Ultra Petroleum Announces Pinedale Acquisition


HOUSTON — Ultra Petroleum Corp. (NYSE: UPL) announced today that the company has signed a purchase and sale agreement to acquire all Pinedale field properties from SWEPI, LP, an affiliate of Royal Dutch Shell, plc (“Shell”) in exchange for a portion of Ultra’s Marcellus Shale properties and cash consideration of $925.0 million. Ultra Petroleum expects to finance the acquisition through the issuance of new debt at the subsidiary and parent level. The transaction is expected to close in the third quarter with an effective date of April 1, 2014.

Opportunity Highlights Expected From the Trade:

Increases net proved reserves by 1.8 Tcfe
Increases proved reserve value (PV-10) by $1.8 billion
Shifts corporate percentage of natural gas production sold in higher priced western markets to 92 percent from 76 percent 
Expands company operated production to 82 percent from 62 percent
Improves control of capital allocation to higher returning Pinedale assets
Ultra Petroleum is acquiring Shell’s interest in the Pinedale field, which is currently producing approximately 189 million cubic feet equivalent (MMcfe) per day of natural gas and condensate. As a result of the transaction, Ultra Petroleum will operate approximately 1,577 gross wells, or about 68 percent of the Pinedale field.

In exchange, Shell will receive $925.0 million and approximately 155,000 net acres in the Marcellus Shale which is primarily located in Tioga and Potter counties. Shell will obtain approximately 100 MMcfe per day of natural gas production.

“This transaction is a strategic repositioning of our portfolio for improved returns, increased reserves, higher value markets, increased operatorship and increased control of capital allocation,” stated Michael D. Watford, Chairman, President and Chief Executive Officer.

Conference Call and Webcast Scheduled for August 14, 2014

Ultra will host a conference call on Thursday, August 14, 2014 at 10:00 a.m. EDT (9:00 a.m. CDT) to discuss the company’s strategic acquisition. Participants may access the conference call by dialing 1-800-862-9098, or 785-424-1051 for international calls, using participant passcode ULTRA. Should you be unable to attend the call live, a replay is scheduled to begin on August 14, 2014 at 12:00 PM EDT and will end on August 28, 2014 at midnight EDT. Your dial-in replay numbers are: United States: 1-800-753-5212 or International: 402-220-2673. Passcode: 4235

To listen to the live audio webcast over the Internet, log on to www.ultrapetroleum.com and follow the link to the webcast. The webcast replay and podcast will be archived on Ultra’s website through October 30, 2014.

There is a presentation containing supplemental acquisition information available on Ultra’s home page at www.ultrapetroleum.com.



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