Bill Barrett Corp. oil production soars in Denver-Julesburg Basin

Bill Barrett Corp. (NYSE: BBG) on Thursday was the latest major producer of oil and natural gas in Northern Colorado to turn in decreased revenue and increased losses despite booming production, thanks to crude prices that have tumbled back toward six-year lows in recent weeks.

Denver-based Bill Barrett reported a net loss of $44.6 million, or 92 cents per share, for the second quarter, compared to a $26.6 million loss, or 55 cents per share for the same period a year ago. Revenue plummeted to $62.6 million, down from $145 million a year ago despite production increasing by 23 percent.

The company’s major production gains came in the Denver-Julesburg Basin, which lies largely in Northern Colorado. Second-quarter production in the basin averaged 12,527 barrels of oil equivalent per day, up 76 percent from a year earlier and up 8 percent from the first quarter of this year.

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The DJ-Basin production gains offset a 21 percent decline in production in the Uinta Basin in eastern Utah as the company focuses most of its capital spending on its higher-return assets in the DJ-Basin.

Capital expenditure for the quarter was $65.1 million, about 19 percent below guidance, the company said, due to the timing of drilling and completion activities in the DJ-Basin.

Company officials increased production guidance for the full year to a range of 6.1 million to 6.5 million barrels of oil equivalent.

“Our drilling results continue to reflect the quality of our DJ Basin assets and positions us to achieve our goals for the remainder of the year while providing a strong foundation heading into 2016,” Bill Barrett CEO Scot Woodall said in a prepared statement.