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/C O R R E C T I O N — Bill Barrett Corporation/

February 21, 2013

In the news release, Bill Barrett Corporation Reports 2012 Financial and Operating Results and Announces Strong Initial Oil Rates on All Four-Well Pads in DJ Basin, issued 21-Feb-2013 by Bill Barrett Corporation over PR Newswire, we are advised by the company that the 2012 RESULTS WEBCAST AND CONFERENCE CALL paragraph has been updated with corrected information. The complete, corrected release follows:

Bill Barrett Corporation Reports 2012 Financial and Operating Results and Announces Strong Initial Oil Rates on All Four-Well Pads in DJ Basin

DENVER, Feb. 21, 2013 /PRNewswire/ — Bill Barrett Corporation (NYSE: BBG) today reported 2012 results and announced operational updates including:

  • Total oil and natural gas production growth up 10% to 118 billion cubic feet equivalent (“Bcfe”)
  • Oil production up 80% to 2.7 million barrels
  • Oil reserves up 66% to 51 million barrels
  • Proved reserves plus risked resources of 2.9 trillion cubic feet equivalent (“Tcfe”), including nearly 200 million barrels of oil
  • Discretionary cash flow of $403 million or $8.51 per diluted common share; Adjusted net income of $6.9 million, or $0.15 per diluted common share (non-GAAP measures, see below)
  • Success with Denver-Julesburg (“DJ”) Basin pad drilling, with 30-day rates averaging 412 barrels of oil equivalent per well per day (“Boe/d”) at the first three four-well pads
  • Completion of $335 million sale of natural gas assets

Chief Executive Officer Scot Woodall commented: “We closed 2012 with estimated proved reserves that included 51 million barrels of oil, an increase of 66% over 2011, and exit rate production that included 8,950 barrels of oil per day, accounting for 24% of total production. We have established a drilling inventory at our key oil programs of nearly 3,000 locations, or more than 15 years of drilling based on current activity.

“We have commenced 2013 with a focused strategy: execute development of our two core oil programs to optimize operating efficiencies and returns. We will increase activity at the Uinta Oil Program with a four-rig vertical drilling program. In the DJ Basin, we are very encouraged by results to date. We will run a two-rig program that will be predominantly pad drilling, as well as delineate our acreage position in the Northeast Wattenberg -an area where industry activity has established proven results, identified significant upside and demonstrated repeatability. We have no active rigs in our natural gas plays.

“We have an $825 million line of credit and have approximately 70% of 2013 production hedged. As previously reported, we plan to fully fund our 2013 capital program with cash flows and asset sales. We are well positioned with the right assets, excellent liquidity and a solid, focused plan to deliver value to our shareholders in 2013.”

OPERATING AND FINANCIAL RESULTS

Total estimated proved reserves at year-end 2012 were 1.04 trillion cubic feet equivalent (“Tcfe”). Estimated proved reserves were 29% oil and 71% natural gas and were 59% developed and 41% undeveloped.

Oil and natural gas production totaled 117.6 Bcfe in 2012, up 10% from 106.8 Bcfe in 2011. Production growth was primarily from the Uinta and DJ oil programs followed by growth in natural gas production stemming from early year drilling at West Tavaputs and Gibson Gulch. Year-over-year growth in oil production of 80% met the Company’s target for the year. Fourth quarter production was 28.2 Bcfe, down slightly from 29.1 Bcfe in the fourth quarter of 2011, and was negatively affected by 1.2 Bcf due to a fire at a West Tavaputs compressor station.

Realized pricing, including the effects of the Company’s hedging activities and natural gas liquids (“NGL”) recovery, was $6.32 per thousand cubic feet equivalent (“Mcfe”), including an $0.82 per Mcfe benefit from NGL-related pricing and a $1.05 per Mcfe benefit from realized hedges. The average realized price is down from $7.05 per Mcfe in 2011, primarily due to significantly lower natural gas and NGL prices. The average realized natural gas price was $5.07 per Mcf in 2012 compared with $6.46 per Mcf in 2011. The average realized oil price was $84.96 per barrel (“Bbl”) in 2012 compared with $80.63 per Bbl in 2011. The fourth quarter 2012 average realized price was $6.78 per Mcfe compared with $6.96 per Mcfe in 2011. (See “Selected Operating Highlights” below for more detail.)

Discretionary cash flow (a non-GAAP measure, see “Discretionary Cash Flow Reconciliation” below) for 2012 was $402.9 million, or $8.51 per diluted common share, down from $478.2 million, or $10.12 per diluted common share, in 2011. The decline in discretionary cash flow is primarily due to lower realized natural gas prices and increased interest expenses, partially offset by higher production volumes. Discretionary cash flow was $103.5 million for the fourth quarter of 2012 compared with $124.8 million for the fourth quarter of 2011.

Net income for 2012 was $0.6 million, or $0.01 per diluted common share, down from income of $30.7 million, or $0.65 per diluted common share, in 2011. Net income in 2012 was affected by the same factors as discretionary cash flow, which were partially offset by a commodity derivative gain in 2012 of $72.8 million versus a loss in 2011 of $14.3 million and a lower impairment expense in 2012 of $37.3 million versus $100.3 million in 2011. Dry hole expenses in 2012 were $21.0 million, or $13.0 million after-tax (applying a standard 38% rate.) Net income for the fourth quarter was $14.0 million compared with a loss of $37.8 million in the fourth quarter of 2011. Dry hole expenses in the fourth quarter were $5.1 million (pre-tax), which related primarily to one exploratory dry hole in the Southern Alberta Basin.

