Ultra P Ultra Petr troleum Corp. oleum Corp. Michael D. W - - PowerPoint PPT Presentation

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Ultra P Ultra Petr troleum Corp. oleum Corp. Michael D. W - - PowerPoint PPT Presentation

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


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SLIDE 1

Ultra P Ultra Petr troleum Corp.

  • leum Corp.

Michael D. W Michael D. Watf tfor

  • rd

Chairman, President and CEO Chairman, President and CEO

May 2013

Ultra Petroleum Corp. is an independent exploration and production company focused

  • n 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

slide-2
SLIDE 2

A U A Uniq ique Energy Com ue Energy Compan any

Ultra Petroleum Corp. NYSE: UPL 2

2012 Disciplined Capital Allocation Strategy

  • Reduce capital investments in declining price environment
  • Monetize liquids gathering system
  • Focus on returns

2001 – 2011 Focused on Profitable Growth

  • Production growth: 1,911%
  • 1P Reserve growth: 1,019%
  • ROE: 36% average
  • ROCE: 24% average

2013+ On the Horizon…

  • Invest within cash flow
  • Allocate project capital >20% IRR
  • No growth for growth’s sake
  • Preserve concentrated assets
  • Maintain low cost leadership
slide-3
SLIDE 3

Str Strong R ng Reser serve Base e Base

Wyoming Lance

9.6 Tcfe

  • 2,900 future net

wells

  • $13,600MM

future capital

  • $1.42/Mcfe

F&D cost

Pennsylvania Marcellus

7.4 Tcfe

  • 1,700 future net

wells

  • $11,300MM

future capital

  • $1.52/Mcfe

F&D cost

Total Reserves

17.0 Tcfe

  • 4,600 future net

wells

  • $24,900MM

future capital

  • $1.46/Mcfe

F&D cost

Ultra Petroleum Corp. NYSE: UPL 3

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SLIDE 4

Long-Lif Long-Life, Lo e, Low-Cost, Lance Tight Gas Cost, Lance Tight Gas

Ultra Petroleum Corp. NYSE: UPL 4

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%

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%

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SLIDE 5

Pinedale’s Pr Pinedale’s Prof

  • fitable W

itable Well Economics ll Economics

Ultra Petroleum Corp. NYSE: UPL 5 4.00 4.00 Bcf Bcfe 5.00 5.00 Bcf Bcfe 6.00 6.00 Bcf Bcfe Vertical Depth Depth 13,500’ 3,500’ 13,500’ 3,500’ 13,500’ ,500’ Well Cost ll Cost ($MM): ($MM): $4.4 $4.4 $4.4 IRR*: IRR*: 26% 44% 65% F&D Cost/Mcf F&D Cost/Mcfe: e: $1.35 $1.08 $0.90 Pa Payout ut, m , mont nths: 48 29 21 Reser serve Lif Life, yr , yrs: s: 32 35 38

* Economics at $4.00/Mcf wellhead price 0% 20% 40% 60% 80% 100% 120% 140% 160% $3 $4 $5 $6 IRR IRR Wellhe llhead Gas Price d Gas Price 6.0 Bcfe 5.0 Bcfe 4.0 Bcfe

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SLIDE 6

10 20 30 40 50 60 70 2006 2007 2008 2009 2010 2011 2012 Q12013 Spud t Spud to TD TD (Da (Days)

Pinedale F Pinedale Field eld

10 20 30 40 50 60 70 80 2006 2007 2008 2009 2010 2011 2012 Q12013 Rig R Rig Rele lease t e to Rig R Rig Rele lease e (Da (Days)

Pinedale F Pinedale Field eld

Im Impr proving Operating Ef ing Operating Efficiencies… ciencies…

Ultra Petroleum Corp. NYSE: UPL 6

RR-RR RR-RR Redu duce ced b d by 71% Spud t Spud to TD TD Redu duce ced b d by 67% 67%

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SLIDE 7

…Leads t …Leads to F Further Cost R ther Cost Reductions eductions

Ultra Petroleum Corp. NYSE: UPL 7

$- $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 $8.0 2006 2007 2008 2009 2010 2011 2012 Q12013 To Total Well Cost ll Cost ($MM ($MM)

