Wednesday, October 30, 2013

Bill Barrett: Why You Should Be Bullish On This Rocky Mountains Energy Firm

The following is a Small-Cap-Insight column originally published by Seeking Alpha on a company with a market cap of $1.3 billion. 

Bill Barrett Corporation is an independent energy firm in gas-to-oil transition with an impressive acreage and is on track to considerably increase its oil output in the coming years.

Denver, Colorado based Bill Barrett Corporation (BBG) is an eleven years old independent oil and gas exploration and production company with significant operations in the Rocky Mountains regions of the United States.
Bill Barrett's operations are spread across four core areas in Colorado, Utah and Wyoming. Its Uinta Oil Program at Uinta Basin, northeast Utah, has more than 47 MMBoe proven reserves (2012). The company has been adding acreage in the area since 2011 and in 2012, it made a big purchase of 17,100 net acres. By the end of last year, Bill Barrett had 120,800 net acres of undeveloped reserves which will translate into significant long term opportunities. The business entered DJ Basin, Northeast Wattenberg, in H2-2011 and by the end of 2012, it had 76,475 net acres. The area is estimated to hold proven reserves of 12.5 MMBoe. Bill Barrett's other operating areas; the Gibson Gulch area of the Piceance Basin and the West Tavaputs field in the Uinta Basin, are primarily natural gas focused development. The former has estimated proven reserves of 401 Bcfe while the latter has 265 bcfe.
Transition Phase: More Oil, Less Gas
Like most of the American independent E&P firms, Bill Barrett has been under pressure due to the slump in natural gas prices. Like most of its peers, the business has been moving away from its gas rich assets towards its two oil dominated areas. This essentially means that the company has been, and will continue to ….. read full article at Seeking Alpha.