Ultra Petroleum Corp.Ultra Petroleum Corp.Michael D. WatfordMichael D. Watford
Chairman,Chairman, President & CEOPresident & CEO
Bohai Bay Bohai Bay
ChinaChina
Green River Green River Basin Basin
WyomingWyoming
1,000 plus long-life natural gas drilling locations
High rate of return projects
Exceptional drilling success rate – 98% since ‘00
Industry best cost structure
Industry leading reserve and production growth
Ultra HighlightsUltra Highlights
0
200
400
600
800
1,000
1,200
1,400
1,600
1999 2000 2001 2002 2003 2004
Bcf
e
Reserve GrowthReserve Growth
83% CAGR
Reserve Growth – Reserve Growth – Proved + ProbableProved + Probable
-
500
1,000
1,500
2,000
2,500
3,000
3,500
1900 1900
Bc
fe
2003 2004
66%
Production GrowthProduction Growth
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
1999 2000 2001 2002 2003 2004
MM
cfe
60% C
AGR
Year 2004 ResultsYear 2004 Results
$196 mm capital expenditures$196 mm capital expenditures
42% reserve growth to 1,528 bcfe42% reserve growth to 1,528 bcfe
71% annual production growth to 49.3 bcfe71% annual production growth to 49.3 bcfe
$0.39 / Mcfe Finding & Development Cost
>1000% Reserve Replacement Ratio
30+ year Reserve to Production Ratio
Year 2005Year 2005
$290mm capital budget $290mm capital budget
42% production growth – 70 bcfe42% production growth – 70 bcfe
18% reserve growth – 1,800 bcfe18% reserve growth – 1,800 bcfe
100-110 Gross wells in Wyoming
Begin Production at CFD 11-3/11-5
3 exploration wells in China
TD 7395 NCNT0
LabargeLabargePlatformPlatform
Lance Sand Fairway25 Miles Wide
36 sq. miles~600 Wells700 MMcfd
10-acre spacing
Field OGIP = 13.0 Tcf*Field OGIP = 13.0 Tcf*
Recoverable = 8.5 Tcf*Recoverable = 8.5 Tcf**source EnCana*source EnCana
Jonah Field
75 sq. miles75 sq. miles~250 Wells~250 Wells
400 + MMcfd400 + MMcfdField OGIP = 40+ TcfField OGIP = 40+ Tcf
Recoverable = ? TcfRecoverable = ? Tcf
Lance Tight Gas Sand FairwayLance Tight Gas Sand FairwayPinedale Anticline
Field
Typical Pinedale Well Production Typical Pinedale Well Production Profile Profile
0
2
4
6
8
10
0 1 2 3 4 5 6 7 8 9 10
YEARS OF PRODUCTION
MMcf/dAVERAGE DAILY PRODUCTION
30+ yrs
> 20% EUR
Ultra’s Pinedale Well EconomicsUltra’s Pinedale Well Economics
Typical Pinedale Well:$4.50/Mcf
Well cost: $5.0 MM
Reserves / well: 8.9 Bcfe
ROR: 62%
F&D cost: < $0.70/Mcfe
Pay out: 1.86 years
Reserve life: 42 years
RO
R (
%)
Ultra’s Financial Metrics - 2004Ultra’s Financial Metrics - 2004
CF Margin 77%
Net Income Margin 41%
Total Cost Structure $1.83 / Mcfe
ROCE 27.7%
ROE 50.2%
Net Income Breakeven $1.44 / Mcfe
Ultra Cost Structure ComparisonUltra Cost Structure ComparisonTotal Costs 2004 vs. Peer GroupTotal Costs 2004 vs. Peer Group
$/Mcfe$/Mcfe
$/Mcfe Median Source – JP Morgan
$0.00
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
UP
L
UC
L
EO
G
XT
O
AP
A
KM
G
PX
D
BR
RR
C
EA
C
PP
P
KW
K
WG
R
AP
C
DV
N
TH
X
EC
A
PX
P
NF
X
CH
K
WT
I
SF
Y
SG
Y
FS
T
SK
E
BB
G
UPL #1 at $1.83 / Mcfe
Average: $3.15/Mcfe
Ultra Cost Structure ComparisonUltra Cost Structure Comparison2004 F&D Costs vs. Peer Group2004 F&D Costs vs. Peer Group
$/Mcfe$/Mcfe
$/Mcfe$/Mcfe MedianMedian Source - Wachovia
$0.00$0.50$1.00$1.50$2.00$2.50$3.00$3.50$4.00$4.50$5.00
UPL
NBL
PXP
WG
R
XTO
BR
RRC
APC
BRY
EOG
EAC
KCS
UCL
DVN
REM SM UNT
FST
PQUE EP
L
DEC
NFX
SFY
UPL #1 at $0.39 / McfeUPL #1 at $0.39 / Mcfe
Mean = $1.79
2005-2006E Asset Intensity Estimates
93%79%
71%71%
65%64%64%
61%59%
55%55%
54%50%
42%42%
40%39%39%
38%35%
33%33%
32%31%31%
19%14%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
SKESGY
VPIWTI
DVNFST
KMGNFXPPPECATHXPXDSFYCHKAPCEACEOGPXPUCLAPAXTONBLRRCKWBR
WGUPL
Source – J.P. Morgan
Les
s A
ttra
ctiv
eM
ore
Att
ract
ive
Median = 42%
Pinedale ReservePinedale ReserveGrowthGrowth
YE 2001• 447 locations on 17,780 UPL acres• Avg location 6.4 Bcf - 2.85 gross Tcf
