UPDATE: Stifel Nicolaus Downgrades Ultra Petroleum to Hold

Stifel Nicolaus lowers its rating on Ultra Petroleum

to Hold from Buy based on diminished outlook on natural gas prices. Stifel Nicolaus says, "We are lowering our 2012 NYMEX natural gas price forecast 28% to $3.25/MMBtu. The change causes us to lower our 2012 EPS/CFPS estimates 29%/18%, which are now 13%/5% below Street consensus. Moreover, our estimates are based on 2012 production growth of 24% y/y on the heels of 2011 growth of approximately 16%. Given that 96% of company-wide volumes are natural gas, we anticipate that management will cut spending plans if prices remain near or below our forecast." UPL closed at $26.49 per share on Thursday.