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TPH 2015 HOTTER N HELL CONFERENCE – Ultra Petroleum Corp.

Ultra Petroleum Corp. · Jun 17, 2015 · 40 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

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  1. TPH 2015 HOTTER N HELL CONFERENCE – Ultra Petroleum Corp. – slide 1
    Ultra Petroleum Corp. Michael D. Watford Chairman, President & CEO TPH 2015 Hotter N Hell Conference June 17, 2015 Ultra Petroleum Corp. is an independent energy company engaged in domestic natural gas and crude oil exploration,…
  2. TPH 2015 HOTTER N HELL CONFERENCE – Ultra Petroleum Corp. – slide 2
    2014 Accomplishments Operations Repositioned portfolio to higher returning assets in the west while shedding lower returning assets in the east Increased PV-10 by 72% to 7.1B and proved reserves 49% to 5.4 Tcfe Achieved 805% reserve…
  3. TPH 2015 HOTTER N HELL CONFERENCE – Ultra Petroleum Corp. – slide 3
    2015 Game Plan 2015 Capital Investment Program Drilling program 460MM 189 gross (123 net) Wyoming wells 19 gross (19 net) Utah wells 15 35 15 Production goal 280 290 Bcfe 189 gross (120 net) Wyoming wells online 1 gross (1 net)…
  4. TPH 2015 HOTTER N HELL CONFERENCE – Ultra Petroleum Corp. – slide 4
    Growing Proved Reserves and Value 1P Reserves (Bcfe) 1P PV-10 (MM) 6,000 8,000 7,000 5,371 7,098 5,000 6,000 4,000 5,000 3,614 3,000 4,000 4,132 3,000 2,000 2,000 1,000 1,000 0 0 2013 2014 2013 2014 Note: YE…
  5. TPH 2015 HOTTER N HELL CONFERENCE – Ultra Petroleum Corp. – slide 5
    Future Proved Reserves Growth 20,000 19,078 18,000 16,000 5,749 14,000 13,329 12,000 3,796 3,796 Bcfe 10,000 9,533 8,000 4,162 4,162 4,162 6,000 4,000 5,371 2,000 0 YE14 Technical Probable Possible 1P PUD*…
  6. TPH 2015 HOTTER N HELL CONFERENCE – Ultra Petroleum Corp. – slide 6
    Operated + West = Higher Value 3P Reserves (Bcfe) 3P Reserves (Bcfe) 20,000 19,271 19,078 20,000 19,271 19,078 18,000 18,000 4,699 16,000 5,769 16,000 9,241 9,120 14,000 14,000 12,000 12,000 10,000 10,000 8,000 8,000…
  7. TPH 2015 HOTTER N HELL CONFERENCE – Ultra Petroleum Corp. – slide 7
    Long-Life, Low-Cost, Tight Gas WY Pinedale/Jonah Fields Net Acres: 67,000 UT CO Proved Developed: 2,255 Bcfe Total Proved: 5,025 Bcfe Total Resource: 13.9 Tcfe Total WI Wells: 1,609 Production: 693 Mmcfe/d Ultra Operated…
  8. TPH 2015 HOTTER N HELL CONFERENCE – Ultra Petroleum Corp. – slide 8
    Pinedales Profitable Well Economics 250% Reserve Size (Bcfe) 200% 4.0 5.0 6.0 Well Cost (/MM) 3.6 29% 48% 74% 150% IRR 3.4 33% 55% 82% 100% 3.2 38% 63% 94% Economics at 3.50/Mcf wellhead price and 70/Bbl 50% Payout…
  9. TPH 2015 HOTTER N HELL CONFERENCE – Ultra Petroleum Corp. – slide 9
    Improving Operating Efficiencies 80 70 major changes in well design and rigs 60 50 Rig Release to 40 Rig Release (Days) 30 20 10 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 600 optimization and technology application…
  10. TPH 2015 HOTTER N HELL CONFERENCE – Ultra Petroleum Corp. – slide 10
    Leads to Further Cost Reductions 8.0 Pinedale Field 7.0 6.0 5.0 Total Well Cost 4.0 (MM) 3.0 2.0 1.0 - 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015e Ultra Petroleum Corp. NYSE: UPL 10
  11. TPH 2015 HOTTER N HELL CONFERENCE – Ultra Petroleum Corp. – slide 11
    2015 Targeted Well Cost Reductions 3.8 3.71 3.7 3.6 3.5 3.45 3.40 Millions 3.4 3.35 3.30 3.3 3.2 3.1 3.0 4Q14 1Q15 2Q15e 3Q15e 4Q15e Ultra Petroleum Corp. NYSE: UPL 11
  12. TPH 2015 HOTTER N HELL CONFERENCE – Ultra Petroleum Corp. – slide 12
    Extensive Future Wyoming Development
  13. TPH 2015 HOTTER N HELL CONFERENCE – Ultra Petroleum Corp. – slide 13
    Uinta Basin Oil Opportunity Three Rivers WY Net Acres: 9,000 Proved Developed: 14 MMBOE Total Proved: 36 MMBOE UT CO Total Resource: 100 MMBOE Total WI Wells: 124 Production: 6,690 Boped Ultra Petroleum Corp. NYSE: UPL 13
  14. TPH 2015 HOTTER N HELL CONFERENCE – Ultra Petroleum Corp. – slide 14
    Uinta Well Economics 150% 120% Reserve Size (MBO) 200 250 300 Well Cost 90% (/MM) 1.9 31% 49% 72% 1.7 39% 64% 91% IRR 60% 1.5 52% 83% 124% 30% Economics at 50/BBL wellhead price Payout for a 300 MBO well at…
  15. TPH 2015 HOTTER N HELL CONFERENCE – Ultra Petroleum Corp. – slide 15
    Strong Uinta Well Performance Average Average Average Average Average 2014 Well Area IP30 IP60 IP90 IP120 IP180 Count (BO/d) (BO/d) (BO/d) (BO/d) (BO/d) 1 37 172 157 160 143 129 2 21 151 140 125 109 96 3 17 100 97 89 82 74…
  16. TPH 2015 HOTTER N HELL CONFERENCE – Ultra Petroleum Corp. – slide 16
    Uinta Accomplishments Operations Success: Achieved 2014 exit rate of 11,000 BOE/d, nearly tripling production Decreased LOE by 40% Reduced drilling cycle time to 6 days from 8 days Value Enhancement: Reduced oil price…
  17. TPH 2015 HOTTER N HELL CONFERENCE – Ultra Petroleum Corp. – slide 17
    Resource Upside: Waterflood Pilot Secondary UINTAH CO. Analog Primary Incremental AltamontBluebell to Primary Field Recovery Recovery Ratio Redwash 53 MMBO 53 MMBO 1 Wonsits Redwash Wonsits 22 MMBO 26 MMBO 1.2 A Monument…
  18. TPH 2015 HOTTER N HELL CONFERENCE – Ultra Petroleum Corp. – slide 18
    Uinta Oil Market Infrastructure Rail Terminal Ogden Rail Terminal Refinery Highway Holly Big West Frontier Chevron Tesoro Salt Lake City Ultra Uinta Basin Provo Rail Terminal Three Rivers Field Helper Rail…
  19. TPH 2015 HOTTER N HELL CONFERENCE – Ultra Petroleum Corp. – slide 19
    Marcellus Shale Natural Gas Anadarko/Mitsui AMI Net Acres: 91,000 Proved Developed: 130 Bcfe Total Proved: 130 Bcfe Total Resource: 4.7 Tcfe Total WI Wells: 133 Production: 48.9 Mmcfe/d Ultra-Interest Lands PA Ultra…
  20. TPH 2015 HOTTER N HELL CONFERENCE – Ultra Petroleum Corp. – slide 20
