From Earlier: Bill Barrett Corporation Reduces and Redirects 2012 Capital Program; Continues to Increase Emphasis on Oil
Bill Barrett Corporation (NYSE: BBG) announced yesterday a revised 2012 capital program for the Company as a result of lower natural gas prices. The Company has reduced its expected capital expenditure program for 2012 to a projected range of $800 million to $900 million, a reduction of nearly $100 million. Specifically, the Company is reducing natural gas activity by $120 million and increasing oil activity by $30 million.
The increased oil directed expenditures include the addition of two rigs by year-end at the Uinta Oil Program. The revised capital program is expected to generate 2012 production growth of 14% to 18%, which is approximately 4 Bcfe less than the previous guidance estimate.
The Company's revised guidance for 2012 is:
Capital expenditures: $800 to $900 million, reduced from $900 million to $1 billion Production: 122 to 126 Bcfe, reduced from 126 to 130 Bcfe Lease operating expense: $0.57 to $0.62 per Mcfe, up from $0.55 to $0.59 per Mcfe Gathering, processing and transportation: $0.90 to $0.95 per Mcfe, unchanged General and administrative: $0.43 to $0.47 per Mcfe, unchanged
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