
|
|
|
|
(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 from
the Denver-Julesburg ("DJ") Basin and Uinta Oil Program
("UOP") totaled 1.6 million barrels of oil equivalent
("MMBoe") in the second quarter of 2016, which was 18% higher on a
sequential basis to the first quarter of 2016 and 14% higher than
the Company's guidance of 1.4 MMBoe. Second quarter production
exceeded guidance primarily due to initial production from a
16-well drilling and spacing unit ("DSU") located in Section
5-62-22 in NE Wattenberg that began producing earlier than
forecast. 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 and 2016.
Second quarter of 2016 production was 64% oil, 20% natural gas
and 16% NGLs, which was consistent with guidance.
|
Three Months
Ended
June 30,
|
|
Three Months
Ended
March 31,
|
|
2016
|
|
2015
|
|
Change
|
|
2016
|
|
Change
|
|
Production Sales
Data:
|
|
|
|
|
|
|
|
|
|
|
Oil
(MBbls)
|
1,023
|
|
|
1,120
|
|
|
(9)
|
%
|
|
886
|
|
|
15
|
%
|
|
Natural gas
(MMcf)
|
1,944
|
|
|
1,800
|
|
|
8
|
%
|
|
1,626
|
|
|
20
|
%
|
|
NGLs
(MBbls)
|
260
|
|
|
208
|
|
|
25
|
%
|
|
210
|
|
|
24
|
%
|
|
Combined volumes
(MBoe)
|
1,607
|
|
|
1,628
|
|
|
(1)
|
%
|
|
1,367
|
|
|
18
|
%
|
|
Daily combined
volumes (Boe/d)
|
17,659
|
|
|
17,890
|
|
|
(1)
|
%
|
|
15,022
|
|
|
18
|
%
|
Cash operating costs (lease operating expense ("LOE"),
gathering, transportation and processing costs and production tax
expense) averaged $7.85 per Boe in
the second quarter of 2016 compared to $6.81 per Boe in the first quarter of 2016. Lower
per unit cash operating costs in the first quarter of 2016 were
related to an annual adjustment of Colorado ad valorem tax based on actual
assessments and of the related Colorado severance tax credit. Normalized
production taxes are expected to approximate 8% of pre-hedge
revenue for the remainder of 2016.
LOE averaged $5.28 per Boe in the
second quarter of 2016, down 18% compared to the first quarter of
2016 and 25% lower than the second quarter of 2015. LOE for the DJ
Basin averaged $3.74 per Boe in the
second quarter of 2016 compared to $4.80 per Boe in the first quarter of 2016 and
$5.84 per Boe in the second quarter
of 2015. This was primarily a result of increased operating
efficiencies and service cost reductions. Per unit LOE is expected
to continue a downward trend following the Uinta Basin asset sale
reflecting a higher LOE component associated with the
properties.
|
Three Months
Ended
June 30,
|
|
Three Months
Ended
March 31,
|
|
2016
|
|
2015
|
|
Change
|
|
2016
|
|
Change
|
|
Average Costs (per
Boe):
|
|
|
|
|
|
|
|
|
|
|
Lease
operating expenses
|
$
|
5.28
|
|
|
$
|
7.01
|
|
|
(25)
|
%
|
|
$
|
6.46
|
|
|
(18)
|
%
|
|
Gathering,
transportation and processing expense
|
0.38
|
|
|
0.57
|
|
|
(33)
|
%
|
|
0.58
|
|
|
(34)
|
%
|
|
Production tax
expenses
|
2.19
|
|
|
2.34
|
|
|
(6)
|
%
|
|
(0.23)
|
|
|
*NM
|
|
|
Depreciation,
depletion and amortization
|
27.05
|
|
|
32.36
|
|
|
(16)
|
%
|
|
30.74
|
|
|
(12)
|
%
|
Uinta Basin Asset Sale
The Company announced on July 14,
2016, that it closed the sale of certain non-core assets
located in the Uinta Basin for net cash proceeds of approximately
$30 million, subject to customary
post-closing adjustments. The proceeds from the sale will be used
for general corporate purposes and to enhance the Company's
liquidity position.
