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Bill Barrett Corporation Reports First Quarter 2012 Results and Announces Successful Niobrara Wells in the DJ Basin

  Bill Barrett Corporation Reports First Quarter 2012 Results and Announces
                  Successful Niobrara Wells in the DJ Basin

PR Newswire

DENVER, May 3, 2012

DENVER, May 3, 2012 /PRNewswire/ -- Bill Barrett Corporation (NYSE: BBG) today
reported first quarter 2012 results and announced operational updates
highlighted by:

  oSuccessful Niobrara exploration results at Chalk Bluffs in the
    Denver-Julesburg Basin, with the first two wells producing at an average
    24-hour peak rate of 905 Boe/d
  oJoint venture agreement with a major independent to partner on 112,000
    acres in the Paradox Basin
  oOil and natural gas production growth, up 21% to 28.2 Bcfe; oil production
    up 62% 
  oAverage realized price of $6.41 per Mcfe, reflecting the benefit of strong
    oil and NGL pricing as well as hedging gains. Oil and NGL sales increased
    to 56% of pre-hedge sales revenues
  oDiscretionary cash flow of $99.0 million or $2.09 per diluted common share
  oAdjusted net income of $9.5 million or $0.20 per diluted common share

Chairman, Chief Executive Officer and President Fred Barrett commented: "I
have emphasized the importance of execution in 2012 and our team is
delivering. Oil production growth of 62%, exploration success in the Niobrara
oil program that opens-up the potential to expand the Denver-Julesburg ("DJ")
Basin program, bringing in a partner to kickstart activity on our vast Paradox
Basin position, realizing strong pricing and significantly increasing the
contribution from oil and NGL sales –all demonstrate execution on our
strategy. Based on sales volumes (see "Disclosure Statements" below), where we
benefit from our election with third parties to process natural gas production
for natural gas liquids ("NGLs"), first quarter 2012 volumes were 9% oil, 20%
NGL-related and 71% dry gas. Oil and NGL-related sales accounted for more than
half of first quarter revenue as our transition to an increased proportion of
liquids is well underway. 

"Our actions in the first quarter continue to better position the Company for
the long-term. During the quarter, we reduced our 2012 capital program by
approximately $100 million and all development and exploration drilling
activity for the remainder of the year will target oil and NGL-rich resources.
Today, we are further modifying our drilling program (see "Additional
Financial Information - Guidance" below) as we move an additional rig into the
DJ Basin this month, following strong drilling results, and as we move our one
remaining West Tavaputs gas rig to provide for an earlier expansion of
drilling in the Uinta Oil Program. The short-term outcome of our revised 2012
program includes higher oil growth and an approximate 6 Bcf reduction in dry
gas production. The uplift from oil against low natural gas prices drives
little, if any, impact to projected 2012 cash flows while better positioning
the Company for future oil production growth.

"Looking ahead, we have the visibility and large oil drilling inventory to
continue this momentum. I am particularly excited about our pace of growth in
the Uinta and DJ Basins, as well as results to date in Chalk Bluffs where we
plan to drill several Niobrara wells this year. I also look forward to getting
back to work in the Paradox Basin, where we control more than 350,000 net
acres as well as testing a diversity of exciting new exploration projects
across the Rockies – all for continued robust oil and NGLexposure."

OPERATING AND FINANCIAL RESULTS

Oil and natural gas production totaled 28.2 billion cubic feet equivalent
("Bcfe") in the first quarter of 2012, up 21% from 23.2 Bcfe in the first
quarter of 2011, including a 62% increase in oil production. Production growth
was predominantly from West Tavaputs following start-up of full-field
development in the first quarter of 2011, from the Uinta Oil Program where
activity was expanded from one rig in the first quarter of 2011 to three rigs
currently, and from the DJ Basin, where the Company is successfully expanding
production following its mid-2011 acquisition.

Realized pricing in the first quarter of 2012 remained strong despite natural
gas prices reaching 10-year lows. The average realized sales price was $6.41
per thousand cubic feet equivalent ("Mcfe") and included a $1.14 per Mcfe
benefit from NGL-related pricing and $1.04 per Mcfe benefit from realized
hedges. The average realized price is down from $7.18 per Mcfe in the first
quarter of 2011 due to lower natural gas prices partially offset by higher oil
prices. The average realized natural gas price in the first quarter was $5.46
per Mcf and the average realized oil price was $88.42 per barrel (Bbl). (See
"Selected Operating Highlights" below for more detail.)

In the first quarter of 2012, oil and NGLs made up 29% of the total sales
volumes (see "Disclosure Statements" below) and 56% of pre-hedge revenues.
Sales volumes, including the breakdown of natural gas production into
quantities sold as dry gas and quantities that receive the benefit of NGL
related pricing from the Company's election to process natural gas, where it
is able to do so, are as follows:

                                       1Q11   2Q11   3Q11   4Q11   1Q12
Reported Production Volumes:
 Oil (Bbls/d)                          3,299  3,642  4,304  5,066  5,286
 Natural gas, including NGLs (MMcf/d)  238    269    279    286    278
Reported Realized Prices:
 Oil (per Bbl)                         $78.44 $82.40 $79.79 $81.48 $88.42
 Natural gas, including NGLs (per Mcf) $ 6.69 $ 6.47 $ 6.48 $ 6.26 $ 5.46
Sales* Volumes:
 Oil (Bbls/d)                          3,299  3,642  4,304  5,066  5,286
 Natural gas sold as dry gas (MMcf/d)  200    234    250    261    257
 NGLs (Bbls/d)                         10,619 11,024 11,571 11,476 11,985
* (see "Disclosure Statements" below)

In the first quarter of 2012, the Company changed how it accounts for
commodity hedges by discontinuing the practice of cash flow hedge accounting.
Differences in the accounting method include:

  oThe Commodity derivative gain (loss) line item on the Unaudited
    Consolidated Statements of Operations includes certain realized and
    unrealized gains and losses on hedges, including prospective gains and
    losses on hedges with future settlement dates.
  oReported net income is affected because the Derivative gain (loss) line
    item under mark-to-market hedge accounting immediately recognizes
    prospective, future gains and losses on all derivative positions, based on
    current commodity prices, and will fluctuate with oil and natural gas
    prices. Under the previous cash flow hedge accounting method, the majority
    of prospective gains and losses were classified in Accumulated Other
    Comprehensive Income on the Consolidated Balance Sheets until the period
    they become current.
  oThe Commodity derivative gain (loss) line item is reported under Other
    Income and Expense.
  oThis change in reporting does not impact reported cash flows, the
    calculation of per unit realized prices or Adjusted Net Income (a non-GAAP
    measure, see "Adjusted Net Income Reconciliation" below.)

Discretionary cash flow (a non-GAAP measure, see "Discretionary Cash Flow
Reconciliation" below) in the first quarter of 2012 was $99.0 million, or
$2.09 per diluted common share, down from $104.7 million in the first quarter
of 2011. The decline in discretionary cash flow is primarily due to lower
realized natural gas prices and increased interest expense, mostly offset by
higher production volumes.

Net income in the first quarter of 2012 was $35.9 million, or $0.76 per
diluted common share, up from $15.2 million, or $0.33 per diluted common
share, in the first quarter of 2011. Adjusted net income for the first quarter
of 2012 (a non-GAAP measure, see "Adjusted Net Income Reconciliation" below)
was $9.5 million, or $0.20 per diluted common share, compared with $19.1
million, or $0.41 per diluted common share, in the first quarter of 2011.
Adjusted net income removes the effect of non-recurring charges such as
unrealized derivative gains and losses, impairment expenses, property sales
and one-time items.

DEBT AND LIQUIDITY

At March 31, 2012, the Company's revolving credit facility was undrawn.
Subsequent to quarter-end, the Company's lenders affirmed the borrowing base
and commitments at $900 million. After deducting an outstanding letter of
credit for $26.0 million, borrowing capacity is $874.0 million. During the
quarter, the Company completed the offering of $400 million of 7.0% senior
notes due 2022, issued at par. Proceeds from the offering were used to pay
down the Company's revolving line of credit and to fund $147.2 million of
principal amount of the 5% convertible senior notes put to the Company
pursuant to the terms of its indenture. At March 31, 2012, the Company had
outstanding a total of $1,075.3 million principal amount in senior debt with
no maturity before 2016.

OPERATIONS

Production, Wells Spud and Capital Expenditures

The following table lists production, wells spud and total capital
expenditures by basin for the three months ended March 31, 2012:

                   Three Months ended March 31, 2012
                   Average Net  Wells    Capital
                   Production   Spud     Expenditures
Basin              (MMcfe/d)    (gross)  (millions)
Uinta:
    UOP            23           21       $ 77.0
    West Tavaputs  100          12       47.6
Piceance           135          46       69.1
Denver-Julesburg   6            2        27.6
Powder River (CBM) 33           2        0.1
Other              13           2        13.6
Total              310          85       $ 235.0

Operating and Drilling Update

The Company anticipates drilling or participating in approximately 296
gross/204 net development wells in 2012. The Company's development program
will focus on growth in oil production and reserves. Currently, the Company
has six rigs active in development programs including three in the Uinta Oil
Program, one in the DJ and two in Gibson Gulch with plans to add three rigs
targeting oil in the second quarter, including two in the Uinta Oil Program
and one in the DJ Basin.

Uinta Basin, Utah

Uinta Oil Program (Blacktail Ridge, Lake Canyon, East Bluebell and South
Altamont) – Current net production is approximately 4,100 barrels of oil
equivalent per day ("Boe/d"). The Company currently has three drilling rigs
operating in the area and plans to add two more rigs by the end of this month.
The Company expects to drill up to 74 gross/47 net operated wells in the area
in 2012, plus participate in approximately 45 wells operated by its partner in
Lake Canyon. During 2011, the Company significantly expanded its reserve base
in the area and successfully tested the Uteland Butte formation with seven
horizontal wells. During 2012, the Company seeks to increase recoveries and
optimize development of this vast, oil-rich resource base. During the year,
the Company will continue its vertical development program and its horizontal
Uteland Butte program.The Company alsoplans to test horizontally the Black
Shale and Wasatch formations, to test vertically the Mahogany formation and
has received initial approval for 80-acre pilot wells to test increased
density. Also during the first quarter of 2012, the Company continued to
expand its acreage position in the area, adding more than 9,600 net
undeveloped acres on predominantly fee lands.

At March 31, 2012, the Company had an approximate 68% working interest in
production from 143 gross wells. Depending upon elections to participate by
partners, the Company expects to have an average 50% working interest in its
2012 drilling program. The per well working interests for the 2012 program
range from 19% to 100%.

West Tavaputs – Current net production is approximately 94 million cubic feet
equivalent per day (MMcfe/d), up from 65 MMcfe/d at this time last year.
However, due to low natural gas prices, the Company has redirected all
drilling activity from this dry natural gas program to oil and NGL-rich areas,
reducing production through the remainder of 2012. While development is
temporarily scaled back, the Company plans to complete certain facility
upgrades in anticipation of future growth as natural gas prices improve. This
program remains one of the Company's largest, long-term development assets
having 461 Bcfe of proved reserves, 1.2 Tcfe proved, probable and possible
reserves (see "Reserve Disclosure" below) and a multi-year inventory of more
than 600 gross drilling locations. The West Tavaputs program offers growth in
the shallow Mesaverde and Wasatch zones as well as upside opportunity in the
deeper Mancos formation.

At March 31, 2012, the Company had an approximate 96% working interest in
production from 289 gross wells in its West Tavaputs shallow and deep
programs.

Denver-Julesburg Basin, Colorado and Wyoming

Wattenburg and Chalk Bluffs – Current DJ net production is approximately 1,100
Boe/d. The DJ Program was initiated through an acquisition in mid-2011. Since
then, the Company has nearly doubled production through development drilling,
successful evaluation drilling, and improving production through re-fracture
stimulation of existing wells. The Company plans to add a second rig in the
basin this month, and the full year 2012 program includes approximately 28
gross/17 net operated wells, all of which will be horizontal and target the
Niobrara formation.

During the first quarter of 2012, the Company initiated drilling on its Chalk
Bluffs acreage, drilling and completing two horizontal wells into the Niobrara
"B Chalk" formation. Results to date are very positive with the first and
second wells having peak 24-hour initial production ("IP") rates of 841 Boe/d
and 968 Boe/d, respectively, and average 30-day rates of 417 Boe/d and 456
Boe/d, respectively (not consecutive 30 day periods as wells were put on
pump). The Company currently has approximately 17,300 net undeveloped acres in
the Chalk Bluffs area. It is too early to determine corresponding EURs from
results to-date, yet horizontal success in the Niobrara opens the potential
for sizable expansion of the DJ Program.

