DENVER, Aug. 1, 2017
/PRNewswire/ --
- Production sales volumes of 1.53 MMBoe for the second quarter
were at the high end of guidance range of 1.45-1.55 MMBoe
- Capital expenditures of $59
million in the second quarter were below guidance range of
$65-$75 million
- Denver-Julesburg ("DJ") Basin oil price differential
averaged $2.16 per barrel; represents
55% reduction from the second quarter of 2016
- Lease operating expense ("LOE") averaged $3.61 per Boe; represents 32% improvement from
the second quarter of 2016
- DJ Basin LOE of $3.06 per Boe in
the second quarter; represents 18% improvement from the second
quarter of 2016
- Issued $275 million of Senior
Notes due 2025; proceeds were used with cash on hand to reduce
long-term debt and redeem existing $315
million of Senior Notes due 2019; extends nearest maturity
to 2022
Bill Barrett Corporation (the "Company") (NYSE: BBG) today
reported second quarter of 2017 financial and operating results and
reiterates 2017 operating guidance.
For the second quarter of 2017, the Company reported a net loss
of $18.4 million, or $0.25 per diluted share. Adjusted net income for
the second quarter of 2017 was a net loss of $12.9 million, or $0.17 per diluted share. EBITDAX for the second
quarter of 2017 was $36.7 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 executed on our
operational plan and posted very good results that translated into
an across the board beat compared to sell-side consensus estimates.
This was primarily achieved by higher production, higher oil price
realizations, due to an improvement in differentials, and lower per
unit LOE. We are seeing encouraging early results from DSUs that
utilized higher sand concentration and tighter frac stage spacing.
Our operations team continues to demonstrate drilling efficiencies
as average drilling days for XRL wells in 2017 are approximately
18% lower compared to the average of 2016. Our pace of development
is increasing with the previously announced addition of a second
drilling rig in the DJ Basin. We also saw positive early
performance from recompletions in the Uinta Oil Program during the
quarter. We maintain operational control and flexibility with
respect to our capital program, including the ability to adjust
spending as warranted based on changes to the commodity price
environment. Our liquidity consists of a cash position in excess of
$150 million and an undrawn credit
facility that is supported by our underlying hedge position. We
also have no near-term debt maturities. As demonstrated by previous
actions, we will be capital disciplined and financially responsible
as we navigate the current commodity price environment."
OPERATING AND FINANCIAL RESULTS
The following table summarizes certain operating and financial
results for the second quarters of 2017 and 2016 and the first
quarter of 2017:
|
Three Months
Ended
June 30,
|
|
Three Months
Ended
March 31,
|
|
2017
|
|
2016
|
|
Change
|
|
2017
|
|
Change
|
Combined production
sales volumes (MBoe)
|
1,526
|
|
|
1,607
|
|
|
(5)%
|
|
|
1,433
|
|
|
6
|
%
|
Net cash provided by