Debt and Liquidity
At June 30, 2016, the principal
debt balance was $718.9 million,
while cash and cash equivalents were $87.4
million, resulting in net debt (principal balance of debt
outstanding less the cash and cash equivalents balance) of
$631.5 million. Pro forma for the
Uinta Basin asset sale, the Company maintains a cash position in
excess of $100 million.
The Company announced on June 2,
2016, that it completed a privately negotiated exchange with
a holder of the Company's 7.625% Senior Notes due 2019 (the
"Notes"). As a result of this transaction, the principal amount of
the Notes was reduced by $84.7
million or 21% and net debt by 12%. This transaction will
also result in annual interest savings of approximately
$6.5 million.
Capital Expenditures
The Company exhibited continued capital discipline during the
second quarter of 2016 as capital expenditures ("capex") totaled
$15.6 million, which was
significantly below the Company's guidance range of $30-$35 million. This was primarily due to the
most recent XRL well costs being executed approximately 15% below
forecast drilling and completion cost of $4.75 million and the timing of infrastructure
related spending and other non-drilling related capital.
Capex included completing 8 XRL wells that began initial
flowback operations during the quarter and consisted of
$13.9 million for drilling,
$0.3 million for leaseholds, and
$1.4 million for infrastructure and
corporate assets. The Company did not spud any new wells and had
minimal capital expenditures associated with the Uinta Basin.
|
Three Months
Ended
June 30, 2016
|
|
Six Months Ended
June 30, 2016
|
|
Average
Net Daily
Production
(Boe/d)
|
|
Wells
Spud
Net
|
|
Capital
Expenditures
($ millions)
|
|
Average
Net Daily
Production
(Boe/d)
|
|
Wells
Spud
Net (1)
|
|
Capital
Expenditures
($ millions)
|
|
Basin:
|
|
|
|
|
|
|
|
|
|
|
|
|
Denver-Julesburg
|
14,176
|
|
|
—
|
|
|
$
|
15.2
|
|
|
12,923
|
|
|
4
|
|
|
$
|
59.3
|
|
|
Uinta
|
3,385
|
|
|
—
|
|
|
0.3
|
|
|
3,363
|
|
|
—
|
|
|
1.0
|
|
|
Other
|
98
|
|
|
—
|
|
|
0.1
|
|
|
55
|
|
|
—
|
|
|
1.1
|
|
|
Total
|
17,659
|
|
|
—
|
|
|
$
|
15.6
|
|
|
16,341
|
|
|
4
|
|
|
$
|
61.4
|
|
|
|
|
(1)
|
Includes
operated and non-operated wells
|
OPERATIONAL HIGHLIGHTS
DJ Basin
- Produced an average of 14,176 Boe/d, represents an increase of
21% from the first quarter of 2016.
- Second quarter production benefited from the start up of
production from a 16-well DSU, which included 15 XRL wells, located
in Section 5-62-22 of NE Wattenberg, which initiated production
earlier than forecast.
- Drilling and completion costs for XRL wells in the first half
of 2016 were approximately 15% below forecast costs of $4.75 million, contributing to first half capital
expenditures coming in significantly below guidance.
- Placed 24 wells, including 23 XRL wells, on initial flowback
during the second quarter of 2016. The wells are in various stages
of producing and ramping up to a peak initial rate. Activity to
date has included utilizing several modified drilling and
completion concepts to determine the optimal technique.
- The following DSUs are currently in various stages of
production:
- Section 6-62-15 - the "Will" DSU is located within the
northern area of NE Wattenberg and includes 9 XRL wells. The wells
primarily utilized a standard completion design1 except
for two wells that incorporated a higher sand concentration of
1,200 pounds of sand per lateral foot. In addition, the DSU
includes the initial Niobrara "A" and Niobrara "C" wells drilled on
the northern acreage.
- Section 5-62-22 - the wells are located within the
central area of NE Wattenberg and includes 15 XRL wells within a
single DSU that began initial flowback in April 2016. The wells primarily utilized the
standard completion design, but also incorporated a tighter frac
density concept utilizing an 82-stage completion on four
wells.