At March 31, 2012, the Company had an approximate 91% working interest in
production from 220 gross wells.

Piceance Basin, Colorado

Gibson Gulch – Current net production is approximately 136 MMcfe/d. In March
2012, the Company modified its full year capital program to reduce drilling at
Gibson Gulch from three rigs to two rigs. The Gibson Gulch program serves as a
"swing area" for the Company as it can substantially modify the drilling
program in conjunction with broader capital plans and commodity prices. Gibson
Gulch natural gas production is processed, at the election of the Company,
exposing the Company to NGL pricing. The incremental benefit to production
revenues related to natural gas liquids was $1.14 per Mcfe to the Company-wide
realized price in the first quarter of 2012. Gibson Gulch operations offer
strong margins due both to low operating costs and the currently higher
revenues related to liquids. The program continues to be a key, lower risk
development area for the Company.

At March 31, 2012, the Company had an approximate 99% working interest in
production from 864 gross wells in its Gibson Gulch program.

Paradox Basin, Colorado

Yellow Jacket – The Company holds a sizable 445,000 gross/352,000 net acreage
position in the Yellow Jacket prospect. In the first quarter of 2012, the
Company re-initiated exploration drilling at the Yellow Jacket prospect. The
Company drilled two horizontal wells targeting the Gothic Shale formation at
approximately 6,000 feet in an area that holds NGL-rich resources. The Company
plans to complete both wells in the second quarter. In addition, the Company
signed a joint venture agreement with a major independent to earn-in up to 70%
on 112,000 acres in a portion of the Company's position. The joint venture
will acquire 3-dimensional seismic and plans to drill its first well by April
2013.

Additional Financial Information

Guidance

The Company's 2012 guidance (please reference "Forward-Looking Statements"
below) is as follows. The Company may update guidance as business conditions
warrant:

  oCapital expenditures of $800 to $900 million (before acquisitions, if
    any).
  oOil and natural gas production of 116 to 122 Bcfe, up 9% to 14% from 2011,
    revised from 122 to 126 Bcfe, following continued shift to oil.
  oLease operating costs per Mcfe of $0.60 to $0.65, revised from $0.57 to
    $0.62.
  oGathering, transportation and processing costs per Mcfe of $0.92 to $0.97,
    revised from $0.90 to $0.95.
  oGeneral and administrative expenses before non-cash stock-based
    compensation cost per Mcfe of $0.45 to $0.49, revised from $0.43 to $0.47.

Commodity Hedges Update

It is the Company's strategy to hedge a portion of its production to reduce
the risks associated with unpredictable future commodity prices and to provide
predictability for a portion of cash flows in order to support the Company's
capital expenditure program.

For 2012 and 2013, the Company has hedges in place as outlined in the table
below. Swap and collar hedge positions are tied to regional sales points and
include:

  oFor the second through fourth quarters of 2012, approximately 63.0 Bcfe,
    or approximately 70% of production, at a weighted average blended floor
    price of $6.59 per Mcfe. Approximately 70% of natural gas, 70% of oil and
    20% of NGL production/sales is hedged.
  oFor 2013, approximately 53.6 Bcfe at a weighted average blended floor
    price of $6.41 per Mcfe. Based on current sales estimates, approximately
    50% of natural gas, 30% of oil and 5% of NGL production/sales is hedged.

As of April 30, 2012:

SWAPS & COLLARS
Period  Natural Gas / NGLs  Oil             EQUIVALENT
        Volume    Price     Volume Price    Volume Price
        MMBtu/d   $MMBtu    Bbl/d  $/Bbl    Mmcfe  $/Mcfe
2Q12    223,525   $4.55     5,300  $101.02  21,385 $6.60
3Q12    229,089   $4.39     5,300  $101.02  22,086 $6.42
4Q12    198,777   $4.52     5,300  $101.02  19,551 $6.75
1Q13    172,557   $3.85     4,000  $102.16  16,278 $5.94
2Q13    127,529   $3.97     4,000  $102.16  12,734 $6.53
3Q13    127,501   $3.96     4,000  $102.16  12,872 $6.53
4Q13    114,240   $4.02     4,000  $102.16  11,763 $6.78

In addition, the Company has natural gas basis only hedges in place for 2012
of 20,000 MMBtu/d at a basis differential price of ($1.22) per MMBtu. These
hedges are not in the money.

