Ultra Petroleum Announces Increased Cash Flow, Earnings, and Record Production for the Three Months and Nine Months Ended September 30, 2010

Ultra Petroleum Corp.

continued to deliver strong financial and operating performance for the three months and nine months ended September 30, 2010. Ultra Petroleum recorded strong operating cash flow(2) of $198.7 million for the quarter ended September 30, 2010, a 15 percent increase over the same period in 2009. For the third quarter of 2010, Ultra's adjusted net income(3) was $91.9 million or $0.60 per diluted share, which compares to $85.8 million, or $0.57 per diluted share in the prior year period. Third quarter results included an unrealized, mark-to-market gain of $70.7 million, net of taxes, on the company's commodity hedges. Inclusive of this item, reported net income was $162.6 million, or $1.05 per diluted share for the third quarter of 2010, compared to a net loss of $8.3 million, or ($0.06) per diluted share for the same period a year ago. Investors rely on adjusted earnings as a better measure of financial performance because it excludes the volatility associated with unrealized commodity hedging gains and losses.