8-K 1 e19522_8k.txt FORM 8K ================================================================================ SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ---------- FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report October 28, 2004 ULTRA PETROLEUM CORP. (Exact name of registrant as specified in its charter) Yukon Territory, Canada 0-29370 N/A (State or other jurisdiction of (Commission (I.R.S. Employer incorporation or organization) File Number) Identification Number) (363 North Sam Houston Pkwy, E., Suite 1200., Houston, TX 77060) (281-876-0120) ================================================================================ Item 2.02. Second announcement of 3rd Quarter earnings conference call. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. [October 28, 2004] By: David Russell -------------- David Russell October 26, 2004 Ultra Petroleum Reports 170% Earnings Growth in 3rd Quarter HOUSTON, Oct. 26 /PRNewswire-FirstCall/ -- Ultra Petroleum Corp. (Amex: UPL) today reported earnings increased 170% to $27.9 million or $0.35 per diluted share for the quarter ended September 30, 2004 compared to $10.3 million or $0.13 per diluted share for the same period in 2003. Cash flow (A) for the quarter ended September 30, 2004 increased 146% to $51.4 million or $0.64 per diluted share, compared to $20.9 million or $0.27 per diluted share for the same period in 2003. For the nine-month period ended September 30, 2004 earnings increased 153% to $66.2 million or $0.83 per diluted share compared to $26.2 million or $0.33 per diluted share for the same period in 2003. Cash flow (A) for the nine-month period increased 124% to $122.4 million or $1.53 per diluted share, compared to $54.7 million or $0.70 per diluted share for the same period in 2003. Production for the quarter increased 87% to 13 Bcfe, averaging 141 MMcfe/d compared to 7 Bcfe or 75.5 MMcfe/d for the same period in 2003. Including the effects of hedging, average natural gas prices for the third quarter increased to $4.91 per Mcf compared to $4.17 per Mcf during the same period in 2003 while average Wyoming oil prices increased to $42.12 per bbl compared to $31.37 per bbl in 2003. Oil prices in China averaged $36.72 per bbl. Production for the nine-month period ended September 30, 2004 increased 69% to 32.3 Bcfe, or 106 MMcfe/d, compared to 19 Bcfe or 63 MMcfe/d for the same period in 2003. Including the effects of hedging, average natural gas prices for the nine-month period increased to $4.87 per Mcf compared to $3.99 per Mcf while average Wyoming oil prices increased to $38.83 per bbl compared to $31.04 per bbl in 2003. "By continuing to bring on new wells from this year's program and delivering first oil in China during the quarter, we increased our production by 87% year over year and 35% sequentially. With 21% stronger commodity prices and a flat cost structure, we established new highs for quarterly earnings and cash flow. With nine-month production at 32.3 Bcfe, already ahead of our entire 2003 production of 28.9 Bcfe, we are well on our way to reaching and exceeding our 2004 year-end production goal of 44 Bcfe. And, as the majority of this year's wells will come on line during the fourth quarter, we expect to see production climb to a new peak, setting us up for continued industry leading growth into 2005," stated Michael D. Watford, Ultra's Chairman, President and CEO. For the Three-Month For the Nine-Month Period Ended Period Ended 30-Sep-04 30-Sep-03 30-Sep-04 30-Sep-03 Production Oil Production-bbls - WY 92,820 50,327 241,787 147,919 Oil Production-bbls - China 210,923 --- 210,923 --- Natural Gas - Mcf 11,160,300 6,642,972 29,596,982 18,255,839 Gas Equivalent Production - Mcfe 12,982,758 6,944,934 32,313,242 19,143,353 Realized Product Prices Oil Price - $/bbl - WY $42.12 $31.37 $38.83 $31.04 Oil Price - $/bbl - China $36.72 $ --- $36.72 $ --- Gas Price - $/Mcf $ 4.91 $ 4.17 $ 4.87 $ 3.99 Revenues Oil Revenue - WY $3,910,036 $1,578,976 $9,387,668 $4,591,912 Oil Revenue - China $7,745,093 $--- $7,745,093 $--- Gas Revenue $54,786,316 $27,711,651 $144,037,747 $72,835,464 Total Revenues $66,441,445 $29,290,627 $161,170,508 $77,427,376 Operating costs and expenses Production Costs - WY 1,574,589 872,364 4,104,257 2,484,784 Production Costs - China 889,000 --- 889,000 --- Severance/Production Taxes 6,875,586 3,407,541 17,976,082 8,674,351 Gathering 3,259,412 1,899,519 8,778,545 5,195,693 DD&A - WY 6,676,869 