Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

Bill Barrett: High-Return Oil Plays, But Capital Needs Could Pinch

Oil and gas companies are definitely not all the same, and those differences (be they adjusted production growth, well-level ROEs, capital structures, or what have you) eventually show up in valuations. Bill Barrett (NYSE:BBG), PDC Energy (NASDAQ:PDCE), and Bonanza Creek (NYSE:BCEI) are all interesting E&P companies in the $2B to $3B enterprise value range, but their performance since my October 4, 2013 piece on Bill Barrett has diverged pretty significantly - with PDCE down almost 7%, Bonanza Creek up almost 18%, and Bill Barrett up about 2%.

Looking ahead, I'm encouraged by the company's production and return potential in the DJ Basin and Uinta (or Uintah) Basin and eager to see whether initial tests...

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