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Ultra Petroleum Announces Third Quarter 2012 Results, Earnings Of $0.64 Per Diluted Share And Operating Cash Flow Of $1.23 Per


Ultra Petroleum Announces Third Quarter 2012 Results, Earnings Of $0.64 Per Diluted Share And Operating Cash Flow Of $1.23 Per Diluted Share

HOUSTON, Nov. 1, 2012 /CNW/ - Ultra Petroleum Corp. (NYSE: UPL) today reported third quarter operating and financial results. Highlights include:


    --  Produced volumes of 63.1 Bcfe in the third quarter of 2012
    --  Operating cash flow((1)) of $187.5 million, or $1.23 per
        diluted share
    --  Earnings of $97.5 million in the third quarter, or $0.64 per
        diluted share – adjusted((3))
    --  Achieved nine month production record of 196.9 Bcfe
    --  Strong margins in third quarter of 2012 (adjusted): 67 percent
        cash flow margin((5)) and 35 percent net income margin((4))

(Logo: http://photos.prnewswire.com/prnh/20020226/DATU029LOGO)

Third Quarter Results

During the third quarter, Ultra Petroleum produced 63.1 billion cubic feet 
equivalent (Bcfe) of natural gas and crude oil. The company's third quarter 
production was comprised of 61.2 billion cubic feet (Bcf) of natural gas and 
309.6 thousand barrels (Mbls) of condensate.

The company's third quarter realized natural gas price was $4.13 per thousand 
cubic feet (Mcf), including realized gains and losses on commodity hedges. 
Excluding these effects, the company's average price for natural gas was $2.77 
per Mcf. Ultra's realized condensate price in the third quarter was $86.51 per 
barrel (Bbl).

Ultra Petroleum reported operating cash flow((1)) of $187.5 million, or $1.23 
per diluted share during the third quarter. Ultra recognized $83.4 million of 
realized gains, or $0.55 per diluted share in cash flow, as a result of the 
company's commodity price hedges during the third quarter. Adjusted net 
income((3)) was $97.5 million, or $0.64 per diluted share for the quarter. 
Third quarter results include a $606.8 million non-cash, ceiling test 
write-down of the company's carrying value of its natural gas and crude oil 
properties stemming from unsustainably low natural gas prices. The trailing 
12-month average commodity prices used for the third quarter write-down were 
$2.83 per MMbtu for Henry Hub natural gas and $94.97 per barrel for West Texas 
Intermediate oil, prior to adjustments for market differentials.

Year-to-Date Results

Ultra's production of natural gas and crude oil increased to a record 196.9 
Bcfe during the nine months ended September 30, 2012. The company's production 
was comprised of 190.9 Bcf of natural gas and 1.0 million barrels (MMbls) of 
condensate.

The company's average realized natural gas price was $3.99 per Mcf, including 
realized gains and losses on commodity hedges. On an un-hedged basis, Ultra's 
average price for natural gas was $2.63 per Mcf. The realized condensate price 
was $91.22 per Bbl.

Ultra Petroleum reported operating cash flow((1)) of $563.8 million, or $3.69 
per diluted share. Adjusted net income((3)) was $249.9 million, or $1.64 per 
diluted share for the nine month period ended September 30, 2012.

"With the depressed natural gas prices, we moved aggressively to reduce our 
capital expenditures this year and to generate free cash flow, while 
protecting our long-life assets. During the third quarter, we generated free 
cash flow each month and plan to continue this path until natural gas prices 
respond and returns improve," stated Michael D. Watford, Chairman, President 
and Chief Executive Officer.

Wyoming - Operational Highlights

During the third quarter, Ultra Petroleum and its partners drilled 28 gross 
(12 net) Wyoming Lance wells and placed on production 22 gross (6 net) wells. 
The company's third quarter net production averaged 489 million cubic feet 
equivalent (MMcfe) per day. Ultra's operated program continues to employ two 
rigs in the Boulder development area, where the company plans to resume 
completions during mid-November. In response to higher gas prices and better 
economic returns, Ultra anticipates completing 20 wells in the fourth quarter 
of 2012.

The company averaged 10.5 days to drill an operated well in the third quarter, 
as measured by spud to total depth (TD). This compares to an average of 11.6 
days in the prior year period, a 9 percent improvement. In addition, all 14 of 
the Ultra-operated wells reached TD in 15 days or less. A new measure of 
success, 50 percent of the wells were drilled in less than 10 days. Also, 
total days per well, as measured by rig-release to rig-release (RR to RR), 
continues to improve. Ultra averaged 12.7 days in the third quarter, as 
compared to 14.4 days RR to RR in the third quarter 2011.

