EX-99.1 2 up5724ex991.htm EXHIBIT 99.1

Exhibit 99.1

Ultra Petroleum Reports Best Ever First Quarter Results

          HOUSTON, May 5 /PRNewswire-FirstCall/ -- Ultra Petroleum Corp. (Amex: UPL) today reported earnings for the first quarter 2006. Highlights include:

 

*

Earnings for first quarter 2006 of $67.5 million, up 81 percent from first quarter 2005

 

*

Operating cash flow(A) for first quarter 2006 of $116.1 million, up  67 percent from first quarter 2005

 

*

Production of 20.1 Bcfe for first quarter 2006, up 28 percent over  first quarter 2005 levels

          Earnings for the first quarter ended March 31, 2006 were $67.5 million or $0.41 per diluted share, an increase of 81 percent compared to $37.3 million or $0.23 per diluted share for the same period in 2005. Operating cash flow(A) for the first quarter 2006 increased 67 percent to $116.1 million, compared to $69.4 million for the same period in 2005.

          Ultra Petroleum’s production for the first quarter 2006 increased  28 percent to the highest production level ever in a first quarter to  20.1 billion cubic feet equivalent (Bcfe) compared to 15.7 Bcfe in the first quarter 2005. Production for the first quarter 2006 is comprised of  128 thousand barrels (Mbls) oil from Wyoming, 466 Mbls oil from China, and 16.5 billion cubic feet (Bcf) natural gas from Wyoming. In the first quarter of 2006, the realized Wyoming oil price was up 26 percent to $62.50 per barrel (bbl) as compared to $49.79 per bbl in the first quarter 2005. China oil prices realized in the first quarter were an all time corporate high of $54.56 per bbl, an increase of 62 percent, as compared to $33.66 per bbl in the first quarter of 2005. Natural gas prices realized for the first quarter 2006 were up 28 percent to $7.13 per thousand cubic feet (Mcf) from $5.58 per Mcf in first quarter 2005.

          “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 28 percent to 20.1 Bcfe, enjoying strong commodity prices and maintaining our industry low cost structure, we grew both earnings and operating cash flow 81 percent and 67 percent respectively. We are well underway to a record year of drilling with an expected 160 wells. As the winter restrictions have just been lifted on our northern Pinedale acreage, we are already moving rigs in for what we anticipate will be another highly successful summer,” stated Michael D. Watford, Chairman, President and Chief Executive Officer.


Ultra Petroleum Corp
Consolidated Statement of Operations
(unaudited)
All amounts expressed in US$

 

 

For the Quarter Ended

 

 

 

 

 

 

31-Mar-06

 

31-Mar-05

 

 

 

 

 

Volumes

 

 

 

 

 

 

 

Oil liquids (Bbls) - WY

 

 

128,411

 

 

99,600

 

Oil crude (Bbls) - China

 

 

466,145

 

 

310,565

 

Natural Gas (Mcf) - WY

 

 

16,531,259

 

 

13,253,052

 

MCFE

 

 

20,098,598

 

 

15,714,042

 

Revenues

 

 

 

 

 

 

 

Oil sales - WY

 

$

8,025,416

 

$

4,959,416

 

Oil sales - China

 

 

25,431,978

 

 

10,453,627

 

Natural Gas sales - WY

 

 

117,792,848

 

 

73,950,973

 

Total Revenues

 

 

151,250,242

 

 

89,364,016

 

Expenses

 

 

 

 

 

 

 

Production Costs - WY

 

 

2,409,388

 

 

1,985,306

 

Production Costs - China

 

 

2,787,000

 

 

1,454,000

 

Severance/Production Taxes - WY

 

 

14,625,254

 

 

9,022,063

 

Severance/Production Taxes - China

 

 

1,271,637

 

 

522,676

 

Gathering Fees

 

 

3,749,347

 

 

3,630,543

 

Total Lease Operating Costs

 

 

24,842,626

 

 

16,614,588

 

DD&A - WY

 

 

15,256,929

 

 

9,669,509

 

DD&A - China

 

 

3,383,212

 

 

1,570,000

 

General and administrative

 

 

4,202,345

 

 

3,176,361

 

Total Expenses

 

 

47,685,112

 

 

31,030,458

 

Interest and other income

 

 

573,053

 

 

74,865

 

Interest and debt expense

 

 

171,781

 

 

900,643

 

Net income before income taxes

 

 

103,966,402

 

 

57,507,780

 

Income tax provision - current

 

 

6,535,000

 

 

—  

 

Income tax provision - deferred

 

 

29,957,207

 

 

20,185,231

 

Net Income

 

$

67,474,195

 

$

37,322,549

 

Operating Cash Flow

 

 

 

 

 

 

 

(see non-GAAP reconciliation below)

 

$

116,072,211

 

$

69,361,865

 


Ultra Petroleum Corp.          
Consolidated Statement of Operations       
(unaudited)
All amounts expressed in US$

 

 

For the Quarter Ended

 

 

 

 

 

 

31-Mar-06

 

31-Mar-05

 

 

 

 

 

Weighted Average Shares  - Basic

 

 

155,220,836

 

 

150,862,214

 

Weighted Average Shares  - Diluted

 

 

163,204,385

 

 

160,950,546

 

Earnings per Share - Basic

 

$

0.43

 

$

0.25

 

