Energy Sector Update for 02/19/2015: UPL,OIS,CVRR
Top Energy Stocks
Energy stocks were mostly lower, with the NYSE Energy Sector Index sinking 0.9% while shares of energy companies in the S&P 500 were down 0.4% as a group. Crude oil for March delivery was down $1.16 at $51.66 per barrel while front-month natural gas futures were down 3 cents to $2.80 per 1 million BTU.
In company news, Ultra Petroleum Corp. ( UPL ) was surging Thursday after the oil and natural gas producer reported a 49% increase in proved reserves over year-ago levels in addition to Q4 earnings and revenue beating Wall Street expectations.
Net income during the three months ended Dec. 31 more than doubled compared to year-ago levels to $542.9 million from a $237.8 million profit last year. Excluding one-time items, it earned $96.3 million, or $0.62 per share, up from $0.42 per share last year and beating the Capital IQ consensus by $0.11 per share.
Revenue grew 41.7% over year-ago levels to $319.1 million, topping analyst estimates by around $11.26 million.
Looking forward, the company is projecting 2015 production in a range of 275 billion to 285 billion equivalent cubic feet, up at least 10.4% over its 2014 production of 249 billion cubic feet of natural gas. Wyoming is expected to generate the bulk of this year's production, with operations in Pennsylvania and Utah seen contributing less than 10% of the company's 2015 production.
Separately UPL reported a 49% increase in proved reserves to 5.4 trillion cubic feet, consisting of about 89% natural gas and 8% crude oil while natural gas liquids are projected to make up the remaining 3%.
UPL shares were up more than 6% at $15.86 apiece, earlier rising to a session high of $16.22 a share. The stock has traded within a 52-week range of $11.31 to $31.43 a share, slumping almost 41% over the past 12 months prior to Thursday's advance.
In other sector news,
(+) OIS, (+1.6%) Q4 EPS from cont ops of $1.09 per share beats Capital IQ consensus by $0.10 per share. Revenue rises 14.8% over year-ago levels to $483.7 mln, topping estimates by around $14.15 mln.
(-) CVRR, (-5.5%) Narrows Q4 net loss to $108.5 mln, or $0.73 per unit, from $110.2 mln last year but misses Street view expecting $0.55 per unit profit. Net sales decline 24.9% to $1.78 bln, matching estimates.
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