    Marcellus Well Economics 120% Reserve Size (Bcfe) 100% 6.0 7.0 8.0 80% Well Cost (/MM) 6.5 14% 21% 29% IRR 60% 6.0 17% 26% 35% 40% 5.5 22% 31% 42% 20% Economics at 3.00/Mcf wellhead price Payout for 7 Bcfe well at…
  21. TPH 2015 HOTTER N HELL CONFERENCE – Ultra Petroleum Corp. – slide 21
    Industrys Low-Cost Producer 12.00 2014 All-In Costs per Mcfe 10.00 8.00 All-in Costs per Mcfe 6.00 Mean - 6.89/Mcfe Q115 Costs Per Mcfe LOE 0.44 4.00 Production Tax 0.28 Gathering Fees 0.28 Transportation 0.29 DD&A 1.34…
  22. TPH 2015 HOTTER N HELL CONFERENCE – Ultra Petroleum Corp. – slide 22
    Shift in Basis Differentials 120% Basis Differentials as a Percentage of Henry Hub 100% 96% 96% 94% 94% 93% 94% 92% 93% 90% 80% 86% 81% 78% 78% 77% 77% 77% 70% 69% 60% 63% 63% 58% 54% 52% 40% 20% 0% NW Rockies…
  23. TPH 2015 HOTTER N HELL CONFERENCE – Ultra Petroleum Corp. – slide 23
    Strong & Stable Margins Cash Flow Margin Net Income Margin 100% 60% Cash Flow Breakeven (/Mcfe) Net Income Breakeven (/Mcfe) 90% 50% 80% 1.18 1.15 1.35 1.62 1.78 2.53 2.82 3.07 2.82 3.10 70% 40% 60% 50% 30% 40% 70% 73% 64% 20%…
  24. TPH 2015 HOTTER N HELL CONFERENCE – Ultra Petroleum Corp. – slide 24
    Driving Higher Margins & Cash Flows Margin/Mcfe by Area West Production % 3.50 HH and 60 WTI Pre/Post Pinedale Acquisition Gas Volumes 4.00 100% 3.50 2.88 90% 95% 3.00 80% 2.50 70% 73% 2.00 60% 50% 1.50 1.22 40% 1.00 30% 0.50 20%…
  25. TPH 2015 HOTTER N HELL CONFERENCE – Ultra Petroleum Corp. – slide 25
    Competitive Margins 7.00 6.27 6.00 5.10 5.20 4.75 4.72 4.79 5.00 4.40 3.79 3.75 3.90 4.00 (/Mcfe) 3.96 3.00 2.81 2.72 2.55 2.53 2.43 2.00 2.41 1.95 1.00 1.00 0.40 0.00 GPOR AR UPL NFG* COG RRC EQT RICE CNX…
  26. TPH 2015 HOTTER N HELL CONFERENCE – Ultra Petroleum Corp. – slide 26
    Why Ultra Petroleum Rate of return focused exploration & production company Long-life, low-cost western basin natural gas producer Extensive development inventory Ultra Petroleum Corp. NYSE: UPL 26
  27. TPH 2015 HOTTER N HELL CONFERENCE – Ultra Petroleum Corp. – slide 27
    Appendix Ultra Petroleum Corp. NYSE: UPL 28
  28. TPH 2015 HOTTER N HELL CONFERENCE – Ultra Petroleum Corp. – slide 28
    Production and Financial Guidance FY 2015 estimated production 280 290 Bcfe 91% Wyoming 5% Pennsylvania 4% Utah Q2 2015 realized pricing Natural gas: 6 - 8% discount to NYMEX Oil & condensate: 18 20% discount to NYMEX Q2 2015…
  29. TPH 2015 HOTTER N HELL CONFERENCE – Ultra Petroleum Corp. – slide 29
    Hedging Summary NYMEX Q2 2015 Q3 2015 Q4 2015 Bal 2015 Volume (Bcf) 57.7 58.4 19.7 135.8 /Mmbtu 3.50 3.50 3.50 3.50 /Mcf 3.71 3.71 3.71 3.71 Note: Amounts may not total due to rounding Ultra Petroleum Corp. NYSE: UPL 30
  30. TPH 2015 HOTTER N HELL CONFERENCE – Ultra Petroleum Corp. – slide 30
