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Bill Barrett Corporation Reports Record Second Quarter 2008 Results

August 5, 2008

Bill Barrett Corporation (NYSE: BBG) today reported second quarter 2008 operating results highlighted by:

 --  Production growth, up 28% from the prior year period to 19.2 billion     cubic feet equivalent (Bcfe) --  Discretionary cash flow growth, up 106% from the prior year period to     $113.4 million or $2.50 per diluted common share and $5.90 per million     cubic feet equivalent (Mcfe) --  Net income growth, up 243% from the prior year period to $34.0 million     or $0.75 per diluted common share      

Chairman and Chief Executive Officer, Fred Barrett, commented:

“The second quarter 2008 marks another particularly strong quarter, achieving record production, cash flow and earnings. We are building on the success of our first quarter performance by further increasing production, maintaining low lease operating expenses and realizing strong pricing.

“Our exploration activity is well underway. At our Yellow Jacket shale gas prospect in the Paradox Basin, we finished drilling our first horizontal well with a 2,900 foot lateral and are testing six stages that were fracture stimulated. At Blacktail Ridge/Lake Canyon, we are continuing to drill our delineation program, recently completing our first two infill test wells with encouraging preliminary results.

“As a result of our strong first half 2008 results, including improved operating cost performance, we are updating some of our 2008 forecasts. We are raising our production estimate range to 77 – 80 Bcfe from its prior estimate of 74 – 78 Bcfe. We also anticipate an increase in capital expenditures to $625 – $650 million, up $50 million, which will include increased 2008 drilling at our Piceance and West Tavaputs projects. And, we are achieving lower lease operating expenses and have reduced the estimated cost per Mcfe to $0.62 – $0.65 from $0.64 – $0.68.”

Production for the quarter ended June 30, 2008 was 19.2 Bcfe, representing a 28% increase from the second quarter of 2007 and a 5% increase sequentially. For the first half 2008, production totaled 37.4 Bcfe, representing a 28% increase compared with 29.2 Bcfe in the first half of 2007. During the second quarter 2008, Rocky Mountain regional natural gas prices continued to be strong while oil prices reached record highs. Including the effects of the Company’s hedging activities, the average sales price realized in the second quarter of 2008 was $8.31 per Mcfe compared with $5.92 per Mcfe in the second quarter of 2007.

Discretionary cash flow (a non-GAAP measure, see page 12 for explanation and reconciliation) was $113.4 million in the second quarter of 2008, or $2.50 per diluted common share, up 106% compared with the second quarter of 2007. The year-over-year increase was primarily the result of the 28% increase in production, a 40% increase in the average realized price and a 42% decline in per unit lease operating expenses, partially offset by higher per unit gathering, transportation and production tax expenses. For the first half of 2008, discretionary cash flow was $221.7 million, or $4.90 per diluted common share, up 79% compared with $123.7 million or $2.77 per diluted common share in the prior year period, also due primarily to increased production, higher commodity prices and lower per unit lease operating expenses.

Net income was $34.0 million, or $0.75 per diluted common share, for the second quarter of 2008 compared with $9.9 million or $0.22 per diluted common share in the second quarter of 2007. The 243% increase in net income was primarily a result of higher production and a higher per unit profit margin, including reduced per unit depreciation, depletion and amortization expenses. For the first six months of 2008, net income was $64.7 million, or $1.43 per diluted common share, up from $24.0 million or $0.54 per diluted common share in the prior year period, also as a result of higher production and a higher per unit profit margin.

OPERATIONS

Production, Wells Spud and Capital Expenditures

The following table lists production, wells spud and total capital expenditures by basin for the second quarter of 2008:

                                                  Year to Date through                     Second Quarter 2008              June 30, 2008                  Average                       Average                    Net      Wells   Capital      Net      Wells   Capital                Production   Spud  Expenditures Production Spud Expenditures Basin           (MMcfe/d)  (gross) (millions) (MMcfe/d)  (gross) (millions)                 ---------- ------- ---------- ---------- ------- ---------- Uinta                   76      16 $     39.4         78      26 $     77.2 Piceance                86      31       54.3         85      61      104.2 Powder River            21      39        8.4         19     113       16.5 Wind River              28       0        7.6         24       1       15.0 Other                   --       3        8.3         --       3       14.1                 ---------- ------- ---------- ---------- ------- ---------- Total                  211      89 $    118.0        206     204 $    227.0                 ========== ======= ========== ========== ======= ========== 

Second quarter 2008 capital expenditures totaled $118 million. The Company has increased its capital budget for 2008 to $625 to $650 million from $575 to $600 million. The increased estimate includes maintaining a fourth and adding a fifth rig at the Piceance Basin development project, thereby increasing total wells to be drilled in 2008, and drilling additional wells at the West Tavaputs development project in 2008, enabled by improved drilling times, as well as certain increased drilling costs. The Company expects to spend approximately 80% of its 2008 capital budget on development at its key assets in the Uinta, Piceance and Powder River Basins, and approximately 20% on delineation of prior discoveries and new exploration. The Company has 16 rigs currently drilling and anticipates participating in the drilling of 435 to 460 gross wells, up from 415 to 450, for the full year 2008, including 230 coal bed methane (CBM) wells.

Operating and Drilling Update

Uinta Basin, Utah

West Tavaputs — Current net production is approximately 63 million cubic feet per day (MMcfe/d). During June and July, the Company added two rigs for a total of three shallow rigs currently drilling. The Company has contracted with a third party provider for additional processing capacity and expects approximately 39 MMcf/d to come on line in early September, increasing to approximately 65 MMcf/d in September 2009. The Company continues to expect the Record of Decision on the Environmental Impact Statement for this property by year-end.

The West Tavaputs program continues to offer low-risk growth in the shallow zones as well as upside opportunity through the deep potential of the east and west structures and in the Mancos shale. At the end of the second quarter 2008, the Company had an approximate 97% working interest in production from 102 gross wells in its West Tavaputs shallow and deep programs.

During the second quarter of 2008, the Company recompleted the 15-6 deep well to test the Mancos shale. Recompletion included fracture stimulation of six zones. Due to problems in the well casing, three of the six stimulations were unsuccessful and three were sub-optimal. Despite a compromised well completion, the well initially produced between 400 and 500 Mcf/d and currently produces between 200 and 250 Mcf/d. The Company plans to further test the Mancos shale in 2009.

In June 2008, the Company tested the Peter’s Point 7-1 ultra-deep well targeting the Pennsylvanian Weber and Mississippian Leadville formations and determined the targeted zones were non-commercial. As a result, a dry hole expense of $3.4 million was recorded in the second quarter of 2008 for the proportionate share of well costs attributable to the ultra-deep zones. However, the Company intends to complete the well in certain zones at or above 15,970 feet, including the Navajo and potentially the Moenkopi and Mancos shales.

Blacktail Ridge/Lake Canyon — The Company currently has 10 producing wells and four wells to be completed in the area with current gross production averaging more than 950 barrels of oil equivalent per day (boepd) for the month of July. Production has yet to be optimized for all of the producing wells as the Company tests the productivity of selected depth intervals, completion methods and geologic areas, including its infill location inventory. Results from the first two infill wells have been encouraging to date, and we are continuing completion activity on those two wells.

Piceance Basin, Colorado

Gibson Gulch — Current net production is approximately 86 MMcfe/d. Expansion of Company owned compression facilities is expected to be completed August 15, 2008, adding 30 MMcf/d gross of compression capacity with additional facilities for 20 MMcf/d gross capacity to be completed in October. The Piceance program continues to be a key, low-risk, high growth development area for the Company.

The Company currently has four rigs operating in the area and plans to add a fifth purpose-built rig in late August. Compared with the initial 2008 Piceance drilling program set in late 2007, the Company expects to drill 20 – 25 additional wells with the addition of a fourth and fifth rig. Drilling results on 10-acre density continue to be positive with 46 successful 10-acre wells drilled year-to-date.

At the end of the second quarter of 2008, the Company had an approximate 93% working interest in production from 365 gross wells in its Gibson Gulch program.

