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 News
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Bill Barrett Corporation Reports Financial
and Operating Results for First Quarter 2005
DENVER, May 5 /PRNewswire-FirstCall/ -- Bill
Barrett Corporation (NYSE: BBG
- News) today
reported that production for the first quarter that ended March
31, 2005 was 8.5 billion cubic feet equivalent (Bcfe), a 15% increase
over first quarter 2004. Net of the effects of hedging, the average
sales price for the Company's production in the first quarter
of 2005 was $5.98 per thousand cubic feet equivalent (Mcfe) compared
to a realized price of $4.89 per Mcfe in the first quarter of
2004.
Discretionary cash flow (1), a non-GAAP measure
defined below, was $31.6 million for the first quarter of 2005,
compared to $23.1 million in the first quarter of 2004. The Company's
net income for the first quarter that ended March 31, 2005 was
$3.1 million on revenues of $51.9 million, compared to net income
of $4.7 million on revenues of $36.4 million in the first quarter
2004.
William J. Barrett, Chief Executive Officer
and Chairman, commented, "We are pleased that our drilling program
in the first quarter has generated production consistent with
our earlier guidance. It creates momentum that we will work to
maintain through the remainder of the year. We are just starting
our drilling in West Tavaputs in Utah, we are increasing our drilling
activities in the Piceance Basin, and we have over 200 CBM wells
to drill in the Powder River Basin this year. We also are continuing
our aggressive exploration program with two wells in the Tri-State
Area, several wells in the Williston and Uinta Basins, and the
Bullfrog and Hitchcock Draw wells in the Wind River Basin. We
anticipate reporting on these programs in the third and fourth
quarters of 2005. While we are benefiting from the continued strength
of commodity prices, we are also feeling the impact of continuing
increases in both oilfield service and drilling costs that are
being experienced by everyone in the industry today."
Operations
The Company spent $65.9 million on capital expenditures
in the first quarter of 2005, which was comprised of $5.6 million
for the acquisition of undeveloped properties; $57.5 million for
drilling, development and exploration of natural gas and oil properties;
$2.3 million for geologic and geophysical costs; and $0.5 million
for equipment and other expenditures. The following table lists,
by basin, Company capital expenditures and wells spud for the
first quarter 2005.
For the Quarter Ended March 31, 2005
Basin Capital Expenditures (in millions) Wells spud
Piceance Basin $17.1 14
Wind River Basin 24.8 11
Uinta Basin 10.4 3
Powder River Basin 6.1 17
Williston Basin 3.6 2
Other 3.9 2
Total $65.9 49
The Company anticipates participating in the
drilling of 351 wells for the full year 2005. Due to continuing
significant price increases in drilling and service costs and
the acquisition of additional unevaluated acreage, full-year capital
expenditures may be 10 to 15% higher than the Company's original
$276 million capital budget for 2005.
The Company provides the following guidance
for production and expenses based on information available at
the time of this release. All forecast amounts exclude any production
or operating costs that may result from acquisitions or successful
exploration projects. As previously disclosed on March 10, 2005,
the Company began transporting natural gas pursuant to a firm
transportation agreement on the Cheyenne Plains pipeline. The
costs of that firm transportation were not included in previously
issued guidance, but are currently reflected in the revised gathering
and transportation expense guidance below. The Company anticipates
that some portion of this firm transportation expense will be
offset by higher realized sales prices. As the Company increases
production, it may enter into further firm transportation and
sales agreements to ensure that produced gas may be sold without
constraint. Please see the forward-looking statements disclosure
at the end of this release for more discussion of the inherent
limitations of these forward-looking statements.
Second Quarter Year Ending
Guidance: Ending
June 30, 2005 December 31, 2005
Production:
Oil (Mbl) 110 - 120 486 - 526
Natural Gas (Bcf) 7.5 - 8.0 34.5 - 36.8
Natural Gas Equivalent (Bcfe) 8.2 - 8.7 37.4 - 40.0
Operating Costs (in millions):
Lease operating expense $4.6 - $4.8 $21.5 - $23.3
Gathering and
transportation expense $2.9 - $3.1 $11.4 - $12.2
General and
administrative expense
(excluding non-cash
stock-based compensation) $5.4 - $5.9 $22.2 - $24.0
As previously announced, a conference call to
discuss first quarter results for the Company is scheduled for
4:30 p.m. EDT (3:30 p.m. CDT, 2:30 p.m. MDT) on Thursday, May
5, 2005. The call participation number is 1-800-344-0624 in the
U.S. and Canada (1-706-643-1890 outside the U.S. and Canada) and
the passcode is 5841043. Access to a live Internet broadcast will
be available at www.billbarrettcorp.com
by clicking on the link entitled "Webcasts." A telephonic replay
will be available approximately two hours after the call on Thursday,
May 5, 2005 and will continue to be available through Saturday,
May 7, 2005. The replay telephone number is 1-800-642-1687 in
the U.S. and Canada (1-706-645-9291 outside the U.S. and Canada)
and the passcode is 5841043. A webcast archive also will be made
available approximately one hour after the conference call. The
web archive can be accessed at www.billbarrettcorp.com
until the Company's annual meeting on May 19, 2005.
Forward-Looking Statements
This release contains, and our conference call
on May 5, 2005 will contain, forward-looking statements within
the meaning of securities laws, including forecasts and projections
for future periods. The words "will," "believe," "anticipate,"
"intend," "estimate," "forecast", "projections", "guidance", "expect"
and similar expressions are intended to identify forward- looking
statements. These statements involve known and unknown risks,
which may cause the Company's actual results to differ materially
from results expressed or implied by the forward- looking statements.
These risks include such factors as the volatility and level of
oil and natural gas prices, unexpected drilling conditions and
results, production rates and reserve replacement, reserve estimates,
drilling and operating service availability, uncertainties in
cash flow, the financial strength of hedge contract counterparties,
the availability of attractive exploration and development and
property acquisition opportunities and any necessary financing,
expected acquisition benefits, the ability to sell down Company
interests in projects, competition, litigation, environmental
matters, the potential impact of government regulations and ability
to obtain necessary approvals and permits, and other matters discussed
in the "Risk Factors" section of the Company's 2004 Annual Report
on Form 10-K filed with the Securities and Exchange Commission
(www.sec.gov). The Company disclaims
any commitment to update its forward-looking statements.
About Bill Barrett Corporation
Bill Barrett Corporation, headquartered in Denver,
explores for and develops oil and natural gas in projects across
nine basins in the U.S. Rocky Mountains. The Company trades publicly
under the symbol BBG on the New York Stock Exchange. For further
information, please visit www.billbarrettcorp.com.
The following is a summary of our operational
and financial highlights. The financial statements that follow
are unaudited and subject to adjustment.
