Ultra Petroleum Corp. Announces 2018 Year-End Reserves and Production, Reaffirms its $1.3 Billion Borrowing Base, Executes a Proactive Amendment to RBL Credit Agreement, Provides an Update on Follow-On Debt Exchanges, and Schedules Q4 and Year-End Earning
- Fourth quarter and full-year 2018 production was within guidance at 64.3 billion cubic feet equivalent (“Bcfe”) and 275.1 Bcfe, respectively.
- Ultra Petroleum’s year-end 2018
SECreserves were 3,062.5 Bcfe with a before tax PV-10% value of $2.4 billion.
- Ultra Petroleum’s borrowing base has been reaffirmed by the lenders under the Company’s reserve-based loan (“RBL”) credit facility (“RBL Credit Facility Lenders”) at
$1.3 billion, providing ample liquidity for the foreseeable future.
- The Company’s RBL Credit Facility Lenders unanimously approved an amendment that provides for an expanded leverage covenant metric of up to 4.9x.
- Year to date, the Company has successfully closed on agreements to exchange an incremental
$44.6 millionaggregate principal amount of 2022 Notes under terms more favorable to the Company than the December 2018debt exchange.
- The Company will host a conference call
Thursday, March 7, 2019, at 10 a.m. Mountain Time( 12:00 p.m. Eastern Time) to discuss the Company’s fourth quarter and full-year 2018 results.
“We are pleased to announce the unanimous confirmation of our
Fourth Quarter and Full-Year 2018 Production
During the fourth quarter of 2018, the Company’s production averaged 699 million cubic feet equivalent (“MMcfe”) per day, coming within previously announced guidance. Production volumes include 61.5 billion cubic feet (“Bcf”) of natural gas and 473,000 barrels of oil and condensate. During the quarter, the Company completed and turned 23 vertical wells to sales as it continued its three-rig drilling pace in Pinedale.
Full-year 2018 production averaged 756 MMcfe per day, meeting the production guidance set by the Company earlier in the year. Full-year production included 260.4 Bcf of natural gas and 2,442,000 barrels of oil and condensate. During 2018, Ultra turned online 94 vertical wells and 16 horizontal wells in its Pinedale field.
Year-End 2018 Reserves
For the year-ended December 31, 2018, the Company’s reserves totaled 3,062.5 Bcfe of total proved reserves with pre-tax estimated future net cash flows discounted at ten percent (“PV-10%”) of $2.4 billion. Natural gas represents 95% of the Company’s proved reserves.
Ultra’s reserves were calculated based on reference prices for natural gas and oil in accordance with SEC rules. These reference prices, before differentials, were $3.10 per MMBtu Henry Hub for natural gas and $65.56 per Bbl West Texas Intermediate for oil. Applying regional market differentials along with appropriate adjustments for quality, our marketing contracts, energy content and transportation charges, the average prices for the Company’s proved reserves were $2.59 per Mcf for natural gas and $63.49 per Bbl for oil.
|Before tax PV-10% Value|
|Proved Reserves as of
|Additions and Revisions||244.3|
|Proved Reserves as of
Borrowing Base Redetermination and Amendment to Credit Agreement
The Company has proactively secured an amendment to its RBL credit facility that increases the allowed leverage metric and provides certain other adjustments to the calculation of EBITDAX in its leverage calculation. The amendment expands its leverage metrics to 4.75x for
Follow-On Debt Exchange Update
Ultra has continued to execute follow-on exchanges of its 6.875% Senior Notes due 2022 (the “2022 Notes”) for new 9.00% Cash / 2.00% PIK Senior Secured Second Lien Notes due
Of note, the indenture also allows the exchange of remaining 2022 Notes and 7.125% Senior Notes due 2025 Notes for up to
Fourth Quarter and Full-Year 2018 Conference Call
The Company will host a conference call Thursday, March 7, 2019, at 10 a.m. Mountain Time (
Investors and analysts are invited to participate in the call by dialing 1-877-371-5742, or 1- 629-228-0726 for international calls. Interested parties may also listen over the internet at www.ultrapetroleum.com. A replay of the call will be available on the Company’s website.
Additional information on the Company is available at www.ultrapetroleum.com. In addition, our filings with the
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. This news release also includes forward-looking statements about the Company’s proved reserves and borrowing base, which is based in part upon estimates of the Company’s proved reserves. There are numerous uncertainties inherent in estimating proved reserves, including projecting future rates of production and timing of development. In addition, 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
For further information contact:
303-708-9740, ext. 9898
Source: Ultra Petroleum Corp.