Pinedale F Pinedale Field eld

Total Total Well Costs ell Costs Reduce Reduced by by 29% 29%

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SLIDE 8

Ext Extensiv nsive F e Future W ture Wyoming De

  • ming Development

lopment

Ultra Petroleum Corp. NYSE: UPL 8

1,850 producing wells YE2012

5,000+ remaining gross locations

<25% field developed

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SLIDE 9

Abundant Mar undant Marcellus Shale ellus Shale

Clint Clinton-L

  • n-Lycoming Area

coming Area

90,000 net acres HBP Status: 85% 120 producing horizontal wells

Year-end 2012

Pott tter er-Tioga Area ioga Area

170,000 net acres HBP Status: 70% 202 producing horizontal wells

Year-end 2012

Ultra Petroleum Corp. NYSE: UPL 9 Ultra-Interest Lands

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SLIDE 10

Ultra Petroleum Corp. NYSE: UPL 10

Consist Consistent Mar ent Marcellus P ellus Performance

  • rmance

Sproul Grugan Bull Run Marshlands Texas Creek Wellsboro Krause

Tioga Potter Lycoming Clinton

Grugan Grugan & Bull & Bull Run Areas Run Areas 114 wells

  • Avg. IP =
  • Avg. IP = 6.7

6.7 MMcf/d Mcf/d Texas Creek Area Texas Creek Area 30 wells

  • Avg. IP =
  • Avg. IP = 6.9

6.9 MMcf/d Mcf/d Well Wellsb sboro Area

  • Area

85 wells

  • Avg. IP =
  • Avg. IP = 7.2

7.2 MMcf/d MMcf/d Krause Area Krause Area 58 wells

  • Avg. IP =
  • Avg. IP = 7.0

7.0 MMcf/d Mcf/d Sproul Area Sproul Area 17 wells

  • Avg. IP =
  • Avg. IP = 4.8

4.8 MMcf/d Mcf/d

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SLIDE 11

Str Strong Mar ng Marcellus W ellus Well Economics ll Economics

Ultra Petroleum Corp. NYSE: UPL 11

* Economics at $4.00/Mcf wellhead price 0% 20% 40% 60% 80% 100% 120% 140% 160% 180% 200% $3 $4 $5 $6 IRR IRR Wellhe llhead Gas Price d Gas Price

$7.2MM & 5.0 Bcfe $6.2MM & 7.0 Bcfe $6.2MM & 9.0 Bcfe

Ve Vertical D Dept pth

5, 5,600’ 600’ 8, 8,400’ 400’ 8400' 8400'

We Well Co Cost:

$7.2 MM $6.2 MM $6.2 MM

IR IRR*:

12% 47% 82%

F& F&D C D Cost st/Mcfe:

$1.69 $1.01 $0.79

Pa Payo yout, m months:

152 25 15

Reserve Li Life fe, y , yrs:

39 42 42

5.0 5.0 Bcf Bcfe 7.0 7.0 Bcf Bcfe 9.0 9.0 Bcf Bcfe

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SLIDE 12

Early Stages of Mar Early Stages of Marcellus De ellus Development lopment

Ultra Petroleum Corp. NYSE: UPL 12

204 producing wells YE2011 322 producing wells YE2012 3,340 future locations <10% field developed

slide-13
SLIDE 13

Geneseo Geneseo Resour esource U e Upside side

Ultra Petroleum Corp. NYSE: UPL 13

Geneseo Geneseo Ma Marcellus ellus Tully lly Hami Hamilton Upper Upper Ma Marcellus ellus ~900’

Geneseo Hori Geneseo Horizontal zontal Activ tivity ty

UPL Participation Wells 3rd Party Wells

Geneseo Geneseo Area Area

Ultra has dominant position

Net Risk Net Risked ed R Resour source P ce Potential = ntial = ~3.3 T ~3.3 Tcfe

  • Play area delineated by 14 horizontal wells in Ultra leasehold
  • Higher total organic content in the West
  • Can leverage existing Marcellus pads and infrastructure
slide-14
SLIDE 14

