Ultra Petroleum Announces Third Quarter 2013 Financial And Operating Results

Ultra Petroleum Announces Third Quarter 2013 Financial And Operating Results 
ADJUSTED EPS OF $0.37 PER DILUTED SHARE 
HOUSTON, Nov. 1, 2013 /CNW/ - Ultra Petroleum Corp. (NYSE: UPL) today reported 
third quarter 2013 operating and financial results. Highlights during the 
quarter include: 


    --  Third quarter production volumes of 57.5 Bcfe
    --  Operating cash flow((1)) of $117.9 million, or $0.76 per
        diluted share for the quarter
    --  Reported net income of $57.9 million, or $0.37 per diluted
        share – adjusted((3))
    --  Low per unit all-in costs of $2.80 per Mcfe with cash costs of
        $1.77 per Mcfe
    --  Fourteen percent reduction in Wyoming well costs to $3.8
        million per well
    --  Positive margins in third quarter of 2013 (adjusted): 54
        percent cash flow margin((5) )and 26 percent net income margin(
        (4))

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

Third Quarter Results

Ultra Petroleum produced 57.5 billion feet equivalent (Bcfe) of natural gas 
and crude oil during the third quarter 2013. The company's production was 
comprised of 55.7 billion cubic feet (Bcf) of natural gas and 297.3 thousand 
barrels (Mbls) of condensate.

Ultra's average realized natural gas price for the quarter was $3.41 per 
thousand cubic feet (Mcf), including the effects of commodity hedges. The 
realized condensate price in the third quarter of 2013 was $100.06 per barrel 
(Bbl).

Ultra Petroleum reported operating cash flow((1)) of $117.9 million, or $0.76 
per diluted share in the third quarter. Adjusted net income((3)) for the 
quarter was $57.9 million, or $0.37 per diluted share.

Year-to-Date Results

The company's natural gas and crude oil production for the nine month period 
ended September 30, 2013, was 175.3 Bcfe. Ultra's production was comprised of 
170.1 Bcf of natural gas and 864.7 Mbls of condensate.

Including the effects of commodity hedges, Ultra Petroleum's average realized 
natural gas price was $3.57 per Mcf. The realized condensate price for the 
nine months ended September 30, 2013, was $92.25 per Bbl.

Ultra reported operating cash flow((1)) of $375.9 million, or $2.44 per 
diluted share for the nine month period. Adjusted net income((3)) was $188.3 
million, or $1.22 per diluted share for the same nine month period in 2013.

"Our 2013 year-to-date results reflect our planned slowing of investment in 
our low cost, long life natural gas assets due to commodity price signals. 
Nine month cash flow of $376.0 million nearly equals our downwardly revised 
2013 capital expenditure budget of $385.0 million, meaning fourth quarter cash 
flow is free cash," stated Michael D. Watford, Chairman, President and Chief 
Executive Officer.

Wyoming - Operational Highlights

During the third quarter, Ultra Petroleum and its partners drilled 35 gross 
(17 net) Wyoming Lance wells and placed on production 39 gross (16 net) wells. 
The third quarter average initial production (IP) rate for new operated wells 
brought online was 7.7 million cubic feet equivalent (MMcfe) per day. Net 
production from Wyoming averaged 450 MMcfe per day in the third quarter.

Ultra Petroleum and its partners drilled 100 gross (46 net) Wyoming Lance 
wells and placed on production 109 gross (53 net) wells for the nine months 
ended September 30, 2013. The average IP rate for the wells placed on 
production during the nine month period was also 7.7 MMcfe per day. This 
compares to the year-to-date average IP rate for the Ultra operated wells 
brought online in its activity focus area of 9.0 MMcfe per day. The company 
produced 123.8 Bcfe from Wyoming during the nine months ended September 30, 
2013.

During the third quarter, Ultra continued to reduce its total well costs to 
$3.8 million from $4.4 million during the second quarter of 2013, a fourteen 
percent reduction. More importantly, this represents a nineteen percent well 
cost reduction from the average cost to drill and complete a well in 2012 of 
$4.7 million. Continued completion design optimization was the primary driver 
of the $900,000 per well cost savings over the course of the year. These 
significant cost savings further enhance returns as illustrated in the table 
below:
                 Pinedale IRR's

Well Cost ($/MM) Reserve Size (Bcfe)
                 4.0 5.0 6.0

$4.7             22% 37% 56%

$4.4             26% 44% 65%

$3.8             36% 59% 91%
                 Economics at $4.00/Mcf wellhead price

Ultra achieved a new milestone during the third quarter by averaging 9.3 days 
spud to total depth (TD) with eighty-one percent of all operated wells being 
drilled in less than 10 days. Total days per well, as measured by rig-release 
to rig-release, averaged 11.3 days in the third quarter.