Adjusted net income (a non-GAAP measure, see “Adjusted Net Income Reconciliation” below) for 2012 was $6.9 million, or $0.15 per diluted common share, compared with $84.0 million, or $1.78 per diluted common share, in 2011. Adjusted net income for the fourth quarter of 2012 was $9.6 million compared with $20.6 million in 2011. Adjusted net income removes the effect of non-recurring charges such as unrealized derivative gains and losses, impairment expenses, property sales and one-time items.

On December 31, 2012, the Company closed on the sale of natural gas assets for a transaction value of $335 million. The assets included all Wind River natural gas producing properties, Powder River Basin coal bed methane and a working interest in the Gibson Gulch-Piceance Basin development property. The transaction value was adjusted to the October 1, 2012 effective date and for other customary closing adjustments, providing net proceeds to the Company of $325.3 million, which included a $33.5 million deposit received in November 2012. Net proceeds from the transaction were applied to pay off the $250 million balance on the Company’s revolving credit facility and to working capital, with the remaining proceeds of approximately $30 million to be applied to the Company’s 2013 development capital.

DEBT AND LIQUIDITY

At December 31, 2012, the Company had borrowing capacity of $799.0 million and total debt outstanding of $1.17 billion. The Company had zero drawn on its revolving credit facility. The facility has a borrowing base of $825.0 million less an outstanding letter of credit for $26.0 million. Debt outstanding includes $1,075.3 million principal in senior notes and $97.6 million for a lease financing obligation. The Company has no significant debt maturity before 2016.

OPERATIONS

Production and Capital Expenditures

The following table lists average daily production and capital expenditures by basin for the three and twelve months ended December 31, 2012:

                                                    Average Net Production                       Capital Expenditures
                                                          (MMcfe/d)                                  ($millions)
                                                             ---------                             --------------------
                                    Three Months Ended     Twelve Months Ended     Three Months Ended             Twelve Months Ended
                                    December 31, 2012       December 31, 2012      December 31, 2012               December 31, 2012
    Basin
    -----

    Uinta:
                  Uinta Oil Program                     42                      31                             72                     315
                  West Tavaputs                         77                      95                             14                     107
    Piceance                                           134                     141                             15                     208
    Denver-Julesburg                                    15                      10                             50                     226
    Powder River
     (CBM)                                          26                      30                      -                               -
    Other                                               13                      14                             33                     108
    -----                                              ---                     ---                            ---                     ---

    Total                                              307                     321                            184                     963
    =====                                              ===                     ===                            ===                     ===
    (MMcfe/d: million cubic
     feet equivalent per day)

Operating and Drilling Update

The Company’s 2013 capital budget is focused on development drilling at the Company’s two core oil programs in the Uinta and DJ Basins. The capital budget anticipates drilling or participating in approximately 180 gross/100 net development wells, including approximately 30 non-operated wells, and includes on average four active rigs in the Uinta and two active rigs in the DJ. The budget also anticipates drilling at least five development wells in the Powder River Deep Oil Program.

Uinta Basin, Utah

Uinta Oil Program (Blacktail Ridge, Lake Canyon, East Bluebell and South Altamont) -

The Company is currently running a four-rig program in the area and expects to drill approximately 80-85 gross/45-50 net operated wells in 2013, plus participate in approximately 8 wells operated by its partner in Lake Canyon. Substantially all wells are vertical development wells. The 2013 drilling program includes activity in each of the Company’s positions across the basin, including Blacktail Ridge, Lake Canyon, South Altamont and East Bluebell, and includes testing 80-acre spacing in the Blacktail Ridge area.

During 2012, the Company increased production from the area significantly, increasing 86% in the fourth quarter of 2012 compared with the fourth quarter of 2011. In addition, year-end reserves in the area increased 63% to 47 MMBoe.

At December 31, 2012, the Company had an approximate 76% working interest in production from 226 gross wells. The working interests for wells in the 2013 program are expected to average 54% (or higher depending upon partner elections). As of year-end 2012, the Company had approximately 155,000 net acres (including acreage to be earned) in the program.

West Tavaputs – Drilling in the area remains suspended due to low natural gas prices. Fourth quarter 2012 production was negatively affected by a fire at one of the Company’s compressor stations in the area, with the majority of production back on-line by the start of the first quarter.

At December 31, 2012, the Company had an approximate 96% working interest in production from 298 gross wells.

The Company’s acreage in the area, including acreage at the nearby Hornfrog prospect and other acreage that can be earned, is 71,000 gross and 53,000 net. The Company plans no drilling activity in the area in 2013, which will have a nominal effect on its lease position and is not expected to impact future drilling plans.

Denver-Julesburg Basin, Colorado and Wyoming

Wattenberg – In the rapidly growing DJ Basin program, the Company is currently running one rig with plans to add a second rig in the second quarter. The Company expects to drill approximately 65 gross/45 net operated wells in 2013, plus participate in approximately 20 wells operated by partners. The 2013 drilling plan is primarily focused on horizontal development drilling, targeting the B bench of the Niobrara formation.

The Company initiated pad drilling in the second half of 2012 with three four-well pads. The wells were drilled on average to a vertical depth of approximately 6,400 feet plus a 4,000 foot lateral with an average of 18 fracture stimulation stages. One pad placed all four horizontal wells into the Niobrara B bench and the two additional pads drilled two wells into the Niobrara B and two wells into the Niobrara C benches. Results are encouraging to date, with 24-hour peak rates that averaged 742 Boe/d per well and 30-day average rates of 412 Boe/d per well.

