Ultra Petroleum Corp (NASDAQ:UPL) Revenues Surged 2% To 225.4 Million In Q1 2018
Ultra Petroleum Corp (NASDAQ:UPL) announced recently its financial and Operating Results for Q1 ended March 31, 2018. The company’s share price rose by 11.1% immediately after the announcement on the quarter results.
Ultra Petroleum saw its shares rise 11% more on the same day due to an increase in sales volumes. In the past few weeks, the company has experienced negative estimations revision but the firm is determined to make ends meet despite the tough impact of external environmental factors on its production activities.
The firm highlighted the critical developments including the production of 72.3 Bcfe, which increased 13% compared to the same period in 2017. Also, the firm reduced its operating rig fleet from 7 to 4 rigs that are equipped for horizontal development.
In addition, the company completed its semi-annual borrowing base redetermination utilizing the credit facility with a borrowing base at $1.4 billion. The firm also acquired covenant amendments from lenders that maximize the company’s leverage ratio from 4.0x to 4.5x.
Company’s Financial Results
Ultra Petroleum’s total revenues for Q1 2018 increased by 2% to 225.4 million compared to the same period in Q1 2017. The production of oil and natural gas increased by 13% to 72.3 billion cubic feet, compared to the previous performance in the same period, 2017. Furthermore, the company realized the natural gas price of $2.68 per thousand cubic feet that led to gains on commodity hedges.
Additionally, the firm realized the oil price of %60.36 per barrel that increased gains on commodity hedges for the quarter prices. Therefore, the average price for oil was $60.90 per Bbl compared to the same period in 2017 that recorded $47.29 per Bbl. Ultra Petroleum also reported a net income of $47.5 million, which translates to $0.24 per diluted share price.
The company produced an equivalent of over 803 million cubic feet natural gas exceeding its midpoint guidance expectations of 790 to 810 MMcfe/d guidance range in Q1. The company is pleased with the results indicating that its plans to execute the year’s plan has commenced on a higher notch. However, the update still didn’t satisfy the shareholders who expected that the company would exceed the high end of the guidance range.
Ultra Petroleum is an energy company that focuses on development and production of domestic natural gas and oil exploration. The company is currently focusing on capital efficiency, cash flow visibility, and expanding its horizontal program.