Bill Barrett Stock This Year: The Ups and the Downs
Bill Barrett (BBG) saw upward momentum in its stock as 2016 began, forgetting the lows it saw in late 2015. In mid-2016, however, BBG stock started falling.
Bill Barrett Corporation (BBG) stock rose 8.4% on November 4, 2016, following its after-market 3Q16 earnings release on November 3.
BBG’s 3Q16 EPS was -$0.10 in 3Q16 compared to -$0.09 in 3Q15. BBG’s earnings have mostly been negative since 3Q14.
Bill Barrett’s (BBG) 2016 production growth guidance is 6.0–6.2 MMboe. That’s ~3.4% more than the company’s 2015 production.
Bill Barrett Corporation (BBG) has robust hedges in place for 2016. About 70.0% of its oil production is hedged at $72.57 per barrel for 4Q16.
Crude oil (UCO) represented 65.0% of Bill Barrett’s (BBG) total production in 3Q16. Oil’s share as a percentage of BBG’s total production has fallen slightly since 3Q14.
BBG’s presentation noted that based on a flat $50 per barrel WTI price, a $250,000 fall in well costs could improve its IRR by ~5.0%.
Bill Barrett Corporation’s (BBG) proved reserves have fallen considerably since 2013. At the end of 2015, BBG had proved reserves of ~83.7 million boe.
Bill Barrett (BBG) has been focusing on increasing the efficiency of its wells by drilling extended reach lateral (or XRL) wells in the Denver-Julesburg (or DJ) Basin.
Bill Barrett (BBG) has been focusing on lowering costs in the Denver-Julesburg (or DJ) Basin. LOE (lease operating expenses) for 3Q16 was $2.45 per boe.
Bill Barrett Corporation (BBG) had the highest unhedged operating margins among its peers in the DJ Basin, based on 3Q16 calculations.
Bill Barrett Corporation’s (BBG) position in the Denver-Julesburg (or DJ) Basin is primarily in the eastern plains of Colorado and in parts of southeastern Wyoming.
Over the past two years, BBG has been focusing on streamlining its portfolio and strengthening its position in the DJ Basin.
At ~79.7%, the VanEck Vectors Oil Services ETF (OIH) had the highest correlation with US crude oil from November 8–December 8, 2016.
From December 1–8, 2016, the United States Natural Gas ETF (UNG) outperformed the United States Oil ETF (USO). USO fell ~0.20%, and UNG rose ~5.8%.
From December 1–8, 2016, the Energy Select Sector SPDR ETF (XLE) rose 2.3%. It was the fifth-highest rise among our sector-based SPDR ETFs.
On December 8, 2016, active futures contracts for US crude oil (USO) closed at $50.84, a ~2.1% rise compared to the previous trading session.
The United Kingdom’s FTSE 100 index is flat in the early hours on December 9. The pull back in banking industry stocks weighs on the FTSE index.
After pulling back on December 8 amid mixed Chinese economic data, the Shanghai Composite Index recovered on December 9.
BHI will release the weekly US natural gas rig count report on December 9. The rig count rose by one to 119 rigs between November 25 and December 2.