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IPAA Oil and Gas Investment Symposium – Ultra Petroleum Corp.

Ultra Petroleum Corp. · Apr 10, 2018 · 34 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. IPAA Oil and Gas Investment Symposium – Ultra Petroleum Corp. – slide 1
    IPAA OGIS New York April 9-10, 2018
  2. IPAA Oil and Gas Investment Symposium – Ultra Petroleum Corp. – slide 2
    Presentation Index Slide Slide Title 4 Company Overview 5 Best-In-Class Margins 6 Prolific Basin Drives Lowest Breakevens 7 New UPL Strategic Focus and Unique Strengths 8 2018 Capital Plan and Guidance 9 Early 2018…
  3. IPAA Oil and Gas Investment Symposium – Ultra Petroleum Corp. – slide 3
    Company Overview Market Snapshot NASDAQ Symbol UPL Market Capitalization, million (April 5) 738 Net Debt 12/31/17, million 2,159 Enterprise Value, million (April 5) 2,897 Production & Reserves Q417 Production(1), Bcfe 74.5 SEC Proved…
  4. IPAA Oil and Gas Investment Symposium – Ultra Petroleum Corp. – slide 4
    Best-in-Class Margins 2017 EBITDA Margin (/Mcfe) /Mcfe Best-in-Class Margins 3.00 2017 Pre-Hedge Realized Price 3.19 Lease Operating Expense 0.33 2.80 Operating Lease Expense 0.08 2.60 Production Taxes 0.33 Gathering Fees 0.28 2.40…
  5. IPAA Oil and Gas Investment Symposium – Ultra Petroleum Corp. – slide 5
    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.…
  6. IPAA Oil and Gas Investment Symposium – Ultra Petroleum Corp. – slide 6
    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…
  7. IPAA Oil and Gas Investment Symposium – Ultra Petroleum Corp. – slide 7
    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…
  8. IPAA Oil and Gas Investment Symposium – Ultra Petroleum Corp. – slide 8
    Early 2018 Accomplishments Flowing back Warbonnet 9-23 A-2H, the 2nd 2-mile lateral in the Lower Lance A: 54.5 MMcfe/d (873 Bopd, 10% oil) Drilled and completed the first Mesaverde HZ in Pinedale: 1-mile lateral with IP = 17…
  9. IPAA Oil and Gas Investment Symposium – Ultra Petroleum Corp. – slide 9
    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…
  10. IPAA Oil and Gas Investment Symposium – Ultra Petroleum Corp. – slide 10
    2018 Development Program 2017 Activity Summary: Drilling on east flank IPs lower than average 3 horizontals drilled 2018 Program: Disciplined Capital Approach Grow within cash flow Reducing operated rigs from 7 to 4 Vertical…
  11. IPAA Oil and Gas Investment Symposium – Ultra Petroleum Corp. – slide 11
    Vertical Well Performance 900 800 Cumulative Production (MMCF) 4 Bcfe type curve 700 600 1Q18: Avg IP = 7.5 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 100…
  12. IPAA Oil and Gas Investment Symposium – Ultra Petroleum Corp. – slide 12
    Horizontal Flank Upside 2018 HZ activity focused on 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. IPAA Oil and Gas Investment Symposium – 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 Ultra Petroleum Corp. NASDAQ: UPL 14
  14. IPAA Oil and Gas Investment Symposium – Ultra Petroleum Corp. – slide 14
    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…
  15. IPAA Oil and Gas Investment Symposium – Ultra Petroleum Corp. – slide 15
    Horizontal Program Potential Horizontal Well Assumptions Resulting Economics(1) EUR = 20 Bcfe (2.0 Bcfe / 1000) IRR 100% IP (24-hr) = 30.4 MMcfd / 32.2 MMcfed NPV10 = 14.3MM IP (30-day) = 25 MMcfd/ 26.7 MMcfed Discounted Payout = 12…
  16. IPAA Oil and Gas Investment Symposium – Ultra Petroleum Corp. – slide 16
