This summary is based on the second quarter fiscal 2006 earnings call conducted by Bill Barrett, Corp. (BBG: chart) on August 8, 2006.

Key Investors Issues

- Net income was $8.2 million, compared to $15.9 million in the second quarter of 2005.
- Earnings per share were 19 cents, compared to 37 cents per share in the Q2 of 2005.
- Production was 12.2 Bcfe, an average of 134 million cubic feet equivalent per day (MMcfed), representing a 42% increase from the second quarter of 2005.
- Discretionary cash flow was $51.6 million, compared to $34.7 million in the second quarter of 2005.

Second Quarter Highlights

Bill Barrett Corporation produced an average of 134 million cubic feet equivalent per day.

That represents 42% growth over second quarter 2005, but an 8% reduction from company’s record first quarter 2006 production due to natural declines and curtailment.

An average price per Mcfe produced was $6.42.

Cash flow was $51.6 million in or $1.17 per share.

Net income was $8.2 million or 19 cents per share.

Cash operating costs were $2.04 per Mcfe, an increase of 7 cents per Mcfe from the first quarter of 2006.

It primarily relates to higher level of effort (LOE) due to water handling expenses combined with flat, gathering and general and administration (G&A) costs on lower production volumes. These expenses were partially offset by a decrease in production taxes due to lower realized prices.

In the Wind River Basin, the Bullfrog 33-19 exploration well (93% working interest), which was drilled to 19,432 feet, was successfully completed in the Lakota formation.

The well, an offset to the Bullfrog 14-18 Muddy discovery, tested at rates of 5 million cubic feet equivalent per day (MMcfed) (gross) after clean up from its fracture stimulation, is currently producing 4 MMcfed (gross). Based on log results, the company has identified additional potential uphole in the Muddy and Frontier formations, both of which are behind pipe.

Net capital expenditures totaled $178.1 million, which was comprised of:

- $93.8 million for the acquisition of producing properties, undeveloped properties and land;
- $89.3 million for drilling, development and exploration of natural gas and oil properties;
- $600,000 for geologic and geophysical costs;
- $700,000 for equipment and other expenditures, which was offset by $6.3 million received from industry partners pursuant to joint exploration agreements.

The Lakota formation was successfully completed in the Bullfrog 33-19.

The company believes that the Muddy and Frontier formations are prospective and are behind pipe. The Muddy formation, based on logs, does not appear to be as well developed as in the Bullfrog 14-18. This Lakota discovery and the Muddy discovery in the Bullfrog 14-18 help substantiate significant upside in a deep multi-formation program with at least 30 identified locations.

Cooper Reservoir

The company is nearing a total depth of 16,265 feet in its exploratory test, the Cooper Deep (50% working interest). Results of the well are expected to release within 60 days. The Cooper Deep is located approximately six miles southwest of the successful Bullfrog 33-19 and is also targeting the Frontier, Muddy, and Lakota formations.

Uinta Basin, Utah