|Bill Barrett Corporation Reports Third Quarter 2017 Financial and Operating Results Highlighted by Quarterly Production of 1.92 MMBoe and Increased 2017 Production Guidance Range of 6.9-7.1 MMBoe|
For the third quarter of 2017, the Company reported a net loss of
Commenting on the quarterly results, Chief Executive Officer and President
OPERATING AND FINANCIAL RESULTS
The following table summarizes certain operating and financial results for the third quarter of 2017 and 2016 and the second quarter of 2017:
Oil, natural gas and natural gas liquids ("NGL") production totaled approximately 1.92 MMBoe in the third quarter of 2017. Third quarter production surpassed guidance of 1.75 MMBoe by 10% and represents a 23% increase compared to the third quarter of 2016 and a 26% increase compared to the second quarter of 2017.
Oil volumes totaled approximately 1.2 MMBbls in the third quarter, representing an 18% increase compared to the third quarter of 2016 and a 33% increase compared to the second quarter of 2017.
Higher production sales volumes were driven by an improvement in drilling and completion cycle times and positive results from the Company's enhanced completion program in the
Third quarter production was comprised of approximately 63% oil, 20% natural gas and 17% NGLs.
Production tax expense averaged
Depreciation, depletion and amortization ("DD&A") averaged
Debt and Liquidity
The Company's semi-annual borrowing base review was completed in
Capital expenditures for the third quarter of 2017 totaled
The Company produced an average of 18,508 Boe/d in the third quarter of 2017, representing 28% sequential growth. Eleven XRL wells were placed on initial flowback during the third quarter and two drilling rigs are currently operating in the basin. The Company continues to see improving well results from its enhanced completion program that has evolved to include approximately 1,500 pounds of sand per lateral foot and frac stage spacing of approximately 120 feet. In addition, the Company incorporated modifications to its choke management program on recent drilling and spacing units ("DSU") that are anticipated to result in peak production being achieved earlier in the production cycle. Performance from the 2017 enhanced completion program continues to meet or exceed the Company's base XRL type-curve of 600 MBoe.
The following provides a synopsis of the current activity for the DSUs that are in the drilling and completion or initial flowback phase:
The Company continues to achieve drilling and completion efficiencies on its XRL well program that have resulted in a 28% average year-over-year improvement in 2017 cycle times leading to increased stages completed and pounds of sand pumped per day. This has been primarily achieved through a 37% improvement in the number of frac stages completed per day and a 27% improvement in the number of days required to drill out frac plugs.
Drilling and completion costs for XRL wells drilled during the first nine months of 2017 have averaged approximately
Uinta Oil Program
Production sales volumes averaged 2,333 Boe/d (91% oil) during the third quarter of 2017. The oil price differential averaged
The Company has commenced a marketed sales process to divest of its Uinta Oil Program assets and, if successful, it is anticipated that a sale would be announced in the fourth quarter of 2017.
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 our current hedge position as of
Realized sales prices will reflect basis differentials from the index prices to the sales location.
Third Quarter Conference Call and Webcast
The Company plans to host a conference call on Wednesday, November 1, 2017, to discuss third quarter of 2017 results. The call is scheduled at
Members of the Company's management are currently scheduled to participate in the following investor events:
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; and the planned disposition of our
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
View original content with multimedia:http://www.prnewswire.com/news-releases/bill-barrett-corporation-reports-third-quarter-2017-financial-and-operating-results-highlighted-by-quarterly-production-of-192-mmboe-and-increased-2017-production-guidance-range-of-69-71-mmboe-300546755.html
Larry C. Busnardo, Vice President, Investor Relations, 303-312-8514
Vice President, Investor Relations