Powder River Basin, Wyoming

Coal Bed Methane (CBM) — Current CBM net production is approximately 20 MMcfe/d and the Company has five rigs operating in the area. While Big George CBM production in the Cat Creek area remains constrained, production in the area continues to increase with additional compression capacity added in the second quarter and more compression capacity scheduled for early third quarter of 2008. During the third quarter, the Company anticipates new production from the Pumpkin Creek and Willow Creek areas and continued ramp-up in production from the Dead Horse and Pine Tree areas.

At the end of the second quarter of 2008, the Company had an approximate 73% working interest in production from 690 gross CBM wells.

Wind River Basin, Wyoming

Cave Gulch/Bullfrog — During the second quarter, the Company recompleted a third zone in the Bullfrog 14-18 Frontier well (68% net revenue interest/94% working interest) that has produced at rates as high as 29 MMcfe/d gross and is currently producing at approximately 23 MMcfe/d gross. The Company has identified two similar recompletion opportunities on other Company operated wells along the same fault block, one of which is underway.

The Cave Gulch deep drilling program was initiated in February 2008 with the spud of the 31-32 well (37% working interest) targeting the Frontier, Muddy and Lakota formations at 17,000 – 19,000 feet. The well encountered circulation problems in the highly fractured Frontier zone, requiring sidetracking of the well. The well is expected to reach total depth at approximately 18,950 feet in mid-August, and the Company intends to operate a one-rig continuous program in the area through 2008.

Paradox Basin, Colorado

Yellow Jacket — In late July 2008, the Company completed its first horizontal test well (55% working interest) at the Yellow Jacket prospect. The well encountered gas shows in the Gothic shale through the entire 2,900 foot lateral and was completed with six fracture stimulation stages. We are currently recovering fracture stimulation fluid pumped into this well, which is expected to take up to three weeks.

Green Jacket — The Company is planning to drill a 5,800 foot vertical well (50% working interest) to test the Hovenweep shale and expects to spud the well later in the month.

Salt Flank — Later in the third quarter, the Company expects to spud its first Pine Ridge well (80% working interest), targeting the Cutler and Honaker Trail formations to a depth of 10,000 feet.

Hook — During July 2008, the Company spud its first well (50% working interest) in the Hook prospect, targeting the Manning Canyon shale. The well is expected to reach total depth at approximately 8,000 feet in August 2008.

Montana Overthrust, Montana

Circus — During the second quarter of 2008, the Company drilled two of four wells planned in 2008 to analyze and test the Cody shale and has commenced drilling of the third well. Approximately 969 feet of core from the second well is being evaluated and additional core will be cut and evaluated on the third well prior to well completions. Production from this area will depend on the discovery of commercial quantities of natural gas to support infrastructure build-out. The Company has a 50% working interest in this potential regional resource play.

ADDITIONAL FINANCIAL INFORMATION

Guidance

The Company is confirming and/or updating its 2008 full year guidance as follows:

 --  Oil and natural gas production of 77 to 80 Bcfe, up from 74 to 78 Bcfe --  Lease operating costs per Mcfe of $0.62 to $0.65, down from $0.64 to     $0.68 --  Gathering and transportation costs per Mcfe of $0.54 to $0.59,     unchanged --  General and administrative expenses before noncash stock-based     compensation  between $38 and $40 million, unchanged --  Capital budget increased to $625 to $650 million from $575 to $600     million      

Commodity Hedges Update

During the second quarter of 2008, the Company had hedges in place for approximately 70% of its natural gas production volumes and approximately 67% of its oil production volumes, which resulted in a decrease in natural gas revenues of $21.8 million and a reduction in oil revenues of $4.6 million. The net effect reduced the average price received per Mcfe from $9.68 to $8.31.

For the remaining two quarters of 2008, the Company has hedges in place for approximately 29 Bcfe, or approximately 68% to 73% of projected production. The Company also has hedges in place for approximately 60 Bcfe in 2009 and approximately 44 Bcfe in 2010. It is currently the Company’s strategy to hedge 50% to 70% of production through basis at regional sales points on a forward basis in order to reduce the risks associated with unpredictable future natural gas and oil prices and to provide certainty for a portion of its cash flow to support its capital expenditure program.

