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Capital One Securities Energy Conference Presentation – Ultra Petroleum Corp.

Ultra Petroleum Corp. · Dec 7, 2017 · 26 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. Capital One Securities Energy Conference Presentation – Ultra Petroleum Corp. – slide 1
    COS 2017 Energy Conference December 7, 2017 Ultra Petroleum Corp. is an independent energy company engaged in domestic natural gas and oil exploration, development and production. The company is listed on NASDAQ and trades under the…
  2. Capital One Securities Energy Conference Presentation – Ultra Petroleum Corp. – slide 2
    Ultra Petroleum Corp. Overview Ticker Symbol NASDAQ:UPL Headquarters Houston, TX Full-time employees 170 Shares outstanding 196,346,736 3Q17 Business Results Net production 773 MMcfe/d Adjusted EBITDA 153 million Net acreage Wyoming…
  3. Capital One Securities Energy Conference Presentation – Ultra Petroleum Corp. – slide 3
    Ultra is a Tier 1 Gas Producer Extensive, attractive and predictable inventory. Vertical inventory to 2025 with at least 20% IRR, with more than 1,000 vertical locations 25% IRR (at 3.00 per MMBtu HHUB) Low cost, high margin…
  4. Capital One Securities Energy Conference Presentation – Ultra Petroleum Corp. – slide 4
    Core Asset: Pinedale Field Q3 2017 production of 728 Mmcfe/d Pinedale Field T33N-R107W Over 95% of companys reserves DA 1 4,903 remaining gross vertical Mesa Pole Creek locations Significant Horizontal Upside 1,600 potential…
  5. Capital One Securities Energy Conference Presentation – Ultra Petroleum Corp. – slide 5
    Pinedale Asset Overview Description 78,000 net acres in Sublette County, Wyoming Net Acreage Details: Pinedale Vertical Core: 27,000 acres Horizontal Flank, 700 net locations: 28,000 acres Additional Flank Acreage/Jonah: 23,000…
  6. Capital One Securities Energy Conference Presentation – Ultra Petroleum Corp. – slide 6
    Pinedale Vertical Drilling Progression 2017 Activity Summary: Drilling on east flank IPs lower than average Higher condensate yield Concurrent horizontals 2018-19 Drilling Plans: Rigs moving west into core Expecting higher IPs and…
  7. Capital One Securities Energy Conference Presentation – Ultra Petroleum Corp. – slide 7
    Pinedale Vertical Inventory Remaining inventory: 1,910 10-acre wells and 2,993 5-acre wells Producing Wells Future Vertical Locations Oakridge/ QEP operated Ultra operated Inventory based on 3rd party reserve report (NSAI)…
  8. Capital One Securities Energy Conference Presentation – Ultra Petroleum Corp. – slide 8
    Pinedale Vertical Well Economics Parameter Value IRR Sensitivity: DC&E Costs & EUR EUR, Bcfe 4.0 DC&E Capital / Well IP30, MMcf/d 3.8 2.5MM 2.8MM Average Condensate Yield, Bbls/MMcf 11 3.0 16% 12% Decline Curve Parameters B-factor…
  9. Capital One Securities Energy Conference Presentation – Ultra Petroleum Corp. – slide 9
    Low Cost Operations Further Improved Through Reorganization Ultra is a low cost leader among public companies with Cash Operating Costs…
  10. Capital One Securities Energy Conference Presentation – Ultra Petroleum Corp. – slide 10
    Pinedale Pipeline Transportation Infrastructure Unlike its Appalachian peers with burdensome fixed minimum volume commitments, UPL has a variable cost structure with no current contractual commitments Excess pipeline capacity leads to…
  11. Capital One Securities Energy Conference Presentation – Ultra Petroleum Corp. – slide 11
    Attractive Basis Differentials Out of Rockies Attractive basis differentials out of the Rockies with price realization 90% NYMEX Approximately 95% of Q3 2017 production from Rockies 120% Basis Differentials as a Percentage of Henry…
  12. Capital One Securities Energy Conference Presentation – Ultra Petroleum Corp. – slide 12
    2018 Preliminary Growth Considerations Key focus. Balancing free cash flow (FCF) generation with production growth 100% Vertical program. Ability to grow production 20% at 3.00 HHUB while living within FCF Horizontal integration.…
  13. Capital One Securities Energy Conference Presentation – Ultra Petroleum Corp. – slide 13
    Horizontal Program Potential Potential Well Economics: Inputs Potential Well Economics: Results EUR = 20 Bcfe (2.0 Bcfe / 1000) IRR = 70% IP = 11 MMcfd (Antelope 341-19H) NPV10 = 12.8 MM Condensate Yield = 20 Bbls/MMcf Payout = 19…
  14. Capital One Securities Energy Conference Presentation – Ultra Petroleum Corp. – slide 14
    Horizontal Well Activity Ultra Boulder 10-33-B-1H Ultra Lower Lance B Warbonnet 9-23-A-2H Drilled in 2016 Lower Lance A Drilling Ultra Warbonnet 9-23-M-1H Lower Mesaverde Drilling Jonah Energy Ultra Antelope 341-19H…
  15. Capital One Securities Energy Conference Presentation – Ultra Petroleum Corp. – slide 15
    Pinedale Horizontal Flank Upside Potential Horizontal Flank Wells Beyond the Boundary of Pinedale Vertical Development Ultra currently 1,600 potential horizontal locations using testing East Flank pre-existing infrastructure…
  16. Capital One Securities Energy Conference Presentation – Ultra Petroleum Corp. – slide 16
    Significant Stacked Pay Horizontal Potential 50 pads x 8 targets/pad x 4 locations/target = 1,600 potential locations Upper Lance Lower Lance Mesaverde Ultra Petroleum Corp. NASDAQ: UPL 17
  17. Capital One Securities Energy Conference Presentation – Ultra Petroleum Corp. – slide 17
    Horizontal Well Data EUR, Bcfe Lateral Well Name Operator Status Interval (% oil) Notes Length [Bcfe/1000] 10.8 Bcfe Low IP: 3 MMcf/d Antelope Jonah 1st production Low decline rate Lower Lance A 3,800 (15% oil) 91-29H Energy Jan…
  18. Capital One Securities Energy Conference Presentation – Ultra Petroleum Corp. – slide 18
    Uinta Basin Oil Uinta 8,000 Net Acres Basin Q3 2017 production of Bluebell 2,324 Boe/d 137 Producing Wells Brennan Bottom 100% Operated Three Rivers 6,500 to 7,500 Leland Bench Wonsits Valley Average Well Depth…
  19. Capital One Securities Energy Conference Presentation – Ultra Petroleum Corp. – slide 19
    Marcellus Shale Natural Gas 72,000 Net Acres Marcellus Q3 2017 Production of 31 Mmcf/d 136 Producing Wells Operated by Alta Resources 99% Held by Production 1,972 Gross Locations Marcellus & Geneseo stacked pay…
  20. Capital One Securities Energy Conference Presentation – Ultra Petroleum Corp. – slide 20
    Ultra is a Tier 1 Gas Producer Extensive, attractive and predictable inventory. Vertical inventory to 2025 with at least 20% IRR, with more than 1,000 vertical locations 25% IRR (at 3.00 per MMBtu HHUB) Low cost, high margin…
  21. Capital One Securities Energy Conference Presentation – Ultra Petroleum Corp. – slide 21
    Appendix
  22. Capital One Securities Energy Conference Presentation – Ultra Petroleum Corp. – slide 22
    Capital Structure and Debt Maturities As of September 30, 2017 (MM) Millions Debt Maturities Cash 5 1,200 1,000 425.0 Million Credit Facility 20 Undrawn revolver 7.875% Unsecured Bonds due 2022 700 800 Term Loan due 2024…
  23. Capital One Securities Energy Conference Presentation – Ultra Petroleum Corp. – slide 23
    Ultra Petroleum: High Return on Invested Capital Margin expansion drives strong recycle ratio Attractive Realizations Low Costs NYMEX Henry Hub strip (/Mmbtu) 3.10 Lease operating expense 0.34 Less: Average location differential…
  24. Capital One Securities Energy Conference Presentation – Ultra Petroleum Corp. – slide 24
    Minimal Well Cost Inflation Ongoing efficiency gains partially offset 10% cost inflation since 2016 Completion design modified in 2Q to test increased diversion with additional frac plugs Early results under study; returned to…
  25. Capital One Securities Energy Conference Presentation – Ultra Petroleum Corp. – slide 25
    Pinedale Vertical Well Performance 900 800 Cumulative Production (MMCF) 7-year history validates 700 high-quality inventory 600 500 400 4 Bcfe type curve 300 200 100 - 1 2 3 4 5 6 7 8 9 10 11 12 Months Ultra…
  26. Capital One Securities Energy Conference Presentation – Ultra Petroleum Corp. – slide 26
    Most Accurate IRRs Derived from Actual Producing Days Producing Day Rate (PDR) is critical to derive accurate IP rates and type curves. Monthly volume should be divided by actual producing days, which are publicly reported by State of…

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