EX-99.1 2 up3289ex991.htm

Exhibit 99.1

April 27th, 2005 

ULTRA PETROLEUM REPORTS 89% INCREASE IN 1ST QUARTER EARNINGS

Houston, TX – Ultra Petroleum (AMEX-UPL) today reported earnings for the three-month period ended March 30th, 2005 were $37.3 million or $0.46 per diluted share, an 89% increase from $19.8 million or $0.25 per diluted share for the same period in 2004.  Cash flow ( 1) for the period was $69.4 million or $0.86 per diluted share, a 91% increase from $36.2 million or $0.46 per diluted share for the same period in 2004. Production increased 61% to 15.6 Bcfe compared to 9.7 Bcfe for the same quarter in 2004.  Average natural gas prices were $5.58 per Mcf during the quarter, compared to $4.95 per Mcf for the same period in 2004. China oil prices for the quarter averaged $33.66 per bbl while Wyoming oil prices averaged $49.79 per bbl compared to $37.20 per bbl for the same period in 2004.

“We are proud to guide the company through another record setting quarter, this being the most successful first quarter in Ultra’s history. By increasing production more than 60% to 15.6 Bcfe, enjoying strong commodity prices and maintaining our industry low cost structure we grew both earnings and cashflow 89% and 91% respectively. Our 100+ well 2005 drilling program is in motion. As we prepare for the lifting of winter restrictions on our northern acreage we are already moving rigs for what we anticipate will be another highly successful summer. Additionally, we will be going before the Wyoming Oil and Gas Conservation Commission in May to request increased density drilling on our Pinedale Anticline acreage.

Continuing our trend of operational successes, we are well on our way to achieving if not exceeding our year-end goals of increasing production 38% to 67.5 Bcfe, and achieving a reserve replacement ratio in excess of 500%. Clearly, this will be our most successful year,” stated Michael D. Watford, Ultra’s Chairman, President and CEO.


 

 

 

 

 

 

 

 

 

 

For the Three-Month Period Ended

 

 

 

 

 

 

31-Mar-05

 

31-Mar-04

 

 

 

 

 

Production

 

 

 

 

 

 

 

Oil Production - Bbls : WY

 

 

99,600

 

 

68,324

 

Oil Production - Bbls : China

 

 

295,037

 

 

0

 

Natural Gas - Mcf

 

 

13,253,052

 

 

9,316,055

 

 

 

 

 

Gas Equivalent Production - Mcfe

 

 

15,620,874

 

 

9,725,999

 

 

 

 

 

Realized Production Prices

 

 

 

 

 

 

 

Oil Price - WY $/bbl

 

$

49.79

 

$

37.20

 

Oil Price - China $/bbl

 

$

33.66

 

$

0.00

 

Gas Price - $/Mcf

 

$

5.58

 

$

4.95

 

Revenues

 

 

 

 

 

 

 

Oil Revenue - WY

 

$

4,959,416

 

$

2,541,550

 

Oil Revenue - China

 

$

9,930,951

 

$

0

 

Gas Revenue

 

$

73,950,973

 

$

46,077,223

 

 

 

 

 

Total Revenues

 

$

88,841,340

 

$

48,618,773

 

 

 

 

 

Operating costs and expenses

 

 

 

 

 

 

 

Operating expenses - WY

 

$

1,985,306

 

$

1,282,924

 

Operating expenses - China

 

$

1,454,000

 

$

0

 

Taxes

 

$

9,022,063

 

$

5,669,776

 

Gathering

 

$

3,630,543

 

$

2,772,197

 

Depreciation, depletion and amortization - WY

 

$

9,669,509

 

$

5,480,720

 

Depreciation, depletion and amortization - China

 

$

1,570,000

 

$

0

 

General and administrative

 

$

2,561,785

 

$

1,554,039

 

Stock compensation

 

$

614,576

 

$

100,023

 

Interest and debt expense

 

$

900,643

 

$

1,100,170

 

 

 

 

 

Total direct expenses

 

$

31,408,425

 

$

17,959,849

 

 

 

 

 

Interest and other income

 

$

74,865

 

$

12,734

 

Income Tax - Deferred

 

$

20,185,231

 

$

10,888,440

 

Net Income

 

$

37,322,549

 

$

19,783,218

 

Per common share - basic

 

$

0.49

 

$

0.27

 

Per common share - diluted

 

$

0.46

 

$

0.25

 

Cash flow from operations (1)

 

$

69,361,865

 

$

36,252,401

 

Per common share - basic

 

$

0.92

 

$

0.49

 

Per common share - diluted

 

$

0.86

 

$

0.46

 

Shares Outstanding

 

 

 

 

 

 

 

Weighted Average - Basic

 

 

75,433,107

 

 

74,624,845

 

Weighted Average - diluted

 

 

80,475,375

 

 

79,617,333

 

Costs per Mcfe - Corporate

 

 

 

 

 

 

 

Lease Operating

 

$

1.03

 

$

1.00

 

DD&A

 

$

0.72

 

$

0.56

 

General and administrative - Total

 

$

0.20

 

$

0.17

 

Interest

 

$

0.06

 

$

0.11

 

 

 

 

 

 

 

$

2.01

 

$

1.85

 

 

 

 

 

Segment Costs per MCFE - United States

 

 

 

 

 

 

 

Production Costs

 

$

0.14

 

$

0.13

 

Severance/Production Taxes

 

$

0.65

 

$

0.58

 

Gathering

 

$

0.26

 

$

0.29

 

DD&A

 

$

0.70

 

$

0.56

 

 

 

 

 

 

 

$

1.75

 

$

1.56

 

 

 

 

 

Segment Costs per Mcfe - China

 

 

 

 

 

 

 

Production Costs

 

$

0.82

 

$

—  

 

DD&A

 

$

0.89

 

$

—  

 

 

 

 

 

 

 

$

1.71

 

$

—  

 

 

 

 

 

These statements are unaudited and subject to year-end adjustment.

          (1) “Cash flow” refers to cash flow from operations before net change in non-cash working capital.

 

 

Three Months Ended March 31

 

 

 

 

 

 

2005

 

2004

 

 

 

 

 

Reconciliation of cash flow from operations before change in net working capital

 

 

 

 

 

 

 

Net cash provided by operating activities

 

$

92,294,159

 

$

25,734,115

 

Accounts payable and accrued liabilities

 

$

(15,528,963

)

$

16,106,026

 

Prepaid expenses and other current assets

 

$

2,560,819

 

$

(1,253,614

)

Accounts receivable

 

$

(10,339,753

)

$

(618,011

)

Inventory

 

$

675,463

 

$

0

 

Restricted cash

 

$

412

 

$

314

 

Other long-term obligations

 

$

(300,272

)

$

(3,716,429

)

Cash flow from operations before change in net working capital

 

$

69,361,865

 

$

36,252,401

 

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 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.

For more information contact
David Russell - Investor Relations
(281) 876-0120 Extension 302