Rest storing 20

  • ring 2012 R

12 Reser serves es

PUD 1.19 Tcfe PD 1.88 Tcfe YE’12 Proved Reserves

@ $2.63/Mcf

3. 3.1 T 1 Tcfe YE’12 Restored Proved Reserves Sensitivity

@$4.04/Mcf

5.0 T 5.0 Tcfe 1.89 Tcfe PUD 1.19 Tcfe PD 1.88 Tcfe

Ultra Petroleum Corp. NYSE: UPL 14

Restore YE’11 PUD capital & gas price

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SLIDE 15

Rest storing 20

  • ring 2012 R

12 Reser serve V e Values alues

PUD $288MM PD $1,976MM YE’12 Proved Reserves PV-10

@ $2.63/Mcf

$2,263MM $2,263MM YE’12 Restored Proved Reserves PV-10 Sensitivity

@ $4.04/Mcf

$5,250MM $5,250MM $2,986MM PUD $288MM PD $1,976MM

Ultra Petroleum Corp. NYSE: UPL 15

Restore YE’11 PUD capital & gas price

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SLIDE 16

Gr Growing R ing Resour source Base ce Base

11.38 11.22 4.68 5.84

2 4 6 8 10 12 14 16 18 20 YE11 YE12

3P R 3P Reser serves es

16.0 Tcfe 17.1 Tcfe

Year-End 2012 Reserve Category Reserves (Bcfe) $6/Mcf PV-10 ($MM) $5/Mcf PV-10 ($MM) Proved 3,202 $6,900 $5,520 Probable 8,022 6,763 4,373 2P: 2P: (PV + PV + PR) PR) 11,22 1,224 13,664 ,664 9,893 9,893 Possible 5,841 5,198 3,453 3P: 3P: (PV PV + + PR PR + + PS) PS) 17,065 7,065 $1 $18,862 8,862 $13,346 ,346

2P 2P

Ultra Petroleum Corp. NYSE: UPL 16

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SLIDE 17

Economic F Economic Fundamentals ndamentals

Ultra Petroleum Corp. NYSE: UPL 17

F&D F&D Cost Cost

$0.8 $0.83 Pe Per Mcf Mcfe

Fu Full C Cycle Re Returns

335% 335%

Reser eserve e Replacement placement Ratio Ratio

332% 332%

Cash flo Cash flow Pe Per M Mcfe

$2.7 $2.78 Pe Per Mcf Mcfe

2012

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SLIDE 18

Industr Industry’s Lo y’s Low-Cost Pr Cost Producer

  • ducer

$0.00 $2.00 $4.00 $6.00 $8.00 $10.00 $12.00 $14.00 All-in All-in Costs Costs per Mcf per Mcfe

20 2012 12 All-In Costs per Mcf All-In Costs per Mcfe

Source: Wells Fargo

Q120 Q12013 Costs Costs Per Mcf r Mcfe LOE $0.40 $0.40 Prod

  • duct

uction ion Tax 0.28 0.28 Gatherin Gathering F Fees ees 0.2 0.20 Tr Transportation 0.34 DD&A DD&A 1.04 G&A G&A 0. 0.10 Int.

  • Int. & Debt

& Debt 0.4 0.43 $2.79 $2.79 Mean - Mean - $7 $7.3 .31/Mcf 1/Mcfe

Ultra Petroleum Corp. NYSE: UPL 18

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SLIDE 19

Str Strong & Stable Margins ng & Stable Margins

Ultra Petroleum Corp. NYSE: UPL 19

75% 75% 70% 70% 70% 70% 73% 73% 64% 64% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2008 2009 2010 2011 2012

Cash Flo Cash Flow Marg Margin in

$1.35 $1.15 $1.18 $1.20 $1.20 Cash Flow Breakeven ($/Mcfe) 37 37% 31 31% 31% 30% 30% 29% 29% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 2008 2009 2010 2011 2012

Ne Net Income t Income Margin Margin

$2.69 $2.54 $2.53 $2.82 $3.07 Net Income Breakeven ($/Mcfe)

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SLIDE 20

Disciplined Capital Allocation Disciplined Capital Allocation

Ultra Petroleum Corp. NYSE: UPL 20

$1,560MM $835MM $415MM Hist Historica

  • rical Capita

Capital In l Investment Pr stment Programs

  • grams

2011 2012 2013

Re Realized N Natural G Gas Prices ($/Mcf Prices ($/Mcf) 20 2011: : $5.0 $5.05 20 2012: $4.0 12: $4.01 20 2013: $3.50-estimat : $3.50-estimate

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SLIDE 21

Prudently In Prudently Investing Within Cash Flo sting Within Cash Flow

$0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013E Q3 2013E Q4 2013E

Capex (000's) Cash Flow (000's)

Cash flow positive Q312 Ultra Petroleum Corp. NYSE: UPL 21

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SLIDE 22

Total Debt Capaci tal Debt Capacity ty $2.7 $2.7B

March 31, 2013

Net Debt $1,919MM Short-term Liquidity $627MM Debt/EBITDA 2.5X

EBITDA/Interest 8.0X

Enhancing Financial Fle Enhancing Financial Flexibility ibility

Ultra Petroleum Corp. NYSE: UPL 22

$1,000,000 $1,200,000 $1,400,000 $1,600,000 $1,800,000 $2,000,000 $2,200,000 $2,400,000 Debt Debt Balan Balance

slide-23
SLIDE 23

Decreasing Natural Gas Pr Decreasing Natural Gas Production

  • duction

Source: Genscape

Ultra Petroleum Corp. NYSE: UPL 23

52 54 56 58 60 62 64 66 68 Bcf/D Bcf/Day

Lo Lower 48 Pipeline Data r 48 Pipeline Data

Lower 48 production peak of 65.7 Bcf/d on 11/5/12 Current - 64.7 Bcf/d

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SLIDE 24

Gas Price Sensitivities and Induced Coal-t Gas Price Sensitivities and Induced Coal-to-Gas Switching

  • -Gas Switching

$1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00 $4.50 $5.00 $5.50 $6.00 0.0 1.0 2.0 3.0 4.0 5.0 NYMEX NYMEX Natural Gas Natural Gas ($/MMbtu) MMbtu) Cumulativ lative C Coal-t al-to-Gas S

  • -Gas Subs

bstitution titution (Bcf (Bcf/Day)

2.0 Bcf/d Goldman estimates 2.0 Bcf/d of coal-to-gas switching is required in 2013, which translates to an average natural gas price of $4.40/MMbtu for the balance of 2013

2013 Coal Prices: CAPP: $60/ton PRB: $10/ton

Goldman Sachs new 2013 (balance) price forecast of $4.40/MMbtu

2012: 4.9 Bcf/d

Old forecast: $3.75/MMbtu = 2.4 Bcf/d

  • f coal-to-gas switching

Source: Goldman Sachs

Ultra Petroleum Corp. NYSE: UPL 24

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SLIDE 25

West/R st/Rockies Mark

  • ckies Marketing U

ing Updat date

Rockies basis narrowing with additional pipeline capacity

  • Average basis ‘07 – ’09:

68%HH

  • Average basis ‘10 – ’12:

93%HH

  • Winter ‘12-’13 Opal has

consistently traded above Henry Hub REX flowing ~ 50% capacity

  • Lower differentials

West vs. East flows

  • Minimal Opal, WY

supply on REX

  • REX volumes

sourced by Meeker/White River Hub (ECA & COP) Rockies and Western Canadian supply down year over year

  • Rockies supply

2012/2013 down ~0.9Bcf/d

  • Western Canadian

supply into US 2012/2013 down ~ 0.35Bcf/d Structural change and generation load

  • San Onofre nuclear

plant continued

  • utage no time

table for return

  • 0.5Bcf/d increased

gas demand due to

  • utage

Ultra Petroleum Corp. NYSE: UPL 25

Source: Bentek, Genscape, Company estimates

slide-26
SLIDE 26

Ultra Petroleum Corp. NYSE: UPL 26

Source: PIRA

Mar Marcellus Gas Ent ellus Gas Entering Ne ring New Mar w Markets ets

  • Rapid pace of development has caused a

pursuit of “new” markets for Marcellus gas

– Eastern Canada: export capacity of 450MMcf/d as of 4Q12 (Niagra) – NJ/NY: 800MMcf/d of new capacity delivered to NYC by late 4Q13 – NYC/Long Island: 2 projects underway to provide 350MMcf/d new capacity by 4Q13/2Q14 – New England: 1.5+Bcf/d new capacity by 4Q15/4Q16