FIRST QUARTER 2012 RESULTS WEBCAST AND CONFERENCE CALL

As previously announced, a webcast and conference call will be held later this
morning to discuss first quarter 2012 results. Please join Bill Barrett
Corporation executive management at noon Eastern time/10:00 a.m. Mountain time
for the live webcast, accessed at www.billbarrettcorp.com, or join by
telephone by calling 800-215-2410 (617-597-5410 international callers) with
passcode 86881460. The webcast will remain available on the Company's website
for approximately 30 days, and a replay of the call will be available through
May 10, 2012 at call-in number 888-286-8010 (617-801-6888 international) with
passcode 48429249. The Company also has tentatively scheduled its remaining
2012 earnings conference calls for August 2 and November 1, 2012, typically at
noon Eastern time/10:00 a.m. Mountain time.

QUARTERLY REPORT ON FORM 10-Q

The Company plans to file today its Quarterly Report on Form 10-Q for the
quarter ended March 31, 2012. The 10-Q will be posted to the Company's website
at www.billbarrettcorp.com and found under "SEC Reports".

UPCOMING EVENTS

Updated investor presentations will be posted to the homepage of the Company's
website at www.billbarrettcorp.com for each event below. Please check the
website at 5:00 Mountain time on the business day prior to the investor event
for the most recent presentation. Webcast events will also be accessible on
the homepage of the Company's website:

Annual Meeting of Stockholders

The 2012 Annual Meeting of Stockholders of Bill Barrett Corporation will be
held on May 10, 2012 at 9:30 a.m. Mountain time. The meeting will be followed
by a Company presentation and a question and answer period. The meeting,
presentation and question and answer period will be webcast and may be
accessed live and for replay on the Company's website at
www.billbarrettcorp.com .

Investor Conferences

Chief Financial Officer Bob Howard will present at the Enercom London Oil and
Gas Conference on June 13, 2012 at 10:15 a.m. London time. The event will be
webcast.

Chief Operating Officer Scot Woodall will present at the Global Hunter
Securities 100 Energy Conference in San Francisco on June 25, 2012 at 2:00
p.m. Pacific time. The event will be webcast.

DISCLOSURE STATEMENTS

Calculation of Natural Gas Liquids as a Percent of Sales Volumes

The Company's natural gas production is based on wellhead volumes and its
natural gas revenue includes the incremental revenue benefit of from third
party purchasers and processors when the company elects to receive NGL values
from certain volumes of natural gas. Many oil and gas producing companies
report NGL volumes and revenues separately from natural gas volumes and
revenues. In order to provide a metric that is comparable to other oil and
gas production companies, the Company is providing the percentage of total
company sales volumes by product including oil, natural gas and NGL revenues
received from our gas purchasers or processors. The NGL volumes identified by
our gas purchasers or processors are converted to an oil equivalent based on
42 gallons per barrel and compared to overall gas equivalent production based
on a 1 barrel to 6 Mcf ratio.

Reserve Disclosure

The SEC permits oil and gas companies to disclose probable and possible
reserves in their filings with the SEC. The Company does not plan to include
probable and possible reserve estimates in its filings with the SEC.

The Company has provided internally generated estimates for probable and
possible reserves in this release. The estimates conform to SEC guidelines.
They are not prepared or reviewed by third party engineers. Our probable and
possible reserve estimates are determined using strip pricing, which we use
internally for planning and budgeting purposes. The Company's estimate of
probable and possible reserves is provided in this release because management
believes it is useful, additional information that is widely used by the
investment community in the valuation, comparison and analysis of companies.
U.S. investors are urged to consider closely the disclosure in our Annual
Report on Form 10-K for the year ended December 31, 2011, available on the
Company's website at www.billbarrettcorp.com or from the corporate offices at
1099 18th Street, Suite 2300, Denver, CO 80202. You can also obtain this form
from the SEC by calling 1-800-SEC-0330 or at www.sec.gov.

