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|Bill Barrett Corporation Announces 22% Increase in 2011 Proved Reserves Including 135% Increase in Oil and Provides 2012 Guidance|
Chairman, Chief Executive Officer and President
"We enter 2012 with eight of nine drilling rigs targeting oil and NGLs, focusing our capital expenditures on the highest return programs in the face of natural gas forward strip prices at a 10-year low. This flexibility is a testament to our asset quality and deep inventory for liquids. We are currently operating our largest drilling program to date as we have made a strategic decision to drive what we consider step-change growth in cash flow over the next few years. Our capital expenditure budget for 2012 is
2011 YEAR-END ESTIMATED RESERVES, PRODUCTION AND CAPITAL EXPENDITURES
(The following information is unaudited and preliminary. Audited and final results will be provided in our Annual Report on Form 10-K for the year ended
The increase in 2011 reserves primarily reflects initiating full-field development at West Tavaputs, substantial growth in the Uinta Oil Program through both drilling and acquisition as well as an acquisition in the
Year-end estimated proved reserves of 1.365 trillion cubic feet equivalent ("Tcfe") were 87% natural gas and 13% oil. Further, estimated proved reserves were 51% developed and 49% undeveloped. The present value of proved reserves, or PV10, was estimated at
In addition to proved reserves, the Company estimates it has probable and possible reserves of 1.679 Tcfe at
Estimated production for 2011 was 106.8 Bcfe and was comprised of 92% natural gas and 8% oil. Estimated fourth quarter 2011 production was 29.1 Bcfe, up 20% from 24.2 Bcfe in the fourth quarter of 2010.
Preliminary, unaudited capital expenditures for 2011 were
Under successful efforts accounting, the Company expects to record impairment, dry hole and abandonment expenses in the fourth quarter of 2011 of approximately
2011 YEAR-END DEBT AND LIQUIDITY
The Company had
2012 OPERATING GUIDANCE
The Company plans to spend between
The Company is providing the following guidance for its 2012 activities. See "Forward-Looking Statements" below.
COMMODITY HEDGES UPDATE
The Company has hedges in place for approximately 50% of forecast 2012 production. Natural gas hedges are all tied to
The following table summarizes hedge positions as of
In addition, the Company has basis only hedges in place for 2012 that hedge the price difference between CIG and NYMEX natural gas prices. For 2012, the Company has hedged 20,000 MMBtu/d at a basis differential price of
Company management will host an investor event this morning covering the Uinta Oil Program and the Company's strategy and outlook. The event will be webcast live today at
Chairman, Chief Executive Officer and President
2011 Fourth Quarter and Full Year Results Release
The Company intends to release its fourth quarter and full year 2011 results on
Year-end 2011 Results Presented are Unaudited
Results for year-end 2011 presented in this press release are preliminary and unaudited. These unaudited amounts are subject to further review by management and independent auditors.
Calculation of Natural Gas Liquids as a Percent of Sales Volumes
The Company's natural gas production is based on wellhead volumes and its natural gas revenue includes the incremental revenue benefit of receiving NGL sales prices for NGL volumes processed by the purchasers of our natural gas deliveries. Many oil and gas producing companies report NGL volumes and revenues separate from natural gas volumes and revenues. In order to provide a metric that is comparable to other oil and gas production companies, the Company is providing the percentage of total company sales volumes that receive NGL pricing based on the barrel of oil equivalent NGL volumes for revenues received from our gas purchasers. The NGL volumes identified by our gas purchasers are converted to an oil equivalent based on 42 gallons per barrel and compared to overall gas equivalent production based on a 1 barrel to 6 Mcf ratio.
The Company has provided internally generated estimates for probable and possible reserves in this release. The estimates conform to
This press release contains forward-looking statements, including statements regarding projected results and future events. In particular, the Company is providing "2012 Guidance," which contains projections for certain 2012 operational and financial results. These forward-looking statements are based on management's judgment as of this date and include certain risks and uncertainties. Please refer to the Company's Annual Report on Form 10-K for the year-ended
Actual results may differ materially from Company projections and can be affected by a variety of factors outside the control of the Company including, among other things, market conditions, oil and gas price volatility, exploration and development drilling and testing results, performance of acquired properties, the ability to receive drilling and other permits and rights-of-way, regulatory approvals, governmental laws and regulations and changes in enforcement of those laws and regulations, new laws and regulations, risks related to and costs of hedging activities including counterparty viability, surface access and costs, availability of third party gathering, transportation, processing and refining, the availability and cost of services and materials, the ability to obtain industry partners to jointly explore certain prospects and the willingness and ability of those partners to meet capital obligations when requested, availability and costs of financing to fund the Company's operations, uncertainties inherent in oil and gas production operations and estimating reserves, the speculative actual recovery of estimated potential volumes, unexpected future capital expenditures, competition, risks associated with operating in one major geographic area, the success of the Company's risk management activities, title to properties, litigation, environmental liabilities, and other factors discussed in the Company's reports filed with the SEC.
Jennifer Martin, Vice President of Investor Relations of Bill Barrett Corporation, +1-303-312-8155
Vice President, Investor Relations