  • Southeast and Midwest market projects

targeted for 2016+ adding 1+Bcf/d

  • New market access for Marcellus will

displace Canadian imports to the northeast region

  • Improve regional basis differentials

Leidy Southeast Nexus Gas Transmission ANR Lebanon Lateral Reversal NE Supply Link TGP NE Upgrade Marcellus Facilities Expansion TETCO NJ/NY Exp. A.I.M. Constitution

slide-27
SLIDE 27

Outlook f Outlook for 20 r 2013

  • Targe

rget drilling pr drilling program

  • gram

– 114 gross (51 net) Wyoming wells – 28 gross (14 net) Pennsylvania wells

  • Pr

Production

  • duction goal

goal 228 – 228 – 238 Bcf 238 Bcfe

– 135 gross (60 net) Wyoming wells online – 40 gross (20 net) Pennsylvania wells online

  • Budge

Budgeted cape ed capex $415MM 5MM

$260 $260 $1 $105 05 $5 $5 $35 $35 $1 $10

20 2013 Capital In Capital Investment stment Pr Program

  • gram

$4 $415MM MM

Rockies Appalachia Land Gathering and Facilities Corporate Ultra Petroleum Corp. NYSE: UPL 27

slide-28
SLIDE 28

Gr Growth Ahead th Ahead

2013E 2014E 2015E 2016E Operations

Realized price ($/Mcf) 3.50 $ 4.00 $ 4.25 $ 4.50 $ Capex ($MM) 415 $ 675 $ 890 $ 995 $ Production (Bcfe) 233 245 285 330

Income Statement ($MM)

EBITDA 600 $ 755 $ 965 $ 1,200 $

Balance Sheet ($MM)

Ending debt balance 1,890 $ 1,840 $ 1,810 $ 1,660 $

Ultra Petroleum Corp. NYSE: UPL 28

42% 42% 100% 00%

slide-29
SLIDE 29

The Ultra P The Ultra Petr troleum St

  • leum Stor
  • ry

High High asse asset q t qualit ality Disciplined capital Disciplined capital alloca allocation strat

  • n strategy

Ro Robust in investment por stment portfolio lio

Ultra Petroleum Corp. NYSE: UPL 29

  • High

ghly c concent ncentrat ated as ed asset

  • Dome

Domesti stic, onshore , onshore natural gas natural gas

  • Lo

Low all- w all-in and F&D in and F&D cos costs

  • In

Invest within st within cash flo cash flow

  • No gr

No growth th for gr r growth’ th’s sak sake

  • Allo

Alloca cate capita capital >20% IRR >20% IRR

  • 4,600 future ne

4,600 future net drilling loca t drilling locatio tions

  • $2

$24.9B future de 4.9B future develo lopme pment capita t capital

  • 20+ y

20+ years ars in invent entor

  • ry
slide-30
SLIDE 30

Appendix Appendix

Ultra Petroleum Corp. NYSE: UPL 30

slide-31
SLIDE 31

Pr Production and Financial Guidance

  • duction and Financial Guidance

Q2 20 Q2 2013 Guidance Guidance

  • Q2 20

Q2 2013 estimat estimated ed pr production

  • duction

– 57.0 – 59.0 Bcfe

  • Q2 20

Q2 2013 realized realized pricing pricing

– Natural gas: 2 - 4% discount to NYMEX – Condensate: $7.00 discount to NYMEX

  • Q2 20

Q2 2013 e expense pense guidance guidance

– Assumes $4.11 per Mmbtu and $91.00 per Bbl – Total operating costs per Mcfe $2.85 - $3.01

Ultra Petroleum Corp. NYSE: UPL 31

slide-32
SLIDE 32

Pr Providing Cer iding Certainty t ainty to Cash Flo Cash Flow

Hedging Summary NYMEX Q2 2013 Q3 2013 Q4 2013 Total 2013

Volume (Bcf) 33.4 35.9 12.1 81.4 $/Mmbtu $3.51 $3.54 $3.54 $3.53 $/Mcf $3.72 $3.75 $3.75 $3.74

