DENVER, Oct. 31, 2017
/PRNewswire/ --
- Production sales volumes of 1.92 million barrels of oil
equivalent ("MMBoe") for the third quarter of 2017, which increased
26% sequentially from the second quarter of 2017
- Oil production sales volumes of 1.2 million barrels of oil
("MMBbls") for the third quarter, which increased 33% sequentially
and represents 63% of total production volumes
- Capital expenditures of $57
million in the third quarter were below guidance range of
$65-$75 million
- Oil price differential of $2.12
per barrel decreased 13% sequentially; Denver-Julesburg ("DJ") Basin oil price differential
of $2.06 per barrel decreased 5%
sequentially
- Lease operating expense ("LOE") of $3.08 per Boe decreased 15% sequentially; DJ
Basin LOE of $2.52 per Boe decreased
18% sequentially
- Drilling and completion cycle times for the extended reach
lateral ("XRL") program improved 28% compared to 2016 led by
efficiency gains
- 2017 production guidance increased to 6.9-7.1 MMBoe; represents
21% growth over 2016 at the mid-point, excluding 2016 asset
sales
- Commenced marketed sales process to divest of Uinta Oil Program
assets
Bill Barrett Corporation (the "Company") (NYSE: BBG) today
reported third quarter of 2017 financial and operating results and
updated 2017 operating guidance, including higher production and
lower LOE.
For the third quarter of 2017, the Company reported a net loss
of $28.8 million, or $0.39 per diluted share. Adjusted net income for
the third quarter of 2017 was a net loss of $5.9 million, or $0.08 per diluted share. EBITDAX for the third
quarter of 2017 was $47.9 million.
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.
Commenting on the quarterly results, Chief Executive Officer and
President Scot Woodall stated, "We
delivered another outstanding quarter of results that was
highlighted by 26% sequential production growth, 33% sequential
growth in oil volumes, tighter oil differentials, an 18% sequential
decrease in LOE, and capital spending that was below guidance. As
these results demonstrate, our execution is strong with early
positive results from our enhanced completion program meeting or
exceeding our base XRL type-curve. Current planned activity
underpins a further increase in our production outlook and a
corresponding decrease in LOE as outlined by our updated guidance.
We now anticipate 2017 production growing over 20% relative to 2016
and expect to generate greater than 30% growth in 2018. This builds
significant momentum as we head into 2018 with higher associated
cash flow and EBITDAX generation. We recently initiated a marketed
sales process to divest of our Uinta Oil Program assets and, if
successful, anticipate a sale announcement prior to year-end.
Proceeds will increase liquidity and help fund expected activity in
2018. We are in a good financial position with current liquidity
consisting of a cash position in excess of $150 million and an undrawn credit facility that
is supported by an underlying hedge position."
OPERATING AND FINANCIAL RESULTS
The following table summarizes certain operating and financial
results for the third quarter of 2017 and 2016 and the second
quarter of 2017:
|
Three Months
Ended
September 30,
|
|
Three Months
Ended
June 30,
|
|
2017
|
|
2016
|
|
Change
|
|
2017
|
|
Change
|
Combined production
sales volumes (MBoe)
|
1,920
|
|
|
1,566
|
|
|
23
|
%
|
|
1,526
|
|
|
26
|
%
|
Net cash provided by
(used in) operating activities ($ millions)
|
$
|
57.2
|
|
|
$
|
67.4
|
|
|
(15)
|
%
|
|
$
|
0.1
|
|
|
571
|
%
|
Discretionary cash
flow ($ millions) (1)
|
$
|
34.8
|
|
|
$
|
36.5
|
|
|
(5)
|
%
|
|
$
|
21.6
|
|
|
61
|
%
|
Combined realized
prices with hedging (per Boe)
|
$
|
38.78
|
|
|
$
|
45.06
|
|
|
(14)
|
%
|
|
$
|
37.42
|
|
|
4
|
%
|
Net income (loss) ($
millions)
|
$
|
(28.8)
|
|
|
$
|
(26.2)
|
|
|
(10)
|
%
|
|
$
|
(18.4)
|
|
|
(56)
|
%
|
Per share,
basic
|
$
|
(0.39)
|
|
|
$
|
(0.44)
|
|
|
11
|
%
|
|
$
|
(0.25)
|
|
|
(56)
|
%
|
Per share,
diluted
|
$
|
(0.39)
|
|
|
$
|
(0.44)
|
|
|
11
|
%
|
|
$
|
(0.25)
|
|
|
(56)
|
%
|
Adjusted net income
(loss) ($ millions) (1)
|
$
|
(5.9)
|
|
|
$
|
(6.2)
|
|
|
5
|
%
|
|
$
|
(12.9)
|
|
|
55
|
%
|
Per share,
basic
|
$
|
(0.08)
|
|
|
$
|
(0.10)
|
|
|
20
|
%
|
|
$
|
(0.17)
|
|
|
53
|
%
|
Per share,
diluted
|
$
|
(0.08)
|
|
|
$
|
(0.10)
|
|
|
20
|
%
|
|
$
|
(0.17)
|
|
|
53
|
%
|
Weighted average
shares outstanding, basic (in thousands)
|
74,886
|
|
|
58,852
|
|
|
27
|
%
|
|
74,794
|
|
|
—
|
%
|
Weighted average
shares outstanding, diluted (in thousands)
|
74,886
|
|
|
58,852
|
|
|
27
|
%
|
|
74,794
|
|
|
—
|
%
|
EBITDAX ($ millions)
(1)
|
$
|
47.9
|
|
|
$
|
49.8
|
|
|
(4)
|
%
|
|
$
|
36.7
|
|
|
31
|
%
|
|
|
(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
totaled approximately 1.92 MMBoe in the third quarter of 2017.
Third quarter production surpassed guidance of 1.75 MMBoe by 10%
and represents a 23% increase compared to the third quarter of 2016
and a 26% increase compared to the second quarter of 2017.
Oil volumes totaled approximately 1.2 MMBbls in the third
quarter, representing an 18% increase compared to the third quarter
of 2016 and a 33% increase compared to the second quarter of
2017.
Higher production sales volumes were driven by an improvement in
drilling and completion cycle times and positive results from the
Company's enhanced completion program in the DJ Basin.
Third quarter production was comprised of approximately 63% oil,
20% natural gas and 17% NGLs.
|
Three Months
Ended
September 30,
|
|
Three Months
Ended
June 30,
|
|
2017
|
|
2016
|
|
Change
|
|
2017
|
|
Change
|
Production Sales
Data:
|
|
|
|
|
|
|
|
|
|
Oil
(MBbls)
|
1,202
|
|
|
1,016
|
|
|
18
|
%
|
|
902
|
|
|
33
|
%
|
Natural gas
(MMcf)
|
2,274
|
|
|
1,734
|
|
|
31
|
%
|
|
1,920
|
|
|
18
|
%
|
NGLs
(MBbls)
|
339
|
|
|
261
|
|
|
30
|
%
|
|
304
|
|
|
12
|
%
|
Combined volumes
(MBoe)
|
1,920
|
|
|
1,566
|
|
|
23
|
%
|
|
1,526
|
|
|
26
|
%
|
Daily combined
volumes (Boe/d)
|
20,870
|
|
|
17,022
|
|
|
23
|
%
|
|
16,769
|
|
|
24
|
%
|
LOE averaged $3.08 per Boe in the
third quarter of 2017 compared to $3.06 per Boe in the third quarter of 2016 and
$3.61 per Boe in the second quarter
of 2017. The 15% reduction in LOE compared to the second quarter of
2017 is attributable to increased operating efficiencies and higher
production sales volumes.
Production tax expense averaged $2.80 per Boe in the third quarter of 2017
compared to $2.45 per Boe in the
third quarter of 2016 and $2.25 per
Boe in the second quarter of 2017. Higher production tax expense in
the third quarter of 2017 was primarily attributable to higher
average realized oil prices relative to the comparable quarters.
Production taxes totaled 8% of pre-hedge revenues for the third
quarter of 2017 compared to 7.6% of pre-hedge revenues for the
third quarter of 2016.
Depreciation, depletion and amortization ("DD&A") averaged
$22.52 per Boe in the third quarter
of 2017 compared to $27.51 per Boe in
the third quarter of 2016 and $25.78
per Boe in the second quarter of 2017. Lower DD&A on a per unit
basis for the third quarter of 2017 was primarily the result of
proved reserves added at lower costs.
