Bill Barrett Corp.: Aspirations And Challenges In The DJ Basin
Richard Zeits • 20 Comments
Richard Zeits • 20 Comments
Bill Barrett: High-Return Oil Plays, But Capital Needs Could Pinch
Stephen Simpson, CFA
Stephen Simpson, CFA
Fri, Jun. 3, 3:34 PM
- Bill Barrett (BBG +3.3%) is higher following late yesterday's news that it had reacquired $84.7M of its 7.625% senior notes due 2019 from an individual investor who will receive 10M shares of the company's common stock in exchange.
- BBG reported that it had $803M in long-term debt as of March 31 and estimated that the privately negotiated transaction will trim its overall debt load by ~12% while producing ~$6.5M in annual savings from reduced interest payments.
- BBG says the debt reduction combined with the previously announced strategic sale of non-core assets in the Uinta Basin will further strengthen its balance sheet.
Thu, May 26, 5:39 PM
Tue, Apr. 26, 2:47 PM
- Whiting Petroleum (WLL +3.1%), Bill Barrett (BBG +1.9%) and Oasis Petroleum (OAS +3.3%) are all downgraded to Hold from Buy at Cantor Fitzgerald on valuation, noting that much of the recent rally in E&P stocks is explained by short covering.
- WLL shares are up 217% since Feb. 25, so while maintaining a positive view on the company's prospects in the Williston and DJ basins with the potential for additional liquidity through non-core asset sales, Cantor feels valuation is now full.
- The firm says it has positive view on BBG’s liquidity and portfolio optionality but would not be surprised to see the company come to market with an equity follow-on after the rapid rise in shares, and sees limited upside in OAS after rising 123% since Feb. 11.
- The firm's respective stock price targets for WLL, BBG and OAS are $11, $7.50 and $9.
- Now read Whiting Petroleum valued at $7 to $12 based on $55 to $60 long-term oil
Tue, Apr. 19, 3:47 PM
- Bill Barrett (BBG +4.2%) is higher after saying it expects to pocket a $33M cash gain from positive positions on its commodity derivative swaps during Q1.
- BBG says it expects a gain of ~$5.85 on each barrel of benchmark WTI crude oil and ~$0.28 per 1,000 cf of natural gas.
- For the rest of 2016, BBG says it has 7,267 bbl/day of oil hedged at an average WTI price of $76.72/bbl compared with $81.65 during Q1 and the actual Q1 price for WTI oil averaging $33.45/bbl.
- Now read Bill Barrett sees 11% reduction to borrowing base
Mon, Apr. 11, 1:54 PM
- Bill Barrett (BBG +4.5%) is higher after reporting an 11% reduction to its borrowing base following the semi-annual borrowing base redetermination of its revolving credit facility, generally in-line with expectations.
- BBG says its bank group set a borrowing base of $335M vs. the previous $375M borrowing base, with no changes to the terms or conditions of the facility.
- BBG says it remains financially well-positioned with an undrawn credit facility, more than $100M in cash on hand, and nearly two-thirds of its 2016 oil hedged at ~$80/bbl.
Tue, Apr. 5, 5:37 PM
Thu, Mar. 3, 12:53 PM
Wed, Mar. 2, 3:44 PM
- Bill Barrett (BBG +30%) rallies after the oil and gas explorer reported a surprise Q4 profit, although its revenue fell short of analyst expectations.
- BBG says it will curtail drilling activity to preserve capital in light of the uncertainty around an oil price recovery in 2016.
- BBG says Q4 production totaled 1.7M boe, up 20% Y/Y, consisting of 65% oil, 19% natural gas and 16% natural gas liquids; the company expects to produce 1.3M-1.4M barrels during Q1, lower than the prior quarter largely due to the recent sale of non-core assets.
- Plans 2016 capex of $100M-$150M, ~55% below 2015 spending at the mid-point and representing a one-rig program for a portion of the year to drill up to 20 XRL wells in the Wattenberg field of the DJ Basin.
Wed, Mar. 2, 12:45 PM
Mon, Feb. 22, 12:44 PM
Dec. 24, 2015, 12:31 PM
Dec. 10, 2015, 11:34 AM
- Companies such as Chesapeake Energy (CHK +1.8%) pushed the SEC for an accounting change in 2009 that made it easier to claim reserves from wells that would not be drilled for years, but Bloomberg says the chickens will come home to roost in the next few months when billions of barrels of shale drillers’ reserves are wiped out.
- The rule requires the undrilled wells to be profitable and be drilled within five years, but now the time is up, and the companies must soon report 2015 figures - and prices are down, way down.
- Regulatory filings show CHK's inventory will be cut by 45%, Bill Barrett (BBG +4.1%) will lose as much as 40%, and Oasis Petroleum (OAS +5.8%) will loss 33%.
- "How are these reserves going to come back?” says a Guggenheim Securities analyst. “Because if you have to spend within cash flow, those reserves aren’t coming back. Not unless we get a spike in prices, or we return to levered growth.”
Nov. 13, 2015, 12:42 PM
- Bill Barrett (BBG +10.2%) is upgraded to Sector Outperform from Sector Perform with an $11 price target, raised from $6, at Scotia Howard Weil, which notes that BBG has strengthened its balance sheet by monetizing several non-core assets for $79M this year and recently put its Uinta asset on the market.
- The firm estimates BBG has $160M in cash with nothing drawn on its $350M revolver, and models 2016 cash flow at ~$150M, which is in line with its one-rig capex assumption.
- Weil notes that while the stock has improved recently, shares still trade at just 4.7x 2016 EBITDA and at 53% of its NAV.
Sep. 29, 2015, 11:46 AM
- Bill Barrett (BBG +4.7%) is upgraded to Accumulate from Neutral with a $5 price target at Global Hunter following the stock's nearly 90% Y/Y drop and encouraging recent developments.
- The firm says BBG's liquidity remains strong as its $375M borrowing base was reaffirmed and as BBG took in $27M from the sale of 17.6K net acres in the Uinta; BBG also successfully renegotiated its covenants, which drastically reduces the chance of a technical default, assuming a modest recovery in commodity prices.
- Meaningful improvements in well costs and cycle times also are evident, which should enable BBG to deliver similar growth in FY 2016 with one rig vs. original guidance based on a two-rig program, the firm says.
Sep. 18, 2015, 12:45 PM
Aug. 6, 2015, 4:46 PM
- Bill Barrett (NYSE:BBG): Q2 EPS of -$0.08 beats by $0.02.
- Revenue of $62.7M (-56.8% Y/Y) misses by $22.16M.
- Shares +11.1%.
Bill Barrett Corp. operates as an oil and gas company, which engages in the exploration, development and production of natural gas and crude oil. It explores and develops oil and natural gas in the Rocky Mountain region of the United States. It holds interest in the Denver-Julesburg basin, the... More
Sector: Basic Materials
Industry: Oil & Gas Drilling & Exploration
Country: United States
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