Forward-Looking Statements

This press release contains forward-looking statements, including statements
regarding projected results and future events. In particular, the Company is
providing "2012 Guidance," which contains projections for certain 2012
operational and financial results, as well as planned drilling activity. These
forward-looking statements are based on management's judgment as of this date
and include certain risks and uncertainties. Please refer to the Company's
Annual Report on Form 10-K for the year-ended December 31, 2011 filed with the
SEC, and other filings including our Current Reports on Form 8-K and Quarterly
Reports on Form 10-Q, for a list of certain risk factors that may affect these
forward-looking statements.

Actual results may differ materially from Company projections and can be
affected by a variety of factors outside the control of the Company including,
among other things, market conditions, oil and gas price volatility,
exploration and development drilling and testing results, performance of
acquired properties, the ability to receive drilling and other permits and
rights-of-way, regulatory approvals, governmental laws and regulations and
changes in enforcement of those laws and regulations, new laws and
regulations, risks related to and costs of hedging activities including
counterparty viability, surface access and costs, availability of third party
gathering, transportation, processing and refining, the availability and cost
of services and materials, the ability to obtain industry partners to jointly
explore certain prospects and the willingness and ability of those partners to
meet capital obligations when requested, availability and costs of financing
to fund the Company's operations, uncertainties inherent in oil and gas
production operations and estimating reserves, the speculative actual recovery
of estimated potential volumes, unexpected future capital expenditures,
competition, risks associated with operating in one major geographic area, the
success of the Company's risk management activities, title to properties,
litigation, environmental liabilities, and other factors discussed in the
Company's reports filed with the SEC. Bill Barrett Corporation encourages
readers to consider the risks and uncertainties associated with projections
and other forward-looking statements. In addition, the Company assumes no
obligation to publicly revise or update any forward-looking statements based
on future events or circumstances.

ABOUT BILL BARRETT CORPORATION

Bill Barrett Corporation (NYSE: BBG), headquartered in Denver, Colorado,
explores for and develops oil and natural gas in the Rocky Mountain region of
the United States. Additional information about the Company may be found on
its website www.billbarrettcorp.com.



BILL BARRETT CORPORATION
Selected Operating Highlights
(Unaudited)
                                                  Three Months Ended
                                                  March 31,
                                                  2012           2011
Production Data:
    Natural gas (MMcf)                            25,319         21,434
    Oil (MBbls)                                   481            297
    Combined volumes (MMcfe)                      28,205         23,216
    Daily combined volumes                        310            258
    (Mmcfe/d)
Average Prices (before the effects
of realized hedges):
    Natural gas (per Mcf)           (1)           $  4.28       $  5.61
    Oil (per Bbl)                                 89.86          81.18
    Combined (per Mcfe)                           5.37           6.21
Average Realized Prices (after the
effects of realized hedges):
    Natural gas (per Mcf)           (1)           $  5.46       $  6.69
    Oil (per Bbl)                                 88.42          78.44
    Combined (per Mcfe)                           6.41           7.18
Average Costs (per Mcfe):
    Lease operating expense                       $  0.66       $  0.57
    Gathering, transportation and                 0.97           0.83
    processing expense
    Production tax expense                        0.22           0.37
    Depreciation, depletion and                   2.63           2.82
    amortization
    General and administrative
    expense,
     excluding non-cash          (2)           0.49           0.56
    stock-based compensation
    Natural gas average prices
(1) include the effect of NGL
    revenues.
    Management believes the separate presentation of the non-cash component of
    general and administrative expense is useful because the cash portion
(2) provides a better understanding of cash required for general and
    administrative expenses. Management also believes that this disclosure may
    allow for a more accurate comparison to the Company's peers that may have
    higher or lower costs associated with equity grants.