(used in) operating activities ($ millions)
|
$
|
0.1
|
|
|
$
|
8.3
|
|
|
(99)%
|
|
|
$
|
38.1
|
|
|
(100)%
|
|
Discretionary cash
flow ($ millions) (1)
|
$
|
21.6
|
|
|
$
|
32.8
|
|
|
(34)%
|
|
|
$
|
22.9
|
|
|
(6)%
|
|
Combined realized
prices with hedging (per Boe)
|
$
|
37.42
|
|
|
$
|
44.84
|
|
|
(17)%
|
|
|
$
|
37.71
|
|
|
(1)%
|
|
Net income (loss) ($
millions)
|
$
|
(18.4)
|
|
|
$
|
(48.4)
|
|
|
62
|
%
|
|
$
|
(13.1)
|
|
|
(40)%
|
|
Per share,
basic
|
$
|
(0.25)
|
|
|
$
|
(0.93)
|
|
|
73
|
%
|
|
$
|
(0.18)
|
|
|
(39)%
|
|
Per share,
diluted
|
$
|
(0.25)
|
|
|
$
|
(0.93)
|
|
|
73
|
%
|
|
$
|
(0.18)
|
|
|
(39)%
|
|
Adjusted net income
(loss) ($ millions) (1)
|
$
|
(12.9)
|
|
|
$
|
(6.7)
|
|
|
(93)%
|
|
|
$
|
(11.6)
|
|
|
(11)%
|
|
Per share,
basic
|
$
|
(0.17)
|
|
|
$
|
(0.13)
|
|
|
(31)%
|
|
|
$
|
(0.16)
|
|
|
(6)%
|
|
Per share,
diluted
|
$
|
(0.17)
|
|
|
$
|
(0.13)
|
|
|
(31)%
|
|
|
$
|
(0.16)
|
|
|
(6)%
|
|
Weighted average
shares outstanding, basic (in thousands)
|
74,794
|
|
|
51,832
|
|
|
44
|
%
|
|
74,544
|
|
|
—
|
%
|
Weighted average
shares outstanding, diluted (in thousands)
|
74,794
|
|
|
51,832
|
|
|
44
|
%
|
|
74,544
|
|
|
—
|
%
|
EBITDAX ($ millions)
(1)
|
$
|
36.7
|
|
|
$
|
47.3
|
|
|
(22)%
|
|
|
$
|
36.1
|
|
|
2
|
%
|
|
|
(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 1.53 million barrels of oil equivalent
("MMBoe") in the second quarter of 2017, which was at the upper end
of the guidance range of 1.45-1.55 MMBoe and represents a 6%
increase in production sales volumes compared to the first quarter
of 2017. Oil volumes increased 9% compared to the first quarter of
2017.
Second quarter production mix was consistent with guidance and
comprised of approximately 59% oil, 21% natural gas and 20%
NGLs.
|
Three Months
Ended
June 30,
|
|
Three Months
Ended
March 31,
|
|
2017
|
|
2016
|
|
Change
|
|
2017
|
|
Change
|
Production Sales
Data:
|
|
|
|
|
|
|
|
|
|
Oil
(MBbls)
|
902
|
|
|
1,023
|
|
|
(12)
|
%
|
|
825
|
|
|
9
|
%
|
Natural gas
(MMcf)
|
1,920
|
|
|
1,944
|
|
|
(1)
|
%
|
|
1,890
|
|
|
2
|
%
|
NGLs
(MBbls)
|
304
|
|
|
260
|
|
|
17
|
%
|
|
293
|
|
|
4
|
%
|
Combined volumes
(MBoe)
|
1,526
|
|
|
1,607
|
|
|
(5)
|
%
|
|
1,433
|
|
|
6
|
%
|
Daily combined
volumes (Boe/d)
|
16,769
|
|
|
17,659
|
|
|
(5)
|
%
|
|
15,922
|
|
|
5
|
%
|
Cash operating costs (LOE, gathering, transportation and
processing costs and production tax expense) averaged $6.21 per Boe in the second quarter of 2017, a
21% reduction compared to the second quarter of 2016, when cash
operating costs averaged $7.85 per
Boe.
LOE averaged $3.61 per Boe in the
second quarter of 2017, a 32% reduction relative to the second
quarter of 2016, when LOE averaged $5.28 per Boe. LOE in the DJ Basin averaged
$3.06 per Boe in the second quarter
of 2017 compared to $3.74 per Boe in
the second 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.
Higher production tax expense compared to the first quarter of
2017 was due to an annual adjustment of Colorado ad valorem tax based on actual
assessments and on the related Colorado severance tax credit adjustment that
was recorded in the first quarter.
|
Three Months
Ended
June 30,
|
|
Three Months
Ended
March 31,
|
|
2017
|
|
2016
|
|
Change
|
|
2017
|
|
Change
|
Average Costs (per
Boe):
|
|
|
|
|
|
|
|
|
|
Lease operating
expenses
|
$
|
3.61
|
|
|
$
|
5.28
|
|
|
(32)
|
%
|
|
$
|
4.09
|
|
|
(12)
|
%
|
Gathering,
transportation and processing expense
|
0.35
|
|
|
0.38
|
|
|
(8)
|
%
|
|
0.34
|
|
|
3
|
%
|
Production tax
expenses
|
2.25
|
|
|
2.19
|
|
|
3
|
%
|
|
0.22
|
|
|
923
|
%
|
Depreciation,
depletion and amortization
|
25.78
|
|
|
27.05
|
|
|
(5)
|
%
|
|
26.76
|
|
|
(4)
|
%
|
Debt and Liquidity
At June 30, 2017, the principal
debt balance was $677.6 million,
while cash and cash equivalents were $155.6
million, resulting in net debt (principal balance of debt
outstanding less the cash and cash equivalents balance) of
$522.0 million.
The Company currently has $274
million in available borrowing capacity on its credit
facility, 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, was used to reduce long-term debt through the redemption
of the outstanding 7.625% Senior Notes due 2019 and the outstanding
5% Convertible Senior Notes due 2028. The Company recognized a loss
on extinguishment of debt of $7.9
million related to the redemption.
Capital Expenditures
Capital expenditures for the second quarter of 2017 totaled
$58.5 million, which was below the
Company's guidance range of $65-$75
million. The Company operated one drilling rig for the
majority of the quarter and spud 8 extended reach lateral ("XRL")
and 1 mid-reach lateral ("MRL") well. Completion operations were
finalized on 4 XRL and 10 MRL wells in the DJ Basin and a 9 well
recompletion program in the UOP. As previously outlined in the
Company's 2017 capital budget discussion, a second drilling rig was
added in the DJ Basin in June
2017.
OPERATIONAL HIGHLIGHTS
DJ Basin
The Company produced an average of 14,456 Boe/d in the second
quarter of 2017. The Company placed 4 XRL and 10 MRL wells on
initial flowback during the second quarter and is currently
operating two drilling rigs.
The following provides a synopsis of the current activity for
drilling and spacing units ("DSU") that are in the drilling and
completion or the initial flowback phase:
- 5-62-27 - The DSU is located within the central area of NE
Wattenberg and includes 9 XRL wells that incorporated enhanced
proppant of approximately 1,500 pounds of sand per lateral foot.
The wells were placed on initial flowback in March 2017 and early production data is
encouraging as the wells continue to trend towards peak
production.
- 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 lateral lengths of approximately 7,300 feet, were
drilled to develop the DSU based on lease configuration. The wells
were placed on initial flowback during the second quarter of 2017.
This is the initial DSU that incorporated 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. Completion operations have
commenced 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 120 feet between stages.
- 5-63-30 - The DSU is located within the western area of NE
Wattenberg and includes 6 XRL wells. Completion operations have
commenced and the wells are expected to be placed on initial
flowback in the fourth quarter of 2017.
- 5-61-20 - The DSU is located within the central area of NE
Wattenberg and includes 8 XRL wells that are being drilled
concurrently with two rigs. Drilling commenced in the third quarter
and the wells are anticipated to be completed during the fourth
quarter of 2017.
- XRL well drilling days to rig release have averaged
approximately 6.5 days per well during 2017, including a
best-in-class well that was drilled in approximately 5.1 days.
Average feet drilled per day for XRL wells has increased to 3,424
feet drilled per day in 2017 compared to the 2016 average of 2,668
feet drilled per day.
- Drilling and completion costs for the XRL wells drilled during
the first half of 2017 averaged approximately $4.5 million per well, which includes the cost of
incorporating higher proppant concentrations and tighter frac stage
spacing. The Company continues to work to mitigate the expected
risk of inflationary pressure on service costs during the second
half of 2017.
Uinta Oil Program
Production sales volumes averaged 2,296 Boe/d (89% oil) during
the second quarter of 2017 compared to the second quarter of 2016
average of 2,130 Boe/d. Second quarter of 2017 production sales
volumes benefited from the completion of a 9 well recompletion
program. The oil price differential averaged $3.60 per barrel less than WTI as new marketing
contracts became effective on May 1,
2017.
