DENVER, May 2, 2017
/PRNewswire/ --
- Production sales volumes of 1.43 MMBoe for the first quarter
were at the high-end of guidance range of 1.35-1.45 MMBoe
- Capital expenditures of $59
million in the first quarter were below guidance range of
$60-$65 million
- Denver-Julesburg ("DJ") Basin oil price differential
averaged $2.78 per barrel; represents
a 50% reduction from the first quarter of 2016
- Added 2,882 acre federal lease in DJ Basin; provides up to 50
XRL drilling locations
- Lease operating expense ("LOE") averaged $4.09 per Boe; represents 37% improvement from
the first quarter of 2016
- DJ Basin LOE of $3.47 per Boe in
the first quarter; represents 28% improvement from the first
quarter of 2016
- Negotiated significant improvement in Utah oil contract pricing beginning
May 2017; oil differential expected
to average approximately $2.00/bbl
- Exited the first quarter financially well positioned with cash
of $266 million and an undrawn credit
facility
- Recently issued $275 million of
Senior Notes due 2025; proceeds will be used with cash on hand to
redeem existing $315 million of
Senior Notes due 2019; extends nearest maturity to 2022
Bill Barrett Corporation (the "Company") (NYSE: BBG) reports
first quarter of 2017 financial and operating results.
For the first quarter of 2017, the Company reported a net loss
of $13 million, or $0.18 per diluted share. Adjusted net income
(non-GAAP) for the first quarter of 2017 was a net loss of
$12 million, or $0.16 per diluted share. EBITDAX for the first
quarter of 2017 was $36 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.
Chief Executive Officer and President Scot Woodall commented, "We're off to a good
start in 2017 as we delivered production sales volumes at the upper
end of our guidance range and we continue to demonstrate
improvements in LOE and oil price realizations that are having a
positive impact on operating margins. In the DJ Basin, we are
implementing enhanced drilling and completion concepts, including
higher sand concentration and tighter frac stage spacing that we
anticipate will improve well performance and recovery going
forward. We placed two DSUs on initial flowback during the first
quarter and are on track to execute a 70-75 well program in the DJ
Basin this year, including the addition of a second drilling rig
during the second quarter that establishes a strong foundation of
growth for 2018. We recently took advantage of changing oil market
dynamics in Utah and negotiated a
significant improvement in our Uinta Oil Program oil pricing
contracts effective May 2017. This
translates into improved well economics as we have recently
initiated a recompletion program. Consistent with our strategy of
maintaining balance sheet flexibility, we issued $275 million of senior notes, due 2025. The
proceeds, plus cash on hand, will be used to redeem our existing
$315 million of senior notes, due
October 2019 and extends our nearest
maturity to 2022. The reduction in debt and related extension of
maturity positions us better financially for the future."