During 2012, the Company significantly increased production from the area, up 2.6 times in the fourth quarter of 2012 compared with the fourth quarter of 2011. The Company increased year-end reserves in the area by 82% to 12 MMBoe and estimated risked resources (see “Reserve and Resource Disclosure” below) in the area at 89 MMBoe with more than 1,000 associated drilling locations.

At December 31, 2012, the Company had an approximate 74% working interest in production from 298 gross wells and held approximately 76,000 net acres in the program including approximately 39,700 in the Northeast Wattenberg where the Company plans to concentrate its 2013 drilling program.

Piceance Basin, Colorado

Gibson Gulch – Drilling in the area remains suspended as a result of low natural gas and NGL prices. In the fourth quarter of 2012, the Company closed on the sale of an 18% interest (which progresses to 26% in 2016) in Gibson Gulch.

A portion of Gibson Gulch natural gas production is processed, at the election of the Company, exposing the Company to the benefits of NGL pricing. The incremental benefit to the Company-wide realized price from natural gas liquids was $0.82 per Mcfe in 2012 and $0.62 per Mcfe in the fourth quarter of 2012. Due to low current and anticipated pricing of ethane, the Company has elected to reject ethane in the processing of NGLs for the first quarter of 2013 and expects it may elect to reject ethane in future quarters of 2013.

At December 31, 2012, the Company had an approximate 80% working interest in production from 955 gross wells in its Gibson Gulch program. The Company plans no drilling activity in the area in 2013, which will have no effect on its lease position, as 99% of the Company’s net acreage is held by production.

ADDITIONAL FINANCIAL INFORMATION

Guidance

The Company’s 2013 guidance (please reference “Forward-Looking Statements” below) is as follows. As previously reported, the Company is committed to not increasing debt year-over-year and intends to fund its capital expenditure program with cash flow and property dispositions.

The Company may update the following guidance as business conditions warrant:

  • Capital expenditures of $475 to $525 million.
  • Oil and natural gas production of 83 to 87 Bcfe on a two-stream basis or oil, natural gas and NGL production of 86 to 90 Bcfe on a three-stream basis. The Company is targeting 50% to 55% growth in oil production in 2013 over 2012 and expects approximately 6% to 8% of production will be NGLs (assuming ethane rejection.)
  • Lease operating costs of $62 to $67 million.
  • Gathering, transportation and processing costs of $72 to $75 million.
  • General and administrative expenses, before non-cash stock-based compensation costs, of $50 to $54 million. This range includes approximately $4 million for one-time charges associated with employee transition costs.

Commodity Hedges Update

It is the Company’s strategy to hedge a portion of its production to reduce the risks associated with unpredictable future commodity prices and to provide predictability for a portion of cash flows in order to support the Company’s capital expenditure program.

For 2013 and 2014, the Company has hedges in place as outlined in the table below. Swap positions for natural gas and NGLs are tied to regional sales points and oil hedge positions are tied to WTI and include:

  • For 2013, approximately 62.4 Bcfe, or approximately 70% of production, at a weighted average blended price of $7.57 per Mcfe.
  • For 2014, approximately 32.8 Bcfe at a weighted average blended price of $7.05 per Mcfe.

The following table summarizes hedge positions as of February 8, 2013:

                                         Natural Gas                          NGLs*            Oil
                                           Volume                             Price            Volume         Price       Volume       Price
               Period                      MMBtu/d                                    $/MMBtu  Gallons              $/Gal  Bopd              $/Bbl
                                                                                              Qtr Total

    1Q13                                              150.0                              3.69         3,375,000      1.78        7,172       98.00
    2Q13                                              127.5                              3.74         3,375,000      1.78        7,500       98.01
    3Q13                                              140.0                              3.70         3,375,000      1.78        7,500       98.01
    4Q13                                              123.4                              3.72         3,375,000      1.78        7,500       98.01
    1Q14                                               75.0                              3.83                 -         -        3,600       95.99
    2Q14                                               75.0                              3.83                 -         -        3,600       95.99
    3Q14                                               75.0                              3.83                 -         -        3,600       95.99
    4Q14                                               75.0                              3.83                 -         -        3,600       95.99

    *NGL volumes include propane, butanes and natural gasoline. No ethane volumes are hedged.

2012 RESULTS WEBCAST AND CONFERENCE CALL

As previously announced, a webcast and conference call will be held tomorrow, February 22, 2013, to discuss 2012 results. Please join Bill Barrett Corporation executive management at 11:00 a.m. Eastern time/9:00 a.m. Mountain time for the live webcast, accessed at www.billbarrettcorp.com, or join by telephone by calling 866-783-2141 (857-350-1600 international callers) with passcode 27941963. The webcast will remain available on the Company’s website for approximately 30 days, and a replay of the call will be available through March 1, 2013 at call-in number 888-286-8010 (617-801-6888 international) with passcode 10028761.

UPCOMING EVENTS

Updated investor presentations will be posted to the homepage of the Company’s website at www.billbarrettcorp.com for each event below. Webcast events will also be accessible on the homepage of the Company’s website:

Investor Conferences

Chief Financial Officer Bob Howard will participate in investor meetings at the Simmons Thirteenth Annual Energy Conference on March 1, 2013. The presentation for this event will be posted at 5:00 p.m. Mountain time on Thursday, February 28, 2013.

