After the bell Tuesday, the oiler reported full-year production of 14.5 million barrels of oil equivalent (boe), a 30% year-over-year increase. The company also said it had proved reserves of 197 million boe, including 88% growth in reserves at three active oil programs.
Bill Barrett achieved a better-balanced commodity mix over 203, with exit rate production 40% oil and 58% liquids including NGLs.
To the year ahead, the company plans to spend between $500 million and $550 million in capital expenditures, participating in around 200 gross development wells (including 85 wells in the DJ Basin which will receive 75% of total capital).
"In 2014, we will continue to focus investment capital in our most profitable programs. We anticipate attractive returns and well payback economics on drilling and completion costs in each of the DJ Basin, East Bluebell and Powder Deep," said CEO Scott Woodall.
However, the company expects to produce between 11 million and 12.2 million boe in 2014, less than estimated production of 14.5 million boe in 2013. Additionally, analysts had hoped for 50% growth in oil production, far higher than growth of 30% management forecast.
In response, Global Hunter cut shares to "neutral" from "accumulate" and lowered its price target to $30 from $35.
TheStreet Ratings team rates BILL BARRETT CORP as a Hold with a ratings score of C-. The team has this to say about their recommendation: