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4Q 2017 Earnings Presentation – Ultra Petroleum Corp.

Ultra Petroleum Corp. · Feb 28, 2018 · 29 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. 4Q 2017 Earnings Presentation – Ultra Petroleum Corp. – slide 1
    New UPL Investor Presentation February 28, 2018
  2. 4Q 2017 Earnings Presentation – Ultra Petroleum Corp. – slide 2
    UPL 4Q17 Earnings Presentation Outline Opening Remarks 2017 Results New UPL Strategic Focus Early 2018 Accomplishments Financial Update Pinedale Vertical Program Pinedale Horizontal Program 2018 Capital Plan and Guidance 3
  3. 4Q 2017 Earnings Presentation – Ultra Petroleum Corp. – slide 3
    Company Overview Market Snapshot NASDAQ Symbol: UPL Market Capitalization, million 877 Net Debt 12/31/17, million 2,159 Enterprise Value, million 3,036 Production & Reserves Q417 Production(1), Bcfe 74.5 SEC Proved Developed…
  4. 4Q 2017 Earnings Presentation – Ultra Petroleum Corp. – slide 4
    Fourth Quarter and Full Year 2017 Execution Produced at Midpoint of Guidance: 74.5 Bcfe Positive Momentum Heading Into 2018 adjusted to 74.8 Bcfe for PA sale in December 2017 Quarterly Production 75 Delivered Production Growth: 9%…
  5. 4Q 2017 Earnings Presentation – Ultra Petroleum Corp. – slide 5
    New UPL Strategic Focus and Unique Strengths Disciplined approach Operating Accelerate horizontal program and Financial Fundamentals Capital efficient growth Free cash flow generation Balance sheet flexibility Capital…
  6. 4Q 2017 Earnings Presentation – Ultra Petroleum Corp. – slide 6
    Early 2018 Accomplishments Flowing back Warbonnet 9-23 A-2H, the 2nd 2-mile lateral in the Lower Lance A: 45 MMcfe/d 800 Bopd, 11% oil) and increasing Drilled and completed the first Mesaverde HZ in Pinedale: 1-mile lateral with IP…
  7. 4Q 2017 Earnings Presentation – Ultra Petroleum Corp. – slide 7
    Increased Hedges for 2018 Volumes Gas Volumes Hedged for 2018 As Of: Oil Volumes Hedged for 2018 As Of: Prices: /MMBtu Prices: /Bbl 200 2.00 Bcf MMBbls 175 1.75 150 1.50 125 1.25 100 1.00 75 0.75 50 0.50 25 0.25 62.17 59.90 2.90 2.90…
  8. 4Q 2017 Earnings Presentation – Ultra Petroleum Corp. – slide 8
    Prolific Basin Drives Lowest Breakevens Highly Attractive Geology Highly Competitive Economics Pinedale field in the Green River Basin is one of the top UPL has a nearly 25-year track record in the basin and gas fields in the U.S.…
  9. 4Q 2017 Earnings Presentation – Ultra Petroleum Corp. – slide 9
    Best-in-Class Margins 3Q17 YTD EBITDA Margin (/Mcfe) /Mcfe Best-in-Class Margins 3.00 3Q17 Pre-Hedge Realized Price 3.20 Lease Operating Expense 0.34 2.80 Operating Lease Expense 0.08 2.60 Production Taxes 0.33 Gathering Fees 0.32…
  10. 4Q 2017 Earnings Presentation – Ultra Petroleum Corp. – slide 10
    Vertical Well Performance 900 800 Cumulative Production (MMCF) 4 Bcfe type curve 700 600 Jan 2018: Avg IP = 8.1 MMcfe/d 500 400 1Q17: Avg IP = 6.1 MMcfe/d 300 2Q17: Avg IP = 7.4 MMcfe/d 200 3Q17: Avg IP = 6.8 MMcfe/d…
  11. 4Q 2017 Earnings Presentation – Ultra Petroleum Corp. – slide 11
    2018 Development Program 2018 Program: 2017 Activity Summary: Drilling on east flank Disciplined Capital Approach IPs lower than average Grow within cash flow 3 horizontals drilled Reducing operated rigs from 7 to 4 Vertical…
  12. 4Q 2017 Earnings Presentation – Ultra Petroleum Corp. – slide 12
    Horizontal Flank Upside Ultra currently drilling East Flank of Pinedale 1600 HZ flank locations (700 net): 280 net wells with WI 75% 235 net wells with WI 50-75% 185 net wells with WI < 50% 15-20 high WI HZ wells in 2018…
  13. 4Q 2017 Earnings Presentation – Ultra Petroleum Corp. – slide 13
    Significant Stacked Pay Horizontal Potential 50 pads x 8 targets/pad x 4 locations/target = 1,600 potential locations (700 net) Upper Lance Lower Lance Mesaverde 14
  14. 4Q 2017 Earnings Presentation – Ultra Petroleum Corp. – slide 14
    Transition to Horizontal Program 2016-2018 Timeline of Horizontal Activity Ramp Up in HZ wells per year Currently planning for 3 HZ rigs in 2019 40 30-36 30 2nd HZ Well Drilled: 4th HZ Well Drilled: 15-20 20 2-mile lateral on east…