- Section 4-62-9 - the wells are located within the
southern area of NE Wattenberg and includes 8 XRL wells that began
initial flowback in June 2016. The
wells primarily utilized the standard completion design, but also
incorporated a new spacing concept
- The oil price differential averaged $4.82 per barrel less than WTI, a 14% improvement
from the first quarter of 2016 average of $5.61 per barrel and a decrease from the second
quarter of 2015 of $8.77 per barrel.
The Company's oil pricing continues to benefit from having no firm
takeaway capacity commitments as regional infrastructure has
improved.
- As previously announced, due to the uncertainty of a sustained
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. The
Company continues to monitor industry conditions to determine the
appropriate time to resume drilling activities during the second
half of 2016.
|
(1)
|
Standard completion
design includes ~9,500' lateral with plug-and-perf, 55-stage
completion, and ~1,000 lbs of sand/lateral foot
|
Uinta Oil Program
Given the outlook for commodity prices and a focus on its core
DJ Basin assets, the Company has curtailed activity in the UOP and
did not drill or complete any wells during the second 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. See "Forward-Looking Statements" below.
- Capital expenditures of $75-$100
million, reduced from $90-$135
million, reflecting lower well costs and lower
infrastructure related and other non-drilling related capital.
- Represents a 30% decrease from the mid-point of initial
2016 guidance
- The low end of guidance assumes that no new XRL wells are
drilled.
- Production of 5.9-6.2 MMBoe, raised the low end of guidance
despite the sale of non-core assets in the Uinta Basin.
- Full-year 2016 guidance reflects the loss of approximately 0.1
MMBoe for the second half of the year associated with the Uinta
Basin asset sale
- Third quarter production sales volumes are expected to
approximate 1.5-1.6 MMBoe
- Lease operating expense of $31-$34
million, decreased from $33-$36
million to reflect cost reductions and the sale of higher
operating cost properties in the Uinta Basin
- General and administrative expenses of $30-$33 million, decreased from $31-$34 million to reflect lower costs in the
second half of the year
- Gathering, transportation and processing costs of $2-$4 million, decreased from $3-$5 million to reflect the sale of properties
in the Uinta Basin
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
August 4, 2016:
|
|
Oil (WTI)
|
|
Natural Gas
(NWPL)
|
|
Period
|
|
Volume
Bbls/d
|
|
Price
$/Bbl
|
|
Volume
MMBtu/d
|
|
Price
$/MMBtu
|
|
3Q16
|
|
7,750
|
|
|
72.57
|
|
|
5,000
|
|
|
4.10
|
|
|
4Q16
|
|
7,750
|
|
|
72.57
|
|
|
5,000
|
|
|
4.10
|
|
|
1Q17
|
|
5,250
|
|
|
59.73
|
|
|
10,000
|
|
|
2.96
|
|
|
2Q17
|
|
5,250
|
|
|
59.73
|
|
|
10,000
|
|
|
2.96
|
|
|
3Q17
|
|
2,500
|
|
|
66.99
|
|
|
10,000
|
|
|
2.96
|
|
|
4Q17
|
|
2,500
|
|
|
66.99
|
|
|
10,000
|
|
|
2.96
|
|
Realized sales prices will reflect basis differentials from the
index prices to the sales location.
UPCOMING EVENTS
Second Quarter Conference Call and Webcast
The Company plans to host a conference call on Friday,
August 5, 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 48781208. The webcast will remain on the
Company's website for approximately 30 days and a replay of the
call will be available through August 12, 2016 at (855)
859-2056 ((404) 537-3406 international) with passcode 48781208.