Note: Amounts may not total due to rounding

Ultra Petroleum Corp. NYSE: UPL 32

slide-33
SLIDE 33

Pr Prof

  • fitable R

itable Rein investment Oppor stment Opportunities unities

Ultra Petroleum Corp. NYSE: UPL 33

Based on $4.4MM/ Pinedale well cost

4 Bcfe 5 Bcfe 6 Bcfe 7 Bcfe

$3/Mcf 13% 24% 37% 52% $4/Mcf 26% 44% 65% 92% $5/Mcf 43% 69% 104% 147% $6/Mcf 63% 102% 154% 221% $7/Mcf 87% 142% 218% 320% $8/Mcf 116% 193% 301% 451% Gas Price Reserve Size - Pinedale Wells

slide-34
SLIDE 34

Mar Marcellus T ellus Technical R chnical Revie view Updat Updates

  • High-grading acreage to optimize returns

– Utilizing seismic attributes to delineate resource sweet spots – Sweet spot EUR’s 2.5 times better than non-sweet spot – 944 sq-mi of UPL and partner 3D data (~70% of leasehold coverage)

  • Studying correct well spacing – currently 110 acres per well

– 6 increased density pilots completed and online – Development plan in one area downspaced to 750’

  • Ongoing completion optimization

– Evaluating stage count and frac volume reduction – Achieving comparable well performance with fewer stages

Ultra Petroleum Corp. NYSE: UPL 34

slide-35
SLIDE 35

Conser Conservativ tive T Type Cur pe Curve Estimat e Estimates

Ultra Petroleum Corp. NYSE: UPL 35

0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 1 91 181 271 361 451 541 631 721

Gross Produ Gross Production (MMcfe (MMcfe/D) Days Days 7 Bcfe 5 Bcfe

Clinton-Lycoming Area Potter-Tioga Area

slide-36
SLIDE 36

4 B Bcfe fe 5 B Bcfe fe 6 B Bcfe fe 7 B Bcfe fe 8 B Bcfe fe 9 B Bcfe fe

$5.5MM

12% 24% 44% 62% 82% 107%

$6.0MM

9% 19% 36% 51% 68% 88%

$6.5MM

7% 16% 30% 43% 57% 74%

$7.0MM

5% 13% 25% 36% 48% 63%

$7.5MM

3% 10% 22% 31% 42% 54%

$8.0MM

2% 8% 19% 27% 36% 47%

Well Cost Rese serv rve S Size -

  • M

Marce rcellus W s Wells

Mar Marcellus W ellus Well Economics ll Economics

Ultra Petroleum Corp. NYSE: UPL 36

* Economics at $4.00/Mcf wellhead price

slide-37
SLIDE 37

Pr Production Lags Capital Spend

  • duction Lags Capital Spend

Ultra Petroleum Corp. NYSE: UPL 37

10 20 30 40 50 60 70 80 90 $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 Produ Production

  • n

(Bcf (Bcfe) Cape Capex ($MM ($MM)

Capital Budget vs. Pr Capital Budget vs. Production

  • duction

Cap-Ex ($MM) Production (Bcfe)

slide-38
SLIDE 38

Expanding R Expanding Rockies Capacity ckies Capacity

0.0 2.0 4.0 6.0 8.0 10.0 12.0

Average Average Daily Volume Daily Volume (Bcf (Bcf/D /D)

Actual Forecast Pipeline Capacity

Source: Bentek Energy

Excess t take keaw away ay capacity ~4.3 Bcf/d capacity ~4.3 Bcf/d

Ultra Petroleum Corp. NYSE: UPL 38

slide-39
SLIDE 39

Ne New V w Ventures Strat ntures Strategy egy

Ultra Petroleum Corp. NYSE: UPL 39

  • Objectiv

Objectives: es:

– Identify best geologic provinces and plays in North America – Develop detailed in-house familiarity with attractive plays – Identify entry points to plays of interest

  • Focus on strat

cus on strategic / com egic / complementar lementary f y fit

– Targeting plays that leverage Ultra’s operational expertise – Prioritizing high ROR resource type plays – Focused on impact to existing returns in portfolio

slide-40
SLIDE 40

Benef Benefits of Using Natural Gas ts of Using Natural Gas

  • Domestic:

Domestic:

Greater use of this clean, abundant, made–in- America energy source will create U.S. jobs and boost local economies, while advancing our national security

  • Ab

Abund undant: nt:

2,543 Tcf of natural gas reserves and technically recoverable natural gas in the U.S. will power America for generations

  • Clean:

