Wednesday, June 26, 2013

Investopedia: The Wait For $5 Gas Could Be A Long One At Ultra Petroleum

Reputations, good and bad, can be surprisingly sticky. Ultra Petroleum (NYSE:UPL) has long been lauded for its high-quality operations, its cost leadership, and the quality of its properties/reserves. While the first part is absolutely still true, I have bigger questions about the quality of Ultra's properties and how the company will generate value over the long-term. While I will certainly acknowledge that higher gas prices will be the rising tide that lifts all boats in the natural gas space, I'm increasingly concerned that Ultra Petroleum is a high-quality operator with medium-quality assets and, as such, maybe not the horse to ride for the long term.

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