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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report
March 3rd, 2004
ULTRA PETROLEUM CORP.
(Exact name of registrant as specified in its charter)
Yukon Territory, Canada 0-29370 N/A
(State or other jurisdiction of (Commission File (I.R.S. Employer
incorporation or organization) Number) Identification Number)
(363 North Sam Houston Pkwy, E., Suite 1200., Houston, TX 77060)
(281-876-0120)
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Item 12. Results of Operations and Financial Condition
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
[March 4, 2004] By: /s/ David Russell
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David Russell
March 03, 2004
Ultra Petroleum Reports 437 % Increase in Annual Earnings
HOUSTON, March 3 /PRNewswire-FirstCall/ -- Ultra Petroleum
(Amex: UPL; Toronto: UP) today reported earnings for the twelve-month period
ended December 31, 2003 increased 461 % to $45.3 million or $0.58 per diluted
share compared to $8.1 million or $0.10 per diluted share for the same period
in 2002. Cashflow (A) for the period increased 265 % to $87.8 million or
$1.12 per diluted share, compared to $24.1 million or $0.31 per diluted share
for the same period in 2002. Production increased 66 % to 28.9 Bcfe compared
to 17.4 Bcfe for 2002. Average natural gas prices for the year were $4.16 as
compared to $2.33 for the same period in 2002.
Earnings for the three-month period ended December 31, 2003 were
$19.2 million or $0.24 per diluted share, a 367 % increase from $4.1 million
or $0.05 per diluted share for the same period in 2002. Cash flow (A) for the
period was $33.1 million or $0.42 per diluted share, a 220 % increase from
$10.3 million or $0.13 per diluted share for the same period in 2002.
Production increased 59 % to 9.7 Bcfe compared to 6.1 Bcfe for the same
quarter in 2002. Average natural gas prices were $4.48 during the quarter,
compared to $2.59 for the same period in 2002.
"Our exceptional financial results in 2003 were driven by our record
production levels, stronger gas prices and our close attention to our cost
structure, which remains among the best in industry. As we execute the most
aggressive drilling program in our history, we expect production to grow by
38 % to 40 Bcfe and proved reserves to grow by another 20% to 1.3 Tcfe. Based
on this growth, we anticipate 2004 will be another year of strong financial
results," stated Michael D Watford, Chairman, President and CEO.
For the For the
Three-Month Period Ended Twelve-Month Period Ended
31-Dec-03 31-Dec-02 31-Dec-03 31-Dec-02
Production
Oil Production -
Bbls 63,675 54,087 211,591 151,215
Natural Gas - Mcf 9,365,920 5,811,036 27,621,759 16,495,751
Gas Equivalent
Production - Mcfe 9,747,970 6,135,558 28,891,305 17,403,041
Realized Production
Prices
Oil Price - $/bbl $33.74 $25.13 $31.86 $25.39
Gas Price - $/Mcf $4.48 $2.59 $4.16 $2.33
Revenues
Oil Revenue $2,148,627 $1,359,382 $6,740,539 $3,839,421
Gas Revenue $42,005,095 $15,062,272 $114,840,558 $38,502,971
Total Revenues $44,153,722 $16,421,654 $121,581,097 $42,342,392
Operating costs and
expenses
Operating
expenses $1,142,854 $846,507 $3,627,639 $2,356,986
Taxes $5,093,316 $1,652,544 $13,767,668 $4,116,012
Gathering $2,632,680 $1,774,592 $7,828,372 $4,937,870
Depreciation,
depletion and
amortization $5,124,369 $3,518,253 $16,215,714 $9,712,111
General and
administrative $1,523,117 $1,044,730 $5,733,147 $4,199,104
Stock compensation $0 $0 $1,018,220 $1,211,165
Interest and
debt expense $699,357 $778,686 $2,850,916 $2,691,608
Total direct
expenses $16,215,693 $9,615,312 $51,041,676 $29,224,856
Interest and other
income $10,456 $5,596 $36,888 $23,151
Income Tax -
Deferred $8,795,381 $2,710,009 $25,253,670 $5,059,166
Net Income $19,153,104 $4,101,929 $45,322,639 $8,081,521