Chief Executive Officer Scot Woodall will present at the 41(st) Annual Howard Weil Energy Conference on March 18, 2013 at 2:55 p.m. Central time. The event will not be webcast. The presentation for this event will be posted at 5:00 p.m. Mountain time on Friday, March 15, 2013.

DISCLOSURE STATEMENTS

Natural Gas Liquids

Effective January 1, 2013, the Company intends to report its production volumes on a three-stream basis, which separately reports NGLs extracted from the natural gas stream and sold as a separate product. 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.

Reserve and Resource Disclosure

The SEC permits oil and gas companies to disclose proved, probable and possible reserves in their filings with the SEC. The Company does not plan to include probable and possible reserve estimates in its filings with the SEC.

We may use certain terms in this release, such as “risked resources,” that the SEC’s guidelines strictly prohibit us from including in filings with the SEC. The calculation of risked resources, and any other estimates of reserves and resources that are not proved, probable or possible reserves are not necessarily calculated in accordance with SEC guidelines. Our estimate of risked resources is not prepared or reviewed by third party engineers, is determined using strip pricing, which we use internally for planning and budgeting purposes, and may differ from an un-risked estimate of proved, probable and possible reserves. The Company’s estimate of risked resources is provided in this release because management believes it is useful, additional information that is widely used by the investment community in the valuation, comparison and analysis of companies; however, the Company’s estimate of risked resources may not be comparable to similar metrics provided by other companies. Investors are urged to consider closely the disclosure in our Annual Report on Form 10-K for the year ended December 31, 2012, available on the Company’s website at www.billbarrettcorp.com or from the corporate offices at 1099 18th Street, Suite 2300, Denver, CO 80202. You can also obtain this form from the SEC by calling 1-800-SEC-0330 or at www.sec.gov.

Forward-Looking Statements

This press release contains forward-looking statements, including statements regarding projected results and future events. In particular, the Company is providing “2013 guidance,” which contains projections for certain 2013 operational and financial metrics. These forward-looking statements are based on management’s judgment as of the date of this press release and include certain risks and uncertainties. Please refer to the Company’s Annual Report on Form 10-K for the year ended December 31, 2012 filed with the SEC, and other filings including our Current Reports on Form 8-K and Quarterly Reports on Form 10-Q, for a list of certain risk factors that may affect these forward-looking statements. The Company provided unaudited estimates of certain year-end financial results, which are subject to revision in our audited financial statements to be included in our Annual Report on Form 10-K for the year ended December 31, 2012.

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: oil, NGL and natural gas price volatility; costs and availability of third party facilities for gathering, processing, refining and transportation; the ability to receive drilling and other permits and rights-of-way; regulatory approvals, including regulatory restrictions on federal lands; legislative or regulatory changes, including initiatives related to hydraulic fracturing; exploration risks such as drilling unsuccessful wells; higher than expected costs and expenses, including the availability and cost of services and materials; unexpected future capital expenditures; economic and competitive conditions; debt and equity market conditions, including the availability and costs of financing to fund the Company’s operations; 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; declines in the values of our oil and gas properties resulting in impairments; changes in estimates of proved reserves; development drilling and testing results; the potential for production decline rates to be greater than we expect; performance of acquired properties; compliance with environmental and other regulations; derivative and hedging activities; 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. Bill Barrett Corporation encourages readers to consider the risks and uncertainties associated with projections and other forward-looking 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, explores for and develops natural gas and oil in the Rocky Mountain region of the United States. Additional information about the Company may be found on its website www.billbarrettcorp.com.

                                                                  BILL BARRETT CORPORATION
                                                                Selected Operating Highlights
                                                                         (Unaudited)

                                                                                                         Three Months Ended             Twelve Months Ended
                                                                                                            December 31,                   December 31,
                                                                                                            ------------                   ------------
                                                                                                            2012           2011          2012           2011
                                                                                                            ----           ----          ----           ----
    Production Data:
    ----------------
                                          Natural gas (MMcf)                                              23,070         26,260       101,486         97,856
                                          Oil (MBbls)                                                        857            466         2,687          1,490
                                          Combined volumes (MMcfe)                                        28,212         29,056       117,608        106,796
                                          Daily combined volumes (Mmcfe/d)                                   307            316           321            293
                                          --------------------------------                                   ---            ---           ---            ---
    Average Prices (before the effects of
     realized hedges):
    -------------------------------------
                                          Natural gas (per Mcf)                                (1) $4.56   $5.44                $4.00   $5.71
                                          Oil (per Bbl)                                                    75.03          81.57         79.39          81.97
                                          Combined (per Mcfe)                                               6.01           6.23          5.27           6.37
                                          ------------------                                                ----           ----          ----           ----
    Average Realized Prices (after the
     effects of realized hedges):
    ----------------------------------
                                          Natural gas (per Mcf)                                (1) $5.18   $6.26                $5.07   $6.46
                                          Oil (per Bbl)                                                    83.84          81.48         84.96          80.63
                                          Combined (per Mcfe)                                               6.78           6.96          6.32           7.05
                                          ------------------                                                ----           ----          ----           ----
    Average Costs (per Mcfe):
    -------------------------
                                          Lease operating expense                                          $0.64          $0.54         $0.62          $0.53
                                           Gathering, transportation and processing
                                           expense                                                          0.94           0.94          0.91           0.87
                                          Production tax expense                                            0.15           0.28          0.22           0.35
                                          Depreciation, depletion and amortization             (3)  3.32    2.68                 2.91    2.70
                                           General and administrative expense, excluding
                                           non-cash stock-based compensation                   (2)  0.47    0.39                 0.44    0.45
                                          ---------------------------------------------       ---   ----    ----                 ----    ----
    (1)            Natural gas average
                   prices include the
                   effect of NGL revenues.

