Dawson James Securities: Ultra Petroleum Reported Mixed 4Q11 Results

In a research report published earlier today by Dawson James Securities, Ultra Petroleum (NYSE: UPL) recent reported its fiscal 4Q in mid-February, offering mixed results.

Dawson James Securities commented in the report, “Ultra reported operating income of $86.3 million in Q4/11, on margins of 31.9%, a 7.4% decrease from $93.2 million in Q4/10, on margins of 39.2%. Operating margins narrowed due to a 45.4% increase in depreciation and depletion costs from Q4/10 to Q4/11. GAAP net income was $131.8 million in Q4/11, or $0.86 per share, an increase of 247.8% from $37.9 million in Q4/10, or $0.25 per share. The increase in net income is attributable to gains from derivates of $136 million in Q4/11, as compared to a loss of $21 million in Q4/10. Ultra's results were mixed compared to our expectations for sales of $330 million and GAAP earnings per share of $0.73.”

Dawson James Securities maintains its Buy rating and $36 PT on Ultra Petroleum, which is currently trading at $24.08.