Bill Barrett Corp.: Aspirations And Challenges In The DJ Basin
Richard Zeits • 20 Comments
Richard Zeits • 20 Comments
Mon, Aug. 15, 2:02 PM
Mon, Aug. 15, 10:26 AM
- Bill Barrett (BBG +4.4%) says it will resume its drilling program in the Denver-Julesburg basin, with up to 12 new wells set to spud by the end of the year.
- BBG says lower well costs and operating expenses, combined with a narrowing DJ Basin oil price differential, will generate a competitive rate-of-return in the current commodity price environment.
- BBG projects that its 2016 capex will now be at the high end of its previously disclosed guidance range of $75M-$100M to account for the additional drilling activity.
Fri, Aug. 5, 2:09 PM
Wed, Jul. 20, 10:57 AM
- Bill Barrett (BBG +3.1%) is higher after saying it expects to realize a $25M commodity derivative gain in Q2 due to positive derivative positions.
- In an update on commodity derivatives, BBG says it has swaps in place for production of 7,300 bbl/day of oil tied to pricing at $81.65/bbl and 5,000 MMBtu of natural gas/day tied to NWPL regional pricing at $4.10/MMBtu.
- BBG says it has ~7,750 bbl/day of oil hedged at an average WTI price of $72.57/bbl for the remainder of 2016.
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.”
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