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An Introduction to Bill Barrett Corporation

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Dec. 9 2016, Published 3:18 p.m. ET

What is Bill Barrett Corporation?

Bill Barrett Corporation (BBG) is a small-cap exploration and production company operating in the Rocky Mountain region of the United States. The company conducts its operations in two major regions: the Denver-Julesburg (or DJ) Basin in eastern Colorado and the Uintah Basin in northeastern Utah.

BBG held ~60,000 net acres in the DJ Basin and an estimated proved reserves of 62,000 MMboe (million barrels of oil equivalent) at the end of 2015. BBG has been focusing on horizontal drilling in this region.

Key operators in the DJ Basin include Anadarko Petroleum (APC), Noble Energy (NBL), and Synergy Resources (SYRG). These companies make up ~9.4% of the iShares US Oil & Gas Exploration & Production (IEO).

In the Uintah Basin, BBG held ~29,000 net acres with an estimated proved reserve of 21.0 MMboe at the end of 2015.

The bulk of BBG’s production comes from the DJ Basin. In fiscal 2015, the DJ Basin accounted for 72.0% of BBG’s total production.

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BBG’s key focus area

Over the past two years, BBG has been focusing on streamlining its portfolio and strengthening its position in the DJ Basin. In late 2014, the company announced the sale of its non-core assets and an acreage exchange, which added ~8,000 net acres to its acreage position in the DJ Basin.

In May 2016, BBG again sold non-core properties in the Uintah Basin to an undisclosed buyer. In the next part of this series, we’ll find out more about the company’s operations in the DJ Basin and see why it favors that area.

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