Per common
share - basic $0.26 $0.06 $0.61 $0.11
Per common
share - diluted $0.24 $0.05 $0.58 $0.10
Cash flow (A) $33,072,854 $10,330,191 $87,810,243 $24,063,963
Per common
share - basic $0.44 $0.14 $1.18 $0.33
Per common
share - diluted $0.42 $0.13 $1.12 $0.31
Shares Outstanding 74,547,688 74,087,668 74,547,668 74,087,668
Weighted Average -
Basic 74,412,744 73,931,149 74,231,553 73,770,841
Weighted Average -
diluted 79,304,844 77,794,239 78,651,439 77,605,018
Costs per Mcfe
Operating Expenses $0.12 $0.14 $0.13 $0.14
Severance/
Production Taxes $0.52 $0.27 $0.48 $0.24
Gathering $0.27 $0.29 $0.27 $0.28
Total Lease Operating $0.91 $0.70 $0.87 $0.66
Depletion,
depreciation and
amortization $0.53 $0.57 $0.56 $0.56
General and
administrative $0.16 $0.17 $0.20 $0.24
These statements are unaudited and subject to year-end adjustment.
(A) "Cash flow" refers to cash flow from operations before net change in
non-cash working capital.
Reconciliation of
cash flow from
operations before
change in net
working capital Three Months Ended Dec 31 Twelve Months Ended Dec 31
2003 2002 2003 2002
Net cash provided
by operating
activities $24,099,931 $9,177,692 $76,461,342 $21,490,488
Other long-term
obligations ($290,834) ($464,211) ($1,261,403) $2,026,604
Accounts payable
and accrued
liabilities ($6,826,764) $843,411 ($10,168,165) ($1,799,538)
Prepaid expenses
and other
current assets ($2,135,887) ($4,843,616) $1,237,458 ($1,695,459)
Inventory $13,589,270 $0 $13,589,270 $0
Accounts
receivable $4,636,819 $5,616,509 $7,950,378 $4,039,741
Restricted cash $319 $407 $1,363 $2,127
Cash flow from
operations before
change in net
working capital $33,072,854 $10,330,191 $87,810,243 $24,063,963
Management believes that the non-GAAP measures of cash flow before changes
in working capital is useful information to investors because it is widely
used by professional analysts and sophisticated investors in valuing oil and
gas companies. Many other investors use research reports of these analysts in
making investment decisions.
Ultra Petroleum is an independent, exploration and production company
focused on developing its long life natural gas reserves in the Green River
Basin of Wyoming, and oil reserves in Bohai Bay, offshore China. Ultra is
listed on the American Stock Exchange under the ticker "UPL" and on the
Toronto Stock Exchange under the ticker "UP" with 74,763,268 shares
outstanding as of the date of this release.
The United States Securities and Exchange Commission permits oil and gas
companies, in their filings with the SEC, to disclose only proved reserves
that a company has demonstrated by actual production or conclusive formation
tests to be economically and legally producible under existing economic and
operating conditions. We may use certain terms in this press release,
relating to reserves and/or production that the SEC's guidelines strictly
prohibit us from including in filings with the SEC. U.S. Investors are urged
to consider closely the disclosure in our Form 10-K available from us at
363 North Sam Houston Parkway E., Suite 1200, Houston, TX 77060. You can also
obtain this form from the SEC by calling 1-800-SEC-0330.
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, they
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 their filings with the Securities and Exchange Commission. Full
details regarding the selected financial information provided above will be
available in the Company's annual report and in the Annual Information form to
be filed under the cover of Form 10-K.
SOURCE Ultra Petroleum
-0- 03/03/2004
/CONTACT: David Russell, Investor Relations of Ultra Petroleum,
+1-281-876-0120, ext. 302/
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/Web site: http://www.ultrapetroleum.com /
(UPL UP.)
CO: Ultra Petroleum
ST: Texas
IN: OIL
SU: ERN