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...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
FREESA PRO MEMBERS
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details