    Lower 48 Natural Gas Production Lower 48 Pipeline Data 75 70 65 Bcf/Day 60 55 50 Source: SpringRock Ultra Petroleum Corp. NYSE: UPL 31
  31. TPH 2015 HOTTER N HELL CONFERENCE – Ultra Petroleum Corp. – slide 31
    Growing Natural Gas Demand Annual Gas Demand Change 4.0 3.5 3.0 2.5 Bcf/d 2.0 1.5 1.0 0.5 0.0 2014 2015 2016 2017 2018 2019 2020 LNG Power Gen Industrial Mexico Transport Source: Simmons & Company, IEA,…
  32. TPH 2015 HOTTER N HELL CONFERENCE – Ultra Petroleum Corp. – slide 32
    Growing Natural Gas Demand Cumulative Gas Demand 30.0 23 Bcf/d incremental demand 2014 2020 12 Bcf/d incremental demand 2014 2017 25.0 20.0 Bcf/d 15.0 10.0 5.0 0.0 2014 2015 2016 2017 2018 2019 2020 LNG Power…
  33. TPH 2015 HOTTER N HELL CONFERENCE – Ultra Petroleum Corp. – slide 33
    Uinta Basin Players Utah Duschesne Uintah Colorado WY Northern Edge of Uinta Basin UT CO Altamont CUM: 312 MMBo 539 Bcf DVN EP CPG BBG QEP NFX UPL QEP NFX CPG APC EOG BRY EP Monument Butte XOM CUM: 72 MMBo 244 Bcf…
  34. TPH 2015 HOTTER N HELL CONFERENCE – Ultra Petroleum Corp. – slide 34
    Uinta Production Growth 10,000 9,000 8,000 7,000 6,000 Avg Boe/d 5,000 4,000 3,000 2,000 1,000 2012 2012 2012 2012 2013 2013 2013 2013 2014 2014 2014 2014 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Gross Production…
  35. TPH 2015 HOTTER N HELL CONFERENCE – Ultra Petroleum Corp. – slide 35
    Pinedale & Uinta Comparison Pinedale Three Rivers Type Section Type Section Pinedale Three Rivers Reservoir Top (MD): 10,100 4,400 10,100 4,400 Reservoir Base (MD): 13,300 7,000 Upper Green River Average Porosity: 6% 7% 5,100…
  36. TPH 2015 HOTTER N HELL CONFERENCE – Ultra Petroleum Corp. – slide 36
    Debt Structure Millions Covenants Parent Ultra Petroleum Corp. 5.75% Notes due December 2018 450 6.125% Notes due October 2024 850 2.25 Interest Coverage Ratio (EBITDA: Interest) Total Outstanding 1,300 (5.1x on Dec. 31, 2014)…
  37. TPH 2015 HOTTER N HELL CONFERENCE – Ultra Petroleum Corp. – slide 37
    Debt Maturity Profile 900 800 Redetermination of 700 senior credit facility 600 500 Debt Balance (Millions) 400 300 200 100 0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 As of Dec. 31, 2014 Ultra…
  38. TPH 2015 HOTTER N HELL CONFERENCE – Ultra Petroleum Corp. – slide 38
    Benefits of Using Natural Gas Domestic: Greater use of this clean, abundant, madein- America energy source will create U.S. jobs and boost local economies, while advancing our national security Abundant: 2,853 Tcf of natural gas…
  39. TPH 2015 HOTTER N HELL CONFERENCE – Ultra Petroleum Corp. – slide 39
    Innovative Employees 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…
  40. TPH 2015 HOTTER N HELL CONFERENCE – Ultra Petroleum Corp. – slide 40
    Safety and Environmental 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…

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