OPERATING AND FINANCIAL RESULTS
The following table summarizes certain operating and financial
results for the first quarter of 2017 and 2016 and the fourth
quarter of 2016:
|
Three Months
Ended
March 31,
|
|
Three Months
Ended
December 31,
|
|
2017
|
|
2016
|
|
Change
|
|
2016
|
|
Change
|
Combined production
sales volumes (MBoe)
|
1,433
|
|
1,367
|
|
5
|
%
|
|
1,550
|
|
(8)%
|
|
Net cash provided by
(used in) operating activities ($ millions)
|
$
|
38.1
|
|
$
|
40.5
|
|
(6)%
|
|
|
$
|
5.5
|
|
593
|
%
|
Discretionary cash
flow ($ millions) (1)
|
$
|
22.9
|
|
$
|
24.4
|
|
(6)%
|
|
|
$
|
32.4
|
|
(29)%
|
|
Combined realized
prices with hedging (per Boe)
|
$
|
37.71
|
|
$
|
45.42
|
|
(17)%
|
|
|
$
|
44.65
|
|
(16)%
|
|
Net income (loss) ($
millions)
|
$
|
(13.1)
|
|
$
|
(46.5)
|
|
72
|
%
|
|
$
|
(49.3)
|
|
73
|
%
|
Per share,
basic
|
$
|
(0.18)
|
|
$
|
(0.96)
|
|
81
|
%
|
|
$
|
(0.79)
|
|
77
|
%
|
Per share,
diluted
|
$
|
(0.18)
|
|
$
|
(0.96)
|
|
81
|
%
|
|
$
|
(0.79)
|
|
77
|
%
|
Adjusted net income
(loss) ($ millions) (1)
|
$
|
(11.6)
|
|
$
|
(13.7)
|
|
15
|
%
|
|
$
|
(11.2)
|
|
(4)%
|
|
Per share,
basic
|
$
|
(0.16)
|
|
$
|
(0.28)
|
|
43
|
%
|
|
$
|
(0.18)
|
|
11
|
%
|
Per share,
diluted
|
$
|
(0.16)
|
|
$
|
(0.28)
|
|
43
|
%
|
|
$
|
(0.18)
|
|
11
|
%
|
Weighted average
shares outstanding, basic (in thousands)
|
74,544
|
|
48,499
|
|
54
|
%
|
|
62,241
|
|
20
|
%
|
Weighted average
shares outstanding, diluted (in thousands)
|
74,544
|
|
48,499
|
|
54
|
%
|
|
62,241
|
|
20
|
%
|
EBITDAX ($ millions)
(1)
|
$
|
36.1
|
|
$
|
39.4
|
|
(8)
|
%
|
|
$
|
45.8
|
|
(21)
|
%
|
|
|
(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 1.43 million barrels of oil equivalent
("MMBoe") in the first quarter of 2017. First quarter production
was at the upper end of the guidance range of 1.35-1.45 MMBoe and
represents a 12% increase in production sales volumes compared to
the first quarter of 2016, excluding production associated with
asset sales. Higher production sales volumes relative to the
comparable 2016 period were primarily the result of production
volumes associated with XRL wells that were placed on production
during the first half of 2016, while the sequential decline is
primarily due to natural declines, as no new wells were placed on
production during the second half of 2016.
First quarter production was 58% oil, 22% natural gas and 20%
NGLs. First quarter sales volumes had a higher natural gas
component than previous quarters as a result of no new XRL wells
being placed on production during the second half of 2016. The
Company anticipates that the oil component of total production will
increase as additional XRL wells are placed on production during
2017.
|
Three Months
Ended
March 31,
|
|
Three Months
Ended
December 31,
|
|
2017
|
|
2016
|
|
Change
|
|
2016
|
|
Change
|
Production Sales
Data:
|
|
|
|
|
|
|
|
|
|
Oil
(MBbls)
|
825
|
|
886
|
|
(7)
|
%
|
|
960
|
|
(14)
|
%
|
Natural gas
(MMcf)
|
1,890
|
|
1,626
|
|
16
|
%
|
|
1,866
|
|
1
|
%
|
NGLs
(MBbls)
|
293
|
|
210
|
|
40
|
%
|
|
279
|
|
5
|
%
|
Combined volumes
(MBoe)
|
1,433
|
|
1,367
|
|
5
|
%
|
|
1,550
|
|
(8)
|
%
|
Daily combined
volumes (Boe/d)
|
15,922
|
|
15,022
|
|
6
|
%
|
|
16,848
|
|
(5)
|
%
|
Cash operating costs (lease operating expense ("LOE"),
gathering, transportation and processing costs and production tax
expense) averaged $4.65 per Boe in
the first quarter of 2017, a 32% reduction compared to the first
quarter of 2016, when cash operating costs averaged $6.81 per Boe.
LOE averaged $4.09 per Boe in the
first quarter of 2017 compared to $6.46 per Boe in the first quarter of 2016. LOE
in the DJ Basin averaged $3.47 per
Boe in the first quarter of 2017 compared to $4.80 per Boe in the first quarter of 2016. The
year-over-year reduction was a result of improved operational
efficiencies, disposition of higher LOE wells in the Uinta Oil
Program ("UOP") and lease operating cost reductions in both the DJ
Basin and the UOP.
The decrease in production tax expense compared to the fourth
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.
|
Three Months
Ended
March 31,
|
|
Three Months
Ended
December 31,
|
|
2017
|
|
2016
|
|
Change
|
|
2016
|
|
Change
|
Average Costs (per
Boe):
|
|
|
|
|
|
|
|
|
|
Lease operating
expenses
|
$
|
4.09
|
|
$
|
6.46
|
|
(37)
|
%
|
|
$
|
3.73
|
|
10
|
%
|
Gathering,
transportation and processing expense
|
0.34
|
|
0.58
|
|
(41)
|
%
|
|
0.32
|
|
6
|
%
|
Production tax
expenses
|
0.22
|
|
(0.23)
|
|
196
|
%
|
|
2.32
|
|
(91)
|
%
|
Depreciation,
depletion and amortization
|
26.76
|
|
30.74
|
|
(13)
|
%
|
|
29.76
|
|
(10)
|
%
|
Debt and Liquidity
At March 31, 2017, the principal
debt balance was $718.5 million,
while cash and cash equivalents were $265.9
million, resulting in net debt (principal balance of debt
outstanding less the cash and cash equivalents balance) of
$452.6 million. Cash and cash
equivalents were reduced subsequent to the end of the quarter as
the Company made regularly scheduled interest payments of
approximately $26 million related to
its Senior Notes due 2019 and 2022.
The Company is undergoing its semi-annual borrowing base review
and expects that its current borrowing base of $300 million will remain unchanged upon
completion of the review. The Company has $274 million in available borrowing capacity,
after taking into account a $26
million letter of credit.
On April 28, 2017, the Company
closed on an offering of $275 million
in aggregate principal amount of 8.75% senior unsecured notes due
2025. Net proceeds from the offering, together with available cash
on hand, will be used to reduce long-term debt through the
redemption of the outstanding 7.625% Senior Notes due 2019 and and
the outstanding 5% Convertible Senior Notes due 2028.
Capital Expenditures
Capital expenditures for the first quarter of 2017 totaled
$59.2 million, which was below the
Company's guidance range of $60-65
million. The Company operated one drilling rig during the
quarter and spud 5 XRL and 9 mid-reach lateral ("MRL") wells. In
addition, completion operations were finalized on 13 XRL wells.
Capital expenditures for the first quarter consisted of
$45.1 million for drilling and
completions, $13.5 million for
previously announced DJ Basin acreage acquisitions, and
$0.6 million for infrastructure and
corporate assets.
OPERATIONAL HIGHLIGHTS
DJ Basin
The Company produced an average of 14,187 Boe/d in the first
quarter of 2017, which was 22% greater than the first quarter of
2016 average of 11,670 Boe/d. The Company achieved this growth
despite a reduction in drilling activity for approximately two
quarters in 2016 due to low oil prices. Drilling activity was
resumed in September 2016 and two
DSUs were placed on initial flowback during the first quarter. The
Company is currently operating one drilling rig and plans to add a
second rig during the second quarter of 2017.
The following provides a synopsis of the current DSU
activity:
- 4-62-20 - the DSU is located within the southern area of NE
Wattenberg and includes 4 XRL wells, which incorporated increased
proppant of up to 1,200 pounds of sand per lateral foot. The wells
were placed on initial flowback in February
2017.
- 5-62-27 - the DSU is located within the central area of NE
Wattenberg and includes 9 XRL wells, which incorporated increased
proppant of approximately 1,500 pounds of sand per lateral foot.
The wells were placed on initial flowback in March 2017.
