The natural gas producer reported adjusted earnings of 21 cents per share, surpassing the Zacks Consensus Estimate of 18 cents. However, the bottom line was significantly lower than the year-ago quarter adjusted earnings of 53 cents. Ultra Petroleum Corporation (UPL) - Earnings Surprise | FindTheCompany Total operating revenue of $222.5 million not only missed the Zacks Consensus Estimate of $253 million but was also substantially below the third-quarter 2014 level of $288.6 million. Production Production during the reported quarter increased year over year to 75.4 billion cubic feet equivalent (Bcfe) from 62.6 Bcfe. Natural gas volumes – that accounted for approximately 93.1% of the total – increased 23.4% year over year to 70.2 Bcf. Oil production, however, declined to 863,361 barrels in the reported quarter from 927,320 barrels a year ago. Realized Prices Ultra Petroleum's average realized price on natural gas (excluding realized gain or loss on commodity derivatives) decreased 28% year over year to $2.68 per thousand cubic feet (Mcf). Also, the average oil price (excluding realized gain or loss on commodity derivatives) for the reported quarter was $39.43 per barrel, substantially below the third-quarter 2014 figure of $82.77 per barrel. Costs, Expenses & Margins Total lease operating costs increased nearly 14.2% from the prior-year quarter to approximately $76.7 million. Ultra Petroleum reported all-in costs of $3.16 per Mcfe against $3.18 in the comparable quarter last year. Total operating expenses came in at $195.3 million. This reflects a 15% increase from $169.7 million in the year-earlier quarter. Ultra Petroleum’s adjusted operating cash flow margin came in at 47% compared with 57% in the prior-year quarter. Adjusted net income margin was 12% compared with 30% in the year-ago quarter. Balance Sheet As of Sep 30, 2015, the company had cash and cash equivalents of approximately $25.6 million and long-term debt of $2.76 billion. Guidance For 2015, production is guided in the 288–292 Bcfe range, up from the earlier guidance of 283–290 Bcfe. Ultra Petroleum expects total operating cost per Mcfe of $3.09–$3.26 for the fourth quarter. Moreover, the company has reaffirmed its 2015 capital spending at $500 million. Zacks Rank Currently, Ultra Petroleum carries a Zacks Rank #2 (Buy). Some other players in the energy sector worth considering are Sprague Resources LP SRLP, Seadrill Partners LLC SDLP and Natural Gas Services Group Inc. NGS. Each of these stocks sports a Zacks Rank #1 (Strong Buy). Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ULTRA PETRO CP (UPL): Free Stock Analysis Report SEADRILL PTNRS (SDLP): Free Stock Analysis Report NATURAL GAS SVC (NGS): Free Stock Analysis Report SPRAGUE RESRCS (SRLP): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research
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