Sunday, October 20, 2013

Why Ultra Petroleum Is Poised to Bounce Back

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, oil and natural gas company Ultra Petroleum (NYSE: UPL  ) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Ultra Petroleum and see what CAPS investors are saying about the stock right now.

Ultra Petroleum facts

Headquarters (founded)

Houston, Texas (1979)

Market Cap

$3.2 billion

Industry

Oil and gas exploration and production

Trailing-12-Month Revenue

$809.5 million

Management

Chairman/CEO Michael Watford (since 1999)
CFO Marshal Smith (since 2005)

Return on Capital (average, past 3 years)

10.9%

Cash / Debt

$14.4 million / $1.9 billion

Competitors

Cabot Oil & Gas
EOG Resources
XTO Energy

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 97% of the 1,582 members who have rated Ultra Petroleum believe the stock will outperform the S&P 500 going forward.   

Just last week, one of those Fools, Googlespooch, succinctly summed up the Ultra Petroleum bull case for our community:

Moats and competitive advantages are hard to build; however, I would argue that Ultra Petroleum (UPL) has a decent advantage: the ability to drill for liquids at very low cost. In considering Ultra's ability to drill at some of the cheapest rates in the industry, it seems to be only a matter of time before they start turning around as the commodity pricing of liquids begins to increase again (which it will unless everyone actually believes that the recessionary global economic climate will last forever).

If you want market-topping returns, you need to put together the best portfolio you can. Of course, despite its four-star rating, Ultra Petroleum may not be your top choice.

We've found another energy play we are incredibly excited about -- excited enough to dub it "The Only Energy Stock You'll Ever Need." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

No comments:

Post a Comment