- 6-62-10/6-62-11 - the DSU is located within the northern area
of NE Wattenberg and includes 4 XRL wells. An additional 10 MRL
wells, with a lateral length of approximately 7,300 feet, were
drilled to develop the DSU based on lease configuration. The wells
are scheduled to be placed on initial flowback during the second
quarter of 2017. Completion operations will incorporate enhanced
proppant of up to 1,500 pounds of sand per lateral foot and a
reduction in frac spacing from approximately 175 feet between
stages to approximately 100-140 feet per stage.
- 5-63-32 - the DSU is located within the western area of NE
Wattenberg and includes 5 XRL wells. Drilling operations commenced
in the second quarter and the wells are scheduled to be placed on
initial flowback in the third quarter of 2017. The wells will
incorporate enhanced proppant of up to 1,500 pounds of sand per
lateral foot and frac spacing of approximately 100-120 feet between
stages.
- XRL well drilling days to rig release have averaged
approximately 6.7 days per well during 2017, including a
best-in-class well that was drilled in approximately 5.6 days. This
represents a 26% improvement over 2016. In addition, average feet
drilled per day for an XRL well has increased 37% to 3,661 feet
drilled per day compared to the 2016 average of 2,668 feet drilled
per day.
- Drilling and completion costs for the most recent XRL wells
averaged approximately $4.5 million
per well, which includes the cost of incorporating higher proppant
concentrations.
Pursuant to the Right-of-Way Leasing Act, the Company was issued
a 2,882 acre federal lease under the Riverside Reservoir in the
middle of its central and southern acreage area at a de minimis
minimum bid purchase amount. The Company is engaged in forming a
unit containing this acreage, which will provide up to 50 XRL
drilling locations.
Uinta Oil Program
Production sales volumes averaged 1,711 Boe/d (94% oil) during
the first quarter of 2017. The Company has begun a nine well
recompletion program. The Company recently took advantage of
changing market dynamics to negotiate new marketing contracts and
expects that oil price differentials will average approximately
$2.00 per barrel beginning
May 1, 2017. The contracts are for a
period of two years and compare favorably to an average oil price
differential of $7.75 per barrel for
2016.
2017 OPERATING GUIDANCE
The Company is providing the following update to its 2017
operating guidance. See "Forward-Looking Statements" below.
- Capital expenditures of $255-$285
million, unchanged
-
- Second quarter capital expenditures are expected to total
$65-$75 million
- Production of 6.0-6.5 MMBoe, unchanged
-
- Second quarter production sales volumes are expected to
approximate 1.45-1.55 MMBoe
- Second quarter production is expected to be weighted
approximately 60% oil
- Lease operating expense of $27-$30
million, unchanged
- General and administrative expenses of $30-$33 million, unchanged
- 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 the hedge position as of
May 2, 2017:
|
|
Oil (WTI)
|
Natural Gas
(NWPL)
|
Period
|
|
Volume
Bbls/d
|
|
Price
$/Bbl
|
|
Volume
MMBtu/d
|
|
Price
$/MMBtu
|
2Q17
|
|
6,625
|
|
58.10
|
|
10,000
|
|
2.96
|
3Q17
|
|
7,125
|
|
58.77
|
|
10,000
|
|
2.96
|
4Q17
|
|
7,125
|
|
58.77
|
|
10,000
|
|
2.96
|
1Q18
|
|
4,250
|
|
54.64
|
|
—
|
|
—
|
2Q18
|
|
4,250
|
|
54.64
|
|
—
|
|
—
|
3Q18
|
|
2,000
|
|
54.34
|
|
—
|
|
—
|
4Q18
|
|
2,000
|
|
54.34
|
|
—
|
|
—
|
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 Wednesday,
May 3, 2017, to discuss the results and management's outlook.
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 10337349. The webcast
will remain on the Company's website for approximately 7 days and a
replay of the call will be available through May 10, 2017 at
(855) 859-2056 ((404) 537-3406 international) with passcode
10337349.
