Ultra Petroleum Corp. Reports Unaudited Consolidated Earnings and Production Results for the First Quarter Ended March 31, 2017; Provides Earnings and Production Guidance for the Full Year 2017 and 2018
For the first quarter of 2017, production of natural gas and oil was 64.0 billion cubic feet equivalent (Bcfe). The company's production for the first quarter was comprised of 60.0 billion cubic feet (Bcf) of natural gas and 662.9 thousand barrels (Mbls) of oil and condensate.
For 2017, the company's the drilling and completion capital budget for 2017 is $500.0 million and the total capital budget for 2017 is $525.0 million. Annual production for 2017 is expected to range between 290 and 300 billion cubic feet equivalent (Bcfe), compared to production of 281.7 Bcfe for 2016. Based on the company's guidance, approximately 96% of the company's production will come from the Rockies. The company currently projects a zero book tax rate for 2017. Based on a $3.25 per MMBtu Henry Hub natural gas price and a $50.00 per Bbl NYMEX crude oil price, the projected earnings before interest, taxes, depreciation, depletion and amortization (EBITDA) for full-year 2017 ranges between $650.0 million and $700.0 million.
For the year 2018, Based on the continuance of an eight rig operated program, the company expects approximately 25% growth in production for 2018 with projected EBITDA exceeding $800 million at current strip pricing. The company expects to generate free cash flow even at higher well cost.