Starting tomorrow you can call it HighPoint Resources
Bill Barrett Corporation (NYSE: BBG) has completed its strategic combination with Fifth Creek Energy Company, LLC. The merger between Bill Barrett and privately held Fifth Creek Energy closed March 19, 2018.
In conjunction with the merger’s closing, the oil and gas industry can flip the switch from an iconic name with a long history in the U.S. onshore exploration and production sector to a new name–HighPoint Resources Corporation. The new combined company will begin trading on the New York Stock Exchange under the new symbol “HPR” on March 20, 2018. The Bill Barrett website has been replaced by the HighPoint Resources website.
The name Bill Barrett goes back a long way in the state of Colorado and in the industry. It epitomizes the Rocky Mountain region’s successful development of its oil and gas resources for many decades–named for the legendary oilman and genuine wildcatter.
Editor’s Note: read Oil & Gas 360’s 2015 interview with Bill Barrett. Links to both parts of the interview appear below:
TOP MINDS IN THE BUSINESS: PART I – Bill Barrett Discusses Wildcatting, Finding Prospects, Down Cycle Opportunities and Company Building in a Downturn
TOP MINDS IN THE BUSINESS: Part II – Bill Barrett Discusses Growth Structures, Downturns and Long-Term Potential for the Industry’s Newcomers
Chief Executive Officer and President Scot Woodall commented, “We have undergone a significant transformation over the past several years and are positioned to embark on an exciting new era for the organization as a premier, DJ Basin focused company.
“Our new name recognizes the strategic direction of our company that is underpinned by high quality oil assets and a returns focused capital program that positions us for a period of significant growth in the coming years.”
The announcement came after Barrett stockholders approved the adoption of the plan of merger, announced on March 16. Barrett reported that approximately 98.7% of the shares voting, representing approximately 76.9% of the total outstanding shares, voted in favor of the adoption of the merger agreement.
When Bill Barrett announced the combination with Fifth Creek Energy in December, the transactions was valued at almost $650 million.
According to the deal announcement, Bill Barrett’s shareholders were to exchange their shares for the new company shares on a 1-for-1 basis, while privately-held Fifth Creek will receive 100 million shares of the new company. Bill Barrett had about 76 million shares outstanding, so Fifth Creek will be the majority shareholder of the new company.
Privately held Fifth Creek holds a large position in the rural portion of the DJ play. According to the company’s presentation at EnerCom’s The Oil & Gas Conference® last August, Fifth Creek holds about 80,300 net acres, with a very high oil cut. Fifth Creek is producing about 2,900 BOEPD from its Hereford Field operations, 72% of which is oil. According to Bill Barrett, the Hereford Field has some of the best wells in the DJ basin, with seven recent wells averaging 1,052 BOEPD.
The Hereford Field is where the record “Jake well” in 2009 kicked off the horizontal Niobrara play.
Barrett reports the combined company will hold 151,100 net acres and an inventory of 2,865 drilling locations. Bill Barrett and Fifth Creek have 168 MMBOE of proved reserves and produced 24 MBOEPD in Q3. Bill Barrett had earlier announced it plans to operate three drilling rigs in 2018, spending $500-$600 million.
The company’s January presentation said Scot Woodall will serve as CEO and president of the combined company and that the current board would be increased by five Fifth Creek-nominated directors; Jim W. Mogg will continue to serve as chairman, the company said.
Bill Barrett said in its corporate presentation the combined company initial equity value was in excess of $1.0 billion.
