UPDATE: Stifel Nicolaus Downgrades Ultra Petroleum to Hold
Stifel Nicolaus lowers its rating on Ultra Petroleum (NYSE: UPL) 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.
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.