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.
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. 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,
|
|
2017
|
|
2016
|
Production
Data:
|
|
|
|
Oil
(MBbls)
|
825
|
|
886
|
Natural gas
(MMcf)
|
1,890
|
|
1,626
|
NGLs
(MBbls)
|
293
|
|
210
|
Combined volumes
(MBoe)
|
1,433
|
|
1,367
|
Daily combined
volumes (Boe/d)
|
15,922
|
|
15,022
|
|
|
|
|
Average Sales Prices
(before the effects of realized hedges):
|
Oil (per
Bbl)
|
$
|
47.92
|
|
$
|
27.60
|
Natural gas (per
Mcf)
|
2.66
|
|
1.66
|
NGLs (per
Bbl)
|
20.04
|
|
9.43
|
Combined (per
Boe)
|
35.18
|
|
21.30
|
|
|
|
|
Average Realized
Sales Prices (after the effects of realized hedges):
|
Oil (per
Bbl)
|
$
|
52.41
|
|
$
|
63.69
|
Natural gas (per
Mcf)
|
2.62
|
|
2.26
|
NGLs (per
Bbl)
|
20.04
|
|
9.43
|
Combined (per
Boe)
|
37.71
|
|
45.42
|
|
|
|
|
Average Costs (per
Boe):
|
|
|
|
Lease operating
expenses
|
$
|
4.09
|
|
$
|
6.46
|
Gathering,
transportation and processing expense
|
0.34
|
|
0.58
|
Production tax
expenses
|
0.22
|
|
(0.23)
|
Depreciation,
depletion and amortization
|
26.76
|
|
30.74
|
General and
administrative expense (1)
|
6.52
|
|
9.09
|
|
|
(1)
|
Includes long-term
cash and equity incentive compensation of $0.79 per Boe and $2.87
per Boe for the three months ended March 31, 2017 and 2016,
respectively.
|
BILL BARRETT
CORPORATION
|
Consolidated
Condensed Balance Sheets
|
(Unaudited)
|
|
|
As of
March 31,
|
|
As of
December 31,
|
|
2017
|
|
2016
|
|
(in
thousands)
|
Assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
265,887
|
|
$
|
275,841
|
Other current assets
(1)
|
45,679
|
|
42,611
|
Property and
equipment, net
|
1,085,078
|
|
1,062,149
|
Other noncurrent
assets (1)
|
5,100
|
|
4,740
|
Total
assets
|
$
|
1,401,744
|
|
$
|
1,385,341
|
|
|
|
|
Liabilities and
Stockholders' Equity:
|
|
|
|
Current
liabilities
|
$
|
106,410
|
|
$
|
85,018
|
Long-term debt, net
of debt issuance costs
|
711,491
|
|
711,808
|
Other long-term
liabilities
|
24,622
|
|
16,972
|
Stockholders'
equity
|
559,221
|
|
571,543
|
Total liabilities and
stockholders' equity
|
$
|
1,401,744
|
|
$
|
1,385,341
|
|
|
(1)
|
At March 31,
2017, the estimated fair value of all of the Company's commodity
derivative instruments was a net asset of $16.0 million, comprised
of $14.1 million of current assets and $1.9 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,
|
|
2017
|
|
2016
|
|
(in thousands, except
per share amounts)
|
Operating
Revenues:
|
|
|
|
Oil, gas and NGL
production
|
$
|
50,425
|
|
$
|
29,121
|
Other operating
revenues
|
111
|
|
313
|
Total operating
revenues
|
50,536
|
|
29,434
|
Operating
Expenses:
|
|
|
|
Lease
operating
|
5,862
|
|
8,827
|
Gathering,
transportation and processing
|
489
|
|
788
|
Production
tax
|
322
|
|
(315)
|
Exploration
|
27
|
|
27
|
Impairment, dry hole
costs and abandonment
|
8,074
|
|
