Even by the elevated standards of independent exploration and production companies, Ultra Petroleum (NYSE:UPL)
seems to more often swing between doom-and-gloom bearishness and
gleeful bullishness than the typical E&P stock. A debt-loaded
balance sheet, so-so debt-adjusted production growth, and "okay" assets
may explain some of the negativity, but Ultra's production growth hasn't
really been that bad, the cash costs are competitive, and the company
is executing in its oil-rich Uinta acreage. Like many E&Ps, Ultra
Petroleum looks undervalued on a NAV basis (though rising costs are an
issue to watch there), but the EBITDA-based approach doesn't suggest the
same level of near-term opportunity.
Continue to the full article here:
Ultra Petroleum Continuing To Yo-Yo Between Gloom And Glee
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