4,033,606 17,573,574 11,091,346 DD&A - China 1,031,413 --- 1,031,413 --- General and administrative 1,562,380 1,468,553 4,306,767 4,210,029 Stock compensation 150,050 --- 773,573 1,018,220 Interest and debt expense 853,469 747,125 2,802,381 2,151,559 Total direct expenses 22,872,768 12,428,708 58,235,592 34,825,982 Interest and other income 20,054 6,666 42,698 26,431 Income Tax - deferred 15,713,357 6,540,598 36,796,518 16,458,292 Net Income $27,875,374 $10,327,987 $66,181,096 $26,169,533 Per common share - basic $0.37 $0.14 $0.88 $0.35 Per common share - fully diluted $0.35 $0.13 $0.83 $0.33 Cash flow from operations (A) $51,447,063 $20,902,191 $122,356,174 $54,737,391 Per common share - basic $0.69 $0.28 $1.63 $0.74 Per common share - diluted $0.64 $0.27 $1.53 $0.70 Shares outstanding 75,129,968 74,327,668 75,129,968 74,327,668 Weighted Average - Basic 75,063,934 74,279,516 74,929,196 74,170,485 Weighted Average - Diluted 80,090,907 78,537,895 79,957,440 78,335,831 Costs per Mcfe Production Costs - WY 0.13 0.13 0.13 0.13 Production Costs - China 0.70 --- 0.70 --- Severance/Production Taxes 0.53 0.49 0.56 0.45 Gathering 0.25 0.27 0.27 0.27 Total Lease Operating 0.97 0.89 0.98 0.85 DD&A - WY 0.57 0.58 0.57 0.58 DD&A - China 0.81 --- 0.81 --- General and administrative 0.12 0.21 0.13 0.22 These statements are unaudited and subject to year-end adjustments. (A) "Cash flow" refers to cash flow from operations before net changes in non-cash working capital. Reconciliation of cash flow from operations before change in net working capital. Three Months Ended Sep 30 Nine Months Ended Sep 30 2004 2003 2004 2003 Net cash provided by operating activities $59,690,289 $19,607,671 $126,039,475 $52,361,410 Accounts payable and accrued liabilities $(13,157,993) $(3,865,573) $(1,783,174) $(3,341,399) Prepaid expenses and other current assets $(846,040) $1,139,602 $2,795,440 $3,373,345 Accounts receivable $13,470,677 $2,748,564 $11,882,168 $3,313,559 Inventory $(1,750,098) $--- $(5,823,273) $--- Restricted cash $ 319 $318 $948 $1,044 Deferred revenue $(3,436,624) $--- $(3,436,624) $--- Other long-term obligations $(2,523,467) $1,271,609 $(7,318,786) $(970,569) Cash flow from operations before net change in net changes in working capital $51,447,063 $20,902,191 $122,356,174 $54,737,391 Management believes that the non-GAAP measures of cash flow before changes in working capital is useful information to investors because it is widely used by professional analysts and sophisticated investors in valuing oil and gas companies. Many other investors use research reports of these analysts in making investment decisions. Ultra Petroleum is an independent, exploration and production company focused on developing its long life natural gas reserves in the Green River Basin of Wyoming, and oil reserves in Bohai Bay, offshore China. Ultra is listed on the American Stock Exchange under the ticker "UPL" with 75,137,968 shares outstanding as of the date of this release. The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We may use certain terms in this press release, relating to reserves and/or production that the SEC's guidelines strictly prohibit us from including in filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 10-K available from us at 363 North Sam Houston Parkway E., Suite 1200, Houston, TX 77060. You can also obtain this form from the SEC by calling 1-800-SEC-0330. This news release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The opinions, forecasts, projections or other statements, other than statements of historical fact, are forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, they can give no assurance that such expectations will prove to have been correct. Certain risks and uncertainties inherent in the Company's businesses are set forth in their filings with the Securities and Exchange Commission. Full details regarding the selected financial information provided above will be available in the Company's annual report and in the Annual Information form to be filed under the cover of Form 10-K. SOURCE Ultra Petroleum Corp. -0- 10/26/2004 /CONTACT: David Russell, Investor Relations of Ultra Petroleum Corp., +1-281-876-0120, Extension 302/ /Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20020226/DATU029LOGO AP Archive: http://photoarchive.ap.org PRN Photo Desk, photodesk@prnewswire.com / /Web site: http://www.ultrapetroleum.com / (UPL) CO: Ultra Petroleum Corp. ST: Texas IN: OIL SU: ERN