Ultra Petroleum’s business outlook
In October, Ultra Petroleum (UPL) (UPLMQ) provided its creditors with an updated long-term asset development plan and multiyear business outlook based on its current assessment of market conditions and other relevant factors. The high-level summary of the business outlook is provided in the following table.
Ultra Petroleum’s production guidance until 2021
Based on its business outlook, Ultra Petroleum is expecting its fiscal production to grow from 304 Bcfe (billion cubic feet equivalent) in 2017 to 517 Bcfe in 2021. It results in a CAGR (compound annual growth rate) of ~14% for its annual production over the next four years from 2017.
Ultra Petroleum’s adjusted EBITDA guidance until 2021
Based on the above production growth guidance and expectations for higher realized natural gas prices, Ultra Petroleum also revised its fiscal adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) guidance. Ultra Petroleum expects its fiscal adjusted EBITDA to grow from $685 million in 2017 to ~$1.46 billion in 2021. It results in a CAGR of ~21% for its annual adjusted EBITDA in the next four years from 2017.