This summary is based on the fourth quarter fiscal 2007 earnings call conducted by Bill Barrett Corp. (BBG: chart) on February 26, 2008.

Management:

- Director of IR: Jennifer Martin
- Chairman and CEO: Fredrick J. Barrett
- CFO and Treasurer: Robert W. Howard
- President and COO: Joseph N. Jaggers
- VP, Reservoir Engineering: Lynn Boone Henry

Key Investors Issues

- Income dropped by 77.3% from $11 million or 25 cents a share in the prior year to $2.5 million or 6 cents a share.
- Revenues increased 20% to $109 million from $91 million in the prior year.
- Combined production increased to 17.2 Mmcfe’s from 14.2 Mmcfe’s in the prior year.

Full Year Highlights:

- Net income was $26.8 million or 60 cents per share, down 56.8% from $62.0 million or $1.40 per share in 2006.
- Revenues were up 14.9% to $390.3 million.
- Cash flow from operations, net borrowings of $86 million from the line of credit and $96 million from proceeds from property sales including the sales of Williston Basin properties, combined to fund the $444 million capital expenditure program.

Fourth Quarter Highlights

Net income decreased by 77.3% from $11 million or 25 cents a share in the prior year to $2.5 million or 6 cents a share, which was impacted by dry hole costs.

- Results were affected by higher depreciation, depletion and amortization expense as well as higher dry hole costs of $13.6 million.
- These included proportionate expenses for drilling and testing the lower zones of the Draco and Leviathan wells located in the Montana Overthrust and the second Yellow Jacket exploration well located in the Paradox Basin.
- Full production resumed in November, following the voluntary curtailments of approximately 1.5 Bcfe of gas production in October due to low sales prices.

The firm was able to meet the revised production goals with production of 17.2 Bcf for the quarter, which is 21% higher than in 2006.

- This increased production combined with the hedge position and improving gas sales prices generates $70.1 million of discretionary cash flow, which is a 28% increase from the prior period.
- The natural gas hedges provided a significant benefit by increasing the sales prices of natural gas production by a $1.81 per Mcf, $29.8 million to an average realized sales price of $5.97 per Mcf.
- Operating revenues increased 20% to $109 million from $91 million in the prior year on increased production, despite lower prices.

Production expenses were $1.42 per Mcfe versus $1.29 per Mcfe in the prior period, as lower LOE was offset by increasing, gathering and transportation expenses and a one-time assessment food production taxes.

- LOE averaged 51 cents per Mcfe, which is 16 cents per Mcfe lower than third quarter, with the reduction including benefits from new facilities in the operating practices throughout operating areas.
- Gathering and transportation charges averaged 46 cents per Mcfe, up from earlier quarters due to a higher gas processing charges.
- Depreciation, depletion and amortization costs were $2.73 per Mcfe, a reduction of 19 cents per Mcfe from the third quarter, reflecting the reserve additions recorded at year end.
- Capital expenditures totaled $443.7 million and the Company sold its Williston Basin and other properties for $84.4 million and received $12.1 million in proceeds from partners to participate in joint exploration programs on projects assembled by the Company.

Development and Exploration Highlights:

- The firm increased reserves 44% as adjusted quarter sales of Williston and a few other small properties and replaced production by over 380%.
- It also increased production 17% despite shutting in N3 Bcfe and by producing these volumes later in the year, exposed investors to much better pricing and returns.
- In 2007, it allocated approximately 80% of that CapEx to the low-risk development programs.

The firm achieved one of its objectives in determining the viability of increased density, as a true future growth catalyst at our two largest development programs; West Tavaputs and the Piceance.

- Comprehensive geologic and engineering analysis in the utilization of technology clearly shows the need for optimal increased density; 10 acres in the Piceance and 40 acres in West Tavaputs.
- The analysis is also pointing towards the potential for 20-acre locations in West Tavaputs.
- In the Powder River Basin program, the firm has seen very encouraging signs that the Big George is dewatering earlier than expected, which means potential acceleration and realizing reserves in production over the next 12 to 18 months in this area.

The firm allocated 20% of CapEx to the delineation and exploration programs and the results exceeded expectations in terms of providing initial data, which continues to support the potential for several large scale resource plays.

- At Yellow Jacket, the firm has demonstrated the presence of producible gas over a large area, where core data also suggests the potential for a shale gas resource play.
- Initial test rates from the first two wells in Circus; both of which are capable of dry gas production from a shale gas interval called the Cody Shale are also encouraging.