(RTTNews) - Ultra Petroleum Corp. (UPL: News ), Friday reported a swing to loss for the third quarter, hurt mainly by an unrealized mark-to-market charge. The company's production reached its highest quarterly levels ever achieved, but the positive impact was more than offset by lower realized prices. Ultra Petroleum's quarterly adjusted earnings beat Street consensus, while revenues fell woefully short. Looking ahead, the company expects to exceed the upper end of its previous production guidance for fiscal 2009.

The Houston, Texas-based exploration and production company posted a net loss of $8.3 million or $0.06 per share for the third quarter, compared to net income of $149.0 million or $0.95 per share in the prior year quarter. Result for the latest quarter included a non-cash unrealized mark-to-market charge of $94.1 million after tax on the company's financial commodity contracts.

Excluding items, adjusted net income fell to $85.8 million or $0.57 per share from $122.4 million or $0.78 per share in the year-ago quarter. On average, 25 analysts polled by Thomson Reuters expected the company to report earnings of $0.52 per share for the third quarter. Analysts' estimates typically exclude special items.

Third quarter operating revenue dropped 48% to $155.16 million from $297.63 million in the same quarter last year. Fifteen analysts had a consensus revenue estimate of $238.78 million for the third quarter.

Production of natural gas and crude oil increased 27% to 45.9 billion cubic feet equivalent or Bcfe from 36.3 Bcfe in the previous year quarter. The company noted that the production levels were the highest quarterly levels ever achieved.

The company's production for the third quarter comprised of 43.9 billion cubic feet or Bcf of natural gas and 341.5 thousand barrels of condensate or MBbls.
During the third quarter of 2009, Ultra Petroleum's average realized natural gas price was $5.13 per thousand cubic feet or Mcf, down from $8.21 Mcf in the prior year quarter. Results included realized gains and losses on commodity derivatives.

The company's average price for natural gas was $3.09 per Mcf, excluding realized gains and losses on commodity derivatives. The realized condensate price for the third quarter of 2009 was $57.47 per barrel or Bbl.

For the nine-month period of 2009, Ultra Petroleum reported a net loss of $546.4 million or $3.61 per share, compared to net income of $349.2 million or $2.22 per share in the previous year period.

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