Ultra Petroleum's Proved Reserves Decline 2% In 2018
Zacks Investment Research | Feb 20, 2019 07:37AM ET
Ultra Petroleum Corp. (NASDAQ:UPL) has announced production and proved reserve figures for 2018.
As of Dec 31, 2018, the upstream energy player reported proved reserves of 3,062.5 billion cubic feet equivalent (Bcfe), down 1.8% from 3,119.1 Bcfe as of Dec 31, 2017. Through 2018, Ultra Petroleum's addition of 244.3 Bcfe of reserves was not sufficient to replace 275.1 Bcfe of production volumes, leading to a decline in proved reserve base. Investors should know that the year-end proved reserves of Ultra Petroleum comprises 95% natural gas.
Through 2018, Ultra Petroleum’s daily production was recorded at 756 million cubic feet equivalent (Mmcfe), in line with the company’s guidance. The year’s production was backed by operations in the Pinedale field where roughly 94 vertical and 16 horizontal wells were placed online. The oil and gas explorer and producer also recorded daily production for fourth-quarter 2018 of 699 Mmcfe, within the company’s earlier projection.
Moreover, lenders under reserve-based loan credit facility of Ultra Petroleum have reaffirmed the borrowing base of the upstream energy firm at $1.3 billion. Lenders have also made an amendment to increase the leverage covenant metric. Hence, the company’s balance sheet is highly liquid to provide support to growth projects.
Headquartered in Englewood, CO, Ultra Petroleum is expected to report fourth-quarter 2018 results on Mar 7. The Zacks Consensus Estimate for quarterly earnings is pegged at 12 cents.
Ultra Petroleum currently carries a Zacks Rank #3 (Hold). A few better-ranked players in the energy space include Jones Energy Inc. (OTC:JONE) , Golar LNG Partners LP (NASDAQ:GMLP) and Sunoco LP (NYSE:SUN) . All the stocks carry a Zacks Rank #2 (Buy). You can see Zacks Investment Research
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