Exhibit 99.1
November 4, 2003
ULTRA PETROLEUM REPORTS TEN-FOLD GROWTH IN THIRD QUARTER EARNINGS
Houston, TX - Ultra Petroleum (AMEX-UPL, TSX-UP) today reported that earnings
increased 974 % to $10,327,987 or $0.13 per share for the quarter ending
September 30, 2003 compared to $961,286 or $0.01 per share for the same period
in 2002. Cash flow (1) for the quarter ended September 30, 2003 increased 384 %
to $20,902,191 or $0.27 per share, compared to $4,318,339 or $0.06 per share for
the same period in 2002.
For the nine-month period ended September 30, 2003 earnings increased 558 % to
$26,169,533 or $0.33 per share, compared to $3,979,590 or $0.05 per share for
the same period in 2002. Cash flow (1) for the nine-month period increased 299 %
to $54,737,390 or $0.70 per share, compared to $13,733,771 or $0.18 per share
for the same period in 2002.
Production for the third quarter increased 66 % to 6.9 Bcfe; averaging 75
MMcfe/d compared to 4.2 Bcfe or 45 MMcfe/d for the same quarter in 2002. Average
natural gas prices increased to $4.17 per Mcf for the third quarter compared to
$1.91 for the same period in 2002. Average oil prices for the third quarter of
2003 increased to $31.37 compared to $30.21 in 2002.
Production for the nine-month period ended September 30, 2003 increased 69 % to
19.1 Bcfe, or 70 MMcfe/d compared to 11.3 Bcfe or 42 MMcfe/d for the same period
in 2002. Average natural gas prices for the nine-month period increased to $3.99
per Mcf compared to $2.18 per Mcf during the same period in 2002 while average
oil prices increased to $31.04 compared to $24.93 in 2002.
"This third quarter is another in a string of record quarters for Ultra
Petroleum and further demonstrates the quality of our assets and execution,"
stated Michael D. Watford, Ultra's Chairman, President and CEO. "Earnings
increased 974% on the back of a 66% increase in production and we continue to
enjoy the benefits of the Kern River Pipeline expansion shrinking the
differential in Wyoming and delivering significantly higher price realizations
for us.
Our deep inventory of opportunities continues to grow. This year we broadened
the productive area at Pinedale by drilling additional successful step out wells
east and west of the identified fairway. And with success, the 20 acre pilot
program we're starting will provide a step function increase in our
opportunities. Our China development remains on schedule and budget for first
oil. We're on track to meet or exceed our production and reserve targets for the
year and enter 2004 well positioned to once again deliver industry leading
reserve and production growth while maintaining a cost structure among the
lowest in our industry. Without a doubt, our operational and financial successes
so far this year will deliver the best year yet in Ultra's history."
For the Three-Month Period Ended For the Nine-Month Period Ended
30-Sep-03 30-Sep-02 30-Sep-03 30-Sep-02
Production
Oil Production - Bbls 50,327 36,171 147,919 99,498
Natural Gas - Mcf 6,642,972 3,967,847 18,255,839 10,732,828
Gas Equivalent Production - Mcfe 6,944,934 4,184,873 19,143,353 11,329,816
Realized Production Prices
Oil Price - $/bbl $ 31.37 $ 30.21 $ 31.04 $ 24.93
Gas Price - $/Mcf $ 4.17 $ 1.91 $ 3.99 $ 2.18
Revenues
Oil Revenue $ 1,578,976 $ 1,092,561 $ 4,591,912 $ 2,480,039
Gas Revenue $27,711,651 $ 7,578,471 $72,835,464 $23,440,699
Total Revenues $29,290,627 $ 8,671,032 $77,427,376 $25,920,738
Operating costs and expenses
Operating expenses $ 872,364 $ 605,335 $ 2,484,784 $ 1,510,479
Taxes $ 3,407,541 $ 744,429 $ 8,674,351 $ 2,463,468
Gathering $ 1,899,519 $ 1,206,332 $ 5,195,693 $ 3,163,278
Depreciation, depletion and $ 4,033,606 $ 2,340,270 $11,091,346 $ 6,193,858
amortization
General and administrative $ 1,468,553 $ 1,095,115 $ 4,210,029 $ 3,154,376
Stock compensation $ -- $ 415,000 $ 1,018,220 $ 1,211,165
Interest and debt expense $ 747,125 $ 706,705 $ 2,151,599 $ 1,912,922
Total direct expenses $12,428,708 $ 7,113,186 $34,826,022 $19,609,546
Interest and other income $ 6,668 $ 5,222 $ 26,431 $ 17,555
Income Tax - Deferred $ 6,540,600 $ 601,783 $16,458,292 $ 2,349,157
Net Income $10,327,987 $ 961,286 $26,169,533 $ 3,979,590
Per common share - basic $ 0.14 $ 0.01 $ 0.35 $ 0.05
Per common share - diluted $ 0.13 $ 0.01 $ 0.33 $ 0.05
Cash flow from operations (1) $20,902,191 $ 4,318,339 $54,737,390 $13,733,771
Per common share - basic $ 0.28 $ 0.06 $ 0.74 $ 0.19
Per common share - diluted $ 0.27 $ 0.06 $ 0.70 $ 0.18
Shares Outstanding 74,327,668 73,900,043 74,327,668 73,900,043
Weighted Average - Basic 74,279,516 73,716,932 74,170,485 73,716,932
Weighted Average - diluted 78,537,895 77,561,888 78,335,831 77,536,290
Costs per Mcfe
Operating Expenses $ 0.13 $ 0.14 $ 0.13 $ 0.13
Severance/Production Taxes $ 0.49 $ 0.18 $ 0.45 $ 0.22
Gathering $ 0.27 $ 0.29 $ 0.27 $ 0.28
Total Lease Operating $ 0.89 $ 0.61 $ 0.85 $ 0.63
Depletion, depreciation and $ 0.58 $ 0.56 $ 0.58 $ 0.55
amortization
General and administrative $ 0.21 $ 0.26 $ 0.22 $ 0.28
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.
Reconciliation of cash flow from operations before
change in net working capital. Three Months Ended Sep 30 Nine Months Ended Sep 30
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2003 2002 2003 2002
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Net cash provided by operating activities $ 19,607,671 $ 2,820,146 $ 52,361,410 $ 9,191,666
Accounts payable and accrued liabilities $ (3,865,573) $ 1,527,460 $ (3,341,399) $ 6,263,595
Prepaid expenses and other current assets $ 1,139,602 $ 2,526,883 $ 3,373,345 $ 2,494,282
Accounts receivable $ 2,748,564 $ 788,028 $ 3,313,559 $ (922,893)
Restricted cash $ 318 $ 421 $ 1,044 $ 1,720
Other long-term obligations $ 1,271,609 $(3,344,599) $ (970,569) $ (3,294,599)
Cash flow from operations before net change
in net working capital $ 20,902,191 $ 4,318,339 $ 54,737,390 $ 13,733,771
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" and on the Toronto Stock Exchange
under the ticker "UP" with 74,371,668 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