|
Three Months
Ended
September 30,
|
|
Three Months
Ended
June 30,
|
|
2017
|
|
2016
|
|
Change
|
|
2017
|
|
Change
|
Average Costs (per
Boe):
|
|
|
|
|
|
|
|
|
|
Lease operating
expenses
|
$
|
3.08
|
|
|
$
|
3.06
|
|
|
1
|
%
|
|
$
|
3.61
|
|
|
(15)
|
%
|
Gathering,
transportation and processing expense
|
0.32
|
|
|
0.30
|
|
|
7
|
%
|
|
0.35
|
|
|
(9)
|
%
|
Production tax
expenses
|
2.80
|
|
|
2.45
|
|
|
14
|
%
|
|
2.25
|
|
|
24
|
%
|
Depreciation,
depletion and amortization
|
22.52
|
|
|
27.51
|
|
|
(18)
|
%
|
|
25.78
|
|
|
(13)
|
%
|
Debt and Liquidity
At September 30, 2017, the
principal debt balance was $677.4
million, while cash and cash equivalents were $155.9 million, resulting in net debt (principal
balance of debt outstanding less the cash and cash equivalents
balance) of $521.5 million. Cash and
cash equivalents were reduced subsequent to the end of the quarter
as the Company made a regularly scheduled interest payment in
October 2017 of approximately
$14 million related to its Senior
Notes due 2022.
The Company's semi-annual borrowing base review was completed in
October 2017 with no changes to the
terms or conditions of the $300
million credit facility. There are no borrowings outstanding
and $274 million in available
capacity after taking into account a $26
million letter of credit.
Capital Expenditures
Capital expenditures for the third quarter of 2017 totaled
$56.8 million, which was 19% below
the midpoint of the Company's guidance range of $65-$75 million. Lower than anticipated capital
expenditures were primarily the result of improved drilling and
completion efficiencies that have offset service cost increases.
The Company operated two drilling rigs for the quarter and spud 26
extended reach lateral ("XRL") wells in the DJ Basin. Completion
operations were conducted on 19 XRL wells.
OPERATIONAL HIGHLIGHTS
DJ Basin
The Company produced an average of 18,508 Boe/d in the third
quarter of 2017, representing 28% sequential growth. Eleven XRL
wells were placed on initial flowback during the third quarter and
two drilling rigs are currently operating in the basin. The Company
continues to see improving well results from its enhanced
completion program that has evolved to include approximately 1,500
pounds of sand per lateral foot and frac stage spacing of
approximately 120 feet. In addition, the Company incorporated
modifications to its choke management program on recent drilling
and spacing units ("DSU") that are anticipated to result in peak
production being achieved earlier in the production cycle.
Performance from the 2017 enhanced completion program continues to
meet or exceed the Company's base XRL type-curve of 600 MBoe.
The following provides a synopsis of the current activity for
the DSUs that are in the drilling and completion or initial
flowback phase:
- 5-63-32 - The DSU is located within the western area of NE
Wattenberg and includes 5 XRL wells. Initial flowback began in the
third quarter of 2017. The wells incorporated enhanced completion
and flowback methods. Early production is currently tracking above
the Company's base XRL type curve.
- 5-63-30 - The DSU is located within the western area of NE
Wattenberg and includes 6 XRL wells. Initial flowback began in the
third quarter of 2017. The wells incorporated enhanced completion
and flowback methods. Early production is currently tracking above
the Company's base XRL type curve.
- 5-61-20 - The DSU is located within the central area of NE
Wattenberg and includes 8 XRL wells. Completion operations have
commenced and the wells are expected to be placed on initial
flowback in the fourth quarter of 2017.
- 4-62-29/32 - The DSUs are located within the southern area of
NE Wattenberg and includes 10 XRL wells per DSU. Completion
operations commenced in October
2017.
- 3-62-4 - The DSU is located within the southern area of NE
Wattenberg and includes 10 XRL wells. Drilling operations commenced
in October 2017.
The Company continues to achieve drilling and completion
efficiencies on its XRL well program that have resulted in a 28%
average year-over-year improvement in 2017 cycle times leading to
increased stages completed and pounds of sand pumped per day. This
has been primarily achieved through a 37% improvement in the number
of frac stages completed per day and a 27% improvement in the
number of days required to drill out frac plugs.
Drilling and completion costs for XRL wells drilled during the
first nine months of 2017 have averaged approximately $4.7 million per well, which includes the cost of
incorporating higher proppant concentrations and tighter frac stage
spacing.
Uinta Oil Program
Production sales volumes averaged 2,333 Boe/d (91% oil) during
the third quarter of 2017. The oil price differential averaged
$2.41 per barrel less than WTI as new
marketing contracts became effective on May
1, 2017.
The Company has commenced a marketed sales process to divest of
its Uinta Oil Program assets and, if successful, it is anticipated
that a sale would be announced in the fourth quarter of 2017.
2017 OPERATING GUIDANCE
The Company is providing the following update to its 2017
operating guidance. See "Forward-Looking Statements" below.