    (2)            Management believes the
                   separate presentation of
                   the non-cash component
                   of general and
                   administrative expense
                   is useful because the
                   cash portion provides a
                   better understanding of
                   cash required for
                   general and
                   administrative expenses.
                   Management also believes
                   that this disclosure may
                   allow for a more
                   accurate comparison to
                   the Company's peers that
                   may have higher or lower
                   costs associated with
                   equity grants.

    (3)            The calculation of the
                   per unit DD&A rate for
                   the fourth quarter of
                   2012 is adjusted to
                   reflect the fourth
                   quarter asset sale. The
                   assets were excluded
                   from the overall
                   corporate depletion
                   pool, and the per unit
                   calculation adjusts the
                   production accordingly.

                                                                                                                                    BILL BARRETT CORPORATION
                                                                                                                              Consolidated Statements of Operations
                                                                                                                                           (Unaudited)

                                                                                              Three Months Ended                                   Twelve Months Ended
                                                                                                 December 31,                                         December 31,
                                                                                                 ------------                                         ------------
                                                                                                                        2012                                                 2011                                                 2012                                                 2011
                                                                                                                        ----                                                 ----                                                 ----                                                 ----
    (in thousands, except per share amounts)

    Operating and Other Revenues:
    -----------------------------
                                        Oil and gas
                                        production                            (1)                                   $184,083                                             $207,615                                             $700,639                                             $780,751
                                       Other                                                                          (4,282)                                                 845                                                 (444)                                               4,873
                                       -----                                                                          ------                                                  ---                                                 ----                                                -----
                                        Total operating
                                        and other
                                        revenues                                                                     179,801                                              208,460                                              700,195                                              785,624
                                       ---------------                                                               -------                                              -------                                              -------                                              -------

    Operating Expenses:
    -------------------
                                       Lease operating                                                                18,063                                               15,546                                               72,734                                               56,603
                                        Gathering,
                                        transportation
                                        and processing                                                                26,609                                               27,318                                              106,548                                               93,423
                                       Production tax                                                                  4,320                                                8,205                                               25,513                                               37,498
                                       Exploration                                                                       751                                                1,043                                                8,814                                                3,645
                                        Impairment, dry
                                        hole costs and
                                        abandonment                                                                    7,690                                               99,036                                               67,869                                              117,599
                                        Depreciation,
                                        depletion and
                                        amortization                                                                  75,425                                               78,015                                              326,842                                              288,421
                                        General and
                                        administrative                        (2)                                     13,196                                               11,195                                               52,222                                               47,744
                                        Non-cash
                                        stock-based
                                        compensation                          (2)                                      4,029                                                5,337                                               16,444                                               19,036
                                       ------------                          ---                                       -----                                                -----                                               ------                                               ------
                                        Total operating
                                        expenses                                                                     150,083                                              245,695                                              676,986                                              663,969
                                       ---------------                                                               -------                                              -------                                              -------                                              -------
    Operating Income/ (Loss)                                                                                          29,718                                              (37,235)                                              23,209                                              121,655
    ------------------------                                                                                          ------                                              -------                                               ------                                              -------
    Other Income and Expense:
    -------------------------
                                        Interest income
                                        and other
                                        income
                                        (expense)                                                                         27                                                 (560)                                               1,756                                                 (397)
                                        Interest
                                        expense                                                                      (25,477)                                             (20,238)                                             (95,506)                                             (58,616)
                                        Commodity
                                        derivative
                                        gain (loss)                           (1)                                     19,328                                               (1,529)                                              72,759                                              (14,263)
                                        Total other
                                        income and
                                        expense                                                                       (6,122)                                             (22,327)                                             (20,991)                                             (73,276)
                                        -----------                                                                   ------                                              -------                                              -------                                              -------
    Income (Loss) before Income Taxes                                                                                 23,596                                              (59,562)                                               2,218                                               48,379
    Provision for (Benefit from) Income Taxes                                                                          9,579                                              (21,782)                                               1,636                                               17,672
    -----------------------------------------                                                                          -----                                              -------                                                -----                                               ------
    Net Income (Loss)                                                                                                $14,017                                             $(37,780)                                                $582                                              $30,707
    ----------------                                                                                                 -------                                             --------                                                 ----                                              -------

    Net Income (Loss) Per Common Share
                                       Basic                                                                           $0.30                                               $(0.81)                                               $0.01                                                $0.66
                                       Diluted                                                                         $0.30                                               $(0.81)                                               $0.01                                                $0.65
                                       -------                                                                         -----                                               ------                                                -----                                                -----

    Weighted Average Common Shares Outstanding
                                       Basic                                                                          47,260                                               46,888                                               47,195                                               46,536
                                       Diluted                                                                        47,358                                               46,888                                               47,354                                               47,237
                                       -------                                                                        ------                                               ------                                               ------                                               ------

    (1)                                 The table below summarizes the realized and unrealized gains and losses the Company recognized
                                        related to its oil and natural gas derivative instruments for the periods indicated:

