Did Ultra Petroleum Generate Positive Free Cash Flow in 4Q16?



Operating cash flow

Ultra Petroleum (UPL) (UPLMQ) reported 4Q16 operating cash flow of ~$137 million, ~31% higher than its cash flow of ~$104 million in 4Q15.

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Falling operating cash flow

In 2015 and 2016, Ultra Petroleum reported lower operating cash flow compared to the preceding years. In 1Q16, Ultra Petroleum reported its lowest ever operating cash flow of ~-$4 million due to lower production and lower realized natural gas (UNG) prices.

Free cash flow

In 4Q16, Ultra Petroleum spent ~$80 million in capital expenditure, meaning that its free cash flow was positive at ~$57 million, or $0.37 per share.

Other upstream players

S&P 500 (SPY) upstream companies Devon Energy (DVN) and Marathon Oil (MRO) reported $1.02 per share and $0.54 per share, respectively, in cash flows in 4Q16.

Now it’s time to take a look at how Wall Street analysts have changed their recommendations following UPL’s 4Q16 earnings.


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