Bill Barrett Corporation Provides Third Quarter 2016 Commodity Price and Derivatives Update

Dienstag, 18.10.2016 22:25 von

PR Newswire

DENVER, Oct. 18, 2016 /PRNewswire/ -- Bill Barrett Corporation (the "Company") (NYSE: BBG) announced today that it is providing an update on certain third quarter of 2016 items, including commodity price and derivatives data and the weighted average basic and diluted shares outstanding for the third quarter of 2016.

For the third quarter of 2016, West Texas Intermediate ("WTI") oil prices averaged $44.94 per barrel, Northwest Pipeline ("NWPL") natural gas prices averaged $2.51 per MMBtu and NYMEX natural gas prices averaged $2.75 per MMBtu. The Company had derivative commodity swaps in place for the third quarter of 2016 for 7,750 barrels of oil per day tied to WTI pricing at $72.57 per barrel, 5,000 MMBtu of natural gas per day tied to NWPL regional pricing at $4.10 per MMBtu and no hedges in place for NGLs.

Based on preliminary unaudited results, the Company expects to realize a cash commodity derivative gain of $20.4 million in the third quarter due to positive derivative positions. The Company expects its third quarter commodity price differentials to benchmark pricing – before  commodity derivative gains and in relation to delivery location and quality adjustments – to  approximate: oil less $3.02 price per barrel versus WTI; and natural gas less $0.29 per thousand cubic feet ("Mcf") compared to NWPL. The Denver-Julesburg ("DJ') Basin oil price differential averaged $2.21 per barrel as the Company continues to benefit from having no firm transportation agreements as local infrastructure expands. NGL prices averaged 30% of WTI price per barrel.

For the fourth quarter of 2016, approximately 7,750 barrels per day of oil is hedged at an average WTI price of $72.57 per barrel. The following table summarizes the Company's hedge position for the fourth quarter of 2016 and 2017 as of October 18, 2016:


Oil (WTI)


Natural Gas (NWPL)







Period

Volume

Bbls/d

Price

$/Bbl


Volume
MMBtu/d

Price

$/MMBtu







4Q16

7,750

72.57


5,000

4.10

1Q17

5,250

59.73


10,000

2.96

2Q17

5,375

59.57


10,000

2.96

3Q17

3,375

63.14


10,000

2.96

4Q17

3,375

63.14


10,000

2.96

Realized sales prices will reflect basis differentials from the index prices to the sales location.

The Company estimates that the weighted average common basic and diluted shares for the third quarter will be approximately 58.9 million.

Forward-Looking Statements

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. Forward-looking statements in this release relate to, among other things, third quarter commodity derivative gains, commodity price differentials, number of shares outstanding, future financial performance and business expectations.

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. Please refer to the Company's Annual Report on Form 10-K for the year ended December 31, 2015 filed with the SEC and other filings, including our Current Reports on Form 8-K and Quarterly Reports on Form 10-Q, all of which are incorporated by reference herein, for further discussion of risk factors that may affect the forward-looking statements. Risks also include potential differences between expected reported results and actual reported results after the Company's financial statements and related reviews are finalized. The Company encourages you to consider the risks and uncertainties associated with projections and other forward-looking statements and to not place undue reliance on any such statements. In addition, the Company assumes no obligation to publicly revise or update any forward-looking statements based on future events or circumstances. 

ABOUT BILL BARRETT CORPORATION

Bill Barrett Corporation (NYSE: BBG), headquartered in Denver, Colorado, develops oil and natural gas in the Rocky Mountain region of the United States. Additional information about the Company may be found on its website www.billbarrettcorp.com.

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SOURCE Bill Barrett Corporation