The following table summarizes swap positions as of July 31, 2008:

                Natural Gas                     Oil          -------------------------   ------------------------                        Weighted                       Average Swap               Weighted                          Price                  Average Swap            Volume      (CIG,TCO or     Volume      Price Period    (MMBtu/d)    PEPL/MMBtu)    (Bbls/d)   (WTI/Bbl) 3Q08          123        $6.64          575       $73.84 4Q08          116         7.10          575        73.84 1Q09          159         7.96          375        74.41 2Q09          159         6.89          375        74.41 3Q09          159         6.89          375        74.41 4Q09           99         7.32          375        74.41 1Q10           89         7.69           --           -- 2Q10          142         6.94           --           -- 3Q10          142         6.94           --           -- 4Q10           61         7.02           --           -- 

In addition, the Company has hedged certain volumes with collar contracts as follows:

                               Natural Gas                     Oil                         -------------------------  ------------------------                          Volume    Price (CIG or     Volume Period                  (MMBtu/d)     PEPL/MMBtu)  (Bbls/d) Price (WTI/Bbl) CAL 2008                      35 $  6.50/$ 10.00        525 $ 70.48/$ 81.62 Nov-Dec 2008                  30      7.83/12.08 Jun-Dec 2008                                            100    90.00/160.00 CAL 2009                      25      6.45/10.22        550    86.82/143.51 Jan-Mar 2009                  20      8.75/12.53 Nov-Dec 2009                  10       6.00/9.63 CAL 2010                                                300    90.00/163.00 Jan-Oct 2010                  20      6.00/10.41 Apr-Oct 2010                  10      7.00/11.00 

Debt

At June 30, 2008, borrowings outstanding under the Company’s revolving credit facility were $154.0 million, providing $313.0 million in available capacity. The Company also had outstanding 5% convertible senior notes in the amount of $172.5 million.

SECOND QUARTER RESULTS WEBCAST AND CONFERENCE CALL

As previously announced, a webcast and conference call will be held later this morning to discuss second quarter 2008 operating and financial results. Please join Bill Barrett Corporation executive management at noon eastern time/10:00 a.m. mountain time for the live webcast, accessed at www.billbarrettcorp.com, or join by telephone by calling 866-362-4831 (617-597-5347 international callers) with passcode 17407682. The webcast will remain available on the Company’s website for approximately 30 days, and a replay of the call will be available through August 8, 2008 at call-in number 888-286-8010 (617-801-6888 international callers) with passcode 10233073.

DISCLOSURE STATEMENTS

Forward-looking statements:

