Several analysts have recently weighed in on Bill Barrett Corporation (NYSE:BBG), issuing notes to investors. Glickman Stewart of S&P Capital IQ Reported on the stock on 12th August with a $6.00 price target, or 14.50% Upside to the last closing price.
“The company’s acreage positions in the DJ Basin are primarily located in Colorado’s eastern plains and parts of southeastern Wyoming. As of December 31, 2013, its estimated proved reserves were 65.8 million barrels of oil equivalent (MMBoe). The company had interests in 324 gross (203.3 net) producing wells and served as operator in 209 gross wells. It held 60,672 net undeveloped acres. As of December 31, 2013, the company was drilling 2 gross wells (0.9 net) and waiting to complete 16 gross (12.8 net) wells within this region. BBG’s DJ Basin acreage was acquired predominantly through two acquisitions completed in August 2011 and July 2012. The DJ Basin is a high growth oil development area where operators are targeting the Niobrara and Codell formations, and employing new technologies to optimize oil recoveries and economic returns. BBG thinks that the DJ Basin offers growth potential via down-spacing, testing of extended reach horizontal wells and cost optimization.”
Glickman also added, “The Uinta Basin is located in northeastern Utah. During 2013, the company’s development operations were conducted through two key programs, such as its Uinta Oil Program and theWest Tavaputs area, which is primarily a natural gas development. The Uinta Oil Program includes four areas of development that are located around the basin that the company refers to as Blacktail Ridge, Lake Canyon, East Bluebell and South Altamont. As of December 31, 2013, its estimated proved reserves were 53.2 MMBoe. It had interests in 299 gross (170.2 net) producing wells and served as operator in 216 gross wells. The company held 70,795 net undeveloped acres. As of December 31, 2013, it had a 61% weighted average working interest in producing wells in the Uinta Oil Program. During 2013, the company conducted two 80-acre spacing pilot projects, one each in the southern and northern portions of the Blacktail Ridge area. TheWest Tavaputs acreage was sold in December 2013. ”
Another analyst at Canaccord Genuity Inc has a Bullish stance on the stock. Stephen Berman issued a note on 10th August with a Buy rating on the stock and $12.00 price target, or 154.78% upside to the last closing price.
“Our $12 price target represents a 30% discount to a ~$17 NAV.BBG has an underappreciated financial position, in our view, with ~90% of crude volumes hedged in H2/15 and ~50% hedged in 2016. The company is also well hedged this year on natural gas. Liquidity is ~$450M, which comfortably covers the ~ $117M outspend we are modeling through the end of 2016. Management believes there will be little if any change in the borrowing base in the fall as increases in proved reserves offset lower commodity prices. ”
Bill Barrett Corporation (NYSE:BBG) headquartered in Denver, Colorado, develops oil and natural gas in the Rocky Mountain region of the United States. Capital expenditures for the remainder of 2015 are expected to be funded internally through operating cash flow, cash on hand, non-core asset divestitures and borrowings under the revolving credit facility.
On Sept.28, 2015 Bill Barrett Corporation (NYSE:BBG) announced the following corporate update. The Company announced that its semi-annual borrowing base review has been completed with the bank group reaffirming the $375 million borrowing base related to its revolving credit facility maturing in April 2020. The credit facility has $375 million of commitments and there are currently no borrowings under the credit facility. As part of the redetermination process, the Company and its lender group agreed to amend the maintenance covenants in the revolving credit facility by replacing the leverage covenant limiting the maximum total debt to trailing twelve month EBITDAX1 ratio of 4.0x with a covenant limiting the maximum senior secured debt to trailing twelve month EBITDAX ratio of 2.5x through March 31, 2018, after which, the leverage covenant reverts to a maximum total debt to trailing twelve month EBITDAX of 4.0x, as of June 30, 2018.
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