    2018 Plan: Horizontal Production Profile 9 Cumulative Production, Bcfe 8 Lower Lance A 7 2-well Average: 6 IP = 52.6 MMcfe/d 5 4 3 2 1 Vertical: 4 BCFE 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24…
  17. IPAA Oil and Gas Investment Symposium – Ultra Petroleum Corp. – slide 17
    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…
  18. IPAA Oil and Gas Investment Symposium – Ultra Petroleum Corp. – slide 18
    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 IP(24-hr): 54.5 MMcfe/d; 873 Bopd Ultra Warbonnet 9-23 M-1H Lower Mesaverde…
  19. IPAA Oil and Gas Investment Symposium – Ultra Petroleum Corp. – slide 19
    IPAA OGIS New York April 9-10, 2018
  20. IPAA Oil and Gas Investment Symposium – Ultra Petroleum Corp. – slide 20
    Appendix 21
  21. IPAA Oil and Gas Investment Symposium – Ultra Petroleum Corp. – slide 21
    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)…
  22. IPAA Oil and Gas Investment Symposium – Ultra Petroleum Corp. – slide 22
    2018 Full-Year Cash Costs & EBITDA Guidance Expenses & Cash Costs, /Mcfe EBITDA Guidance 1Q18(1) FY18 FY18 Lease Operating Expense 0.32 0.35 0.28 0.32 Revenue, incl. hedges(6), /Mcfe 2.84 Facility Lease Expense 0.08 0.08 0.07 0.09…
  23. IPAA Oil and Gas Investment Symposium – 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. IPAA Oil and Gas Investment Symposium – Ultra Petroleum Corp. – slide 24
    2018 Initial Look vs. 2018 Guidance Reduced capital budget: balancing production growth with free cash flow generation Divesting of PA & UT reduces 2018 volumes: -12.5 BCFE Vertical capex cut 50% - Horizontal program of 120 MM is…
  25. IPAA Oil and Gas Investment Symposium – Ultra Petroleum Corp. – slide 25
    YE17 Reserve Reconciliation Proved Proved Total Proved Reserves, Bcfe Developed Undeveloped Proved (PDP + PD) (PUD) (1P) 2017 HZ Program adds 3 PD and 4 PUD locations Year End 2016 2,510 - 2,510 Adds/Extensions 18 39 57 2017 PA…
  26. IPAA Oil and Gas Investment Symposium – Ultra Petroleum Corp. – slide 26
    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…
  27. IPAA Oil and Gas Investment Symposium – Ultra Petroleum Corp. – slide 27
    Well Costs Update Lower Lance Horizontals Latest 2-mile lateral in Lower Lance = 9.0 MM 2018 Budget Case = 9 MM/well YE18 Target Case: 7.5 MM/well MM/well MM/1,000 lateral 12 1.50 10 1.25 10.0 8 9.0 1.00 (0.5) (1.0) 7.5 6…
  28. IPAA Oil and Gas Investment Symposium – Ultra Petroleum Corp. – slide 28
    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…
  29. IPAA Oil and Gas Investment Symposium – Ultra Petroleum Corp. – slide 29
    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)…
  30. IPAA Oil and Gas Investment Symposium – Ultra Petroleum Corp. – slide 30
    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…
  31. IPAA Oil and Gas Investment Symposium – Ultra Petroleum Corp. – slide 31
    Well Costs Update - Vertical 4Q17: Stated goal to reduce by 0.2 MM/well with completion cost reduction - achieved half of that goal by YE17 4Q17: Isolated drilling events: 2 sidetracks and hole instability on limited wells - 4Q17 avg. up…
  32. IPAA Oil and Gas Investment Symposium – Ultra Petroleum Corp. – slide 32
    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 50,000…
  33. IPAA Oil and Gas Investment Symposium – Ultra Petroleum Corp. – slide 33
    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 2,000…
  34. IPAA Oil and Gas Investment Symposium – Ultra Petroleum Corp. – slide 34
    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 (physical)…

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