Boston, MA 04/04/2014 (wallstreetpr) – Ultra Petroleum Corp. (NYSE:UPL) is predominantly a producer of natural gas. Shares of the company have jumped significantly in recent times and this leads to the question of whether more room exists for the shares to rise again.
There may be room for the stock to go up after hitting new 52-week highs and perching up 25 percent over the past three months. However, stock price upside now looks limited following the recent big gains. But again, that doesn’t mean that all is lost for investors who might want to jump in at this juncture. Looking at the reason why the stock has achieved such meteoric rise can help investors understand more opportunities in the company.
Focus on profitable growth
The appreciation in stock price witnessed in Ultra Petroleum Corp. (NYSE:UPL) can be attributed to the increasing focus on profitable growth by the company’s management. UPL can be seen balancing the pricing challenge with production levels. In order to keep growing revenue at a time when prices look volatile, the company is trying to boost production. And this is done through balanced acquisitions and strategic exploration programs.
The company has and continues to acquire properties in natural gas rich fields. This gives Ultra Petroleum Corp. (NYSE:UPL) the opportunity to significantly boost its production to offset the impact of low prices.
Competitive cost structure
Growing production and achieving higher revenue figures is not enough to ensure return of solid value to investors. This is why Ultra Petroleum Corp. (NYSE:UPL) has in place a competitive cost structure. This way, the company is able to achieve consistent earnings growth, and increase in production can only boost earnings going forward.
In the last financial reporting, the company realized earnings per share of 42 cents against the consensus estimate of 38 cents.
Bottom line
While there may be limited room left for the stock price to soar again, investors can bet on Ultra Petroleum Corp. (NYSE:UPL) on the basis of the brewing earnings growth.
