Ultra P Ultra Petr troleum Corp. oleum Corp. Michael D. W Michael D. Watf tfor ord Chairman, President and CEO Chairman, President and CEO May 2013 Ultra Petroleum Corp. is an independent exploration and production company focused on developing its long-life natural gas reserves in the Green River Basin of Wyoming – Pinedale and Jonah fields and is in the ongoing exploration and early development stage in the Appalachian Basin of Pennsylvania. Ultra Petroleum Corp. NYSE: UPL
A U A Uniq ique Energy Com ue Energy Compan any 2001 – 2011 2013+ Focused on Profitable Growth On the Horizon… • Production growth: 1,911% • Invest within cash flow • 1P Reserve growth: 1,019% • Allocate project capital >20% IRR • ROE: 36% average • No growth for growth’s sake • ROCE: 24% average • Preserve concentrated assets • Maintain low cost leadership 2012 Disciplined Capital Allocation Strategy • Reduce capital investments in declining price environment • Monetize liquids gathering system • Focus on returns Ultra Petroleum Corp. NYSE: UPL 2
Strong R Str ng Reser serve Base e Base Wyoming Pennsylvania Total Marcellus Lance Reserves 9.6 Tcfe 17.0 Tcfe 7.4 Tcfe • 2,900 future net • 1,700 future net • 4,600 future net wells wells wells • $13,600MM • $11,300MM • $24,900MM future capital future capital future capital • $1.42/Mcfe • $1.52/Mcfe • $1.46/Mcfe F&D cost F&D cost F&D cost Ultra Petroleum Corp. NYSE: UPL 3
Long-Lif Long-Life, Lo e, Low-Cost, Lance Tight Gas Cost, Lance Tight Gas Pinedale Field Pinedale Field 53,440 acres UPL: 40,160 gross (21,375 net) 2,200 wells / ~ 1.5 Bcfd Field OGIP = 58.7 Tcf Recoverable = 38.2 Tcf HBP Status: 100% Jonah Field Jonah Field 21,000 acres UPL: 2,150 gross (1,350 net) 1,760 wells / ~ 0.7 Bcfd Field OGIP = 15.0 Tcf Recoverable = 10.5 Tcf HBP Status: 100% Ultra Petroleum Corp. NYSE: UPL 4
Pinedale’s Pr Pinedale’s Prof ofitable W itable Well Economics ll Economics 160% 140% 4.00 4.00 5.00 5.00 6.00 6.00 120% Bcfe Bcf Bcf Bcfe Bcf Bcfe Vertical Depth Depth 13,500’ 3,500’ 13,500’ 3,500’ 13,500’ ,500’ 100% Well Cost ll Cost ($MM): ($MM): $4.4 $4.4 $4.4 80% IRR*: IRR*: 26% 44% 65% IRR IRR 60% F&D Cost/Mcf F&D Cost/Mcfe: e: $1.35 $1.08 $0.90 Pa Payout ut, m , mont nths: 48 29 21 40% Reser serve Lif Life, yr , yrs: s: 32 35 38 20% * Economics at $4.00/Mcf wellhead price 0% $3 $4 $5 $6 Wellhe llhead Gas Price d Gas Price 6.0 Bcfe 5.0 Bcfe 4.0 Bcfe Ultra Petroleum Corp. NYSE: UPL 5
Im Impr proving Operating Ef ing Operating Efficiencies… ciencies… 70 Pinedale Field Pinedale F eld 60 Spud t Spud to TD TD 50 Redu duce ced b d by 67% 67% 40 Spud to TD Spud t TD (Da (Days) 30 20 10 0 2006 2007 2008 2009 2010 2011 2012 Q12013 80 Pinedale F Pinedale Field eld 70 RR-RR RR-RR 60 Redu duce ced b d by 71% 50 Rig Rele Rig R lease t e to Rig Rele Rig R lease e 40 (Da (Days) 30 20 10 0 2006 2007 2008 2009 2010 2011 2012 Q12013 Ultra Petroleum Corp. NYSE: UPL 6
