Exhibit 99.1
ULTRA PETROLEUM REPORTS RECORD PRODUCTION (+84%), RECORD CASH FLOW
(+151%), RECORD EARNINGS (+159%)
HOUSTON, July 26 /PRNewswire-FirstCall/ -- Ultra Petroleum (Amex: UPL) today
reported earnings for the three-month period ended June 30th, 2005 increased
159% to $47.9 million or $0.30 per diluted share, compared to $18.5 million or
$0.12 per diluted share for the same period in 2004. Operating cash flow(A) for
the period increased 151% to $86.8 million or $0.54 per diluted share, compared
to $34.7 million or $0.22 per diluted share for the same period in 2004.
Production increased 84% to 17.7 Bcfe compared to 9.6 Bcfe for the same quarter
in 2004. Average natural gas prices were $5.85 per Mcf during the quarter,
compared to $4.73 per Mcf for the same period in 2004. China oil prices for the
quarter averaged $42.92 per bbl while Wyoming oil prices averaged $53.99 per bbl
compared to $36.41 per bbl for the same period in 2004.
For the six-month period ended June 30, 2005 earnings increased 122% to $85.2
million or $0.53 per diluted share compared to $38.3 million or $0.24 per
diluted share for the same period in 2004. Operating cash flow(A) for the
six-month period ended June 30, 2005 increased 120% to $156.2 million or $0.97
per diluted share, compared to $70.9 million or $0.44 per diluted share in 2004.
Production for the period increased 72% to 33.3 Bcfe compared to 19.3 Bcfe in
2004. Average natural gas prices were $5.72 per Mcf during the six- month
period, compared to $4.84 in 2004. China oil prices for the six-month period
averaged $39.50 per bbl while Wyoming oil prices averaged $51.98 per bbl
compared to $36.77 per bbl in 2004.
"By increasing production 84% to 17.7 Bcfe and maintaining our industry leading
low cost structure, we realized a 159% increase in earnings to $47.9 million or
$0.30 per diluted share. This production increase included over 500,000 bbls of
oil from Bohai Bay, China, and over 14 Bcf of natural gas from Wyoming giving us
our strongest quarter in Ultra's history," stated Michael D. Watford, Ultra's
Chairman, President and CEO. "Clearly our Bohai Bay investment is paying off,
while Wyoming continues to provide the dynamic growth that has propelled Ultra
to the forefront of the investment community in recent years. Last weeks
addition of Mark Smith to the Ultra management team as CFO, and the approval of
our 128 well 10-acre pilot program on the Pinedale Anticline are two things that
I believe strengthen the company and add to our ability to continue our
impressive growth trend."
For the Three-Month For the Six-Month
Period Ended Period Ended
----------------------------- -----------------------------
30-Jun-05 30-Jun-04 30-Jun-05 30-Jun-04
------------- ------------- ------------- -------------
Production
Oil Production - Bbls:
WY 107,844 80,643 207,444 148,967
Oil Production - Bbls:
China 503,216 0 798,253 0
Natural Gas - Mcf 14,025,339 9,120,627 27,278,391 18,436,682
Gas Equivalent Production
- Mcfe 17,691,699 9,604,485 33,312,573 19,330,484
Realized Production Prices
Oil Price - WY $/bbl $ 53.99 $ 36.41 $ 51.98 $ 36.77
Oil Price - China $/bbl $ 42.92 $ 0.00 $ 39.50 $ 0.00
Gas Price - $/Mcf $ 5.85 $ 4.73 $ 5.72 $ 4.84
Revenues
Oil Revenue - WY $ 5,822,704 $ 2,936,082 $ 10,782,120 $ 5,477,632
Oil Revenue - China $ 21,598,900 $ 0 $ 31,529,851 $ 0
Gas Revenue $ 82,076,643 $ 43,174,208 $ 156,027,616 $ 89,251,431
