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Bill Barrett (BBG) to Offload Uinta Assets for $110 Million
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In a bid to transform itself into a Denver-Julesburg (DJ) Basin pure play, leading upstream player Bill Barrett Corporation inked a deal to divest its remaining non-core assets in the Uinta Basin. The deal is valued at $110 million to undisclosed buyers. Subject to satisfactory conditions, the deal is set for closure by Dec 31, 2017.
During the third quarter, these assets under sale consideration accounted for 2,300 barrels of oil equivalent (BOE/d) production per day. As of Dec 31, 2016, these assets had estimated proved reserves of 12 million barrels of oil equivalent.
The divestiture is expected to streamline the company’s portfolio and cost structure along with strengthening its balance sheet and liquidity. The proceeds will be utilized to fund the two-rig program in 2018.The company which boasts a strong acreage position in the northeast Wattenberg field of the DJ Basin plans to use the cash proceeds from the sale for extended-reach lateral horizontal development activity.
With the divestment, management expects to improve its leverage ratio and end the year with net debt to EBITDAX of less than 2.5x. Post the divestiture, Bill Barrett’s portfolio will consist of 71,900 acreage in the fast-growing DJ Basin which contributed to 18,500 BOE/d production during the third quarter.
Headquartered in Denver, Bill Barrett is engaged in the exploration and development of oil and gas in the Rocky Mountain regions of United States. The company delivered better-than-expected results in the third quarter of 2017 on the back of increased production output from top-tier assets in DJ Basin, with 33% sequential rise in higher margin oil volumes and that too on lower than expected capex. The company expects the momentum to continue on the back of well performance in DJ Basin. Thus the company has raised the outlook for 2018 on the expectation of production growth of over 30%. The company currently carries a Zacks Rank #2 (Buy).
Some better-ranked players within the same industry are Denbury Resources, Inc. , Northern Oil and Gas, Inc. (NOG - Free Report) and Rice Midstream Partners LP . All these firms sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Denbury Resources delivered an average positive earnings surprise of 125% in the trailing four quarters.
Northern Oil and Gas delivered an average positive earnings surprise of 175% in the trailing four quarters.
Rice Midstream delivered an average positive earnings surprise of 35.25% in the trailing four quarters.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
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Bill Barrett (BBG) to Offload Uinta Assets for $110 Million
In a bid to transform itself into a Denver-Julesburg (DJ) Basin pure play, leading upstream player Bill Barrett Corporation inked a deal to divest its remaining non-core assets in the Uinta Basin. The deal is valued at $110 million to undisclosed buyers. Subject to satisfactory conditions, the deal is set for closure by Dec 31, 2017.
During the third quarter, these assets under sale consideration accounted for 2,300 barrels of oil equivalent (BOE/d) production per day. As of Dec 31, 2016, these assets had estimated proved reserves of 12 million barrels of oil equivalent.
The divestiture is expected to streamline the company’s portfolio and cost structure along with strengthening its balance sheet and liquidity. The proceeds will be utilized to fund the two-rig program in 2018.The company which boasts a strong acreage position in the northeast Wattenberg field of the DJ Basin plans to use the cash proceeds from the sale for extended-reach lateral horizontal development activity.
With the divestment, management expects to improve its leverage ratio and end the year with net debt to EBITDAX of less than 2.5x. Post the divestiture, Bill Barrett’s portfolio will consist of 71,900 acreage in the fast-growing DJ Basin which contributed to 18,500 BOE/d production during the third quarter.
Headquartered in Denver, Bill Barrett is engaged in the exploration and development of oil and gas in the Rocky Mountain regions of United States. The company delivered better-than-expected results in the third quarter of 2017 on the back of increased production output from top-tier assets in DJ Basin, with 33% sequential rise in higher margin oil volumes and that too on lower than expected capex. The company expects the momentum to continue on the back of well performance in DJ Basin. Thus the company has raised the outlook for 2018 on the expectation of production growth of over 30%. The company currently carries a Zacks Rank #2 (Buy).
Bill Barrett Corporation Price
Bill Barrett Corporation Price | Bill Barrett Corporation Quote
Some better-ranked players within the same industry are Denbury Resources, Inc. , Northern Oil and Gas, Inc. (NOG - Free Report) and Rice Midstream Partners LP . All these firms sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Denbury Resources delivered an average positive earnings surprise of 125% in the trailing four quarters.
Northern Oil and Gas delivered an average positive earnings surprise of 175% in the trailing four quarters.
Rice Midstream delivered an average positive earnings surprise of 35.25% in the trailing four quarters.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>