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Ultra Petroleum announces gas processing contracts

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Hydrocarbon Engineering,

Ultra Petroleum Corp. (Ultra) has announced that it has renegotiated its existing gas processing contracts with Enterprise Products Partners L.P. and Williams Partners L.P (or their respective subsidiaries) and the US Bankruptcy Court approved these contracts on 22 February 2017.

Ultra expects these new contracts to provide the following financial benefits related to its operations at its prolific Pinedale Field asset in Wyoming:

  • Processing fees: increases EBITDA by approximately US$12.0 million/y at current production volumes.
  • Gas sales revenues: approximate increase of US$0.02/000 ft3 for gas processed through the Enterprise plant (approximately a US$1.6 million annual revenue increase at current production volumes).

These benefits are expected to increase as Ultra grows its production volumes through its development drilling program in Pinedale. The primary terms of the new contracts extend through 2036.

Michael Watford, Chairman, President and Chief Executive Officer of the Company, said, "We have made every effort to utilise our in-court restructuring process to maximise the value of our business enterprise. We are pleased to announce these new long-term gas processing contracts that will not only improve the profitability of our Pinedale asset, but will ensure that our gas will continue to be processed in reliable facilities operated by industry leaders."

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Downstream news Downstream contract news North America downstream news