Improving Operational Efficiencies
                                  2008 2009 2010 2011 Q3 2012

Spud to TD (days)                 24   20   14   12   11

Rig release to rig release (days) 32   24   17   15   13

% wells drilled < 15 days         1%   22%  76%  95%  100%

Well cost – pad ($MM)       $5.5 $5.0 $4.7 $4.8 $4.6

Pennsylvania - Operational Highlights

Ultra and its partners drilled 8 gross (4 net) horizontal Marcellus wells and 
initiated production from 22 gross (11 net) wells during the third quarter 
2012. During the quarter, the company's average net production was 196 MMcfe 
per day. Execution of the company's 2012 Marcellus program remains on track as 
production from this region will account for approximately 28 percent of Ultra 
Petroleum's total volumes this year.

In Tioga County, the IP rates for the 16 Marcellus wells brought online during 
the third quarter averaged 7.1 MMcfe per day. The IP rates for the 6 Marcellus 
wells brought online in Clinton and Lycoming counties averaged 7.0 MMcfe per 
day constrained by a restricted flow back program.

Ultra continues to evaluate Upper Devonian Geneseo potential across its 
acreage position. Two new wells were brought online during the third quarter, 
one in Tioga County and the other in Clinton County. To date, Ultra and its 
partners have completed 5 gross (3 net) horizontal wells in the Geneseo. These 
encouraging well results, coupled with publicly available data from adjacent 
third party wells, affirm the commercial viability of the Geneseo on the 
majority of Ultra's Pennsylvania leasehold position.

The graph below provides normalized average daily production for Ultra's 
horizontal wells in the Marcellus. The grey dashed lines represent five and 
seven Bcfe type curves. The solid black line illustrates well performance in 
the company's Clinton and Lycoming County areas. The black dotted line charts 
well performance results from Ultra's activity in Potter and Tioga counties.

(Photo: http://photos.prnewswire.com/prnh/20121101/DA01969)

Commodity Hedges

Year to date, the company's commodity hedges have contributed $260.2 million 
in realized gains, or $1.70 per diluted share to cash flow. The total volume 
of commodity hedges for the fourth quarter of 2012 is 48.8 Bcf at a 
weighted-average price of $4.27 per MMbtu. Currently, the commodity hedges 
represent 84 percent of the company's remaining 2012 natural gas production.

Financial Strength

Ultra entered 2012 with a $925 million capital investment program. Subsequent 
reductions were made during the first quarter, resulting in an $825 million 
revised capital plan for the year. With the benefit of increased operating 
efficiencies, the company now expects to invest $800 million in total capital 
for 2012. As planned, Ultra reduced its investment pace during the third 
quarter. The company invested $144.2 million in development drilling, 
gathering, exploration and corporate expenditures and generated $213.0 million 
in EBITDA((2)), creating a surplus of $68.8 million during the third quarter.

Ultra Petroleum exited the third quarter with 72 percent of the company's 
outstanding borrowings comprised of long-term, fixed-rate debt with an average 
remaining term of 7.5 years and a 5.6 percent weighted-average coupon rate. 
Ultra relies on total debt to EBITDA((2)) as a measure of leverage because it 
appropriately removes the effect of certain non-cash items, such as impairment 
charges. At the end of the third quarter, Ultra's debt to trailing 12-months 
EBITDA((2)) ratio registered 2.4 times with $1.0 billion in unused senior debt 
capacity.

Full-Year 2012 Production Guidance

Natural gas and crude oil production for 2012 is expected to increase to a new 
record of 250 - 260 Bcfe, compared to record production of 245.3 Bcfe for 
2011. Production from the Rockies region will comprise approximately 72 
percent of the company's production forecast and Appalachian region production 
will comprise the remaining 28 percent of Ultra's estimated total production.

Fourth Quarter 2012 Price Realizations and Differentials Guidance

During the fourth quarter, the company's realized natural gas price is 
expected to average 2 to 4 percent below NYMEX gas price due to regional 
differentials, before consideration of any hedging activity. Realized pricing 
for condensate is expected to be about $6.00 less than the average NYMEX crude 
oil price.

Fourth Quarter 2012 Expense Guidance

The following table presents the company's expected expenses per Mcfe in the 
fourth quarter of 2012 assuming a $3.48 per Mmbtu Henry Hub natural gas price 
and a $87.75 per Bbl NYMEX crude oil price:

Costs Per Mcfe                            Q4 2012

Lease operating expenses                  $ 0.31 – 0.33

Production taxes                          $ 0.27 – 0.29

Gathering fees                            $ 0.19 – 0.21

Total lease operating costs               $ 0.77 – 0.83



Transportation charges                    $ 0.35 – 0.37

Depletion and depreciation                $ 1.23 – 1.27

General and administrative – total  $ 0.10 – 0.12

Interest and debt expense                 $ 0.44 – 0.47

Total operating costs per Mcfe            $ 2.89 – 3.06

2012 Annual Income Tax Guidance

Ultra currently projects a zero book tax rate for the fourth quarter of 2012 
with annual cash taxes forecasted of approximately $2.5 million.

Conference Call Webcast Scheduled for November 1, 2012

Ultra Petroleum's third quarter 2012 results conference call will be available 
via live audio webcast at 11:00 a.m. Eastern Daylight Time (10:00 a.m. Central 
Daylight Time) Thursday, November 1, 2012.  To listen to this webcast, log on 
to www.ultrapetroleum.com and follow the link to the webcast.  The webcast 
replay and podcast will be archived on Ultra Petroleum's website through 
February 15, 2013.

Financial tables to follow.

 _____________________________________________________________________
|                                                                     |
|_____________________________________________________________________|
|                                                                     |
|_____________________________________________________________________|
|Ultra Petroleum Corp.                                                |
|_____________________________________________________________________|
|Consolidated Statements of Income (unaudited)                        |
|_____________________________________________________________________|
|All amounts expressed in US$000's,                                   |
|_____________________________________________________________________|
|Except per unit data                                                 |
|_____________________________________________________________________|
|                                                                     |
|_____________________________________________________________________|
|               | |For the Nine Months Ended| |For the Quarter Ended  |
|_______________|_|_________________________|_|_______________________|
|               | |September 30,            | |September 30,          |
|_______________|_|_________________________|_|_______________________|
|               | |2012       | |2011       | |2012      | |2011      |
|_______________|_|___________|_|___________|_|__________|_|__________|
|Volumes        | |           | |           | |          | |          |
|_______________|_|___________|_|___________|_|__________|_|__________|
|Natural gas    | |190,913,827| |172,213,641| |61,206,471| |61,095,457|
|(Mcf)          | |           | |           | |          | |          |
|_______________|_|___________|_|___________|_|__________|_|__________|
|Oil liquids    | |1,001,126  | |1,024,098  | |309,573   | |390,099   |
|(Bbls)         | |           | |           | |          | |          |
|_______________|_|___________|_|___________|_|__________|_|__________|
|Mcfe - Total   | |196,920,583| |178,358,229| |63,063,909| |63,436,051|
|_______________|_|___________|_|___________|_|__________|_|__________|
|               | |           | |           | |          | |          |
|_______________|_|___________|_|___________|_|__________|_|__________|
|Revenues       | |           | |           | |          | |          |
|_______________|_|___________|_|___________|_|__________|_|__________|
|Natural gas    |$|501,470    |$|743,898    |$|169,594   |$|262,147   |
|sales          | |           | |           | |          | |          |
|_______________|_|___________|_|___________|_|__________|_|__________|
|Oil sales      | |91,319     | |87,101     | |26,781    | |30,994    |
|_______________|_|___________|_|___________|_|__________|_|__________|
|Total operating| |592,789    | |830,999    | |196,375   | |293,141   |
|revenues       | |           | |           | |          | |          |
|_______________|_|___________|_|___________|_|__________|_|__________|
|               | |           | |           | |          | |          |
|_______________|_|___________|_|___________|_|__________|_|__________|
|Expenses       | |           | |           | |          | |          |
|_______________|_|___________|_|___________|_|__________|_|__________|
|Lease operating| |45,982     | |35,853     | |16,741    | |12,381    |
|expenses       | |           | |           | |          | |          |
|_______________|_|___________|_|___________|_|__________|_|__________|
|Production     | |46,634     | |73,796     | |15,047    | |25,676    |
|taxes          | |           | |           | |          | |          |
|_______________|_|___________|_|___________|_|__________|_|__________|
|Gathering fees | |46,591     | |41,363     | |10,274    | |14,445    |
|_______________|_|___________|_|___________|_|__________|_|__________|
|Total lease    | |139,207    | |151,012    | |42,062    | |52,502    |
|operating costs| |           | |           | |          | |          |
|_______________|_|___________|_|___________|_|__________|_|__________|
|               | |           | |           | |          | |          |
|_______________|_|___________|_|___________|_|__________|_|__________|
|Transportation | |63,477     | |48,492     | |21,055    | |16,061    |
|charges        | |           | |           | |          | |          |
|_______________|_|___________|_|___________|_|__________|_|__________|
|Depletion and  | |314,115    | |238,773    | |86,645    | |85,795    |
|depreciation   | |           | |           | |          | |          |
|_______________|_|___________|_|___________|_|__________|_|__________|
|Ceiling test   | |           | |           | |          | |          |
|and other      | |2,475,963  | |-          | |606,827   | |-         |
|impairments    | |           | |           | |          | |          |
|_______________|_|___________|_|___________|_|__________|_|__________|
|General and    | |11,478     | |9,406      | |3,692     | |2,739     |
|administrative | |           | |           | |          | |          |
|_______________|_|___________|_|___________|_|__________|_|__________|
|Stock          | |7,830      | |9,892      | |3,049     | |3,446     |
|compensation   | |           | |           | |          | |          |
|_______________|_|___________|_|___________|_|__________|_|__________|
|Total operating| |3,012,070  | |457,575    | |763,330   | |160,543   |
|expenses       | |           | |           | |          | |          |
|_______________|_|___________|_|___________|_|__________|_|__________|
|               | |           | |           | |          | |          |
|_______________|_|___________|_|___________|_|__________|_|__________|
|Other (expense)| |(27)       | |14         | |(42)      | |(3)       |
|income, net    | |           | |           | |          | |          |
|_______________|_|___________|_|___________|_|__________|_|__________|
|Rig            | |           | |           | |          | |          |
|cancellation   | |(9,220)    | |-          | |291       | |-         |
|fees           | |           | |           | |          | |          |
|_______________|_|___________|_|___________|_|__________|_|__________|
|Interest and   | |           | |           | |          | |          |
|debt expense,  | |(62,414)   | |(46,082)   | |(25,369)  | |(15,902)  |
|net            | |           | |           | |          | |          |
|_______________|_|___________|_|___________|_|__________|_|__________|
|Realized gain  | |           | |           | |          | |          |
|on commodity   | |260,239    | |143,749    | |83,433    | |53,630    |
|derivatives    | |           | |           | |          | |          |
|_______________|_|___________|_|___________|_|__________|_|__________|
|Unrealized     | |           | |           | |          | |          |
|(loss) gain on | |(183,139)  | |33,658     | |(93,329)  | |60,536    |
|commodity      | |           | |           | |          | |          |
|derivatives    | |           | |           | |          | |          |
|_______________|_|___________|_|___________|_|__________|_|__________|
|(Loss) income  | |           | |           | |          | |          |
|before income  | |(2,413,842)| |504,763    | |(601,971) | |230,859   |
|taxes          | |           | |           | |          | |          |
|_______________|_|___________|_|___________|_|__________|_|__________|
|Income tax     | |           | |           | |          | |          |
|provision -    | |3,386      | |6,826      | |363       | |2,275     |
|current        | |           | |           | |          | |          |
|_______________|_|___________|_|___________|_|__________|_|__________|
|Income tax     | |           | |           | |          | |          |
|(benefit)      | |(712,363)  | |176,566    | |(188)     | |79,438    |
|provision -    | |           | |           | |          | |          |
|deferred       | |           | |           | |          | |          |
|_______________|_|___________|_|___________|_|__________|_|__________|
|               | |           | |           | |          | |          |
|_______________|_|___________|_|___________|_|__________|_|__________|
|Net (loss)     |$|(1,704,865)|$|321,371    |$|(602,146) |$|149,146   |
|income         | |           | |           | |          | |          |
|_______________|_|___________|_|___________|_|__________|_|__________|
|               | |           | |           | |          | |          |
|_______________|_|___________|_|___________|_|__________|_|__________|
|Ceiling test   | |           | |           | |          | |          |
|and other      |$|2,475,963  |$|-          |$|606,827   |$|-         |
|impairments    | |           | |           | |          | |          |
|_______________|_|___________|_|___________|_|__________|_|__________|
|Deferred tax     |(713,537)  | |-          | |(188)     | |-         |
|benefit          |           | |           | |          | |          |
|_________________|___________|_|___________|_|__________|_|__________|
|Rig            | |           | |           | |          | |          |
|cancellation   | |9,220      | |-          | |(291)     | |-         |
|fees           | |           | |           | |          | |          |
|_______________|_|___________|_|___________|_|__________|_|__________|
|Unrealized loss| |           | |           | |          | |          |
|(gain) on      | |183,139    | |(21,575)   | |93,329    | |(38,804)  |
|commodity      | |           | |           | |          | |          |
|derivatives    | |           | |           | |          | |          |
|_______________|_|___________|_|___________|_|__________|_|__________|
|Adjusted net   |$|249,920    |$|299,796    |$|97,531    |$|110,342   |
|income( (3))   | |           | |           | |          | |          |
|_______________|_|___________|_|___________|_|__________|_|__________|
|               | |           | |           | |          | |          |
|_______________|_|___________|_|___________|_|__________|_|__________|
|Operating cash |$|563,819    |$|712,944    |$|187,522   |$|257,287   |
|flow ((1))     | |           | |           | |          | |          |
|_______________|_|___________|_|___________|_|__________|_|__________|
|(see non-GAAP  | |           | |           | |          | |          |
|reconciliation)| |           | |           | |          | |          |
|_______________|_|___________|_|___________|_|__________|_|__________|
|               | |           | |           | |          | |          |
|_______________|_|___________|_|___________|_|__________|_|__________|
|Weighted       | |           | |           | |          | |          |
|average shares | |           | |           | |          | |          |
|(000's)        | |           | |           | |          | |          |
|_______________|_|___________|_|___________|_|__________|_|__________|
|Basic          | |152,817    | |152,772    | |152,929   | |152,817   |
|_______________|_|___________|_|___________|_|__________|_|__________|
|Fully diluted  | |152,817    | |154,418    | |152,929   | |154,280   |
|_______________|_|___________|_|___________|_|__________|_|__________|
|               | |           | |           | |          | |          |
|_______________|_|___________|_|___________|_|__________|_|__________|
|Earnings per   | |           | |           | |          | |          |
|share          | |           | |           | |          | |          |
|_______________|_|___________|_|___________|_|__________|_|__________|
|Net income -   | |($11.16)   | |$2.10      | |($3.94)   | |$0.98     |
|basic          | |           | |           | |          | |          |
|_______________|_|___________|_|___________|_|__________|_|__________|
|Net income -   | |($11.16)   | |$2.08      | |($3.94)   | |$0.97     |
|fully diluted  | |           | |           | |          | |          |
|_______________|_|___________|_|___________|_|__________|_|__________|
|               | |           | |           | |          | |          |
|_______________|_|___________|_|___________|_|__________|_|__________|
|Adjusted       | |           | |           | |          | |          |
|earnings per   | |           | |           | |          | |          |
|share((3))     | |           | |           | |          | |          |
|_______________|_|___________|_|___________|_|__________|_|__________|
|Adjusted net   | |$1.64      | |$1.96      | |$0.64     | |$0.72     |
|income - basic | |           | |           | |          | |          |
|_______________|_|___________|_|___________|_|__________|_|__________|
|Adjusted net   | |           | |           | |          | |          |
|income - fully | |$1.64      | |$1.94      | |$0.64     | |$0.72     |
|diluted        | |           | |           | |          | |          |
|_______________|_|___________|_|___________|_|__________|_|__________|
|               | |           | |           | |          | |          |
|_______________|_|___________|_|___________|_|__________|_|__________|
|Realized Prices| |           | |           | |          | |          |
|_______________|_|___________|_|___________|_|__________|_|__________|
|Natural gas    | |           | |           | |          | |          |
|(Mcf),         | |           | |           | |          | |          |
|including      | |           | |           | |          | |          |
|realized gain  | |           | |           | |          | |          |
|(loss)         | |           | |           | |          | |          |
|_______________|_|___________|_|___________|_|__________|_|__________|
|on commodity   | |$3.99      | |$5.15      | |$4.13     | |$5.17     |
|derivatives    | |           | |           | |          | |          |
|_______________|_|___________|_|___________|_|__________|_|__________|
|Natural gas    | |           | |           | |          | |          |
|(Mcf),         | |           | |           | |          | |          |
|excluding      | |           | |           | |          | |          |
|realized gain  | |           | |           | |          | |          |
|(loss)         | |           | |           | |          | |          |
|_______________|_|___________|_|___________|_|__________|_|__________|
|on commodity   | |$2.63      | |$4.32      | |$2.77     | |4.29      |
|derivatives    | |           | |           | |          | |          |
|_______________|_|___________|_|___________|_|__________|_|__________|
|Oil liquids    | |$91.22     | |$85.05     | |$86.51    | |$79.45    |
|(Bbls)         | |           | |           | |          | |          |
|_______________|_|___________|_|___________|_|__________|_|__________|
|               | |           | |           | |          | |          |
|_______________|_|___________|_|___________|_|__________|_|__________|
|Costs Per Mcfe | |           | |           | |          | |          |
|_______________|_|___________|_|___________|_|__________|_|__________|
|Lease operating| |$0.23      | |$0.20      | |$0.27     | |$0.20     |
|expenses       | |           | |           | |          | |          |
|_______________|_|___________|_|___________|_|__________|_|__________|
|Production     | |$0.24      | |$0.41      | |$0.24     | |$0.40     |
|taxes          | |           | |           | |          | |          |
|_______________|_|___________|_|___________|_|__________|_|__________|
|Gathering fees | |$0.24      | |$0.23      | |$0.16     | |$0.23     |
|_______________|_|___________|_|___________|_|__________|_|__________|
|Transportation | |$0.32      | |$0.27      | |$0.33     | |$0.25     |
|charges        | |           | |           | |          | |          |
|_______________|_|___________|_|___________|_|__________|_|__________|
|Depletion and  | |$1.60      | |$1.34      | |$1.37     | |$1.35     |
|depreciation   | |           | |           | |          | |          |