Pennsylvania - Operational Highlights

During the third quarter, Ultra participated in drilling 8 gross (4 net) 
horizontal Marcellus wells and initiated production from 6 gross (3 net) 
wells. Ultra's Marcellus program demonstrated average IP rates of 7.6 MMcfe 
per day for the new wells placed online during the quarter. Third quarter 
Pennsylvania net production averaged 175 MMcfe per day.

For the nine month period ending September 30, 2013, Ultra and its partners 
drilled 21 gross (10 net) horizontal Marcellus wells and initiated production 
from 30 gross (15 net) wells. Ultra's Marcellus average IP rate during the 
same nine month period was 6.4 MMcfe per day for the new wells brought online. 
Cumulative Marcellus production for the nine month period was 51.5 Bcfe.

A few notable completions during the quarter include a three well pad in Tioga 
County that came online with an average initial production (IP) rate of 9.2 
MMcfe per day per well. The average 30-day production rate for the pad was 
21.6 MMcfe per day. Subsequent to quarter-end, an extension well came online 
in Centre County at an initial constrained IP rate of 6.7 MMcfe per day. This 
step out well to the southwest of our development focus area in Lycoming 
County further validates the quality of the Marcellus resource across our 
acreage position.

Natural Gas Marketing

During the third quarter, basis differentials in the Northeast widened due to 
planned seasonal infrastructure maintenance coupled with a capacity 
constrained market. As a result of the temporary pricing dislocations, Ultra 
curtailed production by approximately 0.8 Bcfe. The company's average discount 
to NYMEX in the Marcellus region was ($0.54) during the quarter. In the 
Rockies region, which is the primary source of the company's revenue, cash 
flow and earnings, basis differentials averaged NYMEX less $0.18. On a 
combined basis, the company's average corporate-wide differential to NYMEX was 
7 percent or ($0.26) for the quarter.

Commodity Hedges

Currently, Ultra has 12.1 Bcf representing approximately 22 percent of the 
company's remaining 2013 forecasted natural gas production hedged at a 
weighted-average price of $3.75 per Mcf. The company opportunistically hedges 
a portion of its forecasted production to lessen the volatility associated 
with swings in commodity prices and improve certainty of cash flows in support 
of the company's capital investment program.

Financial Strength

As of September 30, 2013, 84 percent of Ultra Petroleum's outstanding 
borrowings were comprised of long-term, fixed-rate debt with an average 
remaining term of 6.5 years and a 5.6 percent weighted average coupon rate. 
Ultra's debt to trailing twelve months EBITDA((2)) ratio registered 2.9 times 
with approximately $400.0 million in unused senior debt capacity. 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.

Full-Year 2013 Capital Expenditure and Production Guidance

The company is reducing its annual capital expenditures for 2013 to $385.0 
million from $415.0 million driven by operating efficiencies and lower well 
costs in Wyoming.

Ultra is reaffirming its annual production guidance range of 230 – 236 Bcfe. 
Based on the mid-point of the company's guidance, approximately 70 percent of 
the company's forecasted production will come from the Rockies and 30 percent 
of total company production will come from Appalachia.

Fourth Quarter 2013 Price Realizations and Differentials Guidance

In the fourth quarter of 2013, the company's realized natural gas price is 
expected to average 5 – 7 percent below the NYMEX price due to regional 
differentials, before consideration of any hedging activity. Realized pricing 
for condensate is expected to be about $7.00 less than the average NYMEX crude 
oil price.

Fourth Quarter 2013 Expense Guidance

The following table presents the company's expected expenses per Mcfe in the 
fourth quarter of 2013 assuming a $3.62 per MMbtu Henry Hub natural gas price 
and a $98.00 per Bbl NYMEX crude oil price:

Costs Per Mcfe                            Q4 2013

Lease operating expenses                  $ 0.38 – 0.40

Production taxes                          $ 0.30 – 0.32

Gathering fees                            $ 0.23 – 0.25

Total lease operating costs               $ 0.91 – 0.97

Transportation charges                    $ 0.36 – 0.38

Depletion and depreciation                $ 1.03 – 1.08

General and administrative – total  $ 0.10 – 0.12

Interest and debt expense                 $ 0.43 – 0.45

Total operating costs per Mcfe            $ 2.83 – 3.00

2013 Annual Income Tax Guidance

Ultra currently projects a 1.5 percent book tax rate for 2013. This equates to 
forecasted annual cash taxes of $4.0 million with approximately $1.0 million 
remaining for the fourth quarter 2013.

Subsequent to Quarter-End

On October 21, 2013, the company announced that it had signed a definitive 
purchase and sale agreement to acquire oil-producing properties located in the 
Uinta Basin for $650.0 million. Ultra Petroleum expects to finance the 
acquisition through debt. It is anticipated that the transaction will close 
December 2013, subject to closing adjustments and customary terms and 
conditions, with an effective date of October 1, 2013.

"We are maintaining exposure to 100 percent of our low cost, long life natural 
gas assets while adding a high-returning oil project that complements our 
technical skills. The project will provide exceptional returns even at 
realized oil prices of $60 per barrel," commented Watford.

Conference Call Webcast Scheduled for November 1, 2013

Ultra Petroleum's third quarter 2013 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) Friday, November 1, 2013.  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 20, 
2014.

Please click here to view a presentation containing supplemental information.

Financial tables to follow.

 ______________________________________________________________________
|Ultra Petroleum Corp.                       | |          | |          |
|____________________________________________|_|__________|_|__________|
|Consolidated Statements of Income (unaudited) |          | |          |
|______________________________________________|__________|_|__________|
|All amounts expressed in US$000's,            |          | |          |
|______________________________________________|__________|_|__________|
|Except per unit data                        | |          | |          |
|____________________________________________|_|__________|_|__________|
|               | |For the Nine Months Ended | |For the Quarter Ended  |
|               | |                          | |                       |
|               | |September 30,             | |September 30,          |
|_______________|_|__________________________|_|_______________________|
|               | |2013        | |2012       | |2013      | |2012      |
|_______________|_|____________|_|___________|_|__________|_|__________|
|Volumes        | |            | |           | |          | |          |
|_______________|_|____________|_|___________|_|__________|_|__________|
|Natural gas    | |170,069,532 | |190,913,828| |55,718,130| |61,206,471|
|(Mcf)          | |            | |           | |          | |          |
|_______________|_|____________|_|___________|_|__________|_|__________|
|Oil liquids    | |864,710     | |1,001,127  | |297,329   | |309,573   |
|(Bbls)         | |            | |           | |          | |          |
|_______________|_|____________|_|___________|_|__________|_|__________|
|Mcfe - Total   | |175,257,792 | |196,920,590| |57,502,104| |63,063,909|
|_______________|_|____________|_|___________|_|__________|_|__________|
|Revenues       | |            | |           | |          | |          |
|_______________|_|____________|_|___________|_|__________|_|__________|
|Natural gas    |$|628,438     |$|501,470    |$|191,453   |$|169,594   |
|sales          | |            | |           | |          | |          |
|_______________|_|____________|_|___________|_|__________|_|__________|
|Oil sales      | |79,769      | |91,319     | |29,752    | |26,781    |
|_______________|_|____________|_|___________|_|__________|_|__________|
|Total operating| |708,207     | |592,789    | |221,205   | |196,375   |
|revenues       | |            | |           | |          | |          |
|_______________|_|____________|_|___________|_|__________|_|__________|
|Expenses       | |            | |           | |          | |          |
|_______________|_|____________|_|___________|_|__________|_|__________|
|Lease operating| |52,544      | |45,982     | |16,213    | |16,741    |
|expenses       | |            | |           | |          | |          |
|_______________|_|____________|_|___________|_|__________|_|__________|
|LGS operating  | |15,000      | |-          | |5,000     | |-         |
|lease expense  | |            | |           | |          | |          |
|_______________|_|____________|_|___________|_|__________|_|__________|
|Production     | |54,640      | |46,634     | |18,078    | |15,047    |
|taxes          | |            | |           | |          | |          |
|_______________|_|____________|_|___________|_|__________|_|__________|
|Gathering fees | |38,400      | |46,591     | |12,682    | |10,274    |
|_______________|_|____________|_|___________|_|__________|_|__________|
|Total lease    | |160,584     | |139,207    | |51,973    | |42,062    |
|operating costs| |            | |           | |          | |          |
|_______________|_|____________|_|___________|_|__________|_|__________|
|Transportation | |61,913      | |63,477     | |20,955    | |21,055    |
|charges        | |            | |           | |          | |          |
|_______________|_|____________|_|___________|_|__________|_|__________|
|Depletion and  | |180,993     | |314,115    | |59,401    | |86,645    |
|depreciation   | |            | |           | |          | |          |
|_______________|_|____________|_|___________|_|__________|_|__________|
|Ceiling test   | |            | |           | |          | |          |
|and other      | |-           | |2,475,963  | |-         | |606,827   |
|impairments    | |            | |           | |          | |          |
|_______________|_|____________|_|___________|_|__________|_|__________|
|General and    | |9,272       | |11,478     | |3,496     | |3,692     |
|administrative | |            | |           | |          | |          |
|_______________|_|____________|_|___________|_|__________|_|__________|
|Stock          | |6,625       | |7,830      | |564       | |3,049     |
|compensation   | |            | |           | |          | |          |
