Bill Barrett Corp. (NYSE:BBG) Q4 2015 Earnings Conference Call - Final Transcript

Mar 02, 2016 • 10:00 am ET

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Bill Barrett Corp. (NYSE:BBG) Q4 2015 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day, ladies and gentlemen. And welcome to the Fourth Quarter and Year End 2015 Bill Barrett Corp Earnings Conference Call. [Operator Instructions]. Later, we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions]

I would now like to turn the conference over to Mr. Larry Busnardo, Senior Director of Investor Relations. Please go ahead.

Executive
Larry Busnardo

Good morning. And thank you for joining us today for the Bill Barrett Corporation fourth quarter and year end 2015 earnings conference call. Joining me today are Scot Woodall, Chief Executive Officer; Bob Howard, Chief Financial Officer and Bill Crawford, Senior Vice President, Finance and Treasury.

Before we begin today, I need to remind everyone to read the disclosure statements provided within the forward looking statements of our earnings release posted to the homepage of our website at billbarrettcorp.com. You can also find and review these disclosures as they're referenced in our other filings with the SEC or in our 10-K which was filed earlier today. These documents can also be found our website or at sec.gov.

With that short introduction, I will now turn the call over to Scot Woodall. Scot?

Executive
Scot Woodall

Good morning. This past year presented a unique set of challenges as oil prices plunged to levels not seen for over a decade. We successfully responded by executing on our operational objectives and focusing on the items within our control. Although oil prices have further weakened since beginning of the year, we remained well positioned to endure this price environment.

Importantly, we entered 2016 with a $129 million of cash, a hedge book worth approximately $136 million and undrawn credit facility with a borrowing base of $375 million. While it is difficult to know when or if we will see a recovery in oil prices this year, our priority will be to protect our balance sheet and liquidity to ensure that we retain operational and financial flexibility. We would discuss our 2016 business plan in more details in a few minutes.

Last week the company announced that it underwent a broader workforce reduction to align its employee base and G&A cost structure. This was not an easy decision but unfortunately it was a necessity. As we along with the entire industry are experiencing the effects of a prolong period of low prices. Including this process was several members of our senior management team including Bob Howard. As you know, Bob is the consummate professional and has been an integral part of the Bill Barrett Corporation since its inception. I'd like to thank Bob for his leadership, contribution and dedicated service during his time with the company. He has been instrumental to our success and wish him all the best in his future endeavors.

We also announced the appointment of Bill Crawford to the position of Senior Vice President, Treasury and Finance. Bill joined the company 12 years ago and has given his diverse finance and background has served in positions of increasing responsibility including most recently as Vice President