This press release contains forward-looking statements, including statements regarding projected results and future events. In particular, the Company is providing updated 2008 full year guidance, which contains projections for certain 2008 operational and financial results and forward-looking statements regarding the Company’s capital expenditure program and exploration and development activities. These forward-looking statements are based on management’s judgment as of this date and include certain risks and uncertainties. Please refer to the Company’s Annual Report on Form 10-K for the year-ended December 31, 2007, filed with the Securities and Exchange Commission on February 27, 2008, and other filings with the SEC, for a description of certain risk factors. 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, exploration drilling and test results, transportation, processing, availability of third party gathering, market conditions, oil and gas price volatility, risks related to hedging activities including counterparty viability, the availability and cost of services and materials, the ability to obtain industry partners to jointly explore certain prospects and the willingness and ability of those partners to meet capital obligations when requested, the ability to receive drilling and other permits and regulatory approvals, surface access and costs, uncertainties inherent in oil and gas production operations and estimating reserves, unexpected future capital expenditures, competition, risks associated with operating in one major geographic area, the success of the Company’s risk management activities, governmental regulations and other factors discussed in the Company’s reports filed with the SEC. The Company encourages readers to consider the risks and uncertainties associated with projections. 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)                                                   Quarter     Six Months                                                    Ended         Ended                                                   June 30,      June 30,                                                 ------------- -------------                                                 2008   2007   2008   2007                                                 ====== ====== ====== ====== Production Data:                                                 ------ ------ ------ ------     Natural gas (MMcf)                          18,274 13,924 35,606 26,955     Oil (MBbls)                                    157    188    301    378     Combined volumes (MMcfe)                    19,216 15,052 37,412 29,223     Daily combined volumes (MMcfed)                211    165    206    161                                                 ====== ====== ====== ====== Average Prices (before the effects of realized  hedges)                                                 ------ ------ ------ ------     Natural gas (per Mcf)                       $ 9.24 $ 4.09 $ 8.64 $ 5.08     Oil (per Bbl)                               109.70  58.51  97.46  54.53     Combined (per Mcfe)                           9.68   4.52   9.00   5.39                                                 ====== ====== ====== ====== Average Prices (includes effects of realized  hedges)                                                 ------ ------ ------ ------     Natural gas (per Mcf)                       $ 8.05 $ 5.60 $ 8.03 $ 6.12     Oil (per Bbl)                                80.03  58.99  75.14  55.33     Combined (per Mcfe)                           8.31   5.92   8.25   6.36                                                 ====== ====== ====== ====== Average Costs (per Mcfe):                                                 ------ ------ ------ ------     Lease operating expense                     $ 0.55 $ 0.95 $ 0.53 $ 0.79     Gathering and transportation expense          0.53   0.35   0.53   0.36     Production tax expense                        0.71   0.34   0.64   0.37     Depreciation, depletion and amortization      2.56   2.95   2.68   2.92     General and administrative expense,         excluding stock-based compensation        0.51   0.50   0.55   0.51                                                 ====== ====== ====== ======                          BILL BARRETT CORPORATION                   Consolidated Statements of Operations                                 (Unaudited)                                     Quarter Ended       Six Months Ended                                       June 30,              June 30,                                 --------------------  --------------------                                   2008       2007       2008       2007                                 =========  =========  =========  ========= (in thousands, except per  share amounts)                                 =========  =========  =========  ========= Operating and Other  Revenues:                                 ---------  ---------  ---------  ---------     Oil and gas production      $ 159,664  $  89,096  $ 308,709  $ 185,978     Unrealized      derivative loss        (1)    (3,313)         -     (4,843)         -     Other                           1,168     11,557      2,855     13,055                                 ---------  ---------  ---------  ---------       Total operating and other        revenues                   157,519    100,653    306,721    199,033                                 =========  =========  =========  =========                                 =========  =========  =========  ========= Operating Expenses:                                 ---------  ---------  ---------  ---------     Lease operating                10,542     14,246     19,843     23,086     Gathering and      transportation                10,244      5,266     19,643     10,392     Production tax                 13,627      5,139     23,886     10,696     Exploration                     1,284      1,152      1,925      2,758     Impairment, dry hole costs      and abandonment                3,603      3,274      5,155      6,872     Depreciation, depletion and      amortization                  49,160     42,785    100,117     81,858     General and      administrative         (2)     9,788      7,587     20,420     14,865     Non-cash stock-based      compensation           (2)     4,563      2,591      8,146      4,481                                 ---------  ---------  ---------  ---------       Total operating        