Ultra Petroleum Q2 Results Top View; Backs 2013 Production Outlook

(RTTNews) - Independent exploration and production company Ultra Petroleum Corp. (UPL) reported Friday a profit for the second quarter that plunged from last year, hurt by an hefty charges related to ceiling test and other impairments. Both adjusted earnings per share and quarterly revenues topped analysts' expectations. The company also backed its production guidance for the full-year 2013.

"Our results for the first half of the year demonstrate sound execution of our 2013 objectives. Our focus now is optimizing future development of our asset portfolio in view of our returns-based development strategy and making key operational decisions that complement this approach," Chairman, President and CEO Michael Watford said in a statement.

The Houston, Texas-based oil and gas company posted net income of $116.38 million or $0.75 per share for the second quarter, compared to a net loss of $1.19 billion or $7.76 per share in the prior-year quarter.

Excluding items, adjusted net income for the quarter was $71.89 million or $0.47 per share, compared to $77.89 million or $0.51 per share in the year-ago quarter.

On average, 23 analysts polled by Thomson Reuters expected the company to report earnings of $0.42 per share for the quarter. Analysts' estimates typically exclude one-time items.

Total operating revenues for the quarter increased to $261.38 million from $170.27 million in the same quarter last year. Fourteen Wall Street analysts had a consensus revenue estimate of $234.98 million for the quarter.

Operating cash flow for the quarter was $135.06 million or $0.87 per share, compared to $190.55 million or $1.25 per share last year.

Total natural gas and crude oil production for the second quarter decreased to 58.42 billion cubic feet equivalent or Bcfe from 65.06 Bcfe in the prior-year quarter.

The company's production comprised of 56.62 billion cubic feet (Bcf) of natural gas and 299.13 thousand barrels (Mbbls) of condensate.

Total operating expenses for the quarter was $145.67 million, compared to $2.05 billion in the prior-year quarter, which included $1.87 billion of ceiling test and other impairments.

Looking ahead to the third quarter, Ultra Petroleum expects total natural gas and condensate production to be in a range of 56.0 Bcfe to 58.5 Bcfe.

For fiscal 2013, the company is maintaining its annual production target of 233 Bcfe and tightening its guidance range to 230 - 236 Bcfe.

The company also reaffirmed its previous capital investment program guidance of $415.0 million for 2013.

UPL closed Thursday's regular trading session at $21.95, up $0.12 on a volume of 2.89 million shares.