Investor Events
Members of the Company's management will participate in the
following investor events:
- August 15, 2016 - EnerCom's The
Oil & Gas Conference in Denver,
CO
- September 7-8, 2016 - Barclays
CEO Energy-Power Conference in New York,
NY
- September 20, 2016 - Deutsche
Bank Energy Summit in Boston,
MA
- September 21, 2016 - Johnson Rice & Company Energy Conference in
New Orleans, LA
- September 28, 2016 - Deutsche
Bank Leveraged Finance Conference in Scottsdale, AZ
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, 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
June 30,
|
|
Six Months Ended
June 30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
Production
Data:
|
|
|
|
|
|
|
|
|
Oil
(MBbls)
|
1,023
|
|
|
1,120
|
|
|
1,909
|
|
|
2,245
|
|
|
Natural gas
(MMcf)
|
1,944
|
|
|
1,800
|
|
|
3,564
|
|
|
3,558
|
|
|
NGLs
(MBbls)
|
260
|
|
|
208
|
|
|
471
|
|
|
371
|
|
|
Combined
volumes (MBoe)
|
1,607
|
|
|
1,628
|
|
|
2,974
|
|
|
3,209
|
|
|
Daily combined
volumes (Boe/d)
|
17,659
|
|
|
17,890
|
|
|
16,341
|
|
|
17,729
|
|
|
|
|
|
|
|
|
|
|
Average Sales Prices
(before the effects of realized hedges):
|
|
Oil (per
Bbl)
|
$
|
39.93
|
|
|
$
|
48.68
|
|
|
$
|
34.20
|
|
|
$
|
42.89
|
|
|
Natural gas
(per Mcf)
|
1.50
|
|
|
2.33
|
|
|
1.57
|
|
|
2.46
|
|
|
NGLs (per
Bbl)
|
12.55
|
|
|
12.76
|
|
|
11.15
|
|
|
13.00
|
|
|
Combined (per
Boe)
|
29.26
|
|
|
37.70
|
|
|
25.60
|
|
|
34.24
|
|
|
|
|
|
|
|
|
|
|
Average Realized
Sales Prices (after the effects of realized hedges):
|
|
Oil (per
Bbl)
|
$
|
63.34
|
|
|
$
|
78.44
|
|
|
$
|
63.50
|
|
|
$
|
77.35
|
|
|
Natural gas
(per Mcf)
|
2.07
|
|
|
4.10
|
|
|
2.16
|
|
|
4.01
|
|
|
NGLs (per
Bbl)
|
12.55
|
|
|
12.76
|
|
|
11.15
|
|
|
13.00
|
|
|
Combined (per
Boe)
|
44.84
|
|
|
60.13
|
|
|
45.11
|
|
|
60.07
|
|
|
|
|
|
|
|
|
|
|
Average Costs (per
Boe):
|
|
|
|
|
|
|
|
|
Lease
operating expenses
|
$
|
5.28
|
|
|
$
|
7.01
|
|
|
$
|
5.82
|
|
|
$
|
7.85
|
|
|
Gathering,
transportation and processing expense
|
0.38
|
|
|
0.57
|
|
|
0.47
|
|
|
0.58
|
|
|
Production tax
expenses
|
2.19
|
|
|
2.34
|
|
|
1.08
|
|
|
1.98
|
|
|
Depreciation,
depletion and amortization
|
27.05
|
|
|
32.36
|
|
|
28.81
|
|
|
32.70
|
|
|
General and
administrative expense (1)
|
6.18
|
|
|
9.01
|
|
|
7.52
|
|
|
8.73
|
|
|
|
|
(1)
|
Includes long-term
cash and equity incentive compensation of $1.61 and $1.70 for the
three months ended June 30,
2016 and 2015, respectively, and $2.19 and $1.81 for the six months
ended June 30, 2016 and 2015, respectively.
|
|
BILL BARRETT
CORPORATION
|
|
Consolidated
Condensed Balance Sheets
|
|
(Unaudited)
|
|
|
|
As of
June 30,
|
|
As of
December 31,
|
|
2016
|
|
2015
|
|
(in
thousands)
|
|
Assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
|
87,423
|
|
|
$
|
128,836
|
|
|
Assets
classified as held for sale
|
33,717
|
|
|
—
|
|
|
Other current
assets (1)
|
78,503
|
|
|
145,481
|
|
|
Property and
equipment, net
|
1,116,793
|
|
|
1,170,684
|
|
|
Other
noncurrent assets (1)
|
26,159
|
|
|
61,519
|
|
|
Total
assets
|
$
|
1,342,595
|
|
|
$
|
1,506,520
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity:
|
|
|
|
|
Liabilities
associated with assets held for sale
|
$
|
4,785
|
|
|
$
|
—
|
|
|
Other current
liabilities
|
78,437
|
|
|
145,231
|
|
|
Long-term
debt, net of debt issuance costs
|
711,279
|
|
|
794,652
|
|
|
Other
long-term liabilities (1)
|
14,570
|
|
|
17,221
|
|
|
Stockholders'
equity
|
533,524
|
|
|
549,416
|
|
|
Total
liabilities and stockholders' equity
|
$
|
1,342,595
|
|
|
$
|
1,506,520
|
|
|
|
|
(1)
|
At June 30,
2016, the estimated fair value of all of the Company's commodity
derivative instruments was a net asset of
48.2 million, comprised of $41.7 million of current assets, $6.8
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
June 30,
|
|
Six Months Ended
June 30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(in thousands, except
per share amounts)
|
|
Operating and Other
Revenues:
|
|
|
|
|
|
|
|
|
Oil, gas and
NGLs
|
$
|
47,025
|
|
|
$
|
61,382
|
|
|
$
|
76,146
|
|
|
$
|
109,868
|
|
|
Other
|
259
|
|
|
1,236
|
|
|
572
|
|
|
1,784
|
|
|
Total
operating and other revenues
|
47,284
|
|
|
62,618
|
|
|
76,718
|
|
|
111,652
|
|
|
Operating
Expenses:
|
|
|
|
|
|
|
|
|
Lease
operating
|
8,479
|
|
|
11,405
|
|
|
17,306
|
|
|
25,196
|
|
|
Gathering,
transportation and processing
|
611
|
|
|
933
|
|
|
1,399
|
|
|
1,875
|
|
|
Production
tax
|
3,520
|
|
|
3,816
|
|
|
3,205
|
|
|
6,350
|
|
|
Exploration
|
21
|
|
|
92
|
|
|
48
|
|
|
125
|
|
|
Impairment,
dry hole costs and abandonment
|
234
|
|
|
1,090
|
|
|
792
|
|
|
2,345
|
|
|
(Gain) Loss on
divestitures
|
(708)
|
|
|
(644)
|
|
|
(708)
|
|
|
(682)
|
|
|
Depreciation,
depletion and amortization
|
40,392
|
|
|
52,674
|
|
|
82,408
|
|
|
104,928
|
|
|
Unused
commitments
|
4,568
|
|
|
4,387
|
|
|
9,136
|
|
|
8,775
|
|
|
General and
administrative (1)
|
9,937
|
|
|
14,672
|
|
|
22,357
|
|
|
28,001
|
|
|
Total
operating expenses
|
67,054
|
|
|
88,425
|
|
|
135,943
|
|
|
176,913
|
|
|
Operating Income
(Loss)
|
(19,770)
|
|
|
(25,807)
|
|
|
(59,225)
|
|
|
(65,261)
|
|
|
Other Income and
Expense:
|
|
|
|
|
|
|
|
|
Interest and
other income
|
57
|
|
|
144
|
|
|
94
|
|
|
419
|
|
|
Interest
expense
|
(15,423)
|
|
|
(17,390)
|
|
|
(31,169)
|
|
|
(33,820)
|
|
|
Commodity
derivative gain (loss) (2)
|
(21,980)
|
|
|
(27,657)
|
|
|
(13,312)
|
|
|
6,781
|
|
|
Gain (loss) on
extinguishment of debt
|
8,697
|
|
|
(818)
|
|
|
8,697
|
|
|
1,749
|
|
|
Total other
income and expense
|
(28,649)
|
|
