Bill Barrett Corporation Announces Debt Exchange

DENVER, June 2, 2016 /PRNewswire/ -- Bill Barrett Corporation (the "Company") (NYSE: BBG) announced today that it has agreed to a privately negotiated exchange with a holder of the Company's 7.625% Senior Notes due 2019 (the "Notes"). In the transaction, the holder has agreed to exchange approximately $84.7 million aggregate principal amount of the Notes for 10 million newly issued shares of the Company's common stock plus the cash payment of accrued and unpaid interest. As a result of this transaction, the Company reduced the principal amount of the nearest term Notes by 21% and net debt by 12% (as of March 31, 2016). Furthermore, the Company will realize annual interest savings of approximately $6.5 million.

Chief Executive Officer and President Scot Woodall stated, "We remain focused on opportunities to increase stakeholder value by improving our balance sheet, and this debt exchange represents another positive step in these ongoing efforts. The debt reduction at a discount to par and associated interest savings on our highest interest rate debt, combined with our previously announced strategic sale of non-core assets in the Uinta Basin for $30 million, further strengthens our balance sheet. Additionally, we have taken advantage of stronger oil prices to add hedges to protect future cash flows."

"Improvements to the balance sheet are underpinned by solid operational performance as we are seeing favorable results from our DJ Basin XRL development program. We are off to a good start to the second quarter as oil prices have moved higher, costs and differentials continue to improve, and production is trending above quarterly guidance. We remain financially well positioned with a meaningful cash position, an undrawn credit facility, and a strong hedge position that together provide ample liquidity to manage through this challenging environment."       

Forward-Looking Statements

All statements in this press release, other than statements of historical fact, may be deemed to be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Words such as expects, forecast, guidance, anticipates, intends, plans, believes, seeks, estimates and similar expressions or variations of such words are intended to identify forward-looking statements herein; however, these are not the exclusive means of identifying forward-looking statements. Forward-looking statements in this release relate to, among other things, the closing and anticipated effects of, the exchange transaction and expected operational developments.        

These and other forward-looking statements in this press release are based on management's judgment as of the date of this release and are subject to numerous risks and uncertainties. Please refer to the Company's Annual Report on Form 10-K for the year ended December 31, 2015 filed with the SEC and other filings, including our Current Reports on Form 8-K and Quarterly Reports on Form 10-Q, all of which are incorporated by reference herein, for further discussion of risk factors that may affect the forward-looking statements. The Company encourages you to consider the risks and uncertainties associated with projections and other forward-looking statements and to not place undue reliance on any such 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, 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.

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