|_______________|_|___________|_|___________|_|__________|_|__________|
|General and    | |           | |           | |          | |          |
|administrative | |$0.10      | |$0.11      | |$0.11     | |$0.10     |
|- total        | |           | |           | |          | |          |
|_______________|_|___________|_|___________|_|__________|_|__________|
|Interest and   | |$0.32      | |$0.26      | |$0.40     | |$0.25     |
|debt expense   | |           | |           | |          | |          |
|_______________|_|___________|_|___________|_|__________|_|__________|
|               | |$3.05      | |$2.82      | |$2.88     | |$2.78     |
|_______________|_|___________|_|___________|_|__________|_|__________|
|               | |           | |           | |          | |          |
|_______________|_|___________|_|___________|_|__________|_|__________|
|Note: Amounts on a per Mcfe  | |           | |          | |          |
|basis may not total due to   | |           | |          | |          |
|rounding.                    | |           | |          | |          |
|_____________________________|_|___________|_|__________|_|__________|
|               | |           | |           | |          | |          |
|_______________|_|___________|_|___________|_|__________|_|__________|
|Adjusted       | |           | |           | |          | |          |
|Margins        | |           | |           | |          | |          |
|_______________|_|___________|_|___________|_|__________|_|__________|
|Adjusted Net   | |29%        | |31%        | |35%       | |32%       |
|Income((4))    | |           | |           | |          | |          |
|_______________|_|___________|_|___________|_|__________|_|__________|
|Adjusted       | |           | |           | |          | |          |
|Operating Cash | |66%        | |73%        | |67%       | |74%       |
|Flow Margin(   | |           | |           | |          | |          |
|(5))           | |           | |           | |          | |          |
|_______________|_|___________|_|___________|_|__________|_|__________|
|               | |           | |           | |          | |          |
|_______________|_|___________|_|___________|_|__________|_|__________|
|                                                                     |
|_____________________________________________________________________|
|Ultra Petroleum Corp.                                                |
|_____________________________________________________________________|
|Supplemental Balance Sheet Data                                      |
|_____________________________________________________________________|
|All amounts expressed in US$000's                                    |
|_____________________________________________________________________|
|                                                                     |
|_____________________________________________________________________|
|               | |As of                    | |          | |          |
|_______________|_|_________________________|_|__________|_|__________|
|               | |September  | |December   | |          | |          |
|               | |           | |31,        | |          | |          |
|               | |30,        | |           | |          | |          |
|_______________|_|___________|_|___________|_|__________|_|__________|
|               | |2012       | |2011       | |          | |          |
|_______________|_|___________|_|___________|_|__________|_|__________|
|               | |(Unaudited)| |           | |          | |          |
|_______________|_|___________|_|___________|_|__________|_|__________|
|Cash and cash  |$|59,194     |$|11,307     | |          | |          |
|equivalents    | |           | |           | |          | |          |
|_______________|_|___________|_|___________|_|__________|_|__________|
|Long-term debt | |           | |           | |          | |          |
|_______________|_|___________|_|___________|_|__________|_|__________|
|Bank           | |600,000    | |343,000    | |          | |          |
|indebtedness   | |           | |           | |          | |          |
|_______________|_|___________|_|___________|_|__________|_|__________|
|Senior notes   | |1,560,000  | |1,560,000  | |          | |          |
|_______________|_|___________|_|___________|_|__________|_|__________|
|               |$|2,160,000  |$|1,903,000  | |          | |          |
|_______________|_|___________|_|___________|_|__________|_|__________|
|               | |           | |           | |          | |          |
|_______________|_|___________|_|___________|_|__________|_|__________|
|                                                                     |
|_____________________________________________________________________|
|Reconciliation of Operating Cash Flow and Net Cash Provided by       |
|Operating Activities (unaudited)                                     |
|_____________________________________________________________________|
|                                                                     |
|_____________________________________________________________________|
|All amounts expressed in US$000's                                    |
|_____________________________________________________________________|
|The following table reconciles net cash provided by operating        |
|activities with operating cash flow as derived from the company's    |
|financial information.                                               |
|_____________________________________________________________________|
|               | |           | |           | |          | |          |
|_______________|_|___________|_|___________|_|__________|_|__________|
|               | |For the Nine Months Ended| |For the Quarter Ended  |
|_______________|_|_________________________|_|_______________________|
|               | |September 30,            | |September 30,          |
|_______________|_|_________________________|_|_______________________|
|               | |2012       | |2011       | |2012      | |2011      |
|_______________|_|___________|_|___________|_|__________|_|__________|
|               | |           | |           | |          | |          |
|_______________|_|___________|_|___________|_|__________|_|__________|
|Net cash       | |           | |           | |          | |          |
|provided by    |$|480,075    |$|719,792    |$|152,426   |$|242,412   |
|operating      | |           | |           | |          | |          |
|activities     | |           | |           | |          | |          |
|_______________|_|___________|_|___________|_|__________|_|__________|
|Net changes in | |           | |           | |          | |          |
|operating      | |           | |           | |          | |          |
|assets and     | |           | |           | |          | |          |
|liabilities    | |           | |           | |          | |          |
|_______________|_|___________|_|___________|_|__________|_|__________|
|and other      | |83,744     | |(6,848)    | |35,096    | |14,875    |
|non-cash items*| |           | |           | |          | |          |
|_______________|_|___________|_|___________|_|__________|_|__________|
|Net cash       | |           | |           | |          | |          |
|provided by    | |           | |           | |          | |          |
|operating      | |           | |           | |          | |          |
|activities     | |           | |           | |          | |          |
|before         | |           | |           | |          | |          |
|_______________|_|___________|_|___________|_|__________|_|__________|
|changes in     | |           | |           | |          | |          |
|operating      |$|563,819    |$|712,944    |$|187,522   |$|257,287   |
|assets and     | |           | |           | |          | |          |
|liabilities    | |           | |           | |          | |          |
|_______________|_|___________|_|___________|_|__________|_|__________|