…Leads t …Leads to F Further Cost R ther Cost Reductions eductions $8.0 Pinedale Field Pinedale F eld $7.0 Total Well Costs Total ell Costs Reduced by Reduce by 29% 29% $6.0 $5.0 To Total Well Cost ll Cost $4.0 ($MM ($MM) $3.0 $2.0 $1.0 $- 2006 2007 2008 2009 2010 2011 2012 Q12013 Ultra Petroleum Corp. NYSE: UPL 7
Ext Extensiv nsive F e Future W ture Wyoming De oming Development lopment <25% field developed 5,000+ remaining gross locations 1,850 producing wells YE2012 Ultra Petroleum Corp. NYSE: UPL 8
Abundant Mar undant Marcellus Shale ellus Shale Ultra-Interest Lands Pott tter er-Tioga Area ioga Area 170,000 net acres HBP Status: 70% 202 producing horizontal wells Year-end 2012 Clint Clinton-L on-Lycoming Area coming Area 90,000 net acres HBP Status: 85% 120 producing horizontal wells Year-end 2012 Ultra Petroleum Corp. NYSE: UPL 9
Consist Consistent Mar ent Marcellus P ellus Performance ormance Well Wellsb sboro Area o Area 85 wells Avg. IP = 7.2 Avg. IP = 7.2 MMcf/d MMcf/d Krause Area Krause Area Krause 58 wells Wellsboro Avg. IP = Avg. IP = 7.0 7.0 MMcf/d Mcf/d Marshlands Potter Texas Tioga Creek Sproul Area Sproul Area 17 wells Lycoming Avg. IP = Avg. IP = 4.8 4.8 MMcf/d Mcf/d Texas Creek Area Texas Creek Area Clinton Grugan 30 wells Avg. IP = 6.9 Avg. IP = 6.9 MMcf/d Mcf/d Bull Run Sproul Grugan Grugan & Bull & Bull Run Areas Run Areas 114 wells Avg. IP = Avg. IP = 6.7 6.7 MMcf/d Mcf/d Ultra Petroleum Corp. NYSE: UPL 10
Str Strong Mar ng Marcellus W ellus Well Economics ll Economics 200% 180% 5.0 5.0 7.0 7.0 9.0 9.0 160% Bcfe Bcf Bcfe Bcf Bcf Bcfe 140% Ve Vertical D Dept pth 5,600’ 5, 600’ 8,400’ 8, 400’ 8400' 8400' Well Co We Cost: $7.2 MM $6.2 MM $6.2 MM 120% IR IRR*: 12% 47% 82% 100% F&D C F& D Cost st/Mcfe: $1.69 $1.01 $0.79 IRR IRR Pa Payo yout, m months: 80% 152 25 15 Reserve Li Life fe, y , yrs: 39 42 42 60% 40% * Economics at $4.00/Mcf wellhead price 20% 0% $3 $4 $5 $6 Wellhe llhead Gas Price d Gas Price $7.2MM & 5.0 Bcfe $6.2MM & 7.0 Bcfe $6.2MM & 9.0 Bcfe Ultra Petroleum Corp. NYSE: UPL 11
Early Stages of Mar Early Stages of Marcellus De ellus Development lopment 3,340 future locations 204 producing 322 producing wells YE2011 wells YE2012 <10% field developed Ultra Petroleum Corp. NYSE: UPL 12
Geneseo Geneseo Resour esource U e Upside side Geneseo Geneseo Tully lly Hamilton Hami Geneseo Area Geneseo Area Ultra has dominant position ~900’ Geneseo Hori Geneseo Horizontal zontal Activ tivity ty UPL Participation Wells 3 rd Party Wells Net Risk Net Risked ed R Resour source P ce Potential = ntial = ~3.3 T ~3.3 Tcfe Upper Upper • Play area delineated by 14 horizontal wells in Ultra leasehold Ma Marcellus ellus • Higher total organic content in the West Ma Marcellus ellus • Can leverage existing Marcellus pads and infrastructure Ultra Petroleum Corp. NYSE: UPL 13