BILL BARRETT CORPORATION
Consolidated Statements of Operations
(Unaudited)
                                         Three Months Ended
                                         March 31,
                                         2012                 2011
(in thousands, except per share
amounts)
Operating and Other Revenues:
    Oil and gas production        (1)    $ 177,042            $ 172,197
    Other                                2,134                238
     Total operating and other          179,176              172,435
    revenues
Operating Expenses:
    Lease operating                      18,638               13,299
    Gathering, transportation and        27,352               19,336
    processing
    Production tax                      6,207                8,566
    Exploration                          439                  1,351
    Impairment, dry hole costs           564                  283
    and abandonment
    Depreciation, depletion and          74,083               65,394
    amortization
    General and administrative    (2)    13,800               13,067
    Non-cash stock-based          (2)    4,640                4,629
    compensation
     Total operating expenses           145,723              125,925
Operating Income/ (loss)                 33,453               46,510
Other Income and Expense:
    Interest income and other            1,563                63
    income (expense)
    Interest expense                     (21,590)             (12,042)
    Commodity derivative gain     (1)    44,747               (11,112)
    (loss)
     Total other income and             24,720               (23,091)
    expense
Income before Income Taxes               58,173               23,419
Provision for Income Taxes               22,280               8,204
Net Income/ (loss)                       $  35,893           $  15,215
Net Income Per Common Share
    Basic                                $    0.76        $    0.33
    Diluted                              $    0.76        $    0.33
Weighted Average Common Shares
Outstanding
    Basic                                47,085               46,093
    Diluted                              47,368               46,767
    The table below summarizes the realized and unrealized gains and losses
(1) the Company recognized related to its oil and natural gas derivative
    instruments for the periods indicated:
                                         Three Months Ended March 31,
                                         2012                 2011
    Included in oil and gas
    production revenue:
    Certain realized gains on            $   25,465         $   27,922
    hedges
    Included in commodity
    derivative gain (loss):
    Realized gain (loss) on
    derivatives not designated as
     cash flow hedges                  $    3,803        $   (5,404)
    Unrealized ineffectiveness
    gain recognized
     on derivatives designated         -                    163
    as cash flow hedges
    Unrealized gain (loss) on
    derivatives
     not designated as cash            40,944               (5,871)
    flow hedges
     Total commodity derivative        $   44,747         $  (11,112)
    gain (loss)
    Management believes the separate presentation of the non-cash component of
    general and administrative expense is useful because the cash portion
(2) provides a better understanding of cash required for general and
    administrative expenses. Management also believes that this disclosure may
    allow for a more accurate comparison to the Company's peers that may have
    higher or lower costs associated with equity grants.





BILL BARRETT CORPORATION
Consolidated Condensed Balance Sheets
(Unaudited)
                                          As of               As of
                                          March 31, 2012      December 31,
                                                              2011
(in thousands)
Assets:
    Cash and cash equivalents             $             $       
                                          95,694                57,331
    Other current assets            (1)   180,257             189,012
    Property and equipment, net           2,564,273           2,406,764
    Other noncurrent assets               44,408              34,823
          Total assets                    $               $       
                                          2,884,632           2,687,930
Liabilities and Stockholders'
Equity:
    Current liabilities      (1)   $              $       
                                          201,056              233,198
    Notes payable to bank                 -                   70,000
    Senior notes                          1,041,584           641,198
    Convertible senior notes              25,344              171,042
    Other long-term                 (1)   375,507             353,654
    liabilities
    Stockholders' equity                  1,241,141           1,218,838
          Total liabilities and           $               $       
          stockholders' equity            2,884,632           2,687,930
    At March 31, 2012, the estimated fair value of all of our commodity
    derivative instruments was a net asset of $98.8 million, comprised of:
(1) $86.7 million current assets; $12.3 million non-current assets; and ($0.2)
    million non-current liabilities. This amount will fluctuate quarterly
    based on estimated future commodity prices and the current hedge position.