|
(45,721)
|
|
|
(35,690)
|
|
|
(24,871)
|
|
|
Income (Loss) before
Income Taxes
|
(48,419)
|
|
|
(71,528)
|
|
|
(94,915)
|
|
|
(90,132)
|
|
|
(Provision for)
Benefit from Income Taxes
|
—
|
|
|
26,947
|
|
|
—
|
|
|
33,820
|
|
|
Net Income
(Loss)
|
$
|
(48,419)
|
|
|
$
|
(44,581)
|
|
|
$
|
(94,915)
|
|
|
$
|
(56,312)
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) per
Common Share
|
|
|
|
|
|
|
|
|
Basic
|
$
|
(0.93)
|
|
|
$
|
(0.92)
|
|
|
$
|
(1.89)
|
|
|
$
|
(1.17)
|
|
|
Diluted
|
$
|
(0.93)
|
|
|
$
|
(0.92)
|
|
|
$
|
(1.89)
|
|
|
$
|
(1.17)
|
|
|
Weighted Average
Common Shares Outstanding
|
|
|
|
|
|
|
|
|
Basic
|
51,832
|
|
|
48,299
|
|
|
50,165
|
|
|
48,249
|
|
|
Diluted
|
51,832
|
|
|
48,299
|
|
|
50,165
|
|
|
48,249
|
|
|
|
|
(1)
|
Includes long-term
cash and equity incentive compensation of $2.6 million and $2.8
million for the three months
ended June 30, 2016 and 2015, respectively, and $6.5 million
and $5.8 million for the six months ended June 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
June 30,
|
|
Six Months Ended
June 30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(in
thousands)
|
|
Included in commodity
derivative gain (loss):
|
|
|
|
|
|
|
|
|
Realized gain
(loss) on derivatives (1)
|
$
|
25,043
|
|
|
$
|
36,523
|
|
|
$
|
58,005
|
|
|
$
|
82,898
|
|
|
Prior year
unrealized (gain) loss transferred to realized (gain) loss
(1)
|
(27,863)
|
|
|
(38,234)
|
|
|
(57,349)
|
|
|
(78,968)
|
|
|
Unrealized
gain (loss) on derivatives (1)
|
(19,160)
|
|
|
(25,946)
|
|
|
(13,968)
|
|
|
2,851
|
|
|
Total
commodity derivative gain (loss)
|
$
|
(21,980)
|
|
|
$
|
(27,657)
|
|
|
$
|
(13,312)
|
|
|
$
|
6,781
|
|
|
|
|
(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
June 30,
|
|
Six Months Ended
June 30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(in
thousands)
|
|
Operating
Activities:
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
(48,419)
|
|
|
$
|
(44,581)
|
|
|
$
|
(94,915)
|
|
|
$
|
(56,312)
|
|
|
Adjustments to
reconcile to net cash provided by operations:
|
|
|
|
|
|
|
|
|
Depreciation,
depletion and amortization
|
40,392
|
|
|
52,674
|
|
|
82,408
|
|
|
104,928
|
|
|
Impairment,
dry hole costs and abandonment expense
|
234
|
|
|
1,090
|
|
|
792
|
|
|
2,345
|
|
|
Unrealized
derivative (gain) loss
|
47,023
|
|
|
64,180
|
|
|
71,317
|
|
|
76,117
|
|
|
Deferred
income tax benefit
|
—
|
|
|
(26,947)
|
|
|
—
|
|
|
(33,820)
|
|
|
Incentive
compensation and other non-cash charges
|
2,102
|
|
|
2,470
|
|
|
5,431
|
|
|
5,213
|
|
|
Amortization
of deferred financing costs
|
863
|
|
|
2,283
|
|
|
1,502
|
|
|
3,350
|
|
|
(Gain) loss on
sale of properties
|
(708)
|
|
|
(644)
|
|
|
(708)
|
|
|
(682)
|
|
|
(Gain) loss on
extinguishment of debt
|
(8,697)
|
|
|
818
|
|
|
(8,697)
|
|
|
(1,749)
|
|
|
Change in
operating assets and liabilities:
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
(2,869)
|
|
|
8,045
|
|
|
9,544
|
|
|
17,109
|
|
|
Prepayments and other assets
|
(311)
|
|
|
225
|
|
|
(902)