|_______________|_|____________|_|___________|_|__________|_|__________|
|Total operating| |419,387     | |3,012,070  | |136,389   | |763,330   |
|expenses       | |            | |           | |          | |          |
|_______________|_|____________|_|___________|_|__________|_|__________|
|Other (expense)| |(50)        | |(27)       | |(63)      | |(42)      |
|income, net    | |            | |           | |          | |          |
|_______________|_|____________|_|___________|_|__________|_|__________|
|Contract       | |            | |           | |          | |          |
|cancellation   | |-           | |(9,220)    | |-         | |291       |
|fees           | |            | |           | |          | |          |
|_______________|_|____________|_|___________|_|__________|_|__________|
|Interest and   | |            | |           | |          | |          |
|debt expense,  | |(76,176)    | |(62,414)   | |(25,174)  | |(25,369)  |
|net            | |            | |           | |          | |          |
|_______________|_|____________|_|___________|_|__________|_|__________|
|Deferred gain  | |            | |           | |          | |          |
|on sale of     | |            | |           | |          | |          |
|liquids        | |7,914       | |-          | |2,638     | |-         |
|gathering      | |            | |           | |          | |          |
|system         | |            | |           | |          | |          |
|_______________|_|____________|_|___________|_|__________|_|__________|
|Realized (loss)| |            | |           | |          | |          |
|gain on        | |(21,074)    | |260,239    | |(1,310)   | |83,433    |
|commodity      | |            | |           | |          | |          |
|derivatives    | |            | |           | |          | |          |
|_______________|_|____________|_|___________|_|__________|_|__________|
|Unrealized     | |            | |           | |          | |          |
|(loss) gain on | |523         | |(183,139)  | |3,384     | |(93,329)  |
|commodity      | |            | |           | |          | |          |
|derivatives    | |            | |           | |          | |          |
|_______________|_|____________|_|___________|_|__________|_|__________|
|Income (loss)  | |            | |           | |          | |          |
|before income  | |199,957     | |(2,413,842)| |64,291    | |(601,971) |
|taxes          | |            | |           | |          | |          |
|_______________|_|____________|_|___________|_|__________|_|__________|
|Income tax     | |            | |           | |          | |          |
|provision -    | |3,240       | |3,386      | |381       | |363       |
|current        | |            | |           | |          | |          |
|_______________|_|____________|_|___________|_|__________|_|__________|
|Income tax     | |            | |           | |          | |          |
|provision      | |-           | |(712,363)  | |-         | |(188)     |
|(benefit) -    | |            | |           | |          | |          |
|deferred       | |            | |           | |          | |          |
|_______________|_|____________|_|___________|_|__________|_|__________|
|Net income     |$|196,717     |$|(1,704,865)|$|63,910    |$|(602,146) |
|(loss)         | |            | |           | |          | |          |
|_______________|_|____________|_|___________|_|__________|_|__________|
|Ceiling test   | |            | |           | |          | |          |
|and other      |$|-           |$|2,475,963  |$|-         |$|606,827   |
|impairments    | |            | |           | |          | |          |
|_______________|_|____________|_|___________|_|__________|_|__________|
|Deferred taxes   |-           | |(712,606)  | |-         | |(188)     |
|_________________|____________|_|___________|_|__________|_|__________|
|Contract       | |            | |           | |          | |          |
|cancellation   | |-           | |9,220      | |-         | |(291)     |
|fees           | |            | |           | |          | |          |
|_______________|_|____________|_|___________|_|__________|_|__________|
|Deferred gain  | |            | |           | |          | |          |
|on sale of     | |            | |           | |          | |          |
|liquids        | |(7,914)     | |-          | |(2,638)   | |-         |
|gathering      | |            | |           | |          | |          |
|system         | |            | |           | |          | |          |
|_______________|_|____________|_|___________|_|__________|_|__________|
|Unrealized loss| |            | |           | |          | |          |
|(gain) on      | |(523)       | |183,139    | |(3,384)   | |93,329    |
|commodity      | |            | |           | |          | |          |
|derivatives    | |            | |           | |          | |          |
|_______________|_|____________|_|___________|_|__________|_|__________|
|Adjusted net   |$|188,280     |$|250,851    |$|57,888    |$|97,531    |
|income( (3))   | |            | |           | |          | |          |
|_______________|_|____________|_|___________|_|__________|_|__________|
|Operating cash |$|375,898     |$|563,819    |$|117,850   |$|187,522   |
|flow ((1))     | |            | |           | |          | |          |
|_______________|_|____________|_|___________|_|__________|_|__________|
|(see non-GAAP  | |            | |           | |          | |          |
|reconciliation)| |            | |           | |          | |          |
|_______________|_|____________|_|___________|_|__________|_|__________|
|Weighted       | |            | |           | |          | |          |
|average shares | |            | |           | |          | |          |
|(000's)        | |            | |           | |          | |          |
|_______________|_|____________|_|___________|_|__________|_|__________|
|Basic          | |152,957     | |152,817    | |152,976   | |152,929   |
|_______________|_|____________|_|___________|_|__________|_|__________|
|Fully diluted  | |154,366     | |152,817    | |154,512   | |152,929   |
|_______________|_|____________|_|___________|_|__________|_|__________|
|Earnings per   | |            | |           | |          | |          |
|share          | |            | |           | |          | |          |
|_______________|_|____________|_|___________|_|__________|_|__________|
|Net income -   | |$1.29       | |($11.16)   | |$0.42     | |($3.94)   |
|basic          | |            | |           | |          | |          |
|_______________|_|____________|_|___________|_|__________|_|__________|
|Net income -   | |$1.27       | |($11.16)   | |$0.41     | |($3.94)   |
|fully diluted  | |            | |           | |          | |          |
|_______________|_|____________|_|___________|_|__________|_|__________|
|Adjusted       | |            | |           | |          | |          |
|earnings per   | |            | |           | |          | |          |
|share((3))     | |            | |           | |          | |          |
|_______________|_|____________|_|___________|_|__________|_|__________|
|Adjusted net   | |$1.23       | |$1.64      | |$0.38     | |$0.64     |
|income - basic | |            | |           | |          | |          |
|_______________|_|____________|_|___________|_|__________|_|__________|
|Adjusted net   | |            | |           | |          | |          |
|income - fully | |$1.22       | |$1.64      | |$0.37     | |$0.64     |
|diluted        | |            | |           | |          | |          |
|_______________|_|____________|_|___________|_|__________|_|__________|
|Cash flow per  | |            | |           | |          | |          |
|share((1))     | |            | |           | |          | |          |
|_______________|_|____________|_|___________|_|__________|_|__________|
|Cash flow per  | |$2.46       | |$3.69      | |$0.77     | |$1.23     |
|share - basic  | |            | |           | |          | |          |
|_______________|_|____________|_|___________|_|__________|_|__________|
|Cash flow per  | |            | |           | |          | |          |
|share - fully  | |$2.44       | |$3.69      | |$0.76     | |$1.23     |
|diluted        | |            | |           | |          | |          |
|_______________|_|____________|_|___________|_|__________|_|__________|
|Realized Prices| |            | |           | |          | |          |
|_______________|_|____________|_|___________|_|__________|_|__________|
|Natural gas    | |            | |           | |          | |          |
|(Mcf),         | |            | |           | |          | |          |
|including      | |            | |           | |          | |          |
|realized gain  | |$3.57       | |$3.99      | |$3.41     | |$4.13     |
|(loss) on      | |            | |           | |          | |          |
|commodity      | |            | |           | |          | |          |
|derivatives    | |            | |           | |          | |          |
|_______________|_|____________|_|___________|_|__________|_|__________|
|Natural gas    | |            | |           | |          | |          |
|(Mcf),         | |            | |           | |          | |          |
|excluding      | |            | |           | |          | |          |
|realized gain  | |$3.70       | |$2.63      | |$3.44     | |$2.77     |
|(loss) on      | |            | |           | |          | |          |
|commodity      | |            | |           | |          | |          |
|derivatives    | |            | |           | |          | |          |
|_______________|_|____________|_|___________|_|__________|_|__________|
|Oil liquids    | |$92.25      | |$91.22     | |$100.06   | |$86.51    |
|(Bbls)         | |            | |           | |          | |          |
|_______________|_|____________|_|___________|_|__________|_|__________|
|Costs Per Mcfe | |            | |           | |          | |          |
|_______________|_|____________|_|___________|_|__________|_|__________|
|Lease operating| |$0.39       | |$0.23      | |$0.37     | |$0.27     |
|expenses       | |            | |           | |          | |          |
|_______________|_|____________|_|___________|_|__________|_|__________|
|Production     | |$0.31       | |$0.24      | |$0.31     | |$0.24     |
|taxes          | |            | |           | |          | |          |
|_______________|_|____________|_|___________|_|__________|_|__________|
|Gathering fees | |$0.22       | |$0.24      | |$0.22     | |$0.16     |
|_______________|_|____________|_|___________|_|__________|_|__________|
|Transportation | |$0.35       | |$0.32      | |$0.36     | |$0.33     |
|charges        | |            | |           | |          | |          |
|_______________|_|____________|_|___________|_|__________|_|__________|
|Depletion and  | |$1.03       | |$1.60      | |$1.03     | |$1.37     |
|depreciation   | |            | |           | |          | |          |
|_______________|_|____________|_|___________|_|__________|_|__________|
|General and    | |            | |           | |          | |          |
|administrative | |$0.09       | |$0.10      | |$0.07     | |$0.11     |
|- total        | |            | |           | |          | |          |
|_______________|_|____________|_|___________|_|__________|_|__________|
|Interest and   | |$0.43       | |$0.32      | |$0.44     | |$0.40     |
|debt expense   | |            | |           | |          | |          |
|_______________|_|____________|_|___________|_|__________|_|__________|
|               | |$2.82       | |$3.05      | |$2.80     | |$2.88     |
|_______________|_|____________|_|___________|_|__________|_|__________|
