Capital Markets | Drilling Program - Wells | Capital Expenditure - 2017

Pinedale E&P To Spend $500 Million on 193 Wells

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Restructuring Update

On March 14, 2017, the Bankruptcy Court issued an order confirming Ultra's plan of reorganization and an order determining that Ultra's plan value is $6.0 billion. These orders clear the way for Ultra to exit chapter 11 once the financing transactions to fund its plan of reorganization are closed, which is expected to occur on or about March 31, 2017.1

Ultra Petroleum plan to spend $500 million on drilling and completion in 2017.  The company is targeting production of 795 to 820 million cubic feet equivalent (MMcfe) per day, an increase of approximately 7% to 10% when compared to 2016 exit production rates.

The company expects to participate in approximately 245 total gross (193 net) Wyoming wells in 2017, compared to 110 total gross (78 net) wells in 2016.

2017 Production Guidance

Annual production for 2017 is expected to grow to 290 to 300 billion cubic feet equivalent (Bcfe), compared to production of 281.7 Bcfe for 2016. Based on the company's guidance, approximately 96 percent of the company's production forecast will come from the Rockies.

Price Realizations and Differentials Guidance

The company's realized natural gas price per Mcf is expected to average 4 to 5 percent below the NYMEX price due to regional differentials, before consideration of any hedging activity. Realized pricing for oil is expected to be about 5 to 6 percent less than the average NYMEX crude oil price.

The company intends to enter into hedging agreements for notional volumes of not less than fifty percent (50%) of the projected volume of total proved developed producing reserves to be produced over the next twelve months.

2017 Expense Guidance

The following table presents the company's expected per unit of production expenses assuming a $3.25 per MMBtu Henry Hub natural gas price and a $50.00 per Bbl NYMEX crude oil price: