Bill Barrett has reported certain unaudited operating results for year-end 2009 and certain operating guidance for 2010. Highlights from 2009 include (unaudited):
Chairman and Chief Executive Officer, Fred Barrett, commented, "2009 was another year in which our team demonstrated excellent execution as a low cost operator. Given a back-drop of poor economic conditions and particularly low natural gas prices, we delivered strong reserve and production growth, generated cash flow in excess of our capital program, as well as ended the year with a strong balance sheet and $588 million in available liquidity. Our reserve growth under a low commodity price scenario reflects the quality of our assets and these results translate into a fourth consecutive year of lower finding and development costs (see "Disclosure Statements" section below), which were approximately $1.69 per thousand cubic feet equivalent ("Mcfe") for 2009, including the $60 million Cottonwood Gulch acquisition, or $1.44 per Mcfe excluding this acquisition. Record production along with our hedging program drove solid revenue that, combined with lower per unit costs for lease operating and general and administrative expenses, supported solid cash flow despite the low price environment.
"Looking to 2010, we have a capital expenditure budget of $400 to $425 million, before acquisitions, which we plan to allocate approximately 95% to our development programs and approximately 5% towards exploration. However, spending will remain flexible should circumstances allow us to increase activity at West Tavaputs, Cottonwood Gulch or Yellow Jacket. Capital expenditures will again be aligned with cash flows. We are projecting production of 97 to 100 billion cubic feet equivalent ("Bcfe") for 2010, which reflects an 8% to 12% increase over 2009. Currently, the Company has approximately 60% of 2010 projected production hedged at an average floor price of approximately $7.55 per Mcfe and may continue to layer on hedges up to 70% of production in order to ensure predictable cash flows in 2010. We are well positioned to have another great year, to be opportunistic and to drive operational excellence that delivers continued growth and higher returns throughout 2010."
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