YE 1999• 187 locations on 7,480 UPL acres• Avg location 4.9 Bcf - 0.92 gross Tcf
Based on NSAI Reserve Reports
YE 2003• 636 locations on 25,440 UPL acres• Avg location 7.4 Bcf - 4.7 gross Tcf
UPL Acreage4-6 BCF6-8 BCF
8-10 BCF10-12 BCF12-14 BCF14-16 BCF16-18 BCF18-20 BCF
20+ BCF
Increased Density Increased Density Drilling – PinedaleDrilling – Pinedale
2003 WOGCC approves Ultra and Anschutz applications for drilling 20-acre pilot wells. 18 20-acre wells drilled in ’04.
July 2004 WOGCC approves 20-acre density for Questar application, North 1/3 of anticline!
November 2004, WOGCC approves Jonah Field Wide 10-acre well density
WOGCC has since approved additional increased density pilots on Pinedale for other operators
33N 108W33N 109W
32N 108W32N 109W
31N 109W31N 108W
30N 109W30N 108W
WARBONNET
ROSS BUTTE
BOULDER
RIVERSIDE
POLE CREEK
MESA
HALF MOON
STEWART POINT
PETRA 1/4/2005 11:05:32 AM
Based on NSAI Reserve Reports
UPL Acreage4-6 BCF6-8 BCF
8-10 BCF10-12 BCF12-14 BCF14-16 BCF16-18 BCF18-20 BCF
20+ BCF
YE 2004• 1,160 locations 649 40-acre 511 20-acre• Avg location 6.9 Bcf• 8 Tcf gross
PINEDALE PINEDALE RESERVE RESERVE GROWTHGROWTH
Pinedale Future Reserve GrowthPinedale Future Reserve Growth
Continued Expansion of Economic Fairway
Recognition of additional Mesaverde area
Increased Density Drilling
20-acre performance improvements
10-acre equivalent drilling density
Other Horizons
Shallower – Behind-Pipe reserves
Deeper new pay zones
Northern Rockies Export Pipe Capacities
• Year End 2002 4.0 BCFD
+ Kern River 0.90
+ Northwest PL 0.15
+ Grasslands 0.08
• Year End 2003 5.13 BCFD + 28 %+ TransColorado 0.13
• Year End 2004 - 5.26 BCFD+ Cheyenne Plains I 0.56
• Year End 2005 - Est 5.82 BCFD+ Cheyenne Plains II 0.17
• Year End 2006 - Est 5.99 BCFD + 50 %
China UpdateChina Update
• First 2 fields on production July ‘04
• Producing at 40,000 bopd gross / 4,000 net
• Net production estimates - 2005 ~ 1.8 MM bbls
• 2 more fields on production in ‘05, 3 more in ‘06
• Expect 65-80,000 bopd gross plateau in ‘06-’07
• Remaining appraisal & exploration upside
• 15-18.2% exploration interest- 8-10% net reserves
Bohai Bay BlocksBohai Bay Blocks
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
100,000
110,000
1999 2000 2001 2002 2003 2004 2005E 2006E 2007E
MM
cfe
Annual Production Growth
CAGR ~ 47%
0
500
1,000
1,500
2,000
2,500
1999 2000 2001 2002 2003 2004 2005E 2006E 2007E
Bcf
eProved Reserve Growth
CAGR ~54%
Positioned for Growth
Extraordinary project inventory
Unmatched organic growth
Industry leading cost structure
High rate of return projects
Experienced management
Ultra Petroleum Corp.
Listed: American Stock Exchange Symbol: UPLIssued Shares: 153,144,036
This report contains or incorporates by reference forward looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts included in this document, including without limitation, statements in Management's Discussion and Analysis of Financial Condition and Results of Operations regarding our financial position, estimated quantities and net present values of reserves, business strategy, plans and objectives of the Company's management for future operations, covenant compliance and those statements preceded by, followed by or that otherwise include the words "believe", "expects", "anticipates", "intends", "estimates", "projects", "target", "goal", "plans", "objective", "should", or similar expressions or variations on such expressions are forward looking statements. The Company can give no assurances that the assumptions upon which such forward-looking statements are based will prove to be correct nor can the Company assure adequate funding will be available to execute the Corporation's planned future capital program. Other risks and uncertainties include, but are not limited to, fluctuations in the price the Company receives for oil and gas production, reductions in the quantity of oil and gas sold due to increased industry-wide demand and/or curtailments in production from specific properties due to mechanical, marketing or other problems, operating and capital expenditures that are either significantly higher or lower than anticipated because the actual cost of identified projects varied from original estimates and/or from the number of exploration and development opportunities being greater or fewer than currently anticipated and increased financing costs due to a significant increase in interest rates. 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 10-K, also available from the Company at 363 N. Sam Houston Pkwy E., suite 1200, Houston, TX 77060. You can also obtain this form from the SEC by calling 1-800-SEC-0330.
363 N Sam Houston Pkwy E, Suite 1200Houston, TX 77060
281-876-0120281-876-2831 Fax
www.ultrapetroleum.com
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