Bill Barrett Corporation Reports Second Quarter 2016 Financial and Operating Results

DENVER, Aug. 4, 2016

• Production sales volumes of 1.6 MMBoe (64% oil), representing an 18% sequential increase compared to the first quarter of 2016 and exceeded second quarter guidance by 14%
• Raised the low end of 2016 production guidance to 5.9-6.2 MMBoe despite the sale of non-core Uinta Basin assets
• Capital expenditures of $15.6 million compared to second quarter guidance of $30-$35 million
• 2016 planned capital expenditure range reduced to $75-$100 million from $90-$135 million as a result of continued cost control; represents a 30% decrease from the mid-point of original guidance; expect to be cash flow positive for 2016
• DJ Basin oil price differential narrowed to $4.82 per barrel, representing a 14% sequential improvement
• LOE averaged $5.28 per Boe, representing an 18% sequential improvement
• LOE guidance lowered to $31-$34 million from $33-$36 million to reflect cost reductions and the sale of higher operating cost properties in the Uinta Basin
• Exited the second quarter of 2016 with over $100 million of cash (pro forma for Uinta Basin asset sale of $30 million that closed in July) and an undrawn credit facility of $335 million
• Debt exchange reduced net debt by $84.7 million or 12% and annual interest expense burden by approximately $6.5 million or 11%

Chief Executive Officer and President Scot Woodall commented, "Executing on the items within our control is paying off as we reported very good second quarter results that were paced by production volumes that were 18% higher than the first quarter and capital expenditures and operating costs that were below expectations. We recognized a significant reduction in well costs during the first half of the year, allowing us to cut our capital expenditure outlook for the second time this year. We are raising the low end of our production outlook despite the loss of production associated with the sale of non-core Uinta Basin assets. We continue to benefit from having no firm marketing commitments for our oil volumes and achieved a 14% sequential improvement to the first quarter in the pricing of our DJ Basin barrels as regional infrastructure continues to improve. We have maintained positive momentum with respect to reducing costs as a result of increased operating efficiencies and expect per unit LOE to maintain a downward trend. Looking ahead to the remainder of the year, we are monitoring industry conditions to determine the appropriate time to resume drilling operations. Based on our current internal projections and pricing scenarios, we are positioned to be cash flow positive this year even at the high-end of our updated capital range. We remain financially well positioned with a cash position in excess of $100 million (pro forma for the Uinta Basin asset sale), an undrawn credit facility, and a solid hedge position that provides ample liquidity."

OPERATING AND FINANCIAL RESULTS

The following table summarizes the operating and financial results for the second quarter of 2016 and 2015 and the first quarter of 2016: