UPDATE: Jefferies Downgrades Ultra Petroleum to Hold

Jefferies lowers its rating on Ultra Petroleum

to Hold from Buy and cuts its price target on shares by $5 to $22 on weak gas fundamental and bleak production outlook. Jefferies notes, "Rising Marcellus service costs continue to pinch IRRs while Pinedale returns appear marginal below $5. Absent a gas price bounce or a southern DJ Basin discovery, UPL should struggle to post debt adjusted production per share growth." UPL closed at $25.24 on Thursday.