Clean:

Represents the only clean energy option of adequate scale available today to start meaningful air quality improvements over the 10 years

  • Jobs:

Jobs:

Supported more than 2.8 million jobs in the U.S. in all 50 states

Ultra Petroleum Corp. NYSE: UPL 40

slide-41
SLIDE 41

Inno Innovativ tive Em Emplo ployees ees

  • We value the multi-faceted skills and performance our talented

employees have to offer

  • We have a unique, entrepreneurial, value-driven business culture
  • We operate in a highly decentralized work environment where

employees can see their projects come to fruition

  • Responsibility and accountability go hand-in-hand for all employees at

all levels; every employee is recognized for their contribution and performance

  • All employees are challenged to deliver best-in-class results as normal

everyday business practice

Ultra Petroleum Corp. NYSE: UPL 41

slide-42
SLIDE 42

Saf Safety and En ty and Envir vironmental nmental

  • We are committed to safe operations, and maintain high standards of

ethical conduct by employees, contractors and service providers

  • We pursue our work with integrity and respect for the environment

where we conduct our business

  • We have established a leadership role in the development of industry

best practices which is recognized by regulatory agencies

  • We are active in incident management and response planning by

working with local government and first responders to identify roles and responsibilities for a robust unified management approach to unique situations

  • We are dedicated to maintain a safe and secure work environment for

all our employees

Ultra Petroleum Corp. NYSE: UPL 42

slide-43
SLIDE 43

Ultra P Ultra Petr troleum Corp.

  • leum Corp.
  • Market Data as of March 31, 2013

Market Data as of March 31, 2013 Shares of Com Shares of Common Stoc Stock Out k Outstanding: 152.9 152.9MM Market Market Ca Capi pitaliza zation:

  • n: $3.1

$3.1B E Enterp rpri rise Value: Value: $5.0 $5.0B 52 Week Price Range: $15.2 52 Week Price Range: $15.26 (2/15/13) - (2/15/13) - $21.55 21.55 (9/14/ (9/14/12) 12)

  • Invest

Investor Contacts

  • r Contacts

Kelly Kelly Whit Whitley ley Jul Julie e Danve Danvers rs Direct Director,

  • r, Inv

Invest stor

  • r Relati

Relation

  • ns

Manag Manager, r, Inves Investor

  • r Relati

Relations

  • ns

(2 (281) 5 81) 582-6602 82-6602 (2 (281) 5 81) 582-6604 82-6604 kwh kwhitley@ ey@ult ltrapet petroleu

  • leum.com

com jda jdanvers vers@ult ltra rapetroleum

  • leum.com

com

This presentation contains or incorporates by reference forward looking statements within the meaning of the federal securities laws. All statements other than statements of historical facts included in this document and other statements that include the words "believe", "expects", "anticipates", "intends", "estimates", "projects", "target", "goal", "plans", "objective", "should", or similar words are forward looking statements and reflect the Company’s current views about future events and financial performance. No assurances can be given that such events or performance will occur as projected, and actual results may differ materially from those projected. Important factors that may cause actual results to differ from the forward-looking statements in this presentation include: increased competition; the timing and extent of changes in prices for crude oil and natural gas; the timing and extent of discovery, development, production and estimation of oil and natural gas reserves; the effects of weather and government regulation; the availability of oil field personnel and services and equipment; and other risks detailed in the company’s SEC filings, particularly in its Annual Report on Form 10-K available from Ultra Petroleum Corp. at 400 North Sam Houston Parkway E., Suite 1200, Houston, TX 77060 (Attention: Investor Relations). You can also obtain this information from the SEC by calling 1-800-SEC-0330 or from the SEC’s website at www.sec.gov. This presentation contains certain non-GAAP financial measures. Reconciliation and calculation schedules for the non-GAAP financial measures can be found on our website at www.ultrapetroleum.com. SEC guidelines prohibit descriptions of potential reserves in filings with the SEC. We use the terms reserve “potential” or “upside” or other descriptions of volumes of reserves or resource that are potentially recoverable through additional drilling or recovery techniques that the SEC’s guidelines may prohibit us from including in filings with the SEC. These estimates are by their nature more speculative than estimates of proved reserves and accordingly are subject to substantially greater risk of being actually realized by the Company. .