- Capital expenditures of $250-$270
million, unchanged
-
- Fourth quarter capital expenditures are expected to total
$80-$90 million. Higher capital
expenditures compared to the third quarter of 2017 are due to
increased completion activity associated with a two-rig drilling
program.
- Production of 6.9-7.1 MMBoe, increased from a previous guidance
range of 6.4-6.6 MMBoe to reflect actual production sales volumes
for the first nine months of 2017 and anticipated production for
the fourth quarter of 2017
-
- Fourth quarter production sales volumes are expected to
approximate 2.0-2.2 MMBoe
- Fourth quarter production is expected to be weighted
approximately 63% oil
- Lease operating expense of $24-$25
million, narrowed from a previous guidance range of
$24-$26 million due to further
operational efficiencies
- General and administrative expenses of $32-$33 million, narrowed from a previous range
of $30-$33 million due to variable
employee compensation costs related to performance
- Gathering, transportation and processing costs of $2-$3 million, unchanged
- Unused commitment for firm natural gas transportation charges
of $18-$19 million, unchanged
COMMODITY HEDGES UPDATE
The following table summarizes our current hedge position as of
October 30, 2017:
|
|
Oil (WTI)
|
|
Natural Gas
(NWPL)
|
Period
|
|
Volume
Bbls/d
|
|
Price
$/Bbl
|
|
Volume
MMBtu/d
|
|
Price
$/MMBtu
|
4Q17
|
|
8,125
|
|
|
57.69
|
|
|
10,000
|
|
|
2.96
|
|
1Q18
|
|
8,750
|
|
|
52.88
|
|
|
5,000
|
|
|
2.68
|
|
2Q18
|
|
8,750
|
|
|
52.88
|
|
|
5,000
|
|
|
2.68
|
|
3Q18
|
|
7,000
|
|
|
52.00
|
|
|
5,000
|
|
|
2.68
|
|
4Q18
|
|
7,000
|
|
|
52.00
|
|
|
5,000
|
|
|
2.68
|
|
1Q19
|
|
1,750
|
|
|
50.54
|
|
|
—
|
|
|
—
|
|
2Q19
|
|
1,750
|
|
|
50.54
|
|
|
—
|
|
|
—
|
|
3Q19
|
|
1,750
|
|
|
50.54
|
|
|
—
|
|
|
—
|
|
4Q19
|
|
1,750
|
|
|
50.54
|
|
|
—
|
|
|
—
|
|
Realized sales prices will reflect basis differentials from the
index prices to the sales location.
UPCOMING EVENTS
Third Quarter Conference Call and Webcast
The Company plans to host a conference call on Wednesday,
November 1, 2017, to discuss third quarter of 2017 results.
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 98924903. The webcast
will remain on the Company's website for approximately 7 days and a
replay of the call will be available through November 8, 2017
at (855) 859-2056 ((404) 537-3406 international) with passcode
98924903.
Investor Events
Members of the Company's management are currently scheduled to
participate in the following investor events:
- November 13, 2017 - Ladenburg
Thalmann & Co. Energy Conference in New York, NY
- November 14, 2017 - KLR Group
E&P Day in Denver, CO
- November 29, 2017 - Bank of
America Merrill Lynch Leveraged Finance Conference in Boca Raton, FL
- November 30, 2017 - KeyBanc
Capital Markets E&P Bus Tour in Denver, CO
DISCLOSURE STATEMENTS
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
"2017 Operating Guidance," which contains 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; and the
planned disposition of our Uinta Basin properties.