                                                                                        Three Months Ended December 31,                      Twelve Months Ended December 31,
                                                                                        -------------------------------                     --------------------------------
                                                                                                                        2012                                                 2011                                                 2012                                                 2011
                                                                                                                        ----                                                 ----                                                 ----                                                 ----
                                        Included in oil
                                        and gas
                                        production
                                        revenue:
                                        Certain
                                        realized gains
                                        on hedges                                                                    $14,514                                              $26,699                                              $81,166                                              $99,922

                                        Included in
                                        commodity
                                        derivative
                                        gain (loss):
                                        Realized gain
                                        (loss) on
                                        derivatives
                                        not designated
                                        as cash flow
                                        hedges                                                                        $7,291                                              $(5,349)                                             $42,305                                             $(28,054)
                                        Unrealized
                                        ineffectiveness
                                        gain (loss)
                                        recognized on
                                        derivatives
                                        designated as
                                        cash flow
                                        hedges                                                                             -                                                   (6)                                                   -                                                1,026
                                        Unrealized gain
                                        on derivatives
                                        not designated
                                        as cash flow
                                        hedges                                                                        12,037                                                3,826                                               30,454                                               12,765
                                          Total commodity
                                           derivative
                                           gain (loss)                                                               $19,328                                              $(1,529)                                             $72,759                                             $(14,263)

    (2)                                 Management believes the separate presentation of the non-cash component of general and
                                        administrative expense is useful because the cash portion provides a better understanding of cash
                                        required for general and administrative expenses. Management also believes that this disclosure may
                                        allow for a more accurate comparison to the Company's peers that may have higher or lower costs
                                        associated with equity grants.

                                                                                             BILL BARRETT CORPORATION
                                                                                      Consolidated Condensed Balance Sheets
                                                                                                   (Unaudited)

                                                                                                             As of                                                              As of
                                                                                                       December 31, 2012                                                  December 31, 2011
    (in thousands)

    Assets:
    -------
                          Cash and cash
                          equivalents                                        $79,445                                                         $57,331
                          Other current
                          assets                                    (1)      148,894                                                         189,012
                          Property and
                          equipment, net                                   2,611,337                                                       2,406,764
                          Other noncurrent
                          assets                                    (1)       29,773                                                          34,823
                         -----------------                                    ------                                                          ------
                         Total assets                                     $2,869,449                                                      $2,687,930
                         ------------                                     ----------                                                      ----------

    Liabilities and Stockholders' Equity:
    -------------------------------------
                          Current
                          liabilities                               (1)     $213,133                                                        $233,198
                          Notes payable to
                          bank                                                     -                                                          70,000
                         Capital lease                                        88,519                                                               -
                         Senior notes                                      1,042,791                                                         641,198
                          Convertible
                          senior notes                                        25,344                                                         171,042
                          Other long-term
                          liabilities                               (1)      316,887                                                         353,654
                          Stockholders'
                          equity                                           1,182,775                                                       1,218,838
                         --------------                                    ---------                                                       ---------
                          Total
                          liabilities
                          and
                          stockholders'
                          equity                                          $2,869,449                                                      $2,687,930
                         -------------                                    ----------                                                      ----------
    (1)            At December
                   31, 2012,
                   the
                   estimated
                   fair value
                   of all of
                   our
                   commodity
                   derivative
                   instruments
                   was a net
                   asset of
                   $32.6
                   million,
                   comprised
                   of: $30.0
                   million
                   current
                   assets;
                   $3.0
                   million
                   non-
                   current
                   assets; and
                   $0.4
                   million
                   non-
                   current
                   liabilities.
                    This
                    amount will
                   fluctuate
                   quarterly
                   based on
                   estimated
                   future
                   commodity
                   prices and
                   the current
                   hedge
                   position.

                                                                                                                                    BILL BARRETT CORPORATION
                                                                                                                             Consolidated Statements of Cash Flows
                                                                                                                                          (Unaudited)

                                                                                                    Three Months Ended                                    Twelve Months Ended
                                                                                                       December 31,                                          December 31,
                                                                                                       ------------                                          ------------
                                                                                                                             2012                                                  2011                                                   2012                                                  2011
                                                                                                                             ----                                                  ----                                                   ----                                                  ----
    (in thousands)

    Operating Activities:
    ---------------------
                     Net income (loss)                                          $14,017                                              $(37,780)                                                 $582                                                $30,707
                      Adjustments to
                      reconcile to net
                      cash provided by
                      operations:
                      Depreciation,
                      depletion and
                      amortization                                               75,425                                                78,015                                               326,842                                                288,421
                      Impairment, dry
                      hole costs and
                      abandonment
                      expense                                                     7,690                                                99,036                                                67,869                                                117,599
                      Unrealized
                      derivative
                      (gain)\loss                                               (12,037)                                               (3,820)                                              (30,454)                                               (13,791)
                      Deferred income
                      taxes                                                       7,484                                               (21,782)                                                 (217)                                                17,688
                      Stock
                      compensation
                      and other non-
                      cash charges                                                4,047                                                 5,995                                                16,727                                                 21,953
                      Amortization of
                      debt discounts
                      and deferred
                      financing costs                                             1,715                                                 4,037                                                 8,425                                                 13,886
                      Loss (gain) on
                      sale of
                      properties                                                  4,387                                                    54                                                 4,279                                                 (1,955)
                     ---------------                                              -----                                                   ---                                                 -----                                                 ------
                      Change in assets
                      and
                      liabilities:
                                           Accounts receivable                                                            (14,986)                                              (12,901)                                               (10,511)                                              (27,680)
                                           Prepayments and other assets                                                      (222)                                                 (808)                                                 1,293                                                 1,809
                                            Accounts payable, accrued and
                                            other liabilities                                                               7,402                                                36,683                                                  2,589                                                24,531
                                            Amounts payable to oil & gas
                                            property owners                                                                 3,421                                               (11,771)                                                 3,988                                                (4,010)
                                           Production taxes payable                                                          (510)                                                  417                                                 (2,976)                                               10,190
                                           ------------------------                                                          ----                                                   ---                                                 ------                                                ------

