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Is Ultra Petroleum a Buy?

By Joel South and Taylor Muckerman – Aug 20, 2013 at 1:00PM

Higher oil prices help Ultra Petroleum, but investors need to keep an eye on debt covenants.

In this segment of The Motley Fool's energy-focused show, "Digging for Value", energy analysts Joel South and Taylor Muckerman discuss rising natural gas prices and look into low cost producer, Ultra Petroleum (NYSE: UPL). While Ultra Petroleum is nicely positioned to profit from higher natural gas prices, investors need to focus on the company's balance sheet as debt covenants could hamper Ultra Petroleum's access to capital. Check out the video below for more information in addition to seeing if Ultra is a buy today.

About the Author

Joel is a University of Washington graduate and covers energy and materials for The Motley Fool. Be sure to follow The Motley Fool's energy and materials Twitter for all your energy and materials coverage.

XMFTheWhisperer

Joel South has no position in any stocks mentioned. Taylor Muckerman has no position in any stocks mentioned. The Motley Fool recommends Ultra Petroleum. The Motley Fool owns shares of Ultra Petroleum and has the following options: long January 2014 $30 calls on Ultra Petroleum, long January 2014 $40 calls on Ultra Petroleum, and long January 2014 $50 calls on Ultra Petroleum. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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