Rest storing 20 oring 2012 R 12 Reser serves es YE’12 Restored Proved Reserves Sensitivity YE’12 Proved Reserves @$4.04/Mcf @ $2.63/Mcf 5.0 Tcfe 5.0 T 3. 3.1 T 1 Tcfe Restore YE’11 PUD capital & gas price 1.89 Tcfe PUD PUD 1.19 Tcfe 1.19 Tcfe PD PD 1.88 Tcfe 1.88 Tcfe Ultra Petroleum Corp. NYSE: UPL 14
Rest storing 20 oring 2012 R 12 Reser serve V e Values alues YE’12 Proved Reserves PV-10 YE’12 Restored Proved Reserves PV-10 Sensitivity @ $2.63/Mcf @ $4.04/Mcf $2,263MM $2,263MM $5,250MM $5,250MM Restore YE’11 PUD capital & gas price $2,986MM PUD PUD $288MM $288MM PD PD $1,976MM $1,976MM Ultra Petroleum Corp. NYSE: UPL 15
Gr Growing R ing Resour source Base ce Base 3P Reser 3P R serves es Year-End 2012 20 17.1 Tcfe 18 $6/Mcf $5/Mcf 16.0 Tcfe Reserves PV-10 PV-10 16 Reserve Category (Bcfe) ($MM) ($MM) 5.84 14 4.68 Proved 3,202 $6,900 $5,520 12 10 Probable 8,022 6,763 4,373 8 2P 2P 2P: (PV + 2P: PV + PR) PR) 11,22 1,224 13,664 ,664 9,893 9,893 6 11.38 11.22 4 Possible 5,841 5,198 3,453 2 3P: (PV 3P: PV + + PR PR + + PS) PS) 17,065 7,065 $1 $18,862 8,862 $13,346 ,346 0 YE11 YE12 Ultra Petroleum Corp. NYSE: UPL 16
Economic F Economic Fundamentals ndamentals 2012 Reser eserve e F&D F&D Fu Full C Cycle Replacement placement Cash flo Cash flow Cost Cost Re Returns Ratio Ratio Pe Per M Mcfe $2.78 $2.7 $0.83 $0.8 Per Pe Pe Per 335% 335% 332% 332% Mcf Mcfe Mcfe Mcf Ultra Petroleum Corp. NYSE: UPL 17
Industr Industry’s Lo y’s Low-Cost Pr Cost Producer oducer $14.00 20 2012 12 All-In Costs per Mcf All-In Costs per Mcfe $12.00 $10.00 Mean - Mean - $7.3 $7 .31/Mcf 1/Mcfe $8.00 All-in All-in Costs Costs Q12013 Q120 Costs Costs Per Mcf r Mcfe per Mcf per Mcfe LOE $0.40 $0.40 $6.00 Prod oduct uction ion Tax 0.28 0.28 Gatherin Gathering F Fees ees 0.2 0.20 Transportation Tr 0.34 $4.00 DD&A DD&A 1.04 G&A G&A 0. 0.10 Int. & Debt Int. & Debt 0.4 0.43 $2.00 $2.79 $2.79 $0.00 Source: Wells Fargo Ultra Petroleum Corp. NYSE: UPL 18
Str Strong & Stable Margins ng & Stable Margins Cash Flow Marg Cash Flo Margin in Net Income Ne t Income Margin Margin 100% 50% Cash Flow Breakeven ($/Mcfe) Net Income Breakeven ($/Mcfe) 90% 45% $1.20 $1.20 $1.18 $1.15 $1.35 80% 40% $2.69 $2.54 $2.53 $2.82 $3.07 70% 35% 60% 30% 50% 25% 40% 20% 75% 75% 73% 73% 37 37% 70% 70% 70% 70% 64% 64% 31 31% 31% 30% 15% 30% 30% 29% 29% 20% 10% 10% 5% 0% 0% 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 Ultra Petroleum Corp. NYSE: UPL 19
Disciplined Capital Allocation Disciplined Capital Allocation Hist Historica orical Capita Capital In l Investment Pr stment Programs ograms $1,560MM $835MM 2011 $415MM Re Realized N Natural G Gas 2012 Prices ($/Mcf Prices ($/Mcf) 20 2011: : $5.0 $5.05 2013 20 2012: $4.0 12: $4.01 20 2013: $3.50-estimat : $3.50-estimate Ultra Petroleum Corp. NYSE: UPL 20
Recommend
More recommend
