|Bill Barrett Corporation Reports First Quarter 2017 Financial and Operating Results|
For the first quarter of 2017, the Company reported a net loss of
Chief Executive Officer and President
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:
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.
Cash operating costs (lease operating expense ("LOE"), gathering, transportation and processing costs and production tax expense) averaged
The decrease in production tax expense compared to the fourth quarter of 2016 is related to an annual adjustment of
Debt and Liquidity
The Company is undergoing its semi-annual borrowing base review and expects that its current borrowing base of
Capital expenditures for the first quarter of 2017 totaled
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
The following provides a synopsis of the current DSU activity:
Pursuant to the Right-of-Way Leasing Act, the Company was issued a 2,882 acre federal lease under the
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
2017 OPERATING GUIDANCE
The Company is providing the following update to its 2017 operating guidance. See "Forward-Looking Statements" below.
COMMODITY HEDGES UPDATE
The following table summarizes the hedge position as of May 2, 2017:
Realized sales prices will reflect basis differentials from the index prices to the sales location.
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
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
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Company contact: Larry C. Busnardo, Senior Director, Investor Relations, 303-312-8514
Vice President, Investor Relations