Total Revenues $ 109,498,247 $ 46,110,290 $ 198,339,587 $ 94,729,063
Operating costs and
expenses
Operating expenses
- WY $ 2,032,364 $ 1,246,745 $ 4,017,670 $ 2,529,669
Operating expenses
- China $ 2,166,000 $ 0 $ 3,620,000 $ 0
Taxes $ 10,204,694 $ 5,430,719 $ 19,226,756 $ 11,100,496
Gathering $ 4,086,231 $ 2,746,937 $ 7,716,775 $ 5,519,134
Depreciation,
depletion and
amortization - WY $ 10,236,718 $ 5,415,985 $ 19,906,227 $ 10,896,704
Depreciation,
depletion and
amortization
- China $ 2,419,686 $ 0 $ 3,989,686 $ 0
General and
administrative $ 3,120,170 $ 1,190,350 $ 5,681,952 $ 2,744,388
Stock compensation $ 396,083 $ 523,500 $ 1,010,659 $ 623,523
Interest and
debt expense $ 1,167,763 $ 848,742 $ 2,068,406 $ 1,948,912
Total direct expenses $ 35,829,709 $ 17,402,978 $ 67,238,131 $ 35,362,826
Interest and
other income $ 118,693 $ 9,910 $ 193,558 $ 22,644
Income Tax -
Deferred $ 25,899,316 $ 10,194,718 $ 46,084,550 $ 21,083,159
Net Income $ 47,887,915 $ 18,522,504 $ 85,210,464 $ 38,305,722
Per common share
- basic $ 0.31 $ 0.12 $ 0.56 $ 0.26
Per common share
- diluted $ 0.30 $ 0.12 $ 0.53 $ 0.24
Cash flow from
operations (A) $ 86,839,718 $ 34,656,707 $ 156,201,586 $ 70,909,108
Per common share
- basic $ 0.57 $ 0.23 $ 1.03 $ 0.47
Per common share
- diluted $ 0.54 $ 0.22 $ 0.97 $ 0.44
Shares Outstanding
Weighted Average
- Basic 152,929,693 149,929,660 151,903,632 149,722,174
Weighted Average
- diluted 161,278,847 159,890,858 161,067,748 159,715,394
Costs per Mcfe
- Corporate
Lease Operating $ 1.05 $ 0.98 $ 1.04 $ 0.99
DD&A $ 0.72 $ 0.56 $ 0.72 $ 0.56
General and
administrative
- Total $ 0.20 $ 0.18 $ 0.20 $ 0.17
Interest $ 0.07 $ 0.09 $ 0.06 $ 0.10
$ 2.03 $ 1.81 $ 2.02 $ 1.83
Segment Costs per MCFE
- United States
Production Costs $ 0.14 $ 0.13 $ 0.14 $ 0.13
Severance/Production
Taxes $ 0.70 $ 0.57 $ 0.67 $ 0.57
Gathering $ 0.28 $ 0.29 $ 0.27 $ 0.29
DD&A $ 0.70 $ 0.56 $ 0.70 $ 0.56
$ 1.81 $ 1.55 $ 1.78 $ 1.55
Segment Costs per
Mcfe - China
Production Costs $ 0.72 $ --- $ 0.76 $ ---
DD&A $ 0.80 $ --- $ 0.83 $ ---
$ 1.52 $ --- $ 1.59 $ ---
These statements are unaudited and subject to year-end adjustment.
(A) "Operating 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 non-cash working capital
Three Months Ended Six Months Ended
March 31 March 31
----------------------------- -----------------------------
2005 2004 2005 2004
------------- ------------- ------------- -------------
Net cash provided
by operating
activities $ 76,219,113 $ 36,541,897 $ 167,738,289 $ 62,276,012
Accounts payable
and accrued
liabilities $ (10,556,231) $ (6,826,821) $ (26,105,193) $ 9,279,205
Prepaid expenses
and other
current assets $ (2,542,902) $ 4,895,094 $ 17,917 $ 3,641,480
Accounts receivable $ 24,992,424 $ (970,498) $ 14,652,671 $ (1,588,509)
Inventory $ (1,218,550) $ 0 $ 155,576 $ 0
Restricted cash $ 466 $ 315 $ 878 $ 629
Other long-term
obligations $ (184,602) $ 1,016,720 $ (388,552) $ (2,699,709)
Taxation payable $ 130,000 $ 0 $ 130,000 $ 0
Cash flow from
operations before
change in non-cash
working capital $ 86,839,718 $ 34,656,707 $ 156,201,586 $ 70,909,108
Management believes that the non-GAAP measures of cash flow before changes in
non-cash 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.
CONTACT: David Russell, Investor Relations of Ultra Petroleum Corp.,
+1-281-876-0120, Extension 302/
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Web site: http://www.ultrapetroleum.com /