|Note: Amounts on a per Mcfe basis may not     |          | |          |
|total due to rounding.                        |          | |          |
|______________________________________________|__________|_|__________|
|Adjusted Margins              | |           | |          | |          |
|______________________________|_|___________|_|__________|_|__________|
|Adjusted Net   | |27%         | |29%        | |26%       | |35%       |
|Income((4))    | |            | |           | |          | |          |
|_______________|_|____________|_|___________|_|__________|_|__________|
|Adjusted       | |            | |           | |          | |          |
|Operating Cash | |55%         | |66%        | |54%       | |67%       |
|Flow Margin(   | |            | |           | |          | |          |
|(5))           | |            | |           | |          | |          |
|_______________|_|____________|_|___________|_|__________|_|__________|
|Ultra Petroleum Corp.         | |           | |          | |          |
|______________________________|_|___________|_|__________|_|__________|
|Supplemental Balance Sheet Data             | |          | |          |
|____________________________________________|_|__________|_|__________|
|All amounts expressed in US$000's           | |          | |          |
|____________________________________________|_|__________|_|__________|
|               | |As of                     | |          | |          |
|_______________|_|__________________________|_|__________|_|__________|
|               | |September  |  |December   | |          | |          |
|               | |30,        |  |31,        | |          | |          |
|_______________|_|___________|__|___________|_|__________|_|__________|
|               | |2013       |  |2012       | |          | |          |
|_______________|_|___________|__|___________|_|__________|_|__________|
|               | |(Unaudited)|  |           | |          | |          |
|_______________|_|___________|__|___________|_|__________|_|__________|
|Cash and cash  |$|4,532      |$ |12,921     | |          | |          |
|equivalents    | |           |  |           | |          | |          |
|_______________|_|___________|__|___________|_|__________|_|__________|
|Long-term debt | |           |  |           | |          | |          |
|_______________|_|___________|__|___________|_|__________|_|__________|
|Bank           | |300,000    |  |277,000    | |          | |          |
|indebtedness   | |           |  |           | |          | |          |
|_______________|_|___________|__|___________|_|__________|_|__________|
|Senior notes   | |1,560,000  |  |1,560,000  | |          | |          |
|_______________|_|___________|__|___________|_|__________|_|__________|
|               |$|1,860,000  |$ |1,837,000  | |          | |          |
|_______________|_|___________|__|___________|_|__________|_|__________|
|Reconciliation of Operating Cash Flow and Net Cash Provided by        |
|Operating Activities (unaudited)                                      |
|______________________________________________________________________|
|All amounts expressed in US$000's           | |          | |          |
|____________________________________________|_|__________|_|__________|
|The following table reconciles net cash provided by operating         |
|activities with operating cash flow as derived from the company's     |
|financial information.                                                |
|______________________________________________________________________|
|               | |For the Nine Months Ended | |For the Quarter Ended  |
|_______________|_|__________________________|_|_______________________|
|               | |September 30,             | |September 30,          |
|_______________|_|__________________________|_|_______________________|
|               | |2013        | |2012       | |2013      | |2012      |
|_______________|_|____________|_|___________|_|__________|_|__________|
|Net cash       | |            | |           | |          | |          |
|provided by    |$|327,071     |$|480,075    |$|117,937   |$|152,426   |
|operating      | |            | |           | |          | |          |
|activities     | |            | |           | |          | |          |
|_______________|_|____________|_|___________|_|__________|_|__________|
|Net changes in | |            | |           | |          | |          |
|operating      | |            | |           | |          | |          |
|assets and     | |            | |           | |          | |          |
|liabilities and| |            | |           | |          | |          |
|other non-cash | |            | |           | |          | |          |
|items*         | |            | |           | |          | |          |
|_______________|_|____________|_|___________|_|__________|_|__________|
|               | |48,827      | |83,744     | |(87)      | |35,096    |
|_______________|_|____________|_|___________|_|__________|_|__________|
|Net cash       | |            | |           | |          | |          |
|provided by    | |            | |           | |          | |          |
|operating      | |            | |           | |          | |          |
|activities     | |            | |           | |          | |          |
|before         | |            | |           | |          | |          |
|_______________|_|____________|_|___________|_|__________|_|__________|
|changes in     | |            | |           | |          | |          |
|operating      |$|375,898     |$|563,819    |$|117,850   |$|187,522   |
|assets and     | |            | |           | |          | |          |
|liabilities    | |            | |           | |          | |          |
|_______________|_|____________|_|___________|_|__________|_|__________|