558
|
(Gain) Loss on sale
of properties
|
(92)
|
|
—
|
Depreciation,
depletion and amortization
|
38,340
|
|
42,016
|
Unused
commitments
|
4,572
|
|
4,568
|
General and
administrative (1)
|
9,349
|
|
12,420
|
Other operating
expenses, net
|
(573)
|
|
—
|
Total operating
expenses
|
66,370
|
|
68,889
|
Operating Income
(Loss)
|
(15,834)
|
|
(39,455)
|
Other Income and
Expense:
|
|
|
|
Interest and other
income
|
206
|
|
37
|
Interest
expense
|
(13,951)
|
|
(15,746)
|
Commodity derivative
gain (loss) (2)
|
16,464
|
|
8,668
|
Total other income
and expense
|
2,719
|
|
(7,041)
|
Income (Loss) before
Income Taxes
|
(13,115)
|
|
(46,496)
|
(Provision for)
Benefit from Income Taxes
|
—
|
|
—
|
Net Income
(Loss)
|
$
|
(13,115)
|
|
$
|
(46,496)
|
|
|
|
|
Net Income (Loss) per
Common Share
|
|
|
|
Basic
|
$
|
(0.18)
|
|
$
|
(0.96)
|
Diluted
|
$
|
(0.18)
|
|
$
|
(0.96)
|
Weighted Average
Common Shares Outstanding
|
|
|
|
Basic
|
74,544
|
|
48,499
|
Diluted
|
74,544
|
|
48,499
|
|
|
(1)
|
Includes long-term
cash and equity incentive compensation of $1.1 million and $3.9
million for the three months ended March 31, 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
March 31,
|
|
2017
|
|
2016
|
|
(in
thousands)
|
Included in commodity
derivative gain (loss):
|
|
|
|
Realized gain (loss)
on derivatives (1)
|
$
|
3,632
|
|
$
|
32,962
|
Prior year unrealized
(gain) loss transferred to realized (gain) loss
(1)
|
(1,377)
|
|
(29,486)
|
Unrealized gain
(loss) on derivatives (1)
|
14,209
|
|
5,192
|
Total commodity
derivative gain (loss)
|
$
|
16,464
|
|
$
|
8,668
|
|
|
(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
March 31,
|
|
2017
|
|
2016
|
|
(in
thousands)
|
Operating
Activities:
|
|
|
|
Net income
(loss)
|
$
|
(13,115)
|
|
$
|
(46,496)
|
Adjustments to
reconcile to net cash provided by operations:
|
|
|
|
Depreciation,
depletion and amortization
|
38,340
|
|
42,016
|
Impairment, dry hole
costs and abandonment
|
8,074
|
|
558
|
Unrealized derivative
(gain) loss
|
(12,832)
|
|
24,294
|
Incentive
compensation and other non-cash charges
|
1,968
|
|
3,329
|
Amortization of
deferred financing costs
|
558
|
|
639
|
(Gain) loss on sale
of properties
|
(92)
|
|
—
|
Change in operating
assets and liabilities:
|
|
|
|
Accounts
receivable
|
3,587
|
|
12,413
|
Prepayments and other
assets
|
(1,047)
|
|
(591)
|
Accounts payable,
accrued and other liabilities
|
8,965
|
|
12,253
|
Amounts payable to
oil and gas property owners
|
1,090
|
|
(4,036)
|
Production taxes
payable
|
2,602
|
|
(3,864)
|
Net cash provided by
(used in) operating activities
|
$
|
38,098
|
|
$
|
40,515
|
Investing
Activities:
|
|
|
|
Additions to oil and
gas properties, including acquisitions
|
(57,963)
|
|
(61,261)
|
Additions of
furniture, equipment and other
|
(11)
|
|
(782)
|
Proceeds from sale of
properties and other investing activities
|
11,225
|
|
(1,238)
|
Net cash provided by