expenses                   102,811     82,040    199,135    155,008                                 =========  =========  =========  ========= Operating Income                   54,708     18,613    107,586     44,025                                 =========  =========  =========  ========= Other Income and Expense:                                 ---------  ---------  ---------  ---------     Interest and other income         395        516        867      1,048     Interest expense               (3,935)    (3,079)    (7,561)    (5,954)                                 ---------  ---------  ---------  ---------       Total other income and        expense                     (3,540)    (2,563)    (6,694)    (4,906)                                 =========  =========  =========  ========= Income before Income Taxes         51,168     16,050    100,892     39,119 Provision for Income Taxes         17,186      6,192     36,202     15,077                                 ---------  ---------  ---------  --------- Net Income                      $  33,982  $   9,858  $  64,690  $  24,042                                 =========  =========  =========  =========                                 =========  =========  =========  ========= Net Income Per Common Share     Basic                       $    0.76  $    0.22  $    1.46  $    0.55     Diluted                     $    0.75  $    0.22  $    1.43  $    0.54                                 =========  =========  =========  =========                                 =========  =========  =========  ========= Weighted Average Common  Shares Outstanding     Basic                          44,425     44,008     44,352     43,970     Diluted                        45,447     44,799     45,242     44,646                                 =========  =========  =========  ========= (1)  In accordance with FAS No. 133, there is  ineffectiveness  associated      with a small portion of the value of hedges entered into for  forward      periods due to slight differences in the delivery point and or timing      of delivery. During the second quarter of 2008, the Company  recorded      a $1.0 million loss related  to  this  ineffectiveness.  In addition,      certain transactions, to which Mid-continent natural gas hedges  were      designated, were deemed no longer probable of occurring. The  Company      discontinued  hedge  accounting  for  these  prospective  hedges  and      reclassified $2.3 million to commodity derivative losses. The  second      quarter total was $3.3 million and the year-to-date  total  was  $4.8      million. These are non-cash charges. (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                                                      June 30,  December 31,                                                        2008        2007                                                     =========== ===========                                                         (in thousands)                                                     =========== =========== Assets:                                                     ----------- -----------     Cash and cash equivalents                       $    87,008 $    60,285     Other current assets                                149,006      71,142     Property and equipment, net                       1,317,819   1,195,832     Other noncurrent assets                               6,374       2,428                                                     ----------- -----------        Total assets                                 $ 1,560,207 $ 1,329,687                                                     =========== ===========                                                     =========== =========== Liabilities and Stockholders' Equity:                                                     ----------- -----------     Current liabilities                     (1)     $   310,517 $   139,568     Notes payable under bank credit      facility                                           154,000     274,000     Convertible senior notes                            172,500           -     Other long-term liabilities             (1)         215,800     142,608     Stockholders' equity                                707,390     773,511                                                     ----------- -----------        Total liabilities and stockholders' equity   $ 1,560,207 $ 1,329,687                                                     =========== =========== (1) At June 30, 2008, the estimated fair value of  all  of  our  commodity     derivative instruments was a liability of $220.7 million, comprised of     $158.7 million of current liabilities and $62.0 million of non-current     liabilities. The Company will reclassify  the  appropriate  cash  flow     hedge amounts from other  comprehensive  income  to  gains  or  losses     included in natural gas and oil production operating revenues  as  the     hedged production quantity is produced.  This  amount  will  fluctuate     quarterly based on estimated future commodity prices.                          BILL BARRETT CORPORATION                   Consolidated Statements of Cash Flows                                 (Unaudited)                                  Quarter Ended         Six Months Ended                                     June 30,               June 30,                             ----------------------  ----------------------                                2008        2007        2008        2007                             ==========  ==========  ==========  ==========                                 (in thousands)          (in thousands)                             ==========  ==========  ==========  ========== Operating Activities:                             ----------  ----------  ----------  ----------   Net income                $   33,982  $    9,858  $   64,690  $   24,042   Adjustments to reconcile    to net cash provided by    operations:      Depreciation,       depletion and       amortization              49,160      42,785     100,117      81,858      Impairment, dry hole       costs and abandonment       costs                      3,603       3,274       5,155       6,872      Unrealized derivative       loss                       3,313           -       4,843           -      Deferred income taxes      17,074       6,192      35,980      15,077      Stock compensation and       other non-cash       charges                    4,913       