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Ultra Petroleum Turns Last Year’s Loss into 4Q16’s Profit

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Updated

Adjusted net income

Ultra Petroleum (UPL) (UPLMQ) announced its 4Q16 earnings before the market opened on February 22, 2017. Ultra Petroleum reported a lower-than-expected profit of ~$97 million. Wall Street analysts had been expecting a profit of ~$111 million.

On a year-over-year basis, UPL’s 4Q16 net income rose significantly, turning last year’s losses into profits. In 4Q15, UPL reported net income of ~-$39 million. On a sequential basis and excluding one-time items, UPL’s 4Q16 profit fell ~2% compared to ~$98 million in 3Q16.

For 2016, UPL reported higher adjusted net income of ~$187 million, or $1.21 per share, compared to ~$47 million, or $0.31 per share, in 2015.

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Reported net income

Ultra Petroleum’s 4Q16 adjusted net income excludes a one-time charge of ~$131 million related to contract settlements. Including this charge, UPL’s reported net income on a GAAP (generally accepted accounting principles) basis was ~-$34 million, or -$0.22 per share, in 4Q16, compared to ~-$3.2 billion, or -$20.91 per share, in 4Q15.

For 2016, UPL reported net income of ~$56 million, or $0.36 per share, on a GAAP basis, compared to ~-$3.2 billion, or -$20.94 per share, in 2015. UPL’s peer Consol Energy (CNX) reported net income on a GAAP basis of ~-$848 million, or -$3.70 per share, in 2016.

In this series…

Having analyzed Ultra Petroleum’s 4Q16 and 2016 net incomes, throughout this series, we’ll also take a look at its revenue, production, cash flows, and analyst ratings.

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