|
|
|
(1,139)
|
|
|
Accounts
payable, accrued and other liabilities
|
(16,196)
|
|
|
(12,017)
|
|
|
(3,943)
|
|
|
(13,678)
|
|
|
Amounts
payable to oil and gas property owners
|
649
|
|
|
(3,527)
|
|
|
(3,387)
|
|
|
3,311
|
|
|
Production
taxes payable
|
(5,799)
|
|
|
(6,753)
|
|
|
(9,663)
|
|
|
(13,852)
|
|
|
Net cash
provided by (used in) operating activities
|
$
|
8,264
|
|
|
$
|
37,316
|
|
|
$
|
48,779
|
|
|
$
|
91,141
|
|
|
Investing
Activities:
|
|
|
|
|
|
|
|
|
Additions to
oil and gas properties, including acquisitions
|
(25,419)
|
|
|
(83,114)
|
|
|
(86,680)
|
|
|
(194,123)
|
|
|
Additions of
furniture, equipment and other
|
(209)
|
|
|
(269)
|
|
|
(991)
|
|
|
(878)
|
|
|
Proceeds from
sale of properties and other investing activities
|
13
|
|
|
103
|
|
|
(1,225)
|
|
|
66,518
|
|
|
Proceeds from
the sale of short-term investments
|
—
|
|
|
50,000
|
|
|
—
|
|
|
50,000
|
|
|
Cash paid for
short-term investments
|
—
|
|
|
—
|
|
|
—
|
|
|
(114,883)
|
|
|
Net cash
provided by (used in) investing activities
|
$
|
(25,615)
|
|
|
$
|
(33,280)
|
|
|
$
|
(88,896)
|
|
|
$
|
(193,366)
|
|
|
Financing
Activities:
|
|
|
|
|
|
|
|
|
Principal
payments on debt
|
(109)
|
|
|
(105)
|
|
|
(218)
|
|
|
(24,976)
|
|
|
Deferred
financing costs and other
|
(680)
|
|
|
(1,821)
|
|
|
(1,078)
|
|
|
(2,821)
|
|
|
Net cash
provided by (used in) financing activities
|
$
|
(789)
|
|
|
$
|
(1,926)
|
|
|
$
|
(1,296)
|
|
|
$
|
(27,797)
|
|
|
Increase (Decrease)
in Cash and Cash Equivalents
|
(18,140)
|
|
|
2,110
|
|
|
(41,413)
|
|
|
(130,022)
|
|
|
Beginning Cash and
Cash Equivalents
|
105,563
|
|
|
33,772
|
|
|
128,836
|
|
|
165,904
|
|
|
Ending Cash and Cash
Equivalents
|
$
|
87,423
|
|
|
$
|
35,882
|
|
|
$
|
87,423
|
|
|
$
|
35,882
|
|
|
BILL BARRETT
CORPORATION
|
|
Reconciliation of
Discretionary Cash Flow, Adjusted Net Income (Loss) and
EBITDAX
|
|
(Unaudited)
|
|
Discretionary Cash
Flow Reconciliation
|
|
|
|
Three Months
Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(in thousands, except
per share amounts)
|
|
Net Income
(Loss)
|
$
|
(48,419)
|
|
|
$
|
(44,581)
|
|
|
$
|
(94,915)
|
|
|
$
|
(56,312)
|
|
|
Adjustments to
reconcile to discretionary cash flow:
|
|
|
|
|
|
|
|
|
Depreciation,
depletion and amortization
|
40,392
|
|
|
52,674
|
|
|
82,408
|
|
|
104,928
|
|
|
Impairment,
dry hole and abandonment expense
|
234
|
|
|
1,090
|
|
|
792
|
|
|
2,345
|
|
|
Exploration
expense
|
21
|
|
|
92
|
|
|
48
|
|
|
125
|
|
|
Unrealized
derivative (gain) loss
|
47,023
|
|
|
64,180
|
|
|
71,317
|
|
|
76,117
|
|
|
Deferred
income tax benefit
|
—
|
|
|
(26,947)
|
|
|
—
|
|
|
(33,820)
|
|
|
Incentive
compensation and other non-cash charges
|
2,102
|
|
|
2,470
|
|
|
5,431
|
|
|
5,213
|
|
|
Amortization
of deferred financing costs
|
863
|
|
|
2,283
|
|
|
1,502
|
|
|
3,350
|
|
|
(Gain) loss on
sale of properties
|
(708)
|
|
|
(644)
|
|
|
(708)
|
|
|
(682)
|
|
|
(Gain) loss on
extinguishment of debt
|
(8,697)
|
|
|
818
|
|
|
(8,697)
|
|
|
(1,749)
|
|
|
Discretionary Cash
Flow
|
$
|
32,811
|
|
|
$
|
51,435
|
|
|
$
|
57,178
|
|
|
$
|
99,515
|
|
|
|
Adjusted Net
Income (Loss) Reconciliation
|
|
|
Three Months
Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(in thousands, except
per share amounts)
|
|
Net Income
(Loss)
|
$
|
(48,419)
|
|
|
$
|
(44,581)
|
|
|
$
|
(94,915)
|
|
|
$
|
(56,312)
|
|
|
(Provision
for) Benefit from income taxes
|
—
|
|
|
26,947
|
|
|
—
|
|
|
33,820
|
|
|
Income (Loss) before
income taxes
|
(48,419)
|
|
|
(71,528)
|
|
|
(94,915)
|
|
|
(90,132)
|
|
|
|
|
|
|
|
|
|
|
Adjustments to net
income (loss):
|
|
|
|
|
|
|
|
|
Unrealized
derivative (gain) loss
|
47,023
|
|
|
64,180
|
|
|
71,317
|
|
|
76,117
|
|
|
Impairment
expense
|
—
|
|
|
445
|
|
|
183
|
|
|
503
|
|
|
(Gain) loss on
sale of properties
|
(708)
|
|
|
(644)
|
|
|
(708)
|
|
|
(682)
|
|
|
(Gain) loss on
extinguishment of debt
|
(8,697)
|
|
|
818
|
|
|
(8,697)
|
|
|
(1,749)
|
|
|
Adjusted Income
(Loss) before income taxes
|
(10,801)
|
|
|
(6,729)
|
|
|
(32,820)
|
|
|
(15,943)
|
|
|
Adjusted
(provision for) benefit from income taxes (1)
|
4,061
|
|
|
2,703
|
|
|
12,373
|
|
|
6,008
|
|
|
Adjusted Net Income
(Loss)
|
$
|
(6,740)
|
|
|
$
|
(4,026)
|
|
|
$
|
(20,447)
|
|
|
$
|
(9,935)
|
|
|
Per share,
diluted
|
$
|
(0.13)
|
|
|
$
|
(0.08)
|
|
|
$
|
(0.41)
|
|
|
$
|
(0.21)
|
|
|
|
|
(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
June 30,
|
|
Six Months Ended
June 30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(in thousands, except
per share amounts)
|
|
Net Income
(Loss)
|
$
|
(48,419)
|
|
|
$
|
(44,581)
|
|
|
$
|
(94,915)
|
|
|
$
|
(56,312)
|
|
|
Adjustments to
reconcile to EBITDAX:
|
|
|
|
|
|
|
|
|
Depreciation,
depletion and amortization
|
40,392
|
|
|
52,674
|
|
|
82,408
|
|
|
104,928
|
|
|
Impairment,
dry hole and abandonment expense
|
234
|
|
|
1,090
|
|
|
792
|
|
|
2,345
|
|
|
Exploration
expense
|
21
|
|
|
92
|
|
|
48
|
|
|
125
|
|
|
Unrealized
derivative (gain) loss
|
47,023
|
|
|
64,180
|
|
|
71,317
|
|
|
76,117
|
I
|
|
Incentive
compensation and other non-cash charges
|
2,102
|
|
|
2,470
|
|
|
5,431
|
|
|
5,213
|
|
|
(Gain) loss on
sale of properties
|
(708)
|
|
|
(644)
|
|
|
(708)
|
|
|
(682)
|
|
|
(Gain) loss on
extinguishment of debt
|
(8,697)
|
|
|
818
|
|
|
(8,697)
|
|
|
(1,749)
|
|
|
Interest and
other income
|
(57)
|
|
|
(144)
|
|
|
(94)
|
|
|
(419)
|
|
|
Interest
expense
|
15,423
|
|
|
17,390
|
|
|
31,169
|
|
|
33,820
|
|
|
(Provision
for) Benefit from Income Taxes
|
—
|
|
|
(26,947)
|
|
|
—
|
|
|
(33,820)
|
|
|
EBITDAX
|
$
|
47,314
|
|
|
$
|
66,398
|
|
|
$
|
86,751
|
|
|
$
|
129,566
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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. 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.
|
Logo - http://photos.prnewswire.com/prnh/20150317/182406LOGO
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/bill-barrett-corporation-reports-second-quarter-2016-financial-and-operating-results-300309532.html
SOURCE Bill Barrett Corporation