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. In particular, the planned
disposition of Uinta Basin properties may not be completed in the
timeframe expected, on terms favorable to us, or at all. 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
September 30,
|
|
Nine Months Ended
September 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Production
Data:
|
|
|
|
|
|
|
|
Oil
(MBbls)
|
1,202
|
|
|
1,016
|
|
|
2,929
|
|
|
2,925
|
|
Natural gas
(MMcf)
|
2,274
|
|
|
1,734
|
|
|
6,084
|
|
|
5,298
|
|
NGLs
(MBbls)
|
339
|
|
|
261
|
|
|
936
|
|
|
732
|
|
Combined volumes
(MBoe)
|
1,920
|
|
|
1,566
|
|
|
4,879
|
|
|
4,540
|
|
Daily combined
volumes (Boe/d)
|
20,870
|
|
|
17,022
|
|
|
17,872
|
|
|
16,569
|
|
|
|
|
|
|
|
|
|
Average Sales Prices
(before the effects of realized hedges):
|
Oil (per
Bbl)
|
$
|
46.08
|
|
|
$
|
41.92
|
|
|
$
|
46.52
|
|
|
$
|
36.88
|
|
Natural gas (per
Mcf)
|
2.37
|
|
|
2.29
|
|
|
2.48
|
|
|
1.81
|
|
NGLs (per
Bbl)
|
18.93
|
|
|
13.65
|
|
|
18.40
|
|
|
12.05
|
|
Combined (per
Boe)
|
34.99
|
|
|
32.02
|
|
|
34.54
|
|
|
27.82
|
|
|
|
|
|
|
|
|
|
Average Realized
Sales Prices (after the effects of realized hedges):
|
Oil (per
Bbl)
|
$
|
51.86
|
|
|
$
|
61.30
|
|
|
$
|
52.18
|
|
|
$
|
62.74
|
|
Natural gas (per
Mcf)
|
2.51
|
|
|
2.71
|
|
|
2.56
|
|
|
2.34
|
|
NGLs (per
Bbl)
|
18.93
|
|
|
13.65
|
|
|
18.40
|
|
|
12.05
|
|
Combined (per
Boe)
|
38.78
|
|
|
45.06
|
|
|
38.04
|
|
|
45.09
|
|
|
|
|
|
|
|
|
|
Average Costs (per
Boe):
|
|
|
|
|
|
|
|
Lease operating
expenses
|
$
|
3.08
|
|
|
$
|
3.06
|
|
|
$
|
3.54
|
|
|
$
|
4.87
|
|
Gathering,
transportation and processing expense
|
0.32
|
|
|
0.30
|
|
|
0.34
|
|
|
0.41
|
|
Production tax
expenses
|
2.80
|
|
|
2.45
|
|
|
1.87
|
|
|
1.55
|
|
Depreciation,
depletion and amortization
|
22.52
|
|
|
27.51
|
|
|
24.81
|
|
|
27.64
|
|
General and
administrative expense (1)
|
6.51
|
|
|
5.86
|
|
|
6.31
|
|
|
6.95
|
|
|
|
(1)
|
Includes long-term
cash and equity incentive compensation of $1.40 per Boe and $1.37
per Boe for the three months ended September 30, 2017 and
2016, respectively, and $1.12 per Boe and $1.91 per Boe for the
nine months ended September 30, 2017 and 2016,
respectively.
|
BILL BARRETT
CORPORATION
|
Consolidated
Condensed Balance Sheets
|
(Unaudited)
|
|
|
As of
September 30,
|
|
As of
December 31,
|
|
2017
|
|
2016
|
|
(in
thousands)
|
Assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
155,885
|
|
|
$
|
275,841
|
|
Assets classified as
held for sale
|
145,553
|
|
|
—
|
|
Other current assets
(1)
|
50,080
|
|
|
42,611
|
|
Property and
equipment, net
|
975,845
|
|
|
1,062,149
|
|
Other noncurrent
assets (1)
|
3,143
|
|
|
4,740
|
|
Total
assets
|
$
|
1,330,506
|
|
|
$
|
1,385,341
|
|
|
|
|
|
Liabilities and
Stockholders' Equity:
|
|
|
|
Liabilities
associated with assets held for sale
|
$
|
4,856
|
|
|
$
|
—
|
|
Other current
liabilities
|
121,511
|
|
|
85,018
|
|
Long-term debt, net
of debt issuance costs
|
668,744
|
|
|
711,808
|
|
Other long-term
liabilities (1)
|
20,381
|
|
|
16,972
|
|
Stockholders'
equity
|
515,014
|
|
|
571,543
|
|
Total liabilities and
stockholders' equity
|
$
|
1,330,506
|
|
|
$
|
1,385,341
|
|
|
|
(1)
|
At September 30,
2017, the estimated fair value of all of the Company's commodity
derivative instruments was a net asset of $5.7 million, comprised
