NEW YORK (TheStreet) -- Bill Barrett (BBG) was gaining 8.2% to $23.04 Tuesday after announcing a divestiture of Powder River and Piceance Basin properties, and the acquisition of more acreage in Northeast Wattenburg.
The Denver-based oil and gas company said it signed purchase and sale agreements with undisclosed purchasers to sell most of its Powder River Basin acreage and all of its position in the Gibson Gulch natural gas program in Piceance Basin. The total value of the transactions is $757 million.
In addition to the transactions, Bill Barrett revised its full-year 2014 operating guidance. The company now expects total production of 9.4 million to 9.8 million barrels of oil equivalent for 2014, reducing its previous guidance by about 1.4 million barrels of oil equivalent as a result of the sold assets.
TheStreet Ratings team rates BILL BARRETT CORP as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate BILL BARRETT CORP (BBG) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity."