Tuesday, Ultra Petroleum Corp. (UPL), an independent exploration and production company, reported a loss for the second quarter compared to a profit a year ago, impacted by a charge and lower commodity prices. Going forward, the company reaffirmed full year production outlook, with production expected to grow 18% to 22% over 2008.
The Houston, Texas-based company posted a net loss of $25.53 million or $0.17 per share, compared to net profit of $116.88 million or $0.74 per share in the same period last year.
Adjusted net income for the quarter was $78.25 million or $0.51 per share, compared to $115.24 million or $0.73 per share in the prior year quarter. On average, 25 analysts polled by Thomson Reuters expected the company to report earnings of $0.46 per share for the quarter. Analysts' estimates typically exclude special items.
For the quarter, the company recorded a non-cash unrealized mark-to-market charge of $159.9 million or $103.8 million after-tax on its financial commodity contracts.
Total operating revenues declined to $130.34 million from $308.24 million last year. Revenues came in much below analysts consensus estimate of $220.26 million.
Michael Watford, chairman, president and chief executive officer, said, "We grew our production by 30 percent while decreasing per unit all-in costs by 29 percent to an industry low $2.43 per Mcfe. While enduring lower commodity prices during the quarter, we were able to maintain a 34 percent net income margin."
Revenue from oil sales fell by half to $15.26 million from $30.79 million a year ago, and natural gas sales plunged to $115.08 million from $277.45 million in the prior year period.
For the second quarter of 2009, production of natural gas and crude oil increased 30% to a record 44.5 billion cubic feet equivalent or Bcfe, as compared to 34.3 Bcfe during the second quarter of 2008.
For the first half, the company posted a net loss of $538.11 million or $3.56 per share, compared to net income of $200.21 million or $1.27 per share in the corresponding period last year. Adjusted net income was $117.92 million or $0.77 per share, down from $216.53 million or $1.37 per share a year ago
Total revenues declined to $298.29 million from $579.37 million in the corresponding six month period last year.
Looking ahead to fiscal 2009, Ultra Petroleum reaffirmed annual natural gas and crude oil production guidance of 172 to 177 Bcfe. The company still expects 2009 production to increase 18% to 22% over 2008's record annual production of 145.3 Bcfe.
UPL is trading at $48.87, up $1.14 or 2.45%, on a volume of about 2.65 million shares.
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