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Ultra Petroleum Surprises with Big EPS Beat in 2Q16

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Aug. 12 2016, Published 5:59 p.m. ET

Ultra Petroleum beat 2Q16 EPS estimates

Ultra Petroleum (UPL) (UPLMQ) announced its 2Q16 earnings on August 11, 2016, before the Market opened. Ultra Petroleum reported an adjusted profit of $0.25 per share, $0.36 better than Wall Street analysts’ consensus for a loss of $0.11 per share.

UPL’s 2Q16 EPS (earnings per share) is higher by $0.04 per share when compared with its 2Q15 profit of $0.21 per share. Even when compared sequentially with 1Q16, UPL’s 2Q16 EPS is higher by $0.38 per share.

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Ultra Petroleum’s 2Q16 revenues beat estimates

For 2Q16, UPL reported adjusted revenues of ~$147 million, ~9% better than Wall Street analysts’ consensus for revenues of ~$135 million. UPL’s 2Q16 revenues are lower by ~44% when compared with 2Q15 revenues of ~$261 million. Even when compared sequentially with 1Q16, UPL’s 2Q16 revenues are lower by ~8%.

Ultra Petroleum’s earnings trend

As seen in the above chart, Ultra Petroleum reported much lower EPS in 2015 due to lower realized natural gas (UNG) prices. In 4Q15, UPL saw its adjusted earnings turn negative for the first time ever. Since 2013, UPL beat the earnings expectations ~79% of the time.

Since 2013, other upstream players like Southwestern Energy (SWN), ConocoPhillips (COP), and Denbury Resources (DNR) have beat earnings expectations ~57%, ~64%, and ~57% of the time, respectively.

Series overview

Having analyzed Ultra Petroleum’s 2Q16 earnings and revenue performance, in the course of this series, we will also look at Ultra Petroleum’s 2Q16 cash flow, operational performance, and business outlook. We’ll provide an update on Ultra Petroleum’s Chapter 11 reorganization and Wall Street analysts’ ratings.

Now let’s take a look at how much cash Ultra Petroleum generated in 2Q16.

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