(used in) investing activities
|
$
|
(46,749)
|
|
$
|
(63,281)
|
Financing
Activities:
|
|
|
|
Principal payments on
debt
|
(112)
|
|
(109)
|
Proceeds from sale of
common stock, net of offering costs
|
(224)
|
|
—
|
Deferred financing
costs and other
|
(967)
|
|
(398)
|
Net cash provided by
(used in) financing activities
|
$
|
(1,303)
|
|
$
|
(507)
|
Increase (Decrease)
in Cash and Cash Equivalents
|
(9,954)
|
|
(23,273)
|
Beginning Cash and
Cash Equivalents
|
275,841
|
|
128,836
|
Ending Cash and Cash
Equivalents
|
$
|
265,887
|
|
$
|
105,563
|
BILL BARRETT
CORPORATION
|
Reconciliation of
Discretionary Cash Flow, Adjusted Net Income (Loss) and
EBITDAX
|
(Unaudited)
|
|
Discretionary Cash
Flow Reconciliation
|
|
|
Three Months
Ended
March 31,
|
|
2017
|
|
2016
|
|
(in
thousands)
|
Net Cash Provided by
(Used in) Operating Activities
|
$
|
38,098
|
|
$
|
40,515
|
Adjustments to
reconcile to discretionary cash flow:
|
|
|
|
Exploration
expense
|
27
|
|
27
|
Changes in working
capital
|
(15,197)
|
|
(16,175)
|
Discretionary Cash
Flow
|
$
|
22,928
|
|
$
|
24,367
|
|
Adjusted Net
Income (Loss) Reconciliation
|
|
|
Three Months
Ended
March 31,
|
|
2017
|
|
2016
|
|
(in thousands, except
per share
amounts)
|
Net Income
(Loss)
|
$
|
(13,115)
|
|
$
|
(46,496)
|
Provision for
(Benefit from) income taxes
|
—
|
|
—
|
Income (Loss) before
income taxes
|
(13,115)
|
|
(46,496)
|
|
|
|
|
Adjustments to net
income (loss):
|
|
|
|
Unrealized derivative
(gain) loss
|
(12,832)
|
|
24,294
|
Impairment
expense
|
8,010
|
|
183
|
(Gain) loss on sale
of properties
|
(92)
|
|
—
|
One-time
item:
|
|
|
|
(Income) expense
related to properties sold
|
(573)
|
|
—
|
Adjusted Income
(Loss) before income taxes
|
(18,602)
|
|
(22,019)
|
Adjusted (provision
for) benefit from income taxes (1)
|
7,042
|
|
8,312
|
Adjusted Net Income
(Loss)
|
$
|
(11,560)
|
|
$
|
(13,707)
|
Per share,
diluted
|
$
|
(0.16)
|
|
$
|
(0.28)
|
|
|
(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,
|
|
2017
|
|
2016
|
|
(in
thousands)
|
Net Income
(Loss)
|
$
|
(13,115)
|
|
$
|
(46,496)
|
Adjustments to
reconcile to EBITDAX:
|
|
|
|
Depreciation,
depletion and amortization
|
38,340
|
|
42,016
|
Impairment, dry hole
and abandonment expense
|
8,074
|
|
558
|
Exploration
expense
|
27
|
|
27
|
Unrealized derivative
(gain) loss
|
(12,832)
|
|
24,294
|
Incentive
compensation and other non-cash charges
|
1,968
|
|
3,329
|
(Gain) loss on sale
of properties
|
(92)
|
|
—
|
Interest and other
income
|
(206)
|
|
(37)
|
Interest
expense
|
13,951
|
|
15,746
|
Provision for
(benefit from) income taxes
|
—
|
|
—
|
EBITDAX
|
$
|
36,115
|
|
$
|
39,437
|
|
|
|
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.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/bill-barrett-corporation-reports-first-quarter-2017-financial-and-operating-results-300449950.html
SOURCE Bill Barrett Corporation