Bill Barrett Corporation Announces $371 Million Sale of the West Tavaputs Natural Gas Asset

  Bill Barrett Corporation Announces $371 Million Sale of the West Tavaputs
                              Natural Gas Asset

PR Newswire

DENVER, Oct. 23, 2013

DENVER, Oct. 23, 2013 /PRNewswire/ -- Bill Barrett Corporation (NYSE: BBG)
announced today that it has signed a purchase and sale agreement with an
undisclosed purchaser for the sale of the Company's West Tavaputs natural gas
property located in the Uinta Basin, Utah. Total consideration, prior to
customary closing adjustments, is $371 million and includes approximately $46
million for the purchaser's assumption of the lease financing obligation for
compressor units on the property. The transaction is expected to close before

Chief Executive Officer and President Scot Woodall comments: "Completing this
transaction is consistent with our objectives to partially fund our capital
program through asset sales, to end 2013 with total debt less than year-end
2012 and to divest of projects where the Company is not actively investing. We
are pleased with the value received, which is 5.6 times cash flow (based on
second quarter of 2013 field level cash generated) and approximately $5,450
per thousand cubic feet equivalent per day ("Mcfe/d") flowing production. Pro
forma for this transaction, our long-term debt at June 30, 2013 is reduced
from $1,248 million to $877 million, and we expect to exit 2013 with a
production split that is approximately 40% oil."

Cash proceeds of approximately $325 million will be adjusted at closing for an
effective date of August 1, 2013 and for transaction costs. Proceeds will be
applied to reducing outstanding debt under the Company's revolving credit
facility. The transaction includes approximately 35,000 net acres, 300
producing wells, 265 billion cubic feet equivalent net proved reserves (based
on year-end 2012) and 68 MMcfe/d net production (based on the second quarter
of 2013).

The Company's 2013 production guidance will be adjusted based on the actual
date of close. In addition, the Company expects to record non-cash impairment
charges in the third quarter of 2013 of approximately $200 million (pretax)
associated with the asset sale, and expects that the transaction will not
incur a current tax liability.


This press release contains forward-looking statements, including statements
regarding the expected closing of the aforementioned transaction, potential
uses of funds and updated guidance on 2013 operating results. 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, 2012 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 other
forward-looking statements and can be affected by a variety of factors outside
the control of the Company including, among other things: oil, NGL and natural
gas price volatility; the ability to complete property sales or other
transactions; the ability to receive drilling and other permits and
rights-of-way in a timely manner; development drilling and testing results;
the potential for production decline rates to be greater than expected;
performance of acquired properties and newly drilled wells; costs and
availability of third party facilities for gathering, processing, refining and
transportation; regulatory approvals, including regulatory restrictions on
federal lands; legislative or regulatory changes, including initiatives
related to hydraulic fracturing; higher than expected costs and expenses,
including the availability and cost of services and materials; unexpected
future capital expenditures; economic and competitive conditions; 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; declines in the values of our oil and gas properties resulting in
impairments; changes in estimates of proved reserves; compliance with
environmental and other regulations; derivative and hedging activities; 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.


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

SOURCE Bill Barrett Corporation

Contact: Jennifer Martin, Vice President-Investor Relations, 303-312-8155