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
-
- Third quarter capital expenditures are expected to total
$65-$75 million
- Production of 6.0-6.5 MMBoe, unchanged
-
- Third quarter production sales volumes are expected to
approximate 1.55-1.65 MMBoe
- Third 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 our 2017 and 2018 hedge position
as of July 31, 2017:
|
|
Oil (WTI)
|
|
Natural Gas
(NWPL)
|
Period
|
|
Volume
Bbls/d
|
|
Price
$/Bbl
|
|
Volume
MMBtu/d
|
|
Price
$/MMBtu
|
3Q17
|
|
7,125
|
|
58.77
|
|
10,000
|
|
2.96
|
4Q17
|
|
7,125
|
|
58.77
|
|
10,000
|
|
2.96
|
1Q18
|
|
6,750
|
|
53.20
|
|
—
|
|
—
|
2Q18
|
|
6,750
|
|
53.20
|
|
—
|
|
—
|
3Q18
|
|
4,750
|
|
52.24
|
|
—
|
|
—
|
4Q18
|
|
4,750
|
|
52.24
|
|
—
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
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 Wednesday,
August 2, 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 53628131. The webcast
will remain on the Company's website for approximately 7 days and a
replay of the call will be available through August 9, 2017 at
(855) 859-2056 ((404) 537-3406 international) with passcode
53628131.
Investor Events
Members of the Company's management are currently scheduled to
participate in the following investor events:
- August 14, 2017 - EnerCom's The
Oil & Gas Conference in Denver,
CO
- September 6, 2017 - Barclays CEO
Energy-Power Conference in New York,
NY
- September 27, 2017 - Johnson Rice & Company Energy Conference in
New Orleans, LA
- October 3-4, 2017 - 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, 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
June 30,
|
|
Six Months Ended
June 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Production
Data:
|
|
|
|
|
|
|
|
Oil
(MBbls)
|
902
|
|
|
1,023
|
|
|
1,727
|
|
|
1,909
|
|
Natural gas
(MMcf)
|
1,920
|
|
|
1,944
|
|
|
3,810
|
|
|
3,564
|
|
NGLs
(MBbls)
|
304
|
|
|
260
|
|
|
597
|
|
|
471
|
|
Combined volumes
(MBoe)
|
1,526
|
|
|
1,607
|
|
|
2,959
|
|
|
2,974
|
|
Daily combined
volumes (Boe/d)
|
16,769
|
|
|
17,659
|
|
|
16,348
|
|
|
16,341
|
|
|
|
|
|
|
|
|
|
Average Sales Prices
(before the effects of realized hedges):
|
Oil (per
Bbl)
|
$
|
45.83
|
|
|
$
|
39.93
|
|
|
$
|
46.83
|
|
|
$
|
34.20
|
|
Natural gas (per
Mcf)
|
2.43
|
|
|
1.50
|
|
|
2.54
|
|
|
1.57
|
|
NGLs (per
Bbl)
|
16.20
|
|
|
12.55
|
|
|
18.09
|
|
|
11.15
|
|
Combined (per
Boe)
|
33.38
|
|
|
29.26
|
|
|
34.25
|
|
|
25.60
|
|
|
|
|
|
|
|
|
|
Average Realized
Sales Prices (after the effects of realized hedges):
|
Oil (per
Bbl)
|
$
|
52.39
|
|
|
$
|
63.34
|
|
|
$
|
52.40
|
|
|
$
|
63.50
|
|
Natural gas (per
Mcf)
|
2.56
|
|
|
2.07
|
|
|
2.59
|
|
|
2.16
|
|
NGLs (per
Bbl)
|
16.20
|
|
|
12.55
|
|
|
18.09
|
|
|
11.15
|
|
Combined (per
Boe)
|
37.42
|
|
|
44.84
|
|
|
37.56
|
|
|
45.11
|
|
|
|
|
|
|
|
|
|
Average Costs (per
Boe):
|
|
|
|
|
|
|
|
Lease operating
expenses
|
$
|
3.61
|
|
|
$
|
5.28
|
|
|
$
|
3.84
|
|
|
$
|
5.82
|
|
Gathering,
transportation and processing expense
|
0.35
|
|
|
0.38
|
|
|
0.35
|
|
|
0.47
|
|
Production tax
expenses
|
2.25
|
|
|
2.19
|
|
|
1.27
|
|
|
1.08
|
|
Depreciation,
depletion and amortization
|
25.78
|
|
|
27.05
|
|
|
26.25
|
|
|
28.81
|
|
General and
administrative expense (1)
|
5.86
|
|
|
6.18
|
|
|
6.18
|
|
|
7.52
|
|
|
|
(1)
|
Includes long-term
cash and equity incentive compensation of $1.10 per Boe and $1.61
per Boe for the three months ended June 30, 2017 and 2016,
respectively, and $0.95 per Boe and $2.19 per Boe for the six
months ended June 30, 2017 and 2016, respectively.
|
BILL BARRETT
CORPORATION
Consolidated
Condensed Balance Sheets
(Unaudited)
|
|
|
As of
June 30,
|
|
As of
December 31,
|
|
2017
|
|
2016
|
|
(in
thousands)
|
Assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
155,565
|
|
|
$
|
275,841
|
|
Other current assets
(1)
|
55,486
|
|
|
42,611
|
|
Property and
equipment, net
|
1,106,075
|
|
|
1,062,149
|
|
Other noncurrent
assets (1)
|
6,068
|
|
|
4,740
|
|
Total
assets
|
$
|
1,323,194
|
|
|
$
|
1,385,341
|
|
|
|
|
|
Liabilities and
Stockholders' Equity:
|
|
|
|
Current
liabilities
|
$
|
87,859
|
|
|
$
|
85,018
|
|
Long-term debt, net
of debt issuance costs
|
668,545
|
|
|
711,808
|
|
Other long-term
liabilities
|
24,526
|
|
|
16,972
|
|
Stockholders'
equity
|
542,264
|
|
|
571,543
|
|
Total liabilities and
stockholders' equity
|
$
|
1,323,194
|
|
|
$
|
1,385,341
|
|
|
|
(1)
|
At June 30,
2017, the estimated fair value of all of the Company's commodity
derivative instruments was a net asset of $25.4 million, comprised
of $22.4 million of current assets and $3.0 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
June 30,
|
|
Six Months Ended
June 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
(in thousands, except
per share amounts)
|
Operating
Revenues:
|
|
|
|
|
|
|
|
Oil, gas and NGL
production
|
$
|
50,941
|
|
|
$
|
47,025
|
|
|
$
|
101,366
|
|
|
$
|
76,146
|
|
Other operating
revenues
|
125
|
|
|
259
|
|
|
236
|
|
|
572
|
|
Total operating
revenues
|
51,066
|
|
|
47,284
|
|
|
101,602
|
|
|
76,718
|
|
Operating
Expenses:
|
|
|
|
|
|
|
|
Lease
operating
|
5,506
|
|
|
8,479
|
|
|
11,368
|
|
|
17,306
|
|
Gathering,
transportation and processing
|
535
|
|
|
611
|
|
|
1,024
|
|
|
1,399
|
|
Production
tax
|
3,434
|
|
|
3,520
|
|
|
3,756
|
|
|
3,205
|
|
Exploration
|
3
|
|
|
21
|
|
|
30
|
|
|
48
|
|
Impairment, dry hole
costs and abandonment
|
1
|
|
|
234
|
|
|
8,075
|
|
|
792
|
|
(Gain) Loss on sale
of properties
|
—
|
|
|
(708)
|
|
|
(92)
|
|
|
(708)
|
|
Depreciation,
depletion and amortization
|
39,337
|
|
|
40,392
|
|
|
77,677
|
|
|
82,408
|
|
Unused
commitments
|
4,558
|
|
|
4,568
|
|
|
9,130
|
|
|
9,136
|
|
General and
administrative (1)
|
8,943
|
|
|
9,937
|
|
|
18,292
|
|
|
22,357
|
|
Other operating
expenses, net
|
(755)
|
|
|
—
|
|
|
(1,328)
|
|
|
—
|
|
Total operating
expenses
|
61,562
|
|
|
67,054
|
|
|
127,932
|
|
|
135,943
|
|
Operating Income
(Loss)
|
(10,496)
|
|
|
(19,770)
|
|
|
(26,330)
|
|
|
(59,225)
|
|
Other Income and
Expense:
|
|
|
|
|
|
|
|
Interest and other
income
|
492
|
|
|
57
|
|
|
698
|
|
|
94
|
|
Interest
expense
|
(16,137)
|
|
|
(15,423)
|
|
|
(30,088)
|
|
|
(31,169)
|
|
Commodity derivative