                      Net cash
                      provided by
                      operating
                      activities                                                $97,833                                              $135,375                                              $388,436                                               $479,348
                     ------------                                               -------                                              --------                                              --------                                               --------
    Investing Activities:
    ---------------------
                      Additions to oil
                      and gas
                      properties,
                      including
                      acquisitions                                             (207,109)                                             (245,809)                                             (958,654)                                              (947,206)
                      Additions of
                      furniture,
                      equipment and
                      other                                                      (1,712)                                               (5,384)                                               (7,231)                                               (11,142)
                      Proceeds from sale
                      of properties and
                      other investing
                      activities                                                328,797                                                  (102)                                              328,888                                                  1,702

                      Net cash
                      provided by
                      (used in)
                      investing
                      activities                                               $119,976                                             $(251,295)                                            $(636,997)                                             $(956,646)
                     ------------                                              --------                                             ---------                                             ---------                                              ---------
    Financing Activities:
    ---------------------
                     Proceeds from debt                                          90,000                                                70,000                                               875,826                                                800,000
                      Principal payments
                      on debt                                                  (252,223)                                                    -                                              (595,386)                                              (330,000)
                      Deferred financing
                      costs and other                                               (74)                                               (5,224)                                              (10,438)                                               (16,308)
                      Proceeds from stock
                      option exercises                                                -                                                 3,256                                                   673                                                 22,247
                     -------------------                                            ---                                                 -----                                                   ---                                                 ------

                      Net cash
                      provided by
                      (used in)
                      financing
                      activities                                              $(162,297)                                              $68,032                                              $270,675                                               $475,939
                     ------------                                             ---------                                               -------                                              --------                                               --------

    Increase (Decrease) in Cash and Cash Equivalents                                                                       55,512                                               (47,888)                                                22,114                                                (1,359)

    Beginning Cash and Cash Equivalents                                                                                    23,933                                               105,219                                                 57,331                                                58,690
    -----------------------------------                                                                                    ------                                               -------                                                 ------                                                ------

    Ending Cash and Cash Equivalents                                                                                      $79,445                                               $57,331                                                $79,445                                               $57,331
    --------------------------------                                                                                      -------                                               -------                                                -------                                               -------

                                                                                                                                            BILL BARRETT CORPORATION
                                                                                                                        Reconciliation of Discretionary Cash Flow & Adjusted Net Income
                                                                                                                                                  (Unaudited)

    Discretionary Cash Flow Reconciliation
                                                                                               Three Months Ended                                      Twelve Months Ended
                                                                                                  December 31,                                             December 31,
                                                                                                  ------------                                             ------------
                                                                                                                         2012                                                     2011                                                     2012                                                         2011
                                                                                                                         ----                                                     ----                                                     ----                                                         ----
    (in thousands, except per share amounts)

    Net Income (Loss)                                                                                                 $14,017                                                 $(37,780)                                                    $582                                                      $30,707

    Adjustments to reconcile to discretionary cash flow:
                             Depreciation,
                             depletion and
                             amortization                                 75,425                                                   78,015                                                  326,842                                                      288,421
                             Impairment, dry
                             hole and
                             abandonment
                             expense                                       7,690                                                   99,036                                                   67,869                                                      117,599
                            Exploration expense                              751                                                    1,043                                                    8,814                                                        3,645
                             Unrealized
                             derivative
                             (gain)/loss                                 (12,037)                                                  (3,820)                                                 (30,454)                                                     (13,791)
                             Deferred income
                             taxes                                         7,484                                                  (21,782)                                                    (217)                                                      17,688
                             Stock compensation
                             and other non-
                             cash charges                                  4,047                                                    5,995                                                   18,328                                                       21,953
                             Amortization of
                             debt discounts and
                             deferred financing
                             costs                                         1,715                                                    4,037                                                    8,425                                                       13,886
                             Gain on
                             extinguishment of
                             debt                                              -                                                        -                                                   (1,601)                                                           -
                             Loss (gain) on sale
                             of properties                                 4,387                                                       54                                                    4,279                                                       (1,955)
                            -------------------                            -----                                                      ---                                                    -----                                                       ------
    Discretionary Cash Flow                                                                                          $103,479                                                 $124,798                                                 $402,867                                                     $478,153
    -----------------------                                                                                          --------                                                 --------                                                 --------                                                     --------

                            Per share, diluted                             $2.19                                                    $2.66                                                    $8.51                                                       $10.12
                            Per Mcfe                                       $3.67                                                    $4.30                                                    $3.43                                                        $4.48

    Adjusted Net Income (Loss) Reconciliation
                                                                                               Three Months Ended                                      Twelve Months Ended
                                                                                                  December 31,                                             December 31,
                                                                                                  ------------                                             ------------
                                                                                                                         2012                                                     2011                                                     2012                                                         2011
                                                                                                                         ----                                                     ----                                                     ----                                                         ----
    (in thousands except per share amounts)

    Net Income (Loss)                                                                                                 $14,017                                                 $(37,780)                                                    $582                                                      $30,707

    Adjustments to net income (loss):
                             Unrealized
                             derivative
                             (gain)/loss                                 (12,037)                                                  (3,820)                                                 (30,454)                                                     (13,791)
                            Impairment expense                               239                                                   96,399                                                   37,348                                                      100,278
                             Loss (gain) on sale
                             of properties                                 4,387                                                       54                                                    4,279                                                       (1,955)
                            One time items:
                             Gain on
                             extinguishment
                             of debt                                           -                                                        -                                                   (1,601)                                                           -
                            --------------                                   ---                                                      ---                                                   ------                                                          ---
                             Subtotal
                             Adjustments                                  (7,411)                                                  92,633                                                    9,572                                                       84,532
                            Effective tax rate                                41%                                                      37%                                                      34%                                          (1)             37%
                            ------------------                               ---                                                      ---                                                      ---                                          ---             ---
                             Tax effected
                             adjustments                                  (4,372)                                                  58,359                                                    6,327                                                       53,255

    Adjusted Net Income                                                                                                $9,645                                                  $20,579                                                   $6,909                                                      $83,962
    -------------------                                                                                                ------                                                  -------                                                   ------                                                      -------

                            Per share, diluted                             $0.20                                                    $0.44                                                    $0.15                                                        $1.78
                            Per Mcfe                                       $0.34                                                    $0.71                                                    $0.06                                                        $0.79
    (1) The annualized rate was adjusted to a weighted rate so that the
     four quarters would sum.

    The non-GAAP (Generally Accepted Accounting Principles in the United
     States of America) measures of discretionary cash flow and adjusted
     net income are presented because management believes that they
     provide useful additional information to investors for analysis of
     the Company's ability to internally generate funds for exploration,
     development and acquisitions as well as adjusting net income for
     unusual items to allow for a more consistent comparison from period
     to period. In addition, these measures are widely used by
     professional research analysts and others in the valuation,
     comparison and investment recommendations of companies in the oil
     and gas exploration and production industry, and many investors use

    These measures should not be considered in isolation or as a
     substitute for net income, income from operations, net cash provided
     by operating activities or other income, profitability, cash flow or
     liquidity measures prepared in accordance with GAAP. Because
     discretionary cash flow and adjusted net income exclude some, but
     not all, items that affect net income and net cash provided by
     operating activities and may vary among companies, the amounts
     presented may not be comparable to similarly titled measures of
     other companies.

                                                          BILL BARRETT CORPORATION
                                                   Costs Incurred and Reserve Information
                                                                 (Unaudited)

                                                                                            2012    2011    2010
                                                                                            ----    ----    ----
    ($ in millions)

    TOTAL CAPITAL EXPENDITURES                                                  $962.6    $987.3  $473.3
                                     Furniture, fixtures and equipment and real
                                     estate                                                 (6.9)  (10.6)   (3.8)
                                    Change in asset retirement obligation                    8.3    12.1     1.3
                                    -------------------------------------                    ---    ----     ---
    TOTAL COSTS INCURRED (1)                                                    $964.0    $988.8  $470.8
    -----------------------                                                     ------    ------  ------

    TOTAL COSTS INCURRED DISCLOSURE
                                    Exploration costs                                       32.5    20.8   $82.8
                                    Development costs                                      754.2   607.7   358.3
                                    Acquisition costs:
                                       Unproved properties                                 163.0   183.4    25.2
                                       Proved properties                                     6.0   164.8     3.2
                                    Change in asset retirement obligation                    8.3    12.1     1.3
                                    -------------------------------------                    ---    ----     ---
    TOTAL COSTS INCURRED (1)                                                               964.0   988.8   470.8
                                           less: asset retirement obligation                (8.3)  (12.1)   (1.3)
                                           less: (Proceeds)/adjusted proceeds received
                                            from JV partners                                   -       -     1.5
                                           less: Capitalized interest                       (0.5)   (1.4)   (4.2)
                                    --------------------------                              ----    ----    ----
                                       Adjusted costs incurred                            $955.2  $975.3  $466.8
                                    -----------------------                               ------  ------  ------

    RESERVE ADDITIONS (Bcfe)
                                    Extensions, discoveries and other additions            187.3   211.4   185.1
                                     Revisions of previous estimates based on
                                     performance                                           (44.0)   37.9    39.8
                                     Revisions of previous estimates based on price
                                     or aging                                             (129.2)    5.5    27.4
                                    Purchases of reserves in place                           1.8    98.3     1.4
                                    ------------------------------                           ---    ----     ---
                                    RESERVE ADDITIONS Bcfe                                  15.9   353.1   253.7
                                    ----------------------                                  ----   -----   -----
                                    RESERVE ADDITIONS MMBoe                                  2.7    58.9    42.3
                                    -----------------------                                  ---    ----    ----

    SALES INFORMATION
    -----------------
                                    Property sales                                        $329.0    $2.0    $4.4
                                    Sales of reserves (Bcfe)                               219.3       -     3.7
                                    -----------------------                                -----     ---     ---
             (1) Costs
             Incurred is
             a defined
             capital
             expenditure
             used in the
             discussion
             of proved
             reserves in
             the
             Company's
             Form 10-K
             for the
             years
             indicated.

SOURCE Bill Barrett Corporation


Source: PR Newswire