Ultra Petroleum Corp. reported unaudited consolidated financial results for the third quarter and nine months ended September 30, 2016. The company reported adjusted net income of $102.4 million, or $0.66 per diluted share for the quarter ended September 30, 2016. Operating cash flow was $129.0 million for the quarter ended September 30, 2016. Total operating revenues were $505,230,000 against $649,809,000 for the same period of last year. Income before income taxes was $90,272,000 against loss of $5,986,000 for the same period of last year. Net income was $90,577,000 against loss of $2,581,000 for the same period of last year. Earnings per diluted share was $0.59 against loss of $0.02 for the same period of last year. Net cash provided by operating activities was $170,798,000 against $411,205,000 for the same period of last year. EBITDA for the quarter was $132 million. Capital expenditures were $68 million.

The company reported adjusted net income of $126.0 million, or $0.82 per diluted share for the nine months ended September 30, 2016. Operating cash flow was $201.6 million for the nine months ended September 30, 2016. Total operating revenues were $199,253,000 against $222,503,000 for the same period of last year. Income before income taxes was $98,452,000 against loss of $4,229,000 for the same period of last year. Net income was $98,407,000 against loss of $3,096,000 for the same period of last year. Earnings per diluted share was $0.64 against loss of $0.02 for the same period of last year. Net cash provided by operating activities was $139,060,000 against $167,882,000 for the same period of last year.

For the third quarter of 2016, production of natural gas and oil was 69.3 billion cubic feet equivalent (Bcfe). The company's production for the third quarter was comprised of 65.2 billion cubic feet (Bcf) of natural gas and 680.100 barrels (Mbls) of oil and condensate. During the third quarter of the year, Ultra Petroleum's average realized natural gas price was $2.62 per thousand cubic feet (Mcf). The company's average realized oil and condensate price was $41.55 per barrel (Bbl). During the third quarter, Ultra Petroleum and its partners drilled 21 gross (14 net) Pinedale development wells and placed on production 50 gross (25 net) wells. The third quarter average initial production (IP) rate for new operated wells brought online was 8.1 million cubic feet equivalent (MMcfe) per day. The company produced a total of 64.1 Bcfe in Wyoming, averaging 697 MMcfe per day. The company averaged 8.9 days to drill an operated well in the third quarter, as measured by spud to total depth (TD). Total days per well, measured by rig-release to rig-release, averaged 10.7 days in the third quarter, which compares to 10.9 days in the same quarter of 2015, a decrease of 2%. Since the end of the third quarter, it had added a third rig and plan for a fourth rig to move into the field in the next few weeks. The average cost of $2.6 million to drill and complete a well in Pinedale was maintained during the third quarter, which represents a 9% decrease when compared to $2.85 million per well in the third quarter of 2015. Assuming well costs of $2.6 million, estimated ultimate recovery of 4.5 Bcfe and wellhead prices of $3.00 per Mcf and $50.00 per barrel, the expected return for a Pinedale well is 54%.

For the nine months ended September 30, 2016, production of natural gas and oil was 213.5 Bcfe. The company's production for the nine months ended September 30, 2016 was comprised of 200.3 Bcf of natural gas and 2,205.1 Mbls of oil and condensate. During the nine months ended September 30, 2016, Ultra Petroleum's average realized natural gas price was $2.13 per Mcf. The company's average realized oil and condensate price was $35.98 per Bbl.

The company provided production guidance for 2016. Capital expenditures budget for 2016 is $295.0 million. Production for 2016 is expected to range between 281 to284 Bcfe. The company's realized natural gas price is expected to average 4 to 6% below the NYMEX price due to differentials and oil and condensate realizations are expected to be approximately 6 to 10% below the average NYMEX price. Ultra currently projects a zero book tax rate for 2016 and anticipates additional tax refunds during the year.

For the year 2017, the company expects, revenue of $1,016 million and EBTIDA of $685 million and capital investments of $515 million. The company also expects production of 304 Bcfe.

For the year 2018, the company expects, revenue of $1,408 million and EBTIDA of $996 million and capital investments of $832 million. The company also expects production of 382 Bcfe.

For the year 2019, the company expects, revenue of $1,822 million and EBTIDA of $1,312 million and capital investments of $807 million. The company also expects production of 456 Bcfe.

For the year 2020, the company expects, revenue of $1,950 million and EBTIDA of $1,397 million and capital investments of $829 million. The company also expects production of 486 Bcfe.

For the year 2021, the company expects, revenue of $2,056 million and EBTIDA of $1,461 million and capital investments of $793 million. The company also expects production of 517 Bcfe.