This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Ultra Petroleum Provides Production And Capital Budget Guidance For 2010

HOUSTON, Feb. 12 /PRNewswire-FirstCall/ -- Ultra Petroleum Corp. (NYSE: UPL) today reported that the company's Board of Directors approved the 2010 capital budget of $1,450.0 billion. The capital budget includes the previously announced Marcellus leasehold acquisition of $400.0 million which is expected to close late February 2010. Excluding the acquisition, the 2010 capital budget is $1,050.0 billion. The 2010 capital budget is planned to be allocated as follows:
          Drilling                     $575
          Facilities                     25
          Sub Total                             $600
          Drilling                     $375
          Facilities                     65
          Sub Total                             $440
        Other                                    $10
    Sub Total Capital Budget                  $1,050
        Acquisition                             $400
    Total Capital Budget                      $1,450

"In 2010, we again expect to increase our production in Wyoming by drilling approximately 200 gross (110 net) wells. Additionally, we will expand our Marcellus program as we plan to drill approximately 110 gross (70 net) wells. It is extremely important for us to continue evaluating and de-risking our acreage in the Marcellus so that we are able to better quantify the actual size of the growing resource to Ultra and our shareholders," commented Michael D. Watford, Chairman, President and Chief Executive Officer. "These wells are instrumental to resource expansion and key to value creation. We look forward to increased reserves and greater value at year-end 2010," Watford added.

Production for 2010 is expected to grow approximately 20 percent to 215 Bcfe as compared to 180 Bcfe for 2009.
                                              1st Quarter    Full-Year 2010
                                              -----------    --------------
    2010 Estimated Total Production (Bcfe)      48 - 49         209 - 216

At this time, Ultra is providing preliminary production guidance for 2011 and 2012 targeting 20 percent per annum production growth at similar capital expenditures levels.
                                           2010         2011        2012
                                           ----         ----        ----
    Estimated Total Production (Bcfe)    209 - 216    250 - 260   295 - 310

"We expect production to grow by approximately 20 percent each year for the next three years from 180 Bcfe at year-end 2009 to 310 Bcfe at year-end 2012 through the execution of our current capital expenditure plan. With two decades of identified drilling opportunities before us in Wyoming coupled with our new Marcellus opportunity, both at high rates of return, we are illustrating that our differentiated asset base and operating program provide for industry leading performance," stated Watford.

Price Realizations and Differentials Guidance

In the first quarter of 2010, the company's realized natural gas price is expected to average 4 to 6 percent below the NYMEX price due to regional differentials, before consideration of any hedging activity. Realized pricing for condensate is expected to be about $10.00 less than the average NYMEX crude oil price.

Expense Guidance

The following table presents the company's expected expenses per Mcfe assuming a $5.38 per mmbtu Henry Hub natural gas price and a $75.00 per Bbl NYMEX crude oil price:
    Costs Per Mcfe                                 Q1 2010
    --------------                                 -------
    Lease operating expenses                    $0.22 – 0.24
    Production taxes                            $0.60 – 0.62
    Gathering fees                              $0.24 – 0.26
    Transportation charges                      $0.32 – 0.34
    Depletion and depreciation                  $1.07 – 1.09
    General and administrative – total          $0.12 – 0.13
    Interest and debt expense                   $0.28 – 0.29
    Total costs per Mcfe                        $2.85 – 2.97

Income Tax Guidance

For the year, Ultra projects a 35.5 percent effective tax rate (based on adjusted net income) with approximately 2 to 3 percent of that amount expected to be currently payable.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
UPL $1.74 0.00%
AAPL $94.02 0.00%
FB $104.07 0.00%
GOOG $683.57 0.00%
TSLA $162.60 0.00%


Chart of I:DJI
DOW 16,204.97 -211.61 -1.29%
S&P 500 1,880.05 -35.40 -1.85%
NASDAQ 4,363.1440 -146.4150 -3.25%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs