December 7, 2016 Cowen and Company Energy &...

December 7, 2016 Cowen and Company

Energy & Natural Resources Conference

Ultra Petroleum Corp. is an independent energy company engaged in domestic natural gas and oil exploration, development and production. The company trades over-the-counter under the ticker symbol “UPLMQ”.

FORWARD LOOKING STATEMENTS

Investor Contact: Sandi Kraemer

Director, Investor Relations and External Reporting [email protected]

2

This presentation contains forward-looking statements within the meaning of the federal securities laws. 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, and actual results may differ

materially from those projected.

The prices, reserves volumes, net capital and PV-10 information presented herein are based on the forecasts of future

business and economic conditions specified in the presentation. The reserves volumes set forth herein are not based on

the requirements of reserve reports filed with the Securities and Exchange Commission which require historical,

backward-looking commodity prices and impose a five-year limit on undeveloped locations. All of the company’s SEC

filings are available for review as provided below.

Certain risks and uncertainties inherent in the company’s chapter 11 proceedings as well as its operating 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, its Quarterly Reports on Form 10-Q for the quarters ended March 31, 2016 and June 30,

2016, and from time to time in other filings made by the company with the SEC. Risks and uncertainties related to the

company’s bankruptcy filing include the inability to predict or quantify the impact our chapter 11 cases may have on our

business, cash flows, liquidity, financial condition, results of operations or corporate or capital structure as well as the

potential for losses to investors holding the shares of our common stock. In addition to the risks and uncertainties of

operating the company’s business during its chapter 11 cases, other risks and uncertainties to the company’s operating

businesses 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 and available from Ultra Petroleum Corp. at 400 North Sam Houston Parkway E., Suite 1200, Houston, TX

77060 (Attention: Investor Relations). You can also obtain this information from the SEC by calling 1-800-SEC-0330 or from

the SEC’s website at www.sec.gov.

http://www.sec.gov/

http://www.sec.gov/

http://www.sec.gov/

http://www.sec.gov/

http://www.sec.gov/

Ultra Petroleum Corp.

• Asset Overview/Update • Performance

• Properties

• Positioned for Growth

• Investment Highlights

Ultra Petroleum Corp. OTC: UPLMQ

Reorganization Update

• Elected to restructure through an in-court process with chapter 11 filing on April 29, 2016

• Plan Support Agreement and Backstop Commitment agreement executed on November 21, 2016

• The Company’s exclusive right to propose a plan extended to March 1, 2017

• Unsecured capital structure and approximately $360 million cash on hand at November 30, 2016

• Current Activities:

− Operations continue as normal

− Reviewing contracts

− Minimizing claims

− Working with creditors to develop a business plan (Disclosure Statement)


Asset Overview/Update

2016 Update


Capital Investment

Program

$295 million (90% in

WY)

Development Program Well

Count

Rig

Count

Through 3Q16: 2

Early 4Q16: 4

Production

Goal

281 – 284

Bcfe

WY – 139 UT – 13


Snapshot


Three Rivers Field Uinta Basin, UT

Net Acres: 8,000 % Operated: 100% 3Q16 Prod: 2,992 Boe/d

Pinedale and Jonah Fields Green River Basin, WY

Net Acres: 68,000 % Operated: 84% 3Q16 Prod: 697 Mmcfe/d

Marcellus Shale Appalachia, PA

Net Acres: 74,000 % Operated: 0% 3Q16 Prod: 39 Mmcf/d


High Quality Assets

Performance

Building on a Solid Platform

• Consistent execution • Industry leading cost

structure • Drilling and completion

costs continue to decrease

Properties

Positioned for Growth

• Natural gas focused • Attractive realizations • Over 85% Western

basin

• 4,900 remaining locations • Low-risk, repeatable

opportunities • Average well life 30+

years



Well Cost Reduction Throughout Price Cycles

2006 - 2008 2009 - 2011 2012 - 2014 2015 - 2016

Well Costs -21% -4% -21% -30%

WTI, $/bbl +51% +53% -1% -15%

$0.0

$1.0

$2.0

$3.0

$4.0

$5.0

$6.0

$7.0

$8.0

$M

M

UPL-Operated Pinedale Well Costs

$0

$20

$40

$60

$80

$100

$120

$140

$160

$/B

bl

8

Decreased Pinedale well costs during periods of both favorable and unfavorable movements in WTI.

