Bill Barrett Corp fka BBG

[Timothy Smith]

The sale of West Tavaputs (which essentially removes 26% of BBG’s 2013 full year production) will cause BBG’s absolute production volumes to decline YoY.

In addition, natural declines and a 3% step-down in the company’s working interest in the Piceance will also make it difficult for the company to generate pro-forma production growth from continuing operations despite possibly putting up oil growth of 35+% YoY.

While BBG reiterated its 30-35% 2013 YoY growth guidance and could generate similar amounts of oil growth in 2014, legacy assets continue to weigh down overall production and cashflow growth, and any balance sheet relief from the pending West Tavaputs sale could be short lived. As such, 2014 could be another transition year.