Ultra Petroleum Provides Operational and Financial Update
September 18 2017 - 4:30PM
Ultra Petroleum Corp. (NASDAQ:UPL) announces the following
operational and financial updates:
Operational Update
Production
As of September 15, 2017, Ultra’s total net
daily production increased 8% to 796 million cubic feet equivalent
(MMcfe) per day compared to an average of 738 MMcfe per day during
the second quarter of 2017.
Operations
Quarter-to-date through September 15, 2017,
Ultra Petroleum has drilled 48 gross operated wells and placed on
production 41 gross operated wells. This compares with 43 gross
operated wells drilled and 39 gross operated wells placed on
production during the second quarter of 2017.
Total days per well, measured by rig-release to
rig-release, averaged 10.4 days since June 30, 2017, which compares
to 11.4 days in the second quarter of 2017. On September 5, 2017,
the company set a new drilling record as measured by spud to total
depth (TD), of 6.27 days, which compares to an average spud to TD
of 9.4 days during the second quarter of 2017.
Horizontal Program Update
On August 20, 2017, Ultra spud a Lower Lance
“A”, two mile horizontal well. The well reached TD of 22,483’ on
September 17, 2017 with a 10,228’ lateral that was drilled 100% in
the target zone. The company encountered significant sand and gas
shows throughout the lateral. The well is scheduled to be completed
during the first week of October 2017 with an estimated 45 frac
stages. The company plans to drill two additional horizontal wells
during the fourth quarter of 2017.
Financial Update
Liquidity
Ultra Petroleum announces that its bank group
has approved an increase in the borrowing base under its senior
secured credit facility from $1.2 billion to $1.4 billion. With
this, the company plans to expand its existing secured, floating
rate term loan by $175 million, subject to the successful
syndication of increased commitments under its term credit
facility. There is no net increase in debt as the proceeds will be
used to pay down the revolving credit facility, which with this
transaction has total commitments of $425 million. These
transactions are expected to be completed next week.
“By increasing the term loan to pay down our
credit facility, we will not increase our overall debt, but we will
significantly increase our liquidity and extend the term of our
current borrowings by two years with debt that is pre-payable at an
interest rate comparable to that of our credit facility,” commented
Garland Shaw, Senior Vice President and Chief Financial
Officer.
Commodity Hedges
During September 2017, Ultra entered into new
NYMEX natural gas derivative transactions as shown in the table
below:
|
Production Period |
|
January 2018-March 2018 |
April 2018-October 2018 |
Natural Gas Collars |
|
|
Total Volume (Bcf) |
|
3.4 |
|
Floor Price per Mcf |
$3.45 |
|
Ceiling price per Mcf |
$3.76 |
|
|
|
|
Natural Gas Swaps |
|
|
Total Volume (Bcf) |
|
|
24.1 |
Average price per Mcf |
|
$3.15 |
Note: Volumes and prices based on a conversion factor of
1.065 MMBtu/Mcf.
About Ultra Petroleum
Ultra Petroleum Corp. is an independent energy
company engaged in domestic natural gas and oil exploration,
development and production. The company is listed on NASDAQ and
trades under the ticker symbol “UPL”. Additional information on the
company is available at 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. Any statement, including any opinions,
forecasts, projections or other statements, other than statements
of historical fact, are or may be forward-looking statements.
Although the company believes the expectations reflected in any
forward-looking statements herein are reasonable, we can give no
assurance that such expectations will prove to have been correct
and actual results may differ materially from those projected or
reflected in such statements. Certain risks and uncertainties
inherent in our business as well as risks and uncertainties related
to our operational and financial results are set forth in our
filings with the SEC, particularly in the section entitled “Risk
Factors” included in our most recent Annual Report on Form 10-K for
the most recent fiscal year, our most recent Quarterly Reports on
Form 10-Q, and from time to time in other filings made by the
company with the SEC. Some of these risks and uncertainties
include, but are not limited to, increased competition, the timing
and extent of changes in prices for oil and gas, particularly in
the areas where we own properties, conduct operations, and market
our production, as well as the timing and extent of our success in
discovering, developing, producing and estimating oil and gas
reserves, weather and government regulation, the availability of
oil field services, personnel and equipment. Our SEC filings are
available written request to Ultra Petroleum Corp. at 400 North Sam
Houston Parkway East, Suite 1200, Houston, Texas 77060 (Attention:
Investor Relations) or on our website (www.ultrapetroleum.com) or
from the SEC on their website at www.sec.gov or by telephone
request at 1-800-SEC-0330.
For further information
contact:Sandi Kraemer Director, Investor RelationsPhone:
281-582-6613Email: skraemer@ultrapetroleum.com
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