DENVER, Oct. 22, 2015 /PRNewswire/ -- Bill Barrett
Corporation (the "Company") (NYSE: BBG) announced today that it is
providing an update on certain third quarter 2015 commodity price
data.
For the third quarter of 2015, West Texas Intermediate ("WTI")
oil prices averaged $46.43 per
barrel, Northwest Pipeline ("NWPL") natural gas prices averaged
$2.58 per MMBtu and NYMEX natural gas
prices averaged $2.77 per
MMBtu. The Company had derivative commodity swaps in place
for the third quarter of 2015 for 10,800 barrels of oil per day
tied to WTI pricing at $89.81 per
barrel, 20,000 MMBtu of natural gas per day tied to NWPL regional
pricing at $4.13 per MMBtu and no
hedges in place for natural gas liquids ("NGLs"). Based on
preliminary results, the Company expects to realize a cash
commodity derivative gain of approximately $45.9 million in the third quarter due to
positive derivative positions and estimates that it will record
approximately $23.2 million in
non-cash, unrealized commodity derivative gains. The Company
expects its third quarter commodity price differentials to
benchmark pricing before commodity derivative gains, related to
delivery location and quality adjustments, to approximate: oil less
$7.72 price per barrel versus WTI;
and natural gas less $0.50 per
thousand cubic feet ("Mcf") compared to NWPL. The Company has seen
lower oil price differentials as Denver-Julesberg and Uinta Basin
infrastructure has expanded and pricing has improved. Natural gas
price realizations were lower in the third quarter of 2015 compared
to the second quarter of 2015 primarily due to the timing of
certain receipts of non-operated natural gas production, which
reduced the price realization for the third quarter by
approximately $0.16 per Mcf.
For 2015 YTD, natural gas price realizations have averaged
$0.27 per Mcf less than NWPL, in line
with forward expectations at current price levels. NGL sales are
expected to average 24% of WTI price per barrel.
The following table summarizes the Company's hedge positions as
of October 22, 2015:
|
Oil
(WTI)
|
|
Natural Gas
(NWPL)
|
|
|
|
|
|
|
Period
|
Volume
Bbls/d
|
Price
$/Bbl
|
|
Volume
MMBtu/d
|
Price
$/MMBtu
|
|
|
|
|
|
|
4Q15
|
10,800
|
89.81
|
|
20,000
|
4.13
|
1Q16
|
7,300
|
81.65
|
|
5,000
|
4.10
|
2Q16
|
7,300
|
81.65
|
|
5,000
|
4.10
|
3Q16
|
6,250
|
79.11
|
|
5,000
|
4.10
|
4Q16
|
6,250
|
79.11
|
|
5,000
|
4.10
|
1Q17
|
2,250
|
73.88
|
|
--
|
--
|
2Q17
|
2,250
|
73.88
|
|
--
|
--
|
3Q17
|
1,500
|
78.16
|
|
--
|
--
|
4Q17
|
1,500
|
78.16
|
|
--
|
--
|
Realized sales prices will reflect basis differentials from the
index prices to the sales location.
Forward-Looking Statements
All statements in this press release, other than historical
financial information, 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. Forward looking statements
in this release include statements about certain expected results
for the third quarter of 2015.
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 due to, among other things, differences between
preliminary and final results for the third quarter of 2015
resulting from the Company's financial statement review process.
Please refer to the Company's Annual Report on Form 10-K for the
year ended December 31, 2014 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.
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-updates-commodity-price-and-derivative-information-300164999.html
SOURCE Bill Barrett Corporation