Interim Financial Statements ending March 31, 1999.
Pulled this info off the sedar site for those of you haven't seen it. I don't particularly like how they report and communicate their financial and operating results for comparison purposes. Continued negative cashflow must be turned around very soon. I would be curious to know what the 2MM uncollectable bad debt was. After paying the bills from the 13.2 MM asset sale we will not be able to fund much of a drilling program. Cashflow to fund any significant drilling program is still along ways down the road.
Interim Financial Statements
Nine-Month Period Ended March 31, 1999
Third Fiscal Quarter Highlights
· Production on a MCFE basis increased 31% over second quarter
· Oil and gas revenue increased 43% over previous quarter
· Financial clean-up complete this quarter
· Cash flow negative but improving and will be positive in fourth quarter
· Financial results include the write-off of $2MM (U.S.) of accounts
receivable as bad debt
Ultra Petroleum Corp.
304 Inverness Way South, Suite 295
Denver, Colorado 80112
Telephone : (303) 708-9740
Facsimile : (303) 708-9748
Toll Free : 1-800-688-5651
Website : www.ultrapetroleum.com
E-mail : info@ultrapetroleum.com
Listing : Toronto Stock Exchange (TSE)
Trading Symbol : UP
Management Discussion
Operating Results
Ultra Petroleum reported a loss of $9.0 million or $0.16 per share for the first nine months of fiscal 1999 (ending March 31, 1999). This compares with a net loss of $751,684 or $0.02 per share, during the comparable period in fiscal 1998.
A bad debt expense of $2.0 million on uncollectible accounts receivable added substantially to the third quarter loss. When combined with the second quarter's ceiling test write-down of $3.4 million and a $300,000 restructuring charge, the nine month total of special charges equals $5.7 million. Without these, the nine month net loss would decline to $3.3 million.
Negative cash flow for the nine month period is $2.7 million. It has decreased significantly in each of the three quarters, from a negative $1.6 million in the September 30, 1998 quarter to a negative $1.0 million in the December 31, 1998 period to a negative $302,166 in this March 31, 1999 quarter. We are forecasting positive cash flow for the fourth quarter of the fiscal year ending June 30, 1999.
Oil and gas production on an MCFE basis continued to increase over the nine month period. Recent quarterly production totaled 1,395 MMCFE up 31% from second quarter's 1,068 MMCFE which was up 92% from first quarter's 556 MMCFE. These production numbers for the nine month period are consistent with the new production reporting method discussed last quarter.
Asset Sale
Subsequent to the quarter end, the Company sold approximately 8% of its acreage position in the Green River Basin to the Anschutz Wyoming Corporation for $13.2 million dollars in cash and work commitments. The sale of 15,000 net acres, including partial interest in three producing wells, represents half of Ultra's interest in the Mesa area. Ultra will retain more than a third working interest in this part of its acreage. The sale effectively solves the Company's liquidity and payables issues, as well as providing a strong industry partner.
Outlook
The Company's financial clean-up is largely complete, and we are recasting ourselves as a traditional small cap exploration and development company with a strong bias toward development. In the quarters to come, you will see an increasing focus on production, reserve, and cash flow growth.
The asset sale acts as a catalyst to propel us forward. We now have the ability to develop our resource base and can start to grow shareholder value in an organized and responsible manner. And grow we will! |