gain (loss) (2)
|
15,598
|
|
|
(21,980)
|
|
|
32,062
|
|
|
(13,312)
|
|
Gain (loss) on
extinguishment of debt
|
(7,904)
|
|
|
8,697
|
|
|
(7,904)
|
|
|
8,697
|
|
Total other income
and expense
|
(7,951)
|
|
|
(28,649)
|
|
|
(5,232)
|
|
|
(35,690)
|
|
Income (Loss) before
Income Taxes
|
(18,447)
|
|
|
(48,419)
|
|
|
(31,562)
|
|
|
(94,915)
|
|
(Provision for)
Benefit from Income Taxes
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net Income
(Loss)
|
$
|
(18,447)
|
|
|
$
|
(48,419)
|
|
|
$
|
(31,562)
|
|
|
$
|
(94,915)
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) per
Common Share
|
|
|
|
|
|
|
|
Basic
|
$
|
(0.25)
|
|
|
$
|
(0.93)
|
|
|
$
|
(0.42)
|
|
|
$
|
(1.89)
|
|
Diluted
|
$
|
(0.25)
|
|
|
$
|
(0.93)
|
|
|
$
|
(0.42)
|
|
|
$
|
(1.89)
|
|
Weighted Average
Common Shares Outstanding
|
|
|
|
|
|
|
|
Basic
|
74,794
|
|
|
51,832
|
|
|
74,670
|
|
|
50,165
|
|
Diluted
|
74,794
|
|
|
51,832
|
|
|
74,670
|
|
|
50,165
|
|
|
|
(1)
|
Includes long-term
cash and equity incentive compensation of $1.7 million and $2.6
million for the three months ended June 30, 2017 and 2016,
respectively, and $2.8 million and $6.5 million for the six months
ended June 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
June 30,
|
|
Six Months Ended
June 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
(in
thousands)
|
Included in commodity
derivative gain (loss):
|
|
|
|
|
|
|
|
Realized gain (loss)
on derivatives (1)
|
$
|
6,167
|
|
|
$
|
25,043
|
|
|
$
|
9,799
|
|
|
$
|
58,005
|
|
Prior year unrealized
(gain) loss transferred to realized (gain) loss
(1)
|
(737)
|
|
|
(27,863)
|
|
|
(2,114)
|
|
|
(57,349)
|
|
Unrealized gain
(loss) on derivatives (1)
|
10,168
|
|
|
(19,160)
|
|
|
24,377
|
|
|
(13,968)
|
|
Total commodity
derivative gain (loss)
|
$
|
15,598
|
|
|
$
|
(21,980)
|
|
|
$
|
32,062
|
|
|
$
|
(13,312)
|
|
|
|
(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,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
(in
thousands)
|
Operating
Activities:
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
(18,447)
|
|
|
$
|
(48,419)
|
|
|
$
|
(31,562)
|
|
|
$
|
(94,915)
|
|
Adjustments to
reconcile to net cash provided by operations:
|
|
|
|
|
|
|
|
Depreciation,
depletion and amortization
|
39,337
|
|
|
40,392
|
|
|
77,677
|
|
|
82,408
|
|
Impairment, dry hole
costs and abandonment
|
1
|
|
|
234
|
|
|
8,075
|
|
|
792
|
|
Unrealized derivative
(gain) loss
|
(9,432)
|
|
|
47,023
|
|
|
(22,264)
|
|
|
71,317
|
|
Incentive
compensation and other non-cash charges
|
1,686
|
|
|
2,102
|
|
|
3,654
|
|
|
5,431
|
|
Amortization of
deferred financing costs
|
597
|
|
|
863
|
|
|
1,155
|
|
|
1,502