BILL BARRETT CORPORATION
Consolidated Statements of Cash Flows
(Unaudited)
                                                   Three Months Ended
                                                   March 31,
                                                   2012          2011
(in thousands)
Operating Activities:
  Net income                                       $   35,893  $   15,215
  Adjustments to reconcile to net cash
   provided by operations:
   Depreciation, depletion and amortization        74,083        65,394
   Impairment, dry hole costs and abandonment      564           283
   expense
   Unrealized derivative (gain)\loss               (40,944)      5,708
   Deferred income taxes                           22,280        8,204
   Stock compensation and other non-cash charges   3,322         5,091
   Amortization of debt discounts and deferred     3,317         3,169
   financing costs
   Loss (gain) on sale of properties               -             279
   Change in assets and liabilities:
         Accounts receivable                       15,207        (3,699)
         Prepayments and other assets              1,191         3,929
         Accounts payable, accrued and other       (12,434)      (16,324)
         liabilities
         Amounts payable to oil & gas property     (3,277)       (904)
         owners
         Production taxes payable                  (2,402)       1,366
   Net cash provided by operating activities       $   96,800  $   87,711
Investing Activities:
  Additions to oil and gas properties, including   (230,158)     (105,172)
  acquisitions
  Additions of furniture, equipment and other      (2,329)       (720)
  Proceeds from sale of properties and other       (112)         (344)
  investing activities
   Net cash used in investing activities           $ (232,599)   $ (106,236)
Financing Activities:
  Proceeds from debt                               450,000       -
  Principal payments on debt                       (267,156)     -
  Deferred financing costs and other               (9,350)       (3,308)
  Proceeds from stock option exercises             668           4,353
   Net cash provided by financing activities       $ 174,162    $    1,045
Increase/(Decrease) in Cash and Cash Equivalents   38,363        (17,480)
Beginning Cash and Cash Equivalents                57,331        58,690
Ending Cash and Cash Equivalents                   $   95,694  $   41,210



BILL BARRETT CORPORATION
Reconciliation of Discretionary Cash Flow & Adjusted Net Income
(Unaudited)
Discretionary Cash Flow Reconciliation
                                                 Three Months Ended
                                                 March 31,
                                                 2012             2011
(in thousands, except per share amounts)
Net Income/(loss)                                $ 35,893         $  15,215
Adjustments to reconcile to discretionary
cash flow:
      Depreciation, depletion and                74,083           65,394
      amortization
      Impairment, dry hole and abandonment       564              283
      expense
      Exploration expense                        439              1,351
      Unrealized derivative (gain)/loss          (40,944)         5,708
      Deferred income taxes                      22,280           8,204
      Stock compensation and other non-cash      4,923            5,091
      charges
      Amortization of debt discounts and         3,317            3,169
      deferred financing costs
      Gain on extinguishment of debt             (1,601)          -
      Loss (gain) on sale of properties          -                279
Discretionary Cash Flow                          $ 98,954         $ 104,694
      Per share, diluted                         $   2.09      $   
                                                                  2.24
      Per Mcfe                                   $   3.51      $   
                                                                  4.51
Adjusted Net Income Reconciliation
                                                 Three Months Ended
                                                 March 31,
                                                 2012             2011
(in thousands except per share amounts)
Net Income/(loss)                                $ 35,893         $  15,215
Adjustments to net income:
      Unrealized derivative (gain)/loss          (40,944)         5,708
      Impairment expense                         -                -
      Loss (gain) on sale of properties          -                279
      One time items:
               Gain on extinguishment of         (1,601)          -
               debt
      Subtotal Adjustments                       (42,545)         5,987
      Effective tax rate                         38%              35%
      Tax effected adjustments                   (26,378)         3,892
Adjusted Net Income                              $  9,515        $  19,107
      Per share, diluted                         $   0.20      $   
                                                                  0.41
      Per Mcfe                                   $   0.34      $   
                                                                  0.82
The non-GAAP (Generally Accepted Accounting Principles in the United States of
America) measures of discretionary cash flow and adjusted net income are
presented because management believes that they provide useful additional
information to investors for analysis of the Company's ability to internally
generate funds for exploration, development and acquisitions as well as
adjusting net income for unusual items to allow for a more consistent
comparison from period to period. In addition, these measures are widely used
by professional research analysts and others in the valuation, comparison and
investment recommendations of companies in the oil and gas exploration and
production industry, and many investors use the published research of industry
research analysts in making investment decisions.
These measures should not be considered in isolation or as a substitute for
net income, income from operations, net cash provided by operating activities
or other income, profitability, cash flow or liquidity measures prepared in
accordance with GAAP. Because discretionary cash flow and adjusted net income
exclude some, but not all, items that affect net income and net cash provided
by operating activities and may vary among companies, the amounts presented
may not be comparable to similarly titled measures of other companies.



SOURCE Bill Barrett Corporation