David White
Long/short equity, value, REITs, macro

Low Cost Leader Ultra Petroleum Will Be A Leader In The Natural Gas Producer Rebound

Ultra Petroleum Corp. (UPL) is an independent E & P natural gas company. It has 53,000 net acres in and around the Pinedale and Jonah fields in the Green River Basin in southwest Wyoming and 260,000 net acres in the Pennsylvania Marcellus shale play. UPL grew production (before the recent natural gas price crash) by 1,911% from 2001 - 2011. It grew 1P reserves by 1,019% during the same period. It had an average ROE of 36%. UPL is and has been a low price production leader (see chart below).

(click to enlarge)

As you can see from the chart above, UPL produces its natural gas at less than half the cost of many of its peer competitors. How then...

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