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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report
October 28, 2004
ULTRA PETROLEUM CORP.
(Exact name of registrant as specified in its charter)
Yukon Territory, Canada 0-29370 N/A
(State or other jurisdiction of (Commission (I.R.S. Employer
incorporation or organization) File Number) Identification Number)
(363 North Sam Houston Pkwy, E., Suite 1200., Houston, TX 77060)
(281-876-0120)
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Item 2.02. Second announcement of 3rd Quarter earnings conference call.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
[October 28, 2004] By: David Russell
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David Russell
October 26, 2004
Ultra Petroleum Reports 170% Earnings Growth in 3rd Quarter
HOUSTON, Oct. 26 /PRNewswire-FirstCall/ -- Ultra Petroleum Corp.
(Amex: UPL) today reported earnings increased 170% to $27.9 million or
$0.35 per diluted share for the quarter ended September 30, 2004 compared to
$10.3 million or $0.13 per diluted share for the same period in 2003. Cash
flow (A) for the quarter ended September 30, 2004 increased 146% to
$51.4 million or $0.64 per diluted share, compared to $20.9 million or
$0.27 per diluted share for the same period in 2003.
For the nine-month period ended September 30, 2004 earnings increased 153%
to $66.2 million or $0.83 per diluted share compared to $26.2 million or
$0.33 per diluted share for the same period in 2003. Cash flow (A) for the
nine-month period increased 124% to $122.4 million or $1.53 per diluted share,
compared to $54.7 million or $0.70 per diluted share for the same period in
2003.
Production for the quarter increased 87% to 13 Bcfe, averaging 141 MMcfe/d
compared to 7 Bcfe or 75.5 MMcfe/d for the same period in 2003. Including the
effects of hedging, average natural gas prices for the third quarter increased
to $4.91 per Mcf compared to $4.17 per Mcf during the same period in 2003
while average Wyoming oil prices increased to $42.12 per bbl compared to
$31.37 per bbl in 2003. Oil prices in China averaged $36.72 per bbl.
Production for the nine-month period ended September 30, 2004 increased
69% to 32.3 Bcfe, or 106 MMcfe/d, compared to 19 Bcfe or 63 MMcfe/d for the
same period in 2003. Including the effects of hedging, average natural gas
prices for the nine-month period increased to $4.87 per Mcf compared to $3.99
per Mcf while average Wyoming oil prices increased to $38.83 per bbl compared
to $31.04 per bbl in 2003.
"By continuing to bring on new wells from this year's program and
delivering first oil in China during the quarter, we increased our production
by 87% year over year and 35% sequentially. With 21% stronger commodity
prices and a flat cost structure, we established new highs for quarterly
earnings and cash flow. With nine-month production at 32.3 Bcfe, already
ahead of our entire 2003 production of 28.9 Bcfe, we are well on our way to
reaching and exceeding our 2004 year-end production goal of 44 Bcfe. And, as
the majority of this year's wells will come on line during the fourth quarter,
we expect to see production climb to a new peak, setting us up for continued
industry leading growth into 2005," stated Michael D. Watford, Ultra's
Chairman, President and CEO.
For the Three-Month For the Nine-Month
Period Ended Period Ended
30-Sep-04 30-Sep-03 30-Sep-04 30-Sep-03
Production
Oil Production-bbls
- WY 92,820 50,327 241,787 147,919
Oil Production-bbls
- China 210,923 --- 210,923 ---
Natural Gas - Mcf 11,160,300 6,642,972 29,596,982 18,255,839
Gas Equivalent
Production - Mcfe 12,982,758 6,944,934 32,313,242 19,143,353
Realized Product Prices
Oil Price - $/bbl
- WY $42.12 $31.37 $38.83 $31.04
Oil Price - $/bbl
- China $36.72 $ --- $36.72 $ ---
Gas Price - $/Mcf $ 4.91 $ 4.17 $ 4.87 $ 3.99
Revenues
Oil Revenue - WY $3,910,036 $1,578,976 $9,387,668 $4,591,912
Oil Revenue - China $7,745,093 $--- $7,745,093 $---
Gas Revenue $54,786,316 $27,711,651 $144,037,747 $72,835,464
Total Revenues $66,441,445 $29,290,627 $161,170,508 $77,427,376
Operating costs and
expenses
Production Costs
- WY 1,574,589 872,364 4,104,257 2,484,784
Production Costs
- China 889,000 --- 889,000 ---
Severance/Production
Taxes 6,875,586 3,407,541 17,976,082 8,674,351
Gathering 3,259,412 1,899,519 8,778,545 5,195,693
DD&A - WY 6,676,869 4,033,606 17,573,574 11,091,346
DD&A - China 1,031,413 --- 1,031,413 ---
General and
administrative 1,562,380 1,468,553 4,306,767 4,210,029
Stock compensation 150,050 --- 773,573 1,018,220
Interest and debt
expense 853,469 747,125 2,802,381 2,151,559
Total direct expenses 22,872,768 12,428,708 58,235,592 34,825,982
Interest and other
income 20,054 6,666 42,698 26,431
Income Tax - deferred 15,713,357 6,540,598 36,796,518 16,458,292
Net Income $27,875,374 $10,327,987 $66,181,096 $26,169,533
Per common share
- basic $0.37 $0.14 $0.88 $0.35
Per common share
- fully diluted $0.35 $0.13 $0.83 $0.33
Cash flow from
operations (A) $51,447,063 $20,902,191 $122,356,174 $54,737,391
Per common share
- basic $0.69 $0.28 $1.63 $0.74
Per common share
- diluted $0.64 $0.27 $1.53 $0.70
Shares outstanding 75,129,968 74,327,668 75,129,968 74,327,668
Weighted Average
- Basic 75,063,934 74,279,516 74,929,196 74,170,485
Weighted Average
- Diluted 80,090,907 78,537,895 79,957,440 78,335,831
Costs per Mcfe
Production Costs
- WY 0.13 0.13 0.13 0.13
Production Costs
- China 0.70 --- 0.70 ---
Severance/Production
Taxes 0.53 0.49 0.56 0.45
Gathering 0.25 0.27 0.27 0.27
Total Lease Operating 0.97 0.89 0.98 0.85
DD&A - WY 0.57 0.58 0.57 0.58
DD&A - China 0.81 --- 0.81 ---
General and administrative 0.12 0.21 0.13 0.22
These statements are unaudited and subject to year-end adjustments.
(A) "Cash flow" refers to cash flow from operations before net changes
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
2004 2003 2004 2003
Net cash provided
by operating
activities $59,690,289 $19,607,671 $126,039,475 $52,361,410
Accounts payable
and accrued
liabilities $(13,157,993) $(3,865,573) $(1,783,174) $(3,341,399)
Prepaid expenses
and other
current assets $(846,040) $1,139,602 $2,795,440 $3,373,345
Accounts
receivable $13,470,677 $2,748,564 $11,882,168 $3,313,559
Inventory $(1,750,098) $--- $(5,823,273) $---
Restricted cash $ 319 $318 $948 $1,044
Deferred revenue $(3,436,624) $--- $(3,436,624) $---
Other long-term
obligations $(2,523,467) $1,271,609 $(7,318,786) $(970,569)
Cash flow from
operations before
net change in
net changes in
working capital $51,447,063 $20,902,191 $122,356,174 $54,737,391
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 75,137,968
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.
SOURCE Ultra Petroleum Corp.
-0- 10/26/2004
/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
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/Web site: http://www.ultrapetroleum.com /
(UPL)
CO: Ultra Petroleum Corp.
ST: Texas
IN: OIL
SU: ERN