Ultra Petroleum Corp.

Hedging Summary

November 1, 2013

The company has the following hedge positions in place to mitigate
its commodity price exposure:

NYMEX                  Q4 2013

Volume (Bcf)           12.1

MMbtu ($)              $3.54

Mcf ($)                $3.75

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 gains and 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 reduction in 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 early 
exploration and 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 152,977,633 shares outstanding on September 30, 
2013.

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. The opinions, forecasts, 
projections or other statements, 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 Securities and Exchange Commission 
("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, 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. The SEC 
permits oil and gas companies to disclose only proved, probable and possible 
reserves in filings with the SEC.  Information about reserves presented in 
this news release, which reflects estimates prepared the Company's internal 
reserve engineers, may include references to certain terms that SEC does not 
allow oil and gas companies to include in their SEC filings such as "net 
risked reserves" or "resource potential." The Company encourages investors to 
review the reserve disclosures in the Company's filings with the SEC, which 
are available on the Company's website or at the SEC's website at www.sec.gov 
for more information about the Company's reserves.  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, 2013.



SOURCE  Ultra Petroleum Corp. 
Kelly L. Whitley, Director, Investor Relations, Phone: 281-582-6602, Email: 
kwhitley@ultrapetroleum.com; or Julie E. Danvers, Manager, Investor Relations, 
Phone: 281-582-6604, Email: jdanvers@ultrapetroleum.com 
http://www.ultrapetroleum.com 
http://photos.prnewswire.com/prnh/20020226/DATU029LOGO 
To view this news release in HTML formatting, please use the following URL: 
http://www.newswire.ca/en/releases/archive/November2013/01/c9226.html 
CO: Ultra Petroleum Corp.
ST: Texas
NI: OIL UTI ERN EST ERN CONF  
-0- Nov/01/2013 12:01 GMT
 
 
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