Highlights:

— Record natural gas and crude oil production of 42.1 Bcfe, up 24% over the same period in 2008

— Operating cash flow of $124.2 million

— Achieving superior returns in first quarter (adjusted): 66% cash flow margin, 21% net income margin, 21% return on equity, and 11% return on capital

For the first quarter of 2009, production of natural gas and crude oil increased 24% to a record 42.1 billion cubic feet equivalent (Bcfe). This compares to production of 34.1 Bcfe during the first quarter of 2008 and production of 40.6 Bcfe for the fourth quarter of 2008. Ultra Petroleum’s first quarter 2009 production levels were the highest ever achieved by the company. The company’s production for the first quarter was comprised of 40.2 billion cubic feet (Bcf) of natural gas and 319.4 thousand barrels of condensate.

During the first quarter of the year, Ultra Petroleum’s average realized natural gas price, including realized gains and losses on commodity derivatives, was $4.46 per thousand cubic feet (Mcf). Excluding realized gains and losses on commodity derivatives, the company’s average price for natural gas was $3.95 per Mcf. The realized condensate price in the first quarter of 2009 was $28.56 per barrel (Bbl).

“In these most difficult of times, we take comfort in our unique position with the growing scale of our assets, their long-term profitability, the anticipated natural gas pricing uplift expected with Rockies pipeline expansion combined with declining domestic natural gas production led by the Rockies,” commented Michael D. Watford, chairman, president and chief executive officer.

Net loss included a non-cash ceiling test write-down ($673 million net of taxes) of the company’s carrying value of natural gas and oil properties stemming from significantly lower natural gas and condensate prices at quarter-end partially offset by unrealized mark-to-market gains on the company’s commodity derivative contracts ($120.8 million net of taxes). Ultra Petroleum accounts for its natural gas and oil properties using the full-cost method of accounting, which requires the company to perform a ceiling test that limits the carrying costs of its natural gas and oil properties (less accumulated depletion and related deferred income taxes) to the aggregate of the present value of future net revenues attributable to proved natural gas and oil reserves (calculated using period end commodity prices) discounted at 10% plus the lower of cost or market value of unproved properties.

The ceiling test for Ultra Petroleum was calculated based on March 31, 2009 wellhead prices of $2.47 per Mcf for natural gas and $33.91 per Bbl for condensate. This compares to December 31, 2008 prices of $4.71 per Mcf and $30.10 per Bbl. If natural gas and oil prices continue to decline below those at March 31, 2009, additional reductions in the carrying costs of the company’s natural gas and oil properties may occur.

Ultra Petroleum reported adjusted net income of $39.7 million or $0.26 per diluted share for the first quarter, excluding the non-cash write-down in the carrying value of its natural gas and oil properties and the unrealized gain on commodity derivative contracts, which are typically excluded by the investment community in published estimates. Operating cash flow for the quarter was $124.2 million or $0.82 per diluted share.

Operational Highlights

Currently, Ultra Petroleum’s gross operated production volumes in Pinedale are 650 million cubic feet per day. This level ranks the company as the largest operator in the field. In the first quarter of 2009, on an operated well basis, Ultra Petroleum drilled 20% more wells with the same number of rig days as the first quarter 2008.

Ultra Petroleum drilled 48 gross (22.5 net) wells, including outside operated, for the quarter-ended March 31, 2009. In Pinedale, the company averaged 22.7 days spud to total depth (TD) per pad well. This compares to its average of 24.6 days in the first quarter of 2008 and is an 8% improvement over the same time period last year.

Ultra Petroleum’s drilling results in Pinedale continued to enlarge the size of this legacy field. During the first quarter, Ultra Petroleum completed 13 delineation wells. The post-drill reserve estimates from these 13 wells averaged 47% higher than pre-drill reserve estimates. These wells also have an average post-drill reserve estimate of over 5.5 Bcf per well and an average initial production rate of about 8.2 MMcf per day. Ultra Petroleum plans to continue delineation drilling in the under-drilled portions of the Pinedale field. Delineation drilling is key to the company’s continued success in enlarging the size of the Pinedale field by increasing the Original Gas in Place (OGIP) estimate; but more importantly, the direct results of this focused drilling is an increase in the estimate of recoverable natural gas reserves and production net to Ultra Petroleum and its shareholders.

“We recently analyzed our Wyoming reserves in regard to the new SEC rules for reserve reporting. Among the varied objectives of the proposed rules, one is to better represent the low-risk nature of resource plays. Our preliminary results indicate that we could nearly double our 3.5 Tcfe of proved reserves without drilling another well in the field. In fact, by strategically placing the location of less than 100 new wells Ultra Petroleum’s proved reserves would approach 8 Tcfe. This illustrates the conservative nature of our reserve booking policy and the high quality of our Pinedale asset base,” stated Watford. “Now more than ever, we have our sights set on growing our total reserves from the current 11.7 Tcfe to beyond 14 Tcfe.”

During the first quarter, Ultra Petroleum increased its position in Pennsylvania to 321,798 gross (171,613 net) acres from 287,745 gross (152,227 net) acres at year-end 2008. With the expanded acreage position, the company plans on drilling 21 wells during the year, an increase from the previously planned 19 wells. The company is analyzing the 3-D seismic that was completed earlier this year. As part of the evaluation of the Marcellus, the company is currently drilling its third horizontal well and is in the process of completing the first of two recently drilled horizontal wells.

Hedges – Derivative Contracts

The total volume of commodity derivative contracts for the remainder of 2009 currently is 84.6 Bcf at an average realized price of $5.82 per Mcf. In 2010, the total volume of commodity derivative contracts is 84 Bcf at an average realized price of $5.45 per Mcf. In addition, the company has begun to enter into derivative contracts for 2011 with 65.7 Bcf of commodity derivative contracts at an average realized price of $5.49 per Mcf.

Production Guidance

Ultra Petroleum is confirming its annual natural gas and crude oil production guidance for 2009 of 172 to 177 Bcfe. Production for 2009 is an 18 to 22% increase over 2008’s record annual production of 145.3 Bcfe. All forecast production growth is generated organically and does not include any contribution from exploratory efforts in Pennsylvania.

Fourth quarter 2009 production is forecast to exceed fourth quarter 2008 volumes by 10%.

In conjunction with the production guidance, the company is decreasing its 2009 capital expenditure budget from $720 million to $670 million. The decrease in capital expenditures will not affect the company’s ability to increase production 18 to 22% from 2008 levels.