Investors, Buy Ultra Petroleum BEFORE 2014! (Here's Why) | Summary and Q&A

TL;DR

Ultra Petroleum is a low-cost natural gas producer with a smart move into oil production, undervalued assets, and potential for growth in 2014.

Key Insights

• 🇨🇷 Ultra Petroleum has the lowest production costs among its peers, making it a cost-efficient natural gas producer.
• ✋ The company's acquisition of oil properties in the Uinta Basin offers high-margin opportunities for future profitability.
• 🙃 Undervalued assets provide potential upside as gas prices increase.
• 🫢 Monitoring gas prices, the success of the oil venture, drilling costs, and debt situation are important aspects to watch for Ultra Petroleum in 2014.
• 🧘 Ultra Petroleum is well-positioned for growth and potentially a smart addition to investment portfolios.
• 😘 The company's focus on low-cost operations and diversified revenue streams contribute to its positive outlook.
• 🧘 Ultra Petroleum's ability to generate cash from its assets positions it well to reduce its debt in the future.

Transcript

hi fools so there's lots of energy companies out there that are having success Shale drilling in the United States today and based on Trends in the US there are still lots of room to grow in 2014 and Beyond one company that you should really have your eye on going in 2014 though is ultra petroleum and here's why number one it's one of the lowest co... Read More

Questions & Answers

Q: What makes Ultra Petroleum stand out among other energy companies?

Ultra Petroleum is one of the lowest-cost natural gas producers, giving it a competitive advantage in a profitable industry. Additionally, its move into oil production further diversifies its revenue streams.

Q: How does Ultra Petroleum's acquisition of oil properties benefit the company?

The acquisition of oil properties in the Uinta Basin allows Ultra Petroleum to tap into a high-margin region of oil production, offering significant potential for profit. The low drilling costs and long-life assets further enhance the company's prospects.

Q: What are the key drivers to watch for Ultra Petroleum in 2014?

The first important factor is gas prices, as Ultra Petroleum's open hedging position suggests management expects higher prices. The success of their oil venture and ability to deliver on low drilling costs will greatly impact profitability. Additionally, monitoring the company's debt situation will be crucial.

Q: Why should investors consider adding Ultra Petroleum to their portfolio?

With its low-cost operations, strategic move into oil production, undervalued assets, and potential for growth, Ultra Petroleum presents a promising investment opportunity for 2014 and beyond.

Summary & Key Takeaways

• Ultra Petroleum has the lowest cost among natural gas producers, with all-in costs of $22.80 per th000 cubic foot equivalent of natural gas.

• The company made a smart move into oil production, buying high-margin oil properties in the Uinta Basin, with an expected internal return rate of over 100%.

• Despite a previous write-down, Ultra Petroleum has undervalued assets that will become productive as gas prices increase.