UPDATE 2-Bill Barrett Q1 profit beats Street view; shares rise

* Q1 adj EPS $0.89 vs est $0.61

* Q1 total operating revenue $144.7 mln

* Says 2009 outlook unchanged

* Says not averse on acquisitions

* Shares up as much as 9 percent (Adds background, conference call details)

BANGALORE, May 5 (Reuters) - Oil and gas company Bill Barrett Corp (BBG.N) reported quarterly profit that handily beat market estimates, helped by favorable hedge positions and an increase in production, sending its shares up as much as 9 percent.

On a day when independent exploration and production companies like Cimarex Energy Co (XEC.N), W&T Offshore Inc (WTI.N) and Denbury Resources Inc (DNR.N) swung to first quarter losses, Bill Barrett posted net income of $26.4 million, or 59 cents a share, compared with $30.6 million, or 68 cents a share, a year earlier. [ID:nBNG317064]

Excluding items, the company earned 89 cents a share. Analysts on average were expecting Bill Barrett to earn 61 cents a share, before special items, on revenue of $155.4 million, according to Reuters Estimates.

"The 21 percent increase in production, combined with favorable hedge positions and continued strong operating efficiencies, supported our particularly strong performance," Chief Executive Fred Barrett said in a statement.

First-quarter natural gas and oil production totaled 22.1 billion cubic feet equivalent (Bcfe), compared to 18.2 Bcfe a year earlier.

Bill Barrett said its 2009 outlook, which it gave in February, remains unchanged.

The company reaffirmed its 2009 capital expenditure forecast of $350 million, excluding possible acquisitions, and said it expected oil and gas production to increase by 8 percent to 12 percent.

In a conference call with analysts, CEO Barrett said the company was in a strong financial position and would not be averse to acquisitions, especially with so much focus on gas plays.

"I think like many people, this year and into next, is a time of opportunity. In a number of ways, I think you're seeing a lot more joint ventures take place during this sort of environment," said Barrett.

Shares of the company were trading up $1.10 at $30.54 Tuesday afternoon on the New York Stock Exchange. They touched a high of $32.21 earlier in the day.

For the alerts, please double click [ID:nWNAB3143] (Reporting by Arup Roychoudhury in Bangalore; Editing by Anne Pallivathuckal and Anil D'Silva) (arup.roychoudhury@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: arup.roychoudhury.reuters.com@reuters.net))