|
|
(Gain) loss on sale
of properties
|
—
|
|
|
(708)
|
|
|
(92)
|
|
|
(708)
|
|
(Gain) loss on
extinguishment of debt
|
7,904
|
|
|
(8,697)
|
|
|
7,904
|
|
|
(8,697)
|
|
Change in operating
assets and liabilities:
|
|
|
|
|
|
|
|
Accounts
receivable
|
(1,160)
|
|
|
(2,869)
|
|
|
2,427
|
|
|
9,544
|
|
Prepayments and other
assets
|
(330)
|
|
|
(311)
|
|
|
(1,377)
|
|
|
(902)
|
|
Accounts payable,
accrued and other liabilities
|
(14,550)
|
|
|
(16,196)
|
|
|
(5,585)
|
|
|
(3,943)
|
|
Amounts payable to
oil and gas property owners
|
1,583
|
|
|
649
|
|
|
2,673
|
|
|
(3,387)
|
|
Production taxes
payable
|
(7,088)
|
|
|
(5,799)
|
|
|
(4,486)
|
|
|
(9,663)
|
|
Net cash provided by
(used in) operating activities
|
$
|
101
|
|
|
$
|
8,264
|
|
|
$
|
38,199
|
|
|
$
|
48,779
|
|
Investing
Activities:
|
|
|
|
|
|
|
|
Additions to oil and
gas properties, including acquisitions
|
(46,273)
|
|
|
(25,419)
|
|
|
(104,236)
|
|
|
(86,680)
|
|
Additions of
furniture, equipment and other
|
(190)
|
|
|
(209)
|
|
|
(201)
|
|
|
(991)
|
|
Proceeds from sale of
properties and other investing activities
|
(11,840)
|
|
|
13
|
|
|
(615)
|
|
|
(1,225)
|
|
Net cash provided by
(used in) investing activities
|
$
|
(58,303)
|
|
|
$
|
(25,615)
|
|
|
$
|
(105,052)
|
|
|
$
|
(88,896)
|
|
Financing
Activities:
|
|
|
|
|
|
|
|
Proceeds from
debt
|
275,000
|
|
|
—
|
|
|
275,000
|
|
|
—
|
|
Principal payments on
debt
|
(322,001)
|
|
|
(109)
|
|
|
(322,113)
|
|
|
(218)
|
|
Proceeds from sale of
common stock, net of offering costs
|
(74)
|
|
|
—
|
|
|
(298)
|
|
|
—
|
|
Deferred financing
costs and other
|
(5,045)
|
|
|
(680)
|
|
|
(6,012)
|
|
|
(1,078)
|
|
Net cash provided by
(used in) financing activities
|
$
|
(52,120)
|
|
|
$
|
(789)
|
|
|
$
|
(53,423)
|
|
|
$
|
(1,296)
|
|
Increase (Decrease)
in Cash and Cash Equivalents
|
(110,322)
|
|
|
(18,140)
|
|
|
(120,276)
|
|
|
(41,413)
|
|
Beginning Cash and
Cash Equivalents
|
265,887
|
|
|
105,563
|
|
|
275,841
|
|
|
128,836
|
|
Ending Cash and Cash
Equivalents
|
$
|
155,565
|
|
|
$
|
87,423
|
|
|
$
|
155,565
|
|
|
$
|
87,423
|
|
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,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
(in
thousands)
|
Net Cash Provided by
(Used in) Operating Activities
|
$
|
101
|
|
|
$
|
8,264
|
|
|
$
|
38,199
|
|
|
$
|
48,779
|
|
Adjustments to
reconcile to discretionary cash flow:
|
|
|
|
|
|
|
|
Exploration
expense
|
3
|
|
|
21
|
|
|
30
|
|
|
48
|
|
Changes in working
capital
|
21,545
|
|
|
24,526
|
|
|
6,348
|
|
|
8,351
|
|
Discretionary Cash
Flow
|
$
|
21,649
|
|
|
$
|
32,811
|
|
|
$
|
44,577
|
|
|
$
|
57,178
|
|
|
Adjusted Net
