Bill Barrett Corp. (NYSE: BBG) has closed on the previously announced sale of non-core assets located in the Uinta Basin for net cash proceeds of approximately $30 million (subject to customary post-closing adjustments).
The assets produced approximately 1,000 boe/d (63% oil) during the first quarter of 2016 and had estimated proved reserves of two million barrels of oil equivalent (87% proved developed) as of December 31, 2015.
The sale of the properties did not result in a reduction of the company's borrowing base related to its revolving credit facility. The proceeds from this transaction will be used for general corporate purposes and to enhance the company's liquidity position.
The company's "ample liquidity" provides the company with "ample optionality," Wunderlich Securities Inc. analysts said in a note Friday.
"BBG has such strong optionality due to its $100+ million cash balance, $30 million in recently closed asset sale proceeds and the undrawn $335 million credit facility. This financial firepower gives the company the ability to look at resuming drilling activity and/or reducing bond debt when appropriate; and we think investors have not given the company enough credit through the downturn for building and maintaining such an enviable position," the analysts continued.
Wells Fargo Securities LLC acted as the company's advisor on this transaction.