  15. 4Q 2017 Earnings Presentation – Ultra Petroleum Corp. – slide 15
    Horizontal Activity Summary Ultra Boulder 10-33 B-1H Lower Lance B EUR = 3.5 Bcfe (12% oil) 1.2 Bcfe/1000 Ultra Warbonnet 9-23 A-2H Lower Lance A Producing 45 MMcfe/d; 800 Bopd Ultra Warbonnet 9-23 M-1H Lower Mesaverde IP…
  16. 4Q 2017 Earnings Presentation – Ultra Petroleum Corp. – slide 16
    LLA_SAND_STRAT LLA_SAND_STRAT Warbonnet 9-23 A-1H and Warbonnet 9-23 A-2H Start of WB 9-23 A-1H 5000 Lateral WB 9-23-A-1H Lateral Length: 10,300, 49 frac stages, 11.6MM lbs proppant TG 0 12000 12500 13000 13500…
  17. 4Q 2017 Earnings Presentation – Ultra Petroleum Corp. – slide 17
    Horizontal Program Potential Horizontal Well Assumptions Resulting Economics(1) EUR = 20 Bcfe (2.0 Bcfe / 1000) IRR 100% IP (24-hr) = 30 MMcfd / 32 MMcfed NPV10 = 14.3MM IP (30-day) = 25 MMcfd/ 26.7 MMcfed Discounted Payout = 12…
  18. 4Q 2017 Earnings Presentation – Ultra Petroleum Corp. – slide 18
    Single Well Economics: Vertical and Horizontal Economic Inputs: Oil yield = 11 Bbls/MMcf Pinedale WTI price = 60/Bbl Vertical Pinedale Horizontal LOE = 3,000/well/month IP, 30-day Gas Diff. = HHUB * 0.9 2.9 3.8 15.0 18.9 25.0 37.3 MMcfd…
  19. 4Q 2017 Earnings Presentation – Ultra Petroleum Corp. – slide 19
    2018 Capital Plan and Guidance 2018 Plan Capital Program = 400 MM Capital Efficiency: Pinedale Operated Vertical 240 Disciplined deployment of capital Pinedale Operated Horizontal 120 Relentless pursuit to control costs Pinedale…
  20. 4Q 2017 Earnings Presentation – Ultra Petroleum Corp. – slide 20
    New UPL Investor Presentation February 28, 2018
  21. 4Q 2017 Earnings Presentation – Ultra Petroleum Corp. – slide 21
    Appendix 22
  22. 4Q 2017 Earnings Presentation – Ultra Petroleum Corp. – slide 22
    Natural Gas Export Capacity Export Capacity for Pinedale Production AECO Kingsgate Large take-away capacity to multiple destinations 2 to 3 Bcf/d of excess capacity Stanfield Pipeline Capacity Serving the Opal Complex (MMcf/d)…
  23. 4Q 2017 Earnings Presentation – Ultra Petroleum Corp. – slide 23
    Flexible Balance Sheet Millions 1,200 Capital Structure, millions Term Loan due 2024 (LIBOR+3%) 975 Undrawn revolver 1,000 6.875% Unsecured Bonds due 2022 700 7.125% Unsecured Bonds due 2025 500 800 425 million Credit Facility…
  24. 4Q 2017 Earnings Presentation – Ultra Petroleum Corp. – slide 24
    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 2.6MM 2.9MM Average Condensate Yield, Bbls/MMcf 11 3.0 19% 14% Decline Curve Parameters B-factor…
  25. 4Q 2017 Earnings Presentation – Ultra Petroleum Corp. – slide 25
    UPL Horizontal Well Data EUR, Bcfe Lateral Well Name Status Interval (% oil) Notes Length [Bcfe/1000] 100% drilled in zone; possible completion issue in toe 3.5 Bcfe Set test Plug: 70% of production from 40% of lateral Boulder 1st…
  26. 4Q 2017 Earnings Presentation – Ultra Petroleum Corp. – slide 26
    Horizontal Well Data (Other Operators) 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)…
  27. 4Q 2017 Earnings Presentation – Ultra Petroleum Corp. – slide 27
    Current Hedge Positions: NYMEX Gas MMbtu/d Period Type /MMBtu 40,000 Mar18 NYMEX costless collar 3.23 / 3.54 770,000 Apr18 to Oct18 NYMEX Swaps 2.88 200,000 Nov18 to Dec18 NYMEX Swaps 2.85 200,000 Nov18 to Mar19 NYMEX Swaps 2.91…
  28. 4Q 2017 Earnings Presentation – Ultra Petroleum Corp. – slide 28
    Current Hedge Positions: NYMEX Oil Bbls/d Period Type /Bbl 2,000 Mar18 to Dec18 NYMEX Swaps 62.17 2,000 Apr18 to Dec18 NYMEX Swaps 57.43 1,000 Jan19 to Mar19 NYMEX Swaps 58.30 Bbl/d 8,000 7,000 6,000 5,000 4,000 3,000…
  29. 4Q 2017 Earnings Presentation – Ultra Petroleum Corp. – slide 29
    Current Hedge Positions: ROX Basis Differentials MMbtu/d Period Type /MMBtu 30,000 Mar18 to Dec18 ROX basis swaps (financial) (0.580) 140,000 Apr18 to Oct18 ROX basis swaps (financial) (0.624) 170,000 Apr18 to Oct18 ROX basis swaps…

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