Income (Loss) Reconciliation
|
|
|
Three Months
Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
(in thousands, except
per share amounts)
|
Net Income
(Loss)
|
$
|
(18,447)
|
|
|
$
|
(48,419)
|
|
|
$
|
(31,562)
|
|
|
$
|
(94,915)
|
|
Provision for
(Benefit from) income taxes
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Income (Loss) before
income taxes
|
(18,447)
|
|
|
(48,419)
|
|
|
(31,562)
|
|
|
(94,915)
|
|
|
|
|
|
|
|
|
|
Adjustments to net
income (loss):
|
|
|
|
|
|
|
|
Unrealized derivative
(gain) loss
|
(9,432)
|
|
|
47,023
|
|
|
(22,264)
|
|
|
71,317
|
|
Impairment
expense
|
—
|
|
|
—
|
|
|
8,010
|
|
|
183
|
|
(Gain) loss on sale
of properties
|
—
|
|
|
(708)
|
|
|
(92)
|
|
|
(708)
|
|
(Gain) loss on
extinguishment of debt
|
7,904
|
|
|
(8,697)
|
|
|
7,904
|
|
|
(8,697)
|
|
One-time
item:
|
|
|
|
|
|
|
|
(Income) expense
related to properties sold
|
(755)
|
|
|
—
|
|
|
(1,328)
|
|
|
—
|
|
Adjusted Income
(Loss) before income taxes
|
(20,730)
|
|
|
(10,801)
|
|
|
(39,332)
|
|
|
(32,820)
|
|
Adjusted (provision
for) benefit from income taxes (1)
|
7,869
|
|
|
4,061
|
|
|
14,911
|
|
|
12,373
|
|
Adjusted Net Income
(Loss)
|
$
|
(12,861)
|
|
|
$
|
(6,740)
|
|
|
$
|
(24,421)
|
|
|
$
|
(20,447)
|
|
Per share,
diluted
|
$
|
(0.17)
|
|
|
$
|
(0.13)
|
|
|
$
|
(0.33)
|
|
|
$
|
(0.41)
|
|
|
|
(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,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
(in
thousands)
|
Net Income
(Loss)
|
$
|
(18,447)
|
|
|
$
|
(48,419)
|
|
|
$
|
(31,562)
|
|
|
$
|
(94,915)
|
|
Adjustments to
reconcile to EBITDAX:
|
|
|
|
|
|
|
|
Depreciation,
depletion and amortization
|
39,337
|
|
|
40,392
|
|
|
77,677
|
|
|
82,408
|
|
Impairment, dry hole
and abandonment expense
|
1
|
|
|
234
|
|
|
8,075
|
|
|
792
|
|
Exploration
expense
|
3
|
|
|
21
|
|
|
30
|
|
|
48
|
|
Unrealized derivative
(gain) loss
|
(9,432)
|
|
|
47,023
|
|
|
(22,264)
|
|
|
71,317
|
|
Incentive
compensation and other non-cash charges
|
1,686
|
|
|
2,102
|
|
|
3,654
|
|
|
5,431
|
|
(Gain) loss on sale
of properties
|
—
|
|
|
(708)
|
|
|
(92)
|
|
|
(708)
|
|
(Gain) loss on
extinguishment of debt
|
7,904
|
|
|
(8,697)
|
|
|
7,904
|
|
|
(8,697)
|
|
Interest and other
income
|
(492)
|
|
|
(57)
|
|
|
(698)
|
|
|
(94)
|
|
Interest
expense
|
16,137
|
|
|
15,423
|
|
|
30,088
|
|
|
31,169
|
|
Provision for
(benefit from) income taxes
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
EBITDAX
|
$
|
36,697
|
|
|
$
|
47,314
|
|
|
$
|
72,812
|
|
|
$
|
86,751
|
|
|
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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SOURCE Bill Barrett Corporation