of $5.8 million of current assets, $0.1 million of non-current
assets and $0.2 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
September 30,
|
|
Nine Months Ended
September 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
(in thousands, except
per share amounts)
|
Operating
Revenues:
|
|
|
|
|
|
|
|
Oil, gas and NGL
production
|
$
|
67,175
|
|
|
$
|
50,133
|
|
|
$
|
168,541
|
|
|
$
|
126,279
|
Other operating
revenues
|
690
|
|
|
348
|
|
|
926
|
|
|
920
|
Total operating
revenues
|
67,865
|
|
|
50,481
|
|
|
169,467
|
|
|
127,199
|
Operating
Expenses:
|
|
|
|
|
|
|
|
Lease
operating
|
5,919
|
|
|
4,795
|
|
|
17,287
|
|
|
22,101
|
Gathering,
transportation and processing
|
620
|
|
|
472
|
|
|
1,644
|
|
|
1,871
|
Production
tax
|
5,384
|
|
|
3,832
|
|
|
9,140
|
|
|
7,037
|
Exploration
|
18
|
|
|
16
|
|
|
48
|
|
|
64
|
Impairment, dry hole
costs and abandonment
|
261
|
|
|
974
|
|
|
8,336
|
|
|
1,766
|
(Gain) Loss on sale
of properties
|
—
|
|
|
1,914
|
|
|
(92)
|
|
|
1,206
|
Depreciation,
depletion and amortization
|
41,732
|
|
|
43,083
|
|
|
119,409
|
|
|
125,491
|
Unused
commitments
|
4,557
|
|
|
4,567
|
|
|
13,687
|
|
|
13,703
|
General and
administrative (1)
|
12,496
|
|
|
9,178
|
|
|
30,788
|
|
|
31,535
|
Other operating
expenses, net
|
(282)
|
|
|
—
|
|
|
(1,610)
|
|
|
—
|
Total operating
expenses
|
70,705
|
|
|
68,831
|
|
|
198,637
|
|
|
204,774
|
Operating Income
(Loss)
|
(2,840)
|
|
|
(18,350)
|
|
|
(29,170)
|
|
|
(77,575)
|
Other Income and
Expense:
|
|
|
|
|
|
|
|
Interest and other
income
|
332
|
|
|
72
|
|
|
1,030
|
|
|
166
|
Interest
expense
|
(13,926)
|
|
|
(13,991)
|
|
|
(44,014)
|
|
|
(45,160)
|
Commodity derivative
gain (loss) (2)
|
(12,408)
|
|
|
6,054
|
|
|
19,654
|
|
|
(7,258)
|
Gain (loss) on
extinguishment of debt
|
—
|
|
|
29
|
|
|
(7,904)
|
|
|
8,726
|
Total other income
and expense
|
(26,002)
|
|
|
(7,836)
|
|
|
(31,234)
|
|
|
(43,526)
|
Income (Loss) before
Income Taxes
|
(28,842)
|
|
|
(26,186)
|
|
|
(60,404)
|
|
|
(121,101)
|
(Provision for)
Benefit from Income Taxes
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
Net Income
(Loss)
|
$
|
(28,842)
|
|
|
$
|
(26,186)
|
|
|
$
|
(60,404)
|
|
|
$
|
(121,101)
|
|
|
|
|
|
|
|
|
Net Income (Loss) per
Common Share
|
|
|
|
|
|
|
|
Basic
|
$
|
(0.39)
|
|
|
$
|
(0.44)
|
|
|
$
|
(0.81)
|
|
|
$
|
(2.28)
|
Diluted
|
$
|
(0.39)
|
|
|
$
|
(0.44)
|
|
|
$
|
(0.81)
|
|
|
$
|
(2.28)
|
Weighted Average
Common Shares Outstanding
|
|
|
|
|
|
|
|
Basic
|
74,886
|
|
|
58,852
|
|
|
74,743
|
|
|
53,082
|
Diluted
|
74,886
|
|
|
58,852
|
|
|
74,743
|
|
|
53,082
|
|
|
|
|
(1)
|
Includes long-term
cash and equity incentive compensation of $2.7 million and $2.1
million for the three months ended September 30, 2017 and
2016, respectively, and $5.5 million and $8.7 million for the nine
months ended September 30, 2017 and 2016,
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
September 30,
|
|
Nine Months Ended
September 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
(in
thousands)
|
Included in commodity
derivative gain (loss):
|
|
|
|
|
|
|
|
Realized gain (loss)
on derivatives (1)
|
$
|
7,263
|
|
|
$
|
20,412
|
|
|
$
|
17,062
|
|
|
$
|
78,417
|
Prior year unrealized
(gain) loss transferred to realized (gain) loss
(1)
|
(1,036)
|
|
|
(21,706)
|
|
|
(2,114)
|
|
|
(79,055)
|
Unrealized gain
(loss) on derivatives (1)
|
(18,635)
|
|
|
7,348
|
|
|
4,706
|
|
|
(6,620)
|
Total commodity
derivative gain (loss)
|
$
|
(12,408)
|
|
|
$
|
6,054
|
|
|
$
|
19,654
|
|
|
$
|
(7,258)
|
|
|
|
(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
September 30,
|
|
Nine Months Ended
September 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
(in
thousands)
|
Operating
Activities:
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
(28,842)
|
|
|
$
|
(26,186)
|
|
|
$
|
(60,404)
|
|
|
$
|
(121,101)
|
|
Adjustments to
reconcile to net cash provided by operations:
|
|
|
|
|
|
|
|
Depreciation,
depletion and amortization
|
41,732
|
|
|
43,083
|
|
|
119,409
|
|
|
125,491
|
|
Impairment, dry hole
costs and abandonment
|
261
|
|
|
974
|
|
|
8,336
|
|
|
1,766
|
|
Unrealized derivative
(gain) loss
|
19,672
|
|
|
14,358
|
|
|
(2,592)
|
|
|
85,675
|
|
Incentive
compensation and other non-cash charges
|
1,480
|
|
|
1,777
|
|
|
5,134
|
|
|
7,208
|
|
Amortization of
deferred financing costs
|
510
|
|
|
573
|
|
|
1,665
|
|
|
2,075
|
|
(Gain) loss on sale
of properties
|
—
|
|
|
1,914
|
|
|
(92)
|
|
|
1,206
|
|
(Gain) loss on
extinguishment of debt
|
—
|
|
|
(29)
|
|
|
7,904
|
|
|
(8,726)
|
|
Change in operating
assets and liabilities:
|
|
|
|
|
|
|
|
Accounts
receivable
|
(11,679)
|
|
|
4,008
|
|
|
(9,252)
|
|
|
13,552
|
|
Prepayments and other
assets
|
397
|
|
|
(66)
|
|
|
(980)
|
|
|
(968)
|
|
Accounts payable,
accrued and other liabilities
|
25,656
|
|
|
22,846
|
|
|
20,071
|
|
|
18,903
|
|
Amounts payable to
oil and gas property owners
|
3,698
|
|
|
493
|
|
|
6,371
|
|
|
(2,894)
|
|
Production taxes
payable
|
4,299
|
|
|
3,683
|
|
|
(187)
|
|
|
(5,980)
|
|
Net cash provided by
(used in) operating activities
|
$
|
57,184
|
|
|
$
|
67,428
|
|
|
$
|
95,383
|
|
|
$
|
116,207
|
|
Investing
Activities:
|
|
|
|
|
|
|
|
Additions to oil and
gas properties, including acquisitions
|
(56,552)
|
|
|
(7,024)
|
|
|
(160,788)
|
|
|
(93,704)
|
|
Additions of
furniture, equipment and other
|
(67)
|
|
|
(193)
|
|
|
(268)
|
|
|
(1,184)
|
|
Proceeds from sale of
properties and other investing activities
|
(97)
|
|
|
26,796
|
|
|
(712)
|
|
|
25,571
|
|
Net cash provided by
(used in) investing activities
|
$
|
(56,716)
|
|
|
$
|
19,579
|
|
|
$
|
(161,768)
|
|
|
$
|
(69,317)
|
|
Financing
Activities:
|
|
|
|
|
|
|
|
Proceeds from
debt
|
—
|
|
|
—
|
|
|
275,000
|
|
|
—
|
|
Principal payments on
debt
|
(115)
|
|
|
(111)
|
|
|
(322,228)
|
|
|
(329)
|
|
Proceeds from sale of
common stock, net of offering costs
|
—
|
|
|
—
|
|
|
(298)
|
|
|
—
|
|
Deferred financing
costs and other
|
(33)
|
|
|
(56)
|
|
|
(6,045)
|
|
|
(1,134)
|
|
Net cash provided by
(used in) financing activities
|
$
|
(148)
|
|
|
$
|
(167)
|
|
|
$
|
(53,571)
|
|
|
$
|
(1,463)
|
|
Increase (Decrease)
in Cash and Cash Equivalents
|
320
|
|
|
86,840
|
|
|
(119,956)
|
|
|
45,427
|
|
Beginning Cash and
Cash Equivalents
|
155,565
|
|
|
87,423
|
|
|
275,841
|
|
|
128,836
|
|
Ending Cash and Cash
Equivalents
|
$
|
155,885
|
|
|
$
|
174,263
|
|
|
$
|
155,885
|
|
|
$
|
174,263
|
|
BILL BARRETT
CORPORATION
|
Reconciliation of
Discretionary Cash Flow, Adjusted Net Income (Loss) and
EBITDAX
|
(Unaudited)
|
|
Discretionary Cash
Flow Reconciliation
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
