It's hard to believe, but there was actually a time when Ultra Petroleum
I'd hardly say there's any secret to what has made Ultra so successful; you see it again in this quarter's earnings report. Revenue was up 17% on 10% higher production, while pre-tax income rose 14%. Perhaps that doesn't sound too impressive on the surface, but relative to Devon Energy
It also seems that Ultra might be working to diversify its asset base in the Appalachian region of Pennsylvania. While it has plenty of natural gas under the ground in the Rockies, as well as a stake in China's Bohai Bay, it doesn't hurt to have more productive assets. Moreover, ConocoPhillips
My concern with high-quality operators ranging from Chesapeake
In the short run, nobody knows what will happen with natural gas prices. See a hurricane in the Gulf, and prices will jump up. See mild weather, and high storage inventories and prices will fall. My best advice, then, is for potential new owners to wait for another bout of pessimism, while current owners may do well to just try to plug their ears and forget about the day-to-day or week-to-week gyrations.
For more Foolish thoughts on oil and gas:
- Minor Headaches Won't Stop Ultra Petroleum
- From Laughing Gas to Tear Gas
- Does Diversity Devalue Devon?
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Fool contributor Stephen Simpson has no financial interest in any stocks mentioned (that means he's neither long nor short the shares).