Ultra Petroleum Corp. Reports Unaudited Consolidated Earnings and Production Results for the First Quarter Ended March 31, 2018; Provides Production Guidance for the Second Quarter and Full Year and Capex Guidance for the Full Year of 2018
For the first quarter of 2018, the company's production of natural gas and oil was 72.3 billion cubic feet equivalent (Bcfe), an increase of 13% over the first quarter of 2017, with 68.2 billion cubic feet (Bcf) of natural gas and 677,800 barrels (MBbls) of oil and condensate. In the first quarter, production averaged 803 MMcfe per day, exceeding the midpoint of guidance.
In 2018, the company is focused on capital efficiency, cash flow visibility and accelerating the horizontal program, while producing free cash flow. The company is increasing its 2018 annual production guidance to 285 Bcfe to 295 Bcfe. Based on encouraging early results, the company has significantly ramped up horizontal well development and now plan to drill 25 to 30 horizontal wells in 2018 while maintaining USD 400 million capital expenditure guidance.
In the second quarter, the average daily production rate is expected to range between 780 MMcfe/d to 800 MMcfe/d, and includes production of 1.1 Bcfe from the Utah assets. With less capital allocated to vertical drilling than originally planned, second quarter volumes are forecasted to decline slightly, with production from horizontal wells providing growth later in the year. The company expects Depletion and depreciation of USD 0.67 to USD 0.70 Per Mcfe.