Earnings per Share - Diluted

 

$

0.41

 

$

0.23

 

Realized Prices

 

 

 

 

 

 

 

Oil liquids (Bbls) - WY

 

$

62.50

 

$

49.79

 

Oil crude (Bbls) - China

 

$

54.56

 

$

33.66

 

Natural Gas (Mcf)

 

$

7.13

 

$

5.58

 

Costs Per MCFE - Corporate

 

 

 

 

 

 

 

Lease Operating Costs

 

$

1.24

 

$

1.06

 

DD&A

 

$

0.93

 

$

0.72

 

General and administrative - total

 

$

0.21

 

$

0.20

 

Interest expense

 

$

0.01

 

$

0.06

 

 

 

$

2.38

 

$

2.03

 

Segment Costs Per MCFE

 

 

 

 

 

 

 

United States

 

 

 

 

 

 

 

Production Costs

 

$

0.14

 

$

0.14

 

Severance/Production Taxes

 

$

0.85

 

$

0.65

 

Gathering Fees

 

$

0.22

 

$

0.26

 

DD&A

 

$

0.88

 

$

0.70

 

 

 

$

2.08

 

$

1.75

 

China

 

 

 

 

 

 

 

Production Costs

 

$

1.00

 

$

0.78

 

Severance/Production Taxes

 

$

0.45

 

$

0.28

 

DD&A

 

$

1.21

 

$

0.84

 

 

 

$

2.66

 

$

1.90

 

Note: Amounts on a per MCFE basis may not total due to rounding.

Margins

 

 

 

 

 

 

 

Pre-tax income

 

 

69

%

 

64

%

Net Income

 

 

45

%

 

42

%

Operating segment margins

 

 

 

 

 

 

 

United States

 

 

83

%

 

81

%

China

 

 

84

%

 

81

%


Ultra Petroleum Corp.
Reconciliation of Cash Flow from Operations Before Changes in Non-Cash
Items and Working Capital
(unaudited)
All amounts expressed in US$

(A)

Operating cash flow is defined as net cash provided by operating  activities before changes in non-cash items and working capital. Management believes that the non-GAAP measure of operating cash flow  is useful as an indicator of an oil and gas exploration and production company’s ability to internally fund exploration and development activities and to service or incur additional debt. The company also has included this information because changes in operating assets and liabilities relate to the timing of cash  receipts and disbursements which the company may not control and may   not relate to the period in which the operating activities occurred.   Operating cash flow should not be considered in isolation or as a  substitute for net cash provided by operating activities prepared in  accordance with GAAP.

 

 

 

The following table reconciles cash flow from operations before  changes in non-cash items and working capital with net cash provided by operating activities as derived from the company’s financial information.

 

 

For the Quarter Ended

 

 

 

 

 

 

31-Mar-06

 

31-Mar-05

 

 

 

 

 

Net cash provided by operating activities

 

$

134,805,240

 

$

92,242,034

 

Accounts payable and accrued liabilities

 

$

269,022

 

$

(15,528,963

)

Prepaid expenses and other current assets

 

$

(7,402

)

$

2,560,819

 

Accounts receivable

 

$

(8,900,403

)

$

(10,339,753

)

Inventory

 

$

(711,000

)

$

675,463

 

Restricted cash

 

$

581

 

$

412

 

Other long-term obligations

 

$

(6,413,817

)

$

(248,147

)

Taxation payable

 

$

(2,970,010

)

$

0

 

Cash flow from operations before changes in non-cash items and working capital

 

$

116,072,211

 

$

69,361,865

 


          These statements are unaudited and subject to adjustment.

          First quarter 2005 per share amounts are restated to account for the 2:1 stock split effective May 10, 2005.

          Conference Call Webcast Scheduled for May 5, 2006

          Ultra Petroleum’s first quarter 2006 conference call will be available via live audio webcast at 10:00 a.m. Central Time (11:00 a.m. Eastern Time) on Friday, May 5, 2006. To listen to this webcast, log on to http://www.ultrapetroleum.com . The webcast will be archived on Ultra Petroleum’s website through August 4, 2006.

          About Ultra Petroleum

          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 Petroleum is listed on the American Stock Exchange under the symbol “UPL” with 155,244,664 shares outstanding as at March 31, 2006.

          This release can be found at http://www.ultrapetroleum.com

          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, we 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 our filings with the SEC, particularly in the section entitled “Risk Factors” included in our Annual Report on Form 10-K for our most recent fiscal year and from time to time in other filings made by us with the SEC. These risks and uncertainties include increased competition, the timing and extent of changes in prices for oil and gas, particularly in Wyoming, risks inherent in operations in China, the timing and extent of the Company’s success in discovering, developing, producing and estimating reserves, the effects of weather and government regulation, availability of oil field personnel, services, drilling rigs and other equipment, and other factors listed in the reports filed by the Company with the SEC. Full details regarding the selected financial information provided above will be available in the Company’s Report on Form 10-Q for the quarter ended March 31, 2006.

SOURCE  Ultra Petroleum Corp.
    -0-                             05/05/2006
    /CONTACT:  Kelly L. Whitley, Manager Investor Relations of Ultra Petroleum Corp., +1-281-876-0120 Extension 302, or info@ultrapetroleum.com /
    /FCMN Contact: kwhitley@ultrapetroleum.com /
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    (UPL)