Ultra Petroleum reports record production for 2009
February 14, 2010
Ultra Petroleum Corp. (UPL) reported record production for their fourth quarter and full-year 2009 results in a release from the company on February 12, 2010.
Highlights for 2009 include:
- Record natural gas and crude oil production of 180.1 Bcfe, an increase of 24 percent, or 26 percent on a per share basis, over 2008.
- Operating cash flow of $637.6 million.
- Earnings of $282.2 million, or $1.86 per diluted share – adjusted.
Wyoming - Operational Highlights
For the year-ended December 31, 2009, Ultra Petroleum drilled 222 gross (113.9 net) wells. The company continues to make significant progress in improving drilling efficiencies. In Pinedale, the company averaged 20 days per well spud to total depth (TD) as compared to its average of 24 days in 2008. This is a 17 percent improvement over 2008. Ultra's new measure of success is the number of wells drilled in less than 20 days from spud to TD. In 2009, 73 percent of the wells were drilled in under 20 days as compared to 27 percent of the wells in 2008. During the fourth quarter of 2009, Ultra set a new Pinedale record in drilling time from spud to TD of 13,500 feet in 11 days. Largely as a result of improved drilling times, pad well costs continue to decrease year-over-year. For the full-year 2009, pad well costs decreased to $5.0 million, as compared to $5.5 million for full-year 2008.
Report highlights
Total natural gas and crude oil production for the year-ended December 31, 2009 increased 24 percent, or 26 percent on a per share basis, to a record high of 180.1 billion cubic feet equivalent (Bcfe) compared to production of 145.3 Bcfe for 2008. This is the largest annual production level ever achieved by Ultra Petroleum. For 2009, production is comprised of 172.2 billion cubic feet (Bcf) of natural gas and 1.3 million barrels of condensate.
Ultra Petroleum reported operating cash flow of $637.6 million for the year-ended December 31, 2009. Adjusted net income was $282.2 million, or $1.86 per diluted share for 2009. The reported net loss of $451.1 million included a non-cash ceiling test write-down ($673.0 million net of taxes) of the company's carrying value of natural gas and oil properties stemming from significantly lower natural gas and condensate prices at the end of the first quarter of 2009 as well as unrealized mark-to-market losses on the company's commodity derivative contracts ($60.3 million net of taxes). These unrealized losses are typically excluded by the investment community in published estimates.
For the year-ended December 31, 2009, Ultra Petroleum's average realized natural gas price was $4.88 per thousand cubic feet (Mcf), including realized gains and losses on commodity derivatives. Excluding those realized gains and losses on commodity derivatives, the company's average price realized for natural gas was $3.49 per Mcf. The average condensate price realized by the company in 2009 was $49.80 per barrel (Bbl).
Natural gas and crude oil production for the fourth quarter ended December 31, 2009 increased 17 percent to 47.6 Bcfe compared to 40.6 Bcfe in the fourth quarter 2008. This is the largest quarterly production level ever achieved by Ultra Petroleum. For the fourth quarter of 2009, production is comprised of 45.7 Bcf of natural gas and 329.3 thousand barrels of condensate.
Operating cash flow for the fourth quarter 2009 was $172.2 million. Adjusted earnings for the period ended December 31, 2009 were $78.5 million or $0.51 per diluted share.
In the fourth quarter of 2009, Ultra Petroleum's average realized natural gas price was $4.86 per Mcf, including realized gains and losses on commodity derivatives. Excluding those realized gains and losses on commodity derivatives, the company's average price realized for natural gas was $4.20 per Mcf. The average condensate price realized by the company in the fourth quarter of 2009 was $65.97 per Bbl.
About Ultra Petroleum
Ultra Petroleum Corp. is an independent exploration and production company focused on developing its long-life natural gas reserves in the Green River Basin of Wyoming - the Pinedale and Jonah Fields and is in the early exploration and development stages in the Appalachian Basin of Pennsylvania. Ultra is listed on the New York Stock Exchange and trades under the ticker symbol "UPL". The company had 152,068,210 shares outstanding on January 31, 2010.
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