Performance


Proven Track Record of Well Cost Reductions

9

$-

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$-

$1.0

$2.0

$3.0

$4.0

$5.0

$6.0

2011 2012 2013 2014 2015 2016

We

ll F

&D

($

/M

cf)

Tota

l W

ell C

ost

($M

M)

Year

Well Cost 3.0 Bcf 3.5 Bcf 4.0 Bcf 5.0 Bcf

Performance


17% 18%

29% 29%

55%

66%

0%

10%

20%

30%

40%

50%

60%

70%

80%

2011 2012 2013 2014 2015 2016

Rat

e o

f R

etu

rn

Rate of Return and Year-End Well Cost*

3.0 Bcfe 3.5 Bcfe 4.0 Bcfe 5.0 Bcfe

Delivering a Consistent Record of Strong Performance

10

$4.80 $4.70

$3.80 $3.80

$2.85 $2.60

$-

$1.0

$2.0

$3.0

$4.0

$5.0

$6.0

2011 2012 2013 2014 2015 2016

Gro

ss W

ell

Co

st (

$M

M)

Pinedale Year-End Well Cost

*All Economics run at $3.00/Mcf and $50/Bbl

Performance

$5.05


Realized Price (incl. hedges):

$4.01 $3.57 $4.03 $3.14

Consistent Improvement: Cash Operating Costs

$-

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

$1.40

$1.60

1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16

$/Mcfe

Cash G&A

Transportation

Gathering

Production Taxes

Operating Lease

Lease Operating Expense

11 Ultra Petroleum Corp. OTC: UPLMQ

Performance

Ultra is a Low-Cost Leader

*Includes LOE, Gathering, Processing, Transportation, Production Taxes and G&A.

$0.00

$0.15

$0.30

$0.45

$0.60

$0.75

$0.90

$1.05

$1.20

$1.35

$1.50

$1.65

$1.80

Ultra Rice Cabot Gulfport SWN Range EQT Antero Eclipse

$/Mcfe Cash Costs* – public companies with >90% natural gas production

2Q16 3Q16


Performance

Lowest G&A Costs in Survey

Source: PWC 2015 G&A Benchmark Results Ultra Petroleum Corp. OTC: UPLMQ

For 2015, Ultra’s gross G&A per unit of production was one-third of the first quartile average for the 26 companies in the survey.

Performance

Consistent Execution, Strong Realizations

Ultra Petroleum Corp. OTC: UPLMQ 14

• Improving capital efficiency (declining costs with improved drilling times

• Reduced 3Q16 LOE per MCFE by 24% compared to 3Q15

• Low-risk opportunities in proven gas resource

• Rockies differential attractive relative to Appalachia producing region

Wyoming

• Completed 13 drilled, but uncompleted wells during the 3rd quarter

• Improved realizations Utah

• Drilling and completion operations remain suspended Pennsylvania

Properties

Core Asset: Pinedale Field

Over 80% of company’s reserves

4,900 remaining gross locations

<40% of field developed at 12-31-15

13,500’ average vertical well depth; 16 producing intervals

68,000 net acres; 100% Held by Production

Average Operated Working Interest - 93%

59 Tcfe in place

Resource defined – no dry holes

Pinedale Field

Properties


Attractive Basis Differentials

90% 94% 94%

96% 96% 93% 92% 92% 91% 91%

104% 104% 100%

94%

74%

54% 52%

65%

72%

77%

78%

54% 50% 49%

62% 68%

74%

0%

20%

40%

60%

80%

100%

120%Basis Differentials as a Percentage of Henry Hub

NW Rockies Dominion South Transco Leidy

Ultra Petroleum Corp. OTC: UPLMQ 16 *Based on 11-15-16 forward strip

Properties

Uinta Basin Oil

Leland Bench

Monument Butte Natural Butte

Bluebell

Wonsits Valley

Brennan Bottom

Three Rivers

Uinta Basin

8,000 net acres

~130 producing wells

100% operated

6,500’ to 7,500’ average well depth

Developed with vertical wells

Properties


Utah Oil Price Differentials


Properties

Nov-15 Nov-16

Marcellus Shale Natural Gas


Ultra-Interest Lands

Marcellus

74,000 net acres

~130 producing wells

98% held by activity

Operated by Anadarko

Properties

2017 Guidance Positioned for Growth


Significant Upside for Pinedale Growth

21

Premium Inventory

High Value Inventory

Remaining Pinedale Inventory

Inve

nto

ry T

ype

Well F&D

($/Mcfe)

Gross Locations

Average EUR

(Bcfe)

Premium (>30% ROR)

<$1.30 ~1,515 4.3

High Value (<30% ROR)

>$1.30 ~2,135 2.8

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

$0.50 $0.70 $0.90 $1.10 $1.30 $1.50

Gro

ss C

um

ula

tive

Lo

cati

on

Co

un

t

Well Finding and Development Cost ($/Mcfe)

Assumptions: • $2.6 million per well DC&E cost • $3.25 per Mcf; $50.00 per Bbl wellhead