2,753       8,887       4,822      Amortization of       deferred financing       costs                        467         121         715         233      Gain on sale of       properties                  (401)    (10,994)       (573)    (11,996)                             ----------  ----------  ----------  ----------      Change in assets and       liabilities:          Accounts           receivable           (11,338)     23,801     (30,870)     24,759          Prepayments and           other assets          (3,054)     (1,043)     (6,168)     (2,526)          Accounts payable,           accrued and other           liabilities            6,279      12,181       3,197      (1,311)          Amounts payable to           oil & gas property           owners                 3,791      (2,593)      2,646       1,723          Production taxes           payable                5,914       2,844      10,280       4,480                             ----------  ----------  ----------  ----------      Net cash provided by       operating activities  $  113,703  $   89,179  $  198,899  $  148,033                             ==========  ==========  ==========  ========== Investing Activities:                             ----------  ----------  ----------  ----------   Additions to oil and gas    properties, including    acquisitions               (108,463)   (101,031)   (223,455)   (188,125)   Additions of furniture,    equipment and other            (861)       (682)     (1,466)     (2,114)   Proceeds from sale of    properties                      427      81,509       1,639      82,844                             ----------  ----------  ----------  ----------      Net cash used in       investing activities  $ (108,897) $  (20,204) $ (223,282) $ (107,395)                             ==========  ==========  ==========  ========== Financing Activities:                             ----------  ----------  ----------  ----------   Proceeds from debt            20,000      10,000     219,800      22,000   Principal payments on    debt                            (21)    (78,000)   (167,035)    (78,000)   Proceeds from sale of    common stock                  1,815       1,900       3,444       2,252   Deferred financing costs    and other                      (515)         (2)     (5,103)        (84)                             ----------  ----------  ----------  ----------      Net cash provided by       financing activities  $   21,279  $  (66,102) $   51,106  $  (53,832)                             ==========  ==========  ==========  ==========                             ==========  ==========  ==========  ========== Increase (Decrease) in Cash  and Cash Equivalents           26,085       2,873      26,723     (13,194) Beginning Cash and Cash  Equivalents                    60,923      25,255      60,285      41,322                             ----------  ----------  ----------  ---------- Ending Cash and Cash  Equivalents                $   87,008  $   28,128  $   87,008  $   28,128                             ==========  ==========  ==========  ==========                          BILL BARRETT CORPORATION        Reconciliation of Discretionary Cash Flow(1) from Net Income                                 (Unaudited)                                   Quarter Ended          Six Months Ended                                      June 30,               June 30,                                 --------------------  --------------------                                   2008       2007       2008       2007                                 =========  =========  =========  ========= (in thousands, except per unit  amounts)                                 =========  =========  =========  ========= Net Income                      $  33,982  $   9,858  $  64,690  $  24,042 Adjustments to reconcile to  discretionary cash flow (1)    Depreciation, depletion and     amortization                   49,160     42,785    100,117     81,858    Impairment, dry hole costs     and abandonment costs           3,603      3,274      5,155      6,872    Exploration expense              1,284      1,152      1,925      2,758    Unrealized derivative loss       3,313          -      4,843          -    Deferred income taxes           17,074      6,192     35,980     15,077    Stock compensation and other     non-cash charges                4,913      2,753      8,887      4,822    Amortization of deferred     financing costs                   467        121        715        233    Gain on sale of properties        (401)   (10,994)      (573)   (11,996)                                 ---------  ---------  ---------  --------- Discretionary Cash Flow (1)     $ 113,395  $  55,141  $ 221,739  $ 123,666                                 =========  =========  =========  =========    Per share, diluted           $    2.50  $    1.23  $    4.90  $    2.77    Per Mcfe                     $    5.90  $    3.66  $    5.93  $    4.23 (1) Discretionary cash flow is computed as net income  plus  depreciation,     depletion, and  amortization,  impairment  expenses,  deferred  income     taxes, dry hole costs and abandonment expenses, exploration  expenses,     non-cash stock-based compensation, amortization of deferred  financing     costs, losses (gains) on disposals of properties,  and  certain  other     non-cash charges. The non-GAAP measure of discretionary cash  flow  is     presented  because  management  believes  that  it   provides   useful     additional information to investors  for  analysis  of  the  Company's     ability to internally generate funds for exploration, development  and     acquisitions. In addition, discretionary cash flow is 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  the     published research of industry research analysts in making  investment     decisions.     Discretionary cash flow 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  accounting  principles     generally accepted in the United States of America  ("GAAP").  Because     discretionary cash flow excludes some, but not all, items that  affect     net income and net cash provided by operating activities and may  vary     among companies, the discretionary cash flow amounts presented may not     be comparable to similarly titled measures of other companies. 

 Company contact: Jennifer Martin Director of Investor Relations 303-312-8155  

SOURCE: Bill Barrett Corporation




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