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Johnson Rice Energy Conference – Ultra Petroleum Corp.

Ultra Petroleum Corp. · Sep 29, 2015 · 35 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.

Slides

  1. Johnson Rice Energy Conference – Ultra Petroleum Corp. – slide 1
    Ultra Petroleum Corp. Garland R. Shaw Senior Vice President & CFO Johnson Rice Energy Conference September 29, 2015 Ultra Petroleum Corp. is an independent energy company engaged in domestic natural gas and crude oil exploration,…
  2. Johnson Rice Energy Conference – Ultra Petroleum Corp. – slide 2
    UPL Overview Concentrated assets Natural gas focused 92% western basin, long-life, low-cost reserves Strategic transaction in 2014 in core Pinedale asset: Repositioned portfolio to higher returning assets in the West while shedding…
  3. Johnson Rice Energy Conference – Ultra Petroleum Corp. – slide 3
    2015 Game Plan 2015 Drilling program Capital Investment Program 205 gross (137 net) Wyoming wells 500MM 15 30 19 gross (19 net) Utah wells 20 Production goal 283 290 Bcfe 193 gross (132 net) Wyoming wells online 1 gross (1 net)…
  4. Johnson Rice Energy 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. Johnson Rice Energy 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. Johnson Rice Energy 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. Johnson Rice Energy 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: 2,484 Production: 754 Mmcfe/d Ultra Operated…
  8. Johnson Rice Energy Conference – Ultra Petroleum Corp. – slide 8
    Pinedales Profitable Well Economics 350% 300% Reserve Size (Bcfe) 250% 4.0 5.0 6.0 Well Cost (/MM) 3.5 31% 51% 77% 200% IRR 3.2 38% 63% 94% 150% 3.0 44% 72% 108% 100% Economics at 3.50/Mcf wellhead price and 70/Bbl 50%…
  9. Johnson Rice Energy 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 1H15 600 500 400 Rig Release to 300 Rig…
  10. Johnson Rice Energy 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. Johnson Rice Energy Conference – Ultra Petroleum Corp. – slide 11
    2015 Targeted Well Cost Reductions 3.8 3.71 3.7 3.6 3.5 3.45 3.4 3.3 3.2 Millions 3.1 3.1 3.0 3.0 2.9 2.9 2.8 2.7 2.6 2.5 4Q14 1Q15 2Q15 3Q15e 4Q15e Ultra Petroleum Corp. NYSE: UPL 11
  12. Johnson Rice Energy Conference – Ultra Petroleum Corp. – slide 12
    Extensive Future Wyoming Development
  13. Johnson Rice Energy Conference – Ultra Petroleum Corp. – slide 13
    Uinta Basin Oil Opportunity Three Rivers Net Acres: 9,000 WY Proved Developed: 14 MMBOE Total Proved: 36 MMBOE UT CO Total Resource: 100 MMBOE Total WI Wells: 124 Production: 4,756 Boepd Ultra Petroleum Corp. NYSE: UPL 13
  14. Johnson Rice Energy 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% IRR 1.7 39% 64% 91% 60% 1.5 52% 83% 124% 30% Economics at 50/BBL wellhead price Payout for a 300 MBO well at…
  15. Johnson Rice Energy Conference – Ultra Petroleum Corp. – slide 15
    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…
  16. Johnson Rice Energy Conference – Ultra Petroleum Corp. – slide 16
    Resource Upside: Waterflood Pilot Secondary UINTAH CO. Analog Primary Incremental Altamont-Bluebell to Primary Field Recovery Recovery Ratio Redwash 53 MMBO 53 MMBO 1 Wonsits Redwash Wonsits 22 MMBO 26 MMBO 1.2 A Monument…
  17. Johnson Rice Energy Conference – Ultra Petroleum Corp. – slide 17
    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…
  18. Johnson Rice Energy Conference – Ultra Petroleum Corp. – slide 18
    Marcellus Shale Natural Gas Anadarko/Mitsui AMI Net Acres: 76,000 Proved Developed: 130 Bcfe Total Proved: 130 Bcfe Total Resource: 4.7 Tcfe Total WI Wells: 133 Production: 48 Mmcfe/d Ultra-Interest Lands PA Ultra…
  19. Johnson Rice Energy Conference – Ultra Petroleum Corp. – slide 19
    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…
  20. Johnson Rice Energy Conference – Ultra Petroleum Corp. – slide 20
    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 1H15 Costs Per Mcfe LOE 0.45 4.00 Production Tax 0.26 Gathering Fees 0.30 Transportation 0.29 DD&A 1.33 2.00…
  21. Johnson Rice Energy Conference – Ultra Petroleum Corp. – slide 21
    Shift in Basis Differentials 120% Basis Differentials as a Percentage of Henry Hub 100% 96% 96% 94% 94% 93% 92% 90% 92% 91% 80% 86% 81% 78% 78% 77% 77% 77% 69% 60% 63% 69% 64% 58% 54% 56% 40% 20% 0% NW…
  22. Johnson Rice Energy Conference – Ultra Petroleum Corp. – slide 22
    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%…
  23. Johnson Rice Energy Conference – Ultra Petroleum Corp. – slide 23
    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…
  24. Johnson Rice Energy Conference – Ultra Petroleum Corp. – slide 24
    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…
  25. Johnson Rice Energy Conference – Ultra Petroleum Corp. – slide 25
    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 25
  26. Johnson Rice Energy Conference – Ultra Petroleum Corp. – slide 26
    Production and Financial Guidance FY 2015 estimated production 283 290 Bcfe 91% Wyoming 5% Pennsylvania 4% Utah Q3 2015 realized pricing Natural gas: 4 - 6% discount to NYMEX Oil & condensate: 15 18% discount to NYMEX Q3 2015…
  27. Johnson Rice Energy Conference – Ultra Petroleum Corp. – slide 27
    Hedging Summary NYMEX Q3 2015 Q4 2015 Bal 2015 Volume (Bcf) 58.4 19.7 135.8 /Mmbtu 3.50 3.50 3.50 /Mcf 3.71 3.71 3.71 Note: Amounts may not total due to rounding Ultra Petroleum Corp. NYSE: UPL 29
  28. Johnson Rice Energy Conference – Ultra Petroleum Corp. – slide 28
    Lower 48 Natural Gas Production Lower 48 Pipeline Data 75 70 65 Bcf/Day 75 60 74 73 72 55 71 70 69 Jan 15 Apr 15 Jul 15 Oct 15 50
  29. Johnson Rice Energy Conference – Ultra Petroleum Corp. – slide 29
    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,…
  30. Johnson Rice Energy Conference – Ultra Petroleum Corp. – slide 30
    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…
  31. Johnson Rice Energy Conference – Ultra Petroleum Corp. – slide 31
    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…
  32. Johnson Rice Energy Conference – Ultra Petroleum Corp. – slide 32
    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 - Parent 1,300 (4.2x at June 30,…
  33. Johnson Rice Energy Conference – Ultra Petroleum Corp. – slide 33
    Debt Maturity Profile 900 800 Redetermination of 700 senior credit facility 600 500 Debt Balance 400 (Millions) 300 200 100 0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 As of Dec. 31, 2014 Ultra…
  34. Johnson Rice Energy Conference – Ultra Petroleum Corp. – slide 34
    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…
  35. Johnson Rice Energy Conference – Ultra Petroleum Corp. – slide 35
    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…

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