Long-Term Outlook for Growth

304

382

456 486

517

0

100

200

300

400

500

600

Production Growth (Bcfe)

Ultra Petroleum Corp. OTC: UPLMQ Based on October 2016 Business Outlook

$515

$832 $807 $829 $793

$0

$200

$400

$600

$800

$1,000

Capital Investments ($ millions)

$1,016

$1,408

$1,822 $1,950 $2,056

$0

$500

$1,000

$1,500

$2,000

$2,500

Revenue ($ millions)

$685

$996

$1,312 $1,397 $1,461

$0

$500

$1,000

$1,500

$2,000

EBITDA ($ millions)

2017 2018 2019 2020 2021 2017 2018 2019 2020 2021

2017 2018 2019 2020 2021 2017 2018 2019 2020 2021


Self-funding at asset level Henry Hub gas price: $3.00 (‘17); $3.25 (‘18); $3.50 (’19-’21)

Investment Highlights


High Quality Assets

• 4,900 low-risk, repeatable opportunities • Long-life assets • Strong growth potential

• Industry leading cost structure • Drilling and completion costs continue to decrease • Drilling efficiencies continue to increase

Excellent Drilling Economics

• Strong returns: 66% IRR at $3.00 per Mcf; $50 per bbl • Consistent execution • Attractive realizations

Low Cost Operator

Appendix


Business Outlook


Financial Outlook (Base Case)

2017

2018

2019

2020

2021

Production (Bcfe) 304 382 456 486 517

Capital investments ($ millions) $515 $832 $807 $829 $793

HH gas price ($/Mmbtu) $3.00 $3.25 $3.50 $3.50 $3.50

Revenue ($ millions) $1,016 $1,408 $1,822 $1,950 $2,056

EBITDA ($ millions) $685 $996 $1,312 $1,397 $1,461

Development Plan

Base Case

Sensitivity

10-12-2016 Strip Pricing

Henry Hub Gas Price ($/Mmbtu) 2017: $3.00 2018: $3.25 2019: $3.50 flat

2017: $3.00 2018: $3.25 2019: $4.00 flat

2017: $3.32 2018: $3.03 2019: $2.92 to $4.32

PV-10 ($ millions) $7,951 $9,774 $7,997

Appendix

26

Pinedale LOE

$-

$1.0

$2.0

$3.0

$4.0

$5.0

$6.0

$7.0

$8.0

J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S

Net

LO

E/M

on

th

Net Operated LOE per Month – January 2014 – September 2016

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J

Net

Wel

ls

Net

LO

E/W

ell/

Mo

nth

Net LOE/Well

Net Wells

Shell Acquisition

Net Operated LOE per Well – January 2014 – September 2016

Shell Acquisition


Appendix

100

1,000

10,000

0 500 1,000 1,500 2,000 2,500

Days

Daily Gas Rate, Mcf/d

Pinedale Type Curve Parameters

Average production represented by existing wells in Pinedale . Early wells have 15+ years of production history.

Count Gross EUR,

BCFE b-factor

1st year nominal Decline

Final Exponential

Decline

Condensate Yield,

bbl/MMcf

Existing Wells 2,783 2 - 10 1.2 - 2.0 50% - 80% 4% - 8% 5 - 15

Future Locations next 3 years, 2017-2019 845 4.2 1.6 71% 7% 8

Future Locations next 5 years, 2017-2021 1,614 3.9 1.6 71% 7% 8

Future Locations beyond 5 years 3,335 3.5 1.6 71% 7% 8

All Future Locations 4,900 3.2 1.6 71% 7% 8

0

1

2

3

4

5

0 2 4 6 8 10 12 14 16 18 20

Years

Cumulative Production, BCFE

6 BCFE

5 BCFE

4 BCFE

3 BFCE Type Curve Average Production

1,000

10,000

0 20 40 60

Appendix

Pinedale Historical Annual Well Costs

28

$-

$1.0

$2.0

$3.0

$4.0

$5.0

$6.0

$7.0

$8.0

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Total Well Cost

($MM)


Appendix

0

100

200

300

400

500

600

2009 2010 2011 2012 2013 2014 2015 1H2016

Rig Release to Rig Release

(Hours)

Continued Operating Efficiencies


Record Well 188 hours

Appendix

$3.71

$3.45

$3.10

$2.90 $2.85

$2.77

$2.60

$2.5

$2.6

$2.7

$2.8

$2.9

$3.0

$3.1

$3.2

$3.3

$3.4

$3.5

$3.6

$3.7

$3.8

4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16

Mill

ion

s


…Results in Improved Capital Efficiency Appendix

Lower 48 Natural Gas Production


Appendix

Rockies Natural Gas Production


Appendix

Pinedale Regional Pipeline Transportation Infrastructure

Appendix


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