EX-99.1 2 up3209ex991.txt Exhibit 99.1 ULTRA PETROLEUM REPORTS RECORD PRODUCTION (+84%), RECORD CASH FLOW (+151%), RECORD EARNINGS (+159%) HOUSTON, July 26 /PRNewswire-FirstCall/ -- Ultra Petroleum (Amex: UPL) today reported earnings for the three-month period ended June 30th, 2005 increased 159% to $47.9 million or $0.30 per diluted share, compared to $18.5 million or $0.12 per diluted share for the same period in 2004. Operating cash flow(A) for the period increased 151% to $86.8 million or $0.54 per diluted share, compared to $34.7 million or $0.22 per diluted share for the same period in 2004. Production increased 84% to 17.7 Bcfe compared to 9.6 Bcfe for the same quarter in 2004. Average natural gas prices were $5.85 per Mcf during the quarter, compared to $4.73 per Mcf for the same period in 2004. China oil prices for the quarter averaged $42.92 per bbl while Wyoming oil prices averaged $53.99 per bbl compared to $36.41 per bbl for the same period in 2004. For the six-month period ended June 30, 2005 earnings increased 122% to $85.2 million or $0.53 per diluted share compared to $38.3 million or $0.24 per diluted share for the same period in 2004. Operating cash flow(A) for the six-month period ended June 30, 2005 increased 120% to $156.2 million or $0.97 per diluted share, compared to $70.9 million or $0.44 per diluted share in 2004. Production for the period increased 72% to 33.3 Bcfe compared to 19.3 Bcfe in 2004. Average natural gas prices were $5.72 per Mcf during the six- month period, compared to $4.84 in 2004. China oil prices for the six-month period averaged $39.50 per bbl while Wyoming oil prices averaged $51.98 per bbl compared to $36.77 per bbl in 2004. "By increasing production 84% to 17.7 Bcfe and maintaining our industry leading low cost structure, we realized a 159% increase in earnings to $47.9 million or $0.30 per diluted share. This production increase included over 500,000 bbls of oil from Bohai Bay, China, and over 14 Bcf of natural gas from Wyoming giving us our strongest quarter in Ultra's history," stated Michael D. Watford, Ultra's Chairman, President and CEO. "Clearly our Bohai Bay investment is paying off, while Wyoming continues to provide the dynamic growth that has propelled Ultra to the forefront of the investment community in recent years. Last weeks addition of Mark Smith to the Ultra management team as CFO, and the approval of our 128 well 10-acre pilot program on the Pinedale Anticline are two things that I believe strengthen the company and add to our ability to continue our impressive growth trend."
For the Three-Month For the Six-Month Period Ended Period Ended ----------------------------- ----------------------------- 30-Jun-05 30-Jun-04 30-Jun-05 30-Jun-04 ------------- ------------- ------------- ------------- Production Oil Production - Bbls: WY 107,844 80,643 207,444 148,967 Oil Production - Bbls: China 503,216 0 798,253 0 Natural Gas - Mcf 14,025,339 9,120,627 27,278,391 18,436,682 Gas Equivalent Production - Mcfe 17,691,699 9,604,485 33,312,573 19,330,484 Realized Production Prices Oil Price - WY $/bbl $ 53.99 $ 36.41 $ 51.98 $ 36.77 Oil Price - China $/bbl $ 42.92 $ 0.00 $ 39.50 $ 0.00 Gas Price - $/Mcf $ 5.85 $ 4.73 $ 5.72 $ 4.84 Revenues Oil Revenue - WY $ 5,822,704 $ 2,936,082 $ 10,782,120 $ 5,477,632 Oil Revenue - China $ 21,598,900 $ 0 $ 31,529,851 $ 0 Gas Revenue $ 82,076,643 $ 43,174,208 $ 156,027,616 $ 89,251,431 Total Revenues $ 109,498,247 $ 46,110,290 $ 198,339,587 $ 94,729,063 Operating costs and expenses Operating expenses - WY $ 2,032,364 $ 1,246,745 $ 4,017,670 $ 2,529,669 Operating expenses - China $ 2,166,000 $ 0 $ 3,620,000 $ 0 Taxes $ 10,204,694 $ 5,430,719 $ 19,226,756 $ 11,100,496 Gathering $ 4,086,231 $ 2,746,937 $ 7,716,775 $ 5,519,134 Depreciation, depletion and amortization - WY $ 10,236,718 $ 5,415,985 $ 19,906,227 $ 10,896,704 Depreciation, depletion and amortization - China $ 2,419,686 $ 0 $ 3,989,686 $ 0 General and administrative $ 3,120,170 $ 1,190,350 $ 5,681,952 $ 2,744,388 Stock compensation $ 396,083 $ 523,500 $ 1,010,659 $ 623,523 Interest and debt expense $ 1,167,763 $ 848,742 $ 2,068,406 $ 1,948,912 Total direct expenses $ 35,829,709 $ 17,402,978 $ 67,238,131 $ 35,362,826 Interest and other income $ 118,693 $ 9,910 $ 193,558 $ 22,644 Income Tax - Deferred $ 25,899,316 $ 10,194,718 $ 46,084,550 $ 21,083,159 Net Income $ 47,887,915 $ 18,522,504 $ 85,210,464 $ 38,305,722 Per common share - basic $ 0.31 $ 0.12 $ 0.56 $ 0.26 Per common share - diluted $ 0.30 $ 0.12 $ 0.53 $ 0.24 Cash flow from operations (A) $ 86,839,718 $ 34,656,707 $ 156,201,586 $ 70,909,108 Per common share - basic $ 0.57 $ 0.23 $ 1.03 $ 0.47 Per common share - diluted $ 0.54 $ 0.22 $ 0.97 $ 0.44 Shares Outstanding Weighted Average - Basic 152,929,693 149,929,660 151,903,632 149,722,174 Weighted Average - diluted 161,278,847 159,890,858 161,067,748 159,715,394 Costs per Mcfe - Corporate Lease Operating $ 1.05 $ 0.98 $ 1.04 $ 0.99 DD&A $ 0.72 $ 0.56 $ 0.72 $ 0.56 General and administrative - Total $ 0.20 $ 0.18 $ 0.20 $ 0.17 Interest $ 0.07 $ 0.09 $ 0.06 $ 0.10 $ 2.03 $ 1.81 $ 2.02 $ 1.83 Segment Costs per MCFE - United States Production Costs $ 0.14 $ 0.13 $ 0.14 $ 0.13 Severance/Production Taxes $ 0.70 $ 0.57 $ 0.67 $ 0.57 Gathering $ 0.28 $ 0.29 $ 0.27 $ 0.29 DD&A $ 0.70 $ 0.56 $ 0.70 $ 0.56 $ 1.81 $ 1.55 $ 1.78 $ 1.55 Segment Costs per Mcfe - China Production Costs $ 0.72 $ --- $ 0.76 $ --- DD&A $ 0.80 $ --- $ 0.83 $ --- $ 1.52 $ --- $ 1.59 $ ---
These statements are unaudited and subject to year-end adjustment. (A) "Operating cash flow" refers to cash flow from operations before net change in non-cash working capital. Reconciliation of cash flow from operations before change in non-cash working capital
Three Months Ended Six Months Ended March 31 March 31 ----------------------------- ----------------------------- 2005 2004 2005 2004 ------------- ------------- ------------- ------------- Net cash provided by operating activities $ 76,219,113 $ 36,541,897 $ 167,738,289 $ 62,276,012 Accounts payable and accrued liabilities $ (10,556,231) $ (6,826,821) $ (26,105,193) $ 9,279,205 Prepaid expenses and other current assets $ (2,542,902) $ 4,895,094 $ 17,917 $ 3,641,480 Accounts receivable $ 24,992,424 $ (970,498) $ 14,652,671 $ (1,588,509) Inventory $ (1,218,550) $ 0 $ 155,576 $ 0 Restricted cash $ 466 $ 315 $ 878 $ 629 Other long-term obligations $ (184,602) $ 1,016,720 $ (388,552) $ (2,699,709) Taxation payable $ 130,000 $ 0 $ 130,000 $ 0 Cash flow from operations before change in non-cash working capital $ 86,839,718 $ 34,656,707 $ 156,201,586 $ 70,909,108
Management believes that the non-GAAP measures of cash flow before changes in non-cash 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 76,435,868 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. 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 /