Ultra Petroleum reports net loss of $1.3 million for 4Q19

Ultra Petroleum Corp. reported a net loss for fourth-quarter 2019 of $1.3 million. Adjusted net income was $22.6 million for the quarter, down from adjusted net income of $27.4 million for the same period in 2018.

During the quarter, total revenues excluding hedging settlements were $170.9 million as compared to $273.2 million during the fourth quarter of 2018. During the quarter, cash flow from operating activities was $19.8 million.

Production of natural gas and oil was 55.4 bcfe, a decrease from 64.3 bcfe in the same period of 2018. Fourth quarter production was comprised of 53.1 bcf of natural gas and 378,000 bbl of oil.

Ultra’s reported net income for the year ended Dec. 31, 2019, was $108.0 million, compared with net income of $85.2 million for the same period in 2018. Adjusted net income for the year was $69.1 million, as compared to $149.7 million in 2018.

Full-year 2019 production was 240.2 bcfe. During 2019, Ultra turned online 71 gross (70.3 net) operated vertical wells prior to suspending its drilling program in September.

For the full year 2019, total capital expenditures were $241.1 million. During this period, the Company participated in 94 gross (78.5 net) wells that were turned to sales, including operated and non-operated wells in Pinedale field in Wyoming. 

Year-end 2019 proved reserves were 1,990 bcfe, all of which are in the PDP category, and by volume are comprised of 96% natural gas and 4% oil.

Debt negotiations

Negotiations and discussions with certain debtholders are ongoing regarding a potential in-court restructuring.   If an agreement is reached and it pursues a restructuring, the company may need to file voluntary Chapter 11 bankruptcy petitions or petitions under the Canadian Bankruptcy and Insolvency Act to implement the agreement through the confirmation and consummation of a plan of reorganization.  The company noted it may also necessary to initiate Chapter 11 proceedings to implement a restructuring even if the company is unable to reach an agreement with creditors and other relevant parties regarding the terms of such a restructuring. 

2020 forecast The company’s capital investment program is expected to be $10-20 million for 2020, reflecting Ultra’s decision to suspend drilling.  Production guidance for 2020 is confirmed at 182-192 bcfe. In the first quarter, the average daily production rate was 554 MMcfe/d.