 _________________________________________________________
|                                                         |
|_________________________________________________________|
|                                                         |
|_________________________________________________________|
|Ultra Petroleum Corp.                                    |
|_________________________________________________________|
|Hedging Summary                                          |
|_________________________________________________________|
|November 1, 2012                                         |
|_________________________________________________________|
|            ||       |       |       |       |           |
|____________||_______|_______|_______|_______|___________|
|The company has the following hedge positions in place to|
|mitigate its commodity price exposure:                   |
|_________________________________________________________|
|            ||       |       |       |       |           |
|____________||_______|_______|_______|_______|___________|
|NYMEX       ||Q1 2012|Q2 2012|Q3 2012|Q4 2012|YTD 2012   |
|____________||_______|_______|_______|_______|___________|
|Volume (Bcf)||27.3   |53.7   |54.3   |48.8   |184.1      |
|____________||_______|_______|_______|_______|___________|
|MMbtu ($)   ||$5.03  |$4.34  |$4.34  |$ 4.27 |$4.43      |
|____________||_______|_______|_______|_______|___________|

The company reports its financial results in accordance with accounting 
principles generally accepted in the United States of America ("GAAP"). 
However, management believes certain non-GAAP performance measures may provide 
users of this financial information with additional meaningful comparisons 
between current results and the results of the company's peers and of prior 
periods.

