This summary is based on the third quarter fiscal 2006 earnings call conducted by Bill Barrett Corp. (BBG: chart) on November 7, 2006.

Key Investors Issues

- Earnings per share rose to 47 cents compared to 30 cents in the year ago quarter.
- Quarterly revenue was $104.4 million versus $71.2 million in the prior year.
- For 2006, the organic CapEx spend is expected to be about $395 million to $400 million, in addition to the $80 million spent for CH4.

Third Quarter Fiscal 2006 Financial Highlights

The company generated net income of $20.7 million or 47 cents per diluted share in Q3, included several non-recurring items.

On a pre-tax basis, the firm has recorded gains of $23.8 million related to bringing in partners in its joint exploration project in the Montana Overthrust, Big Horn Basin, and Paradox Basin. Further more, the firm recorded dry hole and abandonment cost totaling $3.9 million, primarily related to the Williston. The company also recorded an impairment of $1.2 million related to certain non-core properties in the Uinta Basin that are in the process of being installed. Without these gains on sales or impairments, the EPS would have been of 15 cents.

In the third quarter, the company produced an average of 137 million cubic feet equivalent per day.

The firm had 25% production growth over Q3 last year and a 4% increase from last quarter. The firm had curtailed in West Tavaputs from mid-May to mid-August due to lack of processing for high due point gas.

For the third quarter, the company realized an average price of $6.37 per Mcfe and generated $54 million in cash flow or about $1.23 per share.

The realized price and cash flow in both Q3 and Q4 benefited from the strong hedge position.

The operating cost was $1.91 per Mcfe, a decrease of 13 cents from last quarter.

The firm had lower water handling and gathering expenses and production taxes were lower by 3 cents due to lower commodity prices.

- G&A costs were basically flat despite nearly $500,000 of non-recurring expenses.
- The firm also lowered its 2006 expected gathering and transportation expense by $2 million, primarily due to the lower cost of fuel used.
- The net capital expenditures totaled $313 million for the first three quarters of 2006, including the $80 million spent for CH4. This does not include $37 million of non-tax deferred tax liability associated with this acquisition.

In the third quarter, the company received $31 million in cash for the divestiture of non-core Powder River properties.

The firm also received another $31 million in cash and properties worth $9 million related to brining in partners and joint exploration agreements.

For 2006, the company’s organic CapEx spend is expected to be about $395 million to $400 million in addition to the $80 million spent for CH4.

These outlays are offset by $31 million in proceeds from Storm Cat and $45 million or so in expected joint exploration proceeds. This will all net to $400 million expected CapEx spending for 2006. The company is looking at next year''s organic CapEx spending to be slightly higher than this year.

The company ended the third quarter with $185 million outstanding under revolving credit facility, and currently has $180 million outstanding.

The firm recently increased its bank line capacity to $310 million, based on its mid-year 2006 reserves. Hence, the company has plenty of liquidity to finish the year and well into next year. Also, the firm’s hedge position gives it further financial flexibility. The firm is approximately 40% plus hedged for next year and will continue to add hedges at opportune spikes and commodity prices.

The firm has a net debt-to-cap ratio of 16% and $130 million of remaining available under its revolving credit facility.