(in
thousands)
|
Net Cash Provided by
(Used in) Operating Activities
|
$
|
57,184
|
|
|
$
|
67,428
|
|
|
$
|
95,383
|
|
|
$
|
116,207
|
|
Adjustments to
reconcile to discretionary cash flow:
|
|
|
|
|
|
|
|
Exploration
expense
|
18
|
|
|
16
|
|
|
48
|
|
|
64
|
|
Changes in working
capital
|
(22,371)
|
|
|
(30,964)
|
|
|
(16,023)
|
|
|
(22,613)
|
|
Discretionary Cash
Flow
|
$
|
34,831
|
|
|
$
|
36,480
|
|
|
$
|
79,408
|
|
|
$
|
93,658
|
|
|
|
|
|
|
|
|
|
Adjusted Net
Income (Loss) Reconciliation
|
|
|
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
(in thousands, except
per share amounts)
|
Net Income
(Loss)
|
$
|
(28,842)
|
|
|
$
|
(26,186)
|
|
|
$
|
(60,404)
|
|
|
$
|
(121,101)
|
|
Provision for
(Benefit from) income taxes
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Income (Loss) before
income taxes
|
(28,842)
|
|
|
(26,186)
|
|
|
(60,404)
|
|
|
(121,101)
|
|
|
|
|
|
|
|
|
|
Adjustments to net
income (loss):
|
|
|
|
|
|
|
|
Unrealized derivative
(gain) loss
|
19,672
|
|
|
14,358
|
|
|
(2,592)
|
|
|
85,675
|
|
Impairment
expense
|
—
|
|
|
—
|
|
|
8,010
|
|
|
183
|
|
(Gain) loss on sale
of properties
|
—
|
|
|
1,914
|
|
|
(92)
|
|
|
1,206
|
|
(Gain) loss on
extinguishment of debt
|
—
|
|
|
(29)
|
|
|
7,904
|
|
|
(8,726)
|
|
One-time
item:
|
|
|
|
|
|
|
|
(Income) expense
related to properties sold
|
(282)
|
|
|
—
|
|
|
(1,610)
|
|
|
—
|
|
Adjusted Income
(Loss) before income taxes
|
(9,452)
|
|
|
(9,943)
|
|
|
(48,784)
|
|
|
(42,763)
|
|
Adjusted (provision
for) benefit from income taxes (1)
|
3,549
|
|
|
3,791
|
|
|
18,460
|
|
|
16,164
|
|
Adjusted Net Income
(Loss)
|
$
|
(5,903)
|
|
|
$
|
(6,152)
|
|
|
$
|
(30,324)
|
|
|
$
|
(26,599)
|
|
Per share,
diluted
|
$
|
(0.08)
|
|
|
$
|
(0.10)
|
|
|
$
|
(0.41)
|
|
|
$
|
(0.50)
|
|
|
|
(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
September 30,
|
|
Nine Months Ended
September 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
(in
thousands)
|
Net Income
(Loss)
|
$
|
(28,842)
|
|
|
$
|
(26,186)
|
|
|
$
|
(60,404)
|
|
|
$
|
(121,101)
|
|
Adjustments to
reconcile to EBITDAX:
|
|
|
|
|
|
|
|
Depreciation,
depletion and amortization
|
41,732
|
|
|
43,083
|
|
|
119,409
|
|
|
125,491
|
|
Impairment, dry hole
and abandonment expense
|
261
|
|
|
974
|
|
|
8,336
|
|
|
1,766
|
|
Exploration
expense
|
18
|
|
|
16
|
|
|
48
|
|
|
64
|
|
Unrealized derivative
(gain) loss
|
19,672
|
|
|
14,358
|
|
|
(2,592)
|
|
|
85,675
|
|
Incentive
compensation and other non-cash charges
|
1,480
|
|
|
1,777
|
|
|
5,134
|
|
|
7,208
|
|
(Gain) loss on sale
of properties
|
—
|
|
|
1,914
|
|
|
(92)
|
|
|
1,206
|
|
(Gain) loss on
extinguishment of debt
|
—
|
|
|
(29)
|
|
|
7,904
|
|
|
(8,726)
|
|
Interest and other
income
|
(332)
|
|
|
(72)
|
|
|
(1,030)
|
|
|
(166)
|
|
Interest
expense
|
13,926
|
|
|
13,991
|
|
|
44,014
|
|
|
45,160
|
|
Provision for
(benefit from) income taxes
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
EBITDAX
|
$
|
47,915
|
|
|
$
|
49,826
|
|
|
$
|
120,727
|
|
|
$
|
136,577
|
|
|
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. The definition of these measures
may vary among companies, and, therefore, the amounts presented may
not be comparable to similarly titled measures of other
companies.
|
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