((1) )Operating Cash Flow is defined as Net cash provided by operating 
activities before changes in operating assets and liabilities and other 
non-cash items. Management believes that the non-GAAP measure of operating 
cash flow is useful as an indicator of an oil and gas exploration and 
production company's ability to internally fund exploration and development 
activities and to service or incur additional debt.  The company has also 
included this information because changes in operating assets and liabilities 
relate to the timing of cash receipts and disbursements which the company may 
not control and may not relate to the period in which the operating activities 
occurred. Operating cash flow should not be considered in isolation or as a 
substitute for net cash provided by operating activities prepared in 
accordance with GAAP.

((2) )EBITDA is defined as earnings before interest, taxes, DD&A and other 
non-cash charges.

Management presents the following measures because (i) they are consistent 
with the manner in which the company's performance is measured relative to the 
performance of its peers, (ii) these measures are more comparable to earnings 
estimates provided by securities analysts, and (iii) charges or amounts 
excluded cannot be reasonably estimated and guidance provided by the company 
excludes information regarding these types of items. These adjusted amounts 
are not a measure of financial performance under GAAP.

((3)) Adjusted Net Income is defined as Net income (loss) adjusted to exclude 
certain charges or amounts in order to exclude the volatility associated with 
the effects of non-recurring charges, non-cash mark-to-market losses on 
commodity derivatives, non-cash ceiling test impairments, and other similar 
items.

((4)) Adjusted Net Income Margin is defined as Adjusted Net Income divided by 
the sum of Oil and natural gas sales plus Realized gain (loss) on commodity 
derivatives.

((5)) Adjusted Operating Cash Flow Margin is defined as Operating Cash Flow 
divided by the sum of Oil and natural gas sales plus Realized gain (loss) on 
commodity derivatives.

*Other non-cash items include excess tax benefit from stock based compensation 
and other.

About Ultra Petroleum

Ultra Petroleum Corp. is an independent exploration and production company 
focused on developing its long-life natural gas reserves in the Green River 
Basin of Wyoming – the Pinedale and Jonah Fields and is in the ongoing 
exploration and early development stages in the Appalachian Basin of 
Pennsylvania. Ultra is listed on the New York Stock Exchange and trades under 
the ticker symbol "UPL".  The company had 152,928,937 shares outstanding on 
September 30, 2012.

This release can be found at http://www.ultrapetroleum.com.

This news release includes "forward-looking statements" within the meaning of 
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the 
Securities Exchange Act of 1934, as amended. All opinions, forecasts, 
projections or other statements in this release, other than statements of 
historical fact, are forward-looking statements. Although the company believes 
that the expectations reflected in such forward-looking statements are 
reasonable, the company can give no assurance that such expectations will 
prove to have been correct. Certain risks and uncertainties inherent in the 
company's businesses are set forth in its filings with the SEC, particularly 
in the section entitled "Risk Factors" included in its Annual Report on Form 
10-K for the most recent fiscal year and from time to time in other filings 
made by the company with the SEC. These risks and uncertainties include, but 
are not limited to, increased competition, the timing and extent of changes in 
prices for oil and gas, particularly in Wyoming and Pennsylvania, the timing 
and extent of the company's success in discovering, developing, producing and 
estimating reserves, the effects of weather and government regulation, 
availability of oil field personnel, services, drilling rigs and other 
equipment, as well as other factors listed in the reports filed by the company 
with the SEC. Full details regarding the selected financial information 
provided above will be available in the company's report on Form 10-Q for the 
quarter ended September 30, 2012.

Kelly L. Whitley, Director, Investor Relations, +1-281-582-6602, 
kwhitley@ultrapetroleum.com, or Julie E. Danvers, Manager, Investor Relations, 
+1-281-582-6604, jdanvers@ultrapetroleum.com

http://www.ultrapetroleum.com

http://photos.prnewswire.com/prnh/20121101/DA01969

http://photos.prnewswire.com/prnh/20020226/DATU029LOGO

PRN Photo Desk, photodesk@prnewswire.com

SOURCE: Ultra Petroleum Corp.

To view this news release in HTML formatting, please use the following URL: 
http://www.newswire.ca/en/releases/archive/November2012/01/c4013.html

CO: Ultra Petroleum Corp.
ST: Texas
NI: OIL UTI ERN EST ERN CONF 

-0- Nov/01/2012 12:37 GMT

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