Bill Barrett Corporation
Selected Operating Highlights
(Unaudited)
Quarter Ended March 31,
2005 2004
Production:
Natural gas (MMcf) 7,713 6,700
Oil (MBbls) 126 109
Combined volumes (MMcfe) 8,469 7,354
Daily combined volumes (MMcfe/d) 94 81
Average Prices (net of the effect of hedges):
Natural gas (per Mcf) $5.87 $4.84
Oil (per Bbl) 42.69 32.91
Combined (per Mcfe) 5.98 4.89
Average Costs (per Mcfe):
Lease operating expense $0.53 $0.41
Gathering and transportation expense 0.32 0.16
Production tax expense 0.78 0.60
Depreciation, depletion and amortization 2.33 1.69
General and administrative (excluding
non-cash stock-based compensation) 0.67 0.55
Bill Barrett Corporation
Consolidated Statements of Operations
(Unaudited)
Quarter Ended March 31,
2005 2004
(in thousands, except per
share amounts)
Revenues:
Oil and gas production $50,685 $35,992
Other 1,221 449
Total revenues 51,906 36,441
Operating Expenses:
Lease operating expense 4,481 3,013
Gathering and transportation expense 2,723 1,152
Production tax expense 6,610 4,376
Exploration expense 6,666 1,482
Depreciation, depletion and amortization 19,777 12,422
Non-cash stock-based compensation 700 1,267
General and administrative 5,677 4,009
Total operating expenses 46,634 27,721
Operating income 5,272 8,720
Other Income and Expense:
Interest income 539 61
Interest expense (506) (594)
Total other income and expense 33 (533)
Income before Income Taxes 5,305 8,187
Provision for Income Taxes 2,251 3,450
Net Income 3,054 4,737
Less cumulative dividends on
preferred stock -- (4,533)
Net income attributable to common stock $3,054 $204
Net Income Per Common Share:
Basic
Net Income Per Common Share $0.07 $0.01
Diluted
Net Income Per Common Share $0.07 $0.01
Weighted Average Common
Shares Outstanding
Basic 43,084,742 1,253,575
Diluted 43,722,495 2,175,545
Bill Barrett Corporation
Consolidated Condensed Balance Sheets
(Unaudited)
As of March 31, As of December 31,
2005 2004
(in thousands)
Cash and cash equivalents $88,744 $99,926
Other current assets 38,834 37,964
Property and equipment, net 587,733 552,165
Other non current assets 5,731 6,103
Total assets $721,042 $696,158
Current liabilities $93,483 $62,106
Note payable to bank -- --
Other noncurrent liabilities 20,760 14,320
Stockholders' equity 606,799 619,732
Total liabilities and
stockholders' equity $721,042 $696,158
Bill Barrett Corporation
Consolidated Statements of Cash Flows
(Unaudited)
Quarter Ended March 31,
2005 2004
(in thousands)
Operating Activities:
Net Income $3,054 $4,737
Adjustments to reconcile to
net cash provided by operations:
Depreciation, depletion and
amortization 19,777 12,422
Deferred income taxes 2,251 3,450
Exploratory dry holes
and abandonments 4,685 --
Stock compensation and
other non-cash items 672 1,329
Amortization of deferred
financing costs 282 86
Gain on sale of properties (1,094) (418)
Change in current assets
and liabilities:
Accounts receivable 6,270 (4,716)
Prepayments and other current assets 502 (409)
Accounts payable and
accrued liabilities (179) (3,226)
Amounts payable to oil and gas
property owners 2,085 1,133
Production taxes payable 3,404 2,785
Net cash provided by
operating activities 41,709 17,173
Investing Activities:
Additions to oil and gas properties,
including acquisitions (57,939) (44,481)
Additions of furniture,
equipment and other (540) (428)
Proceeds from sale of properties 5,528 4,969
Net cash used in
investing activities (52,951) (39,940)
Financing Activities:
Proceeds from debt -- 26,000
Principal payments on debt -- (20,000)
Proceeds from sale of common
and preferred stock 149 20,106
Deferred financing costs and other (89) (1,018)
Net cash provided by
financing activities 60 25,088
Increase (Decrease) in Cash
and Cash Equivalents (11,182) 2,321
Beginning Cash and Cash Equivalents 99,926 16,034
Ending Cash and Cash Equivalents $88,744 $18,355
Bill Barrett Corporation
Reconciliation of Discretionary Cash Flow (1) from Net Income
Quarter Ended March 31,
2005 2004
(in thousands)
Net Income $3,054 $4,737
Adjustments to reconcile
to discretionary cash flow (1):
Depreciation, depletion and amortization 19,777 12,422
Deferred income taxes 2,251 3,450
Exploration expense 6,666 1,482
Stock compensation and other
non-cash items 672 1,329
Amortization of deferred financing costs 282 86
Gain on sale of properties (1,094) (418)
Discretionary cash flow (1) $31,608 $23,088
(1) Discretionary cash flow is computed as net
income plus depreciation, depletion, amortization, impairment
expenses, deferred income taxes, exploration expenses, non-cash
stock based compensation, gains on sale 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 under 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.
Source: Bill Barrett Corporation
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