This summary is based on the first quarter fiscal 2007 earnings call conducted by Bill Barrett Corp. (BBG: chart) on May 08, 2007.

Key Investors Issues

- EPS were 32 cents per share compared to 50 cents per share a year ago.
- Net income was $14.2 million compared to $22.1 million in the first quarter of 2006.
- Discretionary cash flow, a non-GAAP measure, was $68.5 million compared to $71.3 million a year ago.
- Discretionary cash flow per share was $1.55 compared to $1.62 per share last year.

First Quarter Highlights

The company produced oil and gas at an average daily rate of 157 million cubic feet equivalent per day, an 8% increase over first quarter 2006 and a 2% improvement on fourth quarter 2006.

Total production was 14.2 Bcfe, and the company is still on track to meet 2007 guidance of 58 Bcfe to 63 Bcfe.

The company realized an average sales price of $6.84 per Mcfe and generated $68.5 million of discretionary cash flow or $1.55 per share.

This compares to the first quarter of 2006 when average sales price was $7.42 per Mcfe and it generated $71.3 million of cash flow. The reduction in average sales price is due to general market declines in the Rockies offset by hedging program. The effect on this price reduction on the cash flow was offset by increased production quantities and lower production taxes.

Net income was $14.2 million or 32 cents per share, which compares to $22.1 million or 50 cents per share in the 2006 first quarter.

This reduction was caused by lower sales prices and increase in DD&A to $2.89 per Mcfe, which is comparable to depletion rate in the first quarter of 2006.

Cash operating costs, which consist of LOE, gathering, production taxes, and G&A totaled to $1.88 per Mcfe.

Production taxes decreased compared to 2006 due to lower gas prices and an increased production mix in lower tax rates. The company expensed $3.4 million in dry hole costs reeled to the Cooper Deep number one well only for those costs related to formations below the Cody/Niobrara. This well is currently producing from the Cody/Niobrara formation.

The company received $7.4 million for settlements on commodity hedges, which offset the reduction in wellhead prices in the Rockies.

Approximately 64% of gas production for April through December is hedged at a combined Rockies floor swap price of $5.94 per MMBTU, and 20% of 2008 gas production is hedged at a combined floor swap price of $6.67 per MMBTU.

Capital expenditures totaled nearly $81 million.

This included $63 million to drill and complete wells and adds facilities, $12 million for leasehold acquisitions, $5 million on geologic and geophysical costs, $1 million for furniture fixtures and equipment.

First quarter results include $650 million cubic feet equivalent of production from properties held for sale, principally the Williston Basin properties.

The company is negotiating a purchase and sale agreement with a high bidder for Williston Basin properties. The effective date of the sale is May 1st.

Considering the net production revenue received through May 1st, total proceeds in 2007 with respect to the Williston properties will be between $85 million and $90 million.

Net book basis of the properties is $70 million.