Bill Barrett (BBG) reported earnings on Thur 2 March 17 (a/h)

** charts before earnings **

 

** charts after earnings **

Bill Barrett misses by $0.06, misses on revs:

• Reports Q4 (Dec) loss of $0.18 per share, excluding non-recurring items, $0.06 worse than the Capital IQ Consensus of ($0.12); revenues rose 10.8% year/year to $51.6 mln vs the $66.47 mln Capital IQ Consensus.
• 2017 capital budget of $255-$285 million incorporates:
  • the addition of a drilling rig during the second quarter and will be funded with operating cash flow and cash on hand and we will maintain an undrawn credit facility. This will result in annual production growth of approximately 7% at the mid-point, pro forma for asset divestitures. The increased activity translates into very strong production growth for 2018 that is anticipated to be 30%-50% higher than 2017, with a greater increase in oil volumes.
• 2017 Production of 6.0-6.5 MMBoe
  • Represents a production level that is approximately 7% higher at the mid-point than pro forma 2016 production sales volumes of 5.8 MMBoe, excluding assets divested in 2016.
  • Production is estimated to be approximately 60-65% oil, 20% natural gas and 15-20% NGLs. First quarter of 2017 production is expected to approximate 1.35-1.45 MMBoe, which represents lower sequential production from the fourth quarter of 2016, in part, due to no new wells being placed on production during the fourth quarter of 2016 and the timing of wells being placed on flowback during the first quarter of 2017.
  • Lease operating expense of $27-$30 million Cash general and administrative expense of $30-$33 million Gathering, transportation and processing costs of $2-$3 million Unused commitment for firm natural gas transportation charges of $18-$19 million
• Commodity Hedges Update
  • For 2017, 6,846 barrels per day of oil is hedged at an average WTI price of $58.47 per barrel and 10,000 MMBtu/d of natural gas is hedged at an average NWPL price of $2.96 per MMBtu.
  • For 2018, 2,616 barrels per day of oil is hedged at an average WTI price of $55.00 per barrel and no natural gas hedges in place.