Ultra Declines After $1.1 Billion Asset Writedown: Houston Mover

Ultra Petroleum Corp. (UPL), the natural- gas producer with properties in Wyoming and Pennsylvania, plunged the most in more than three years after reporting a $1.1 billion writedown on the value of assets because of low gas prices.

Ultra, based in Houston, tumbled 9.6 percent to $21.47 at the close in New York, the biggest drop since June 2009.

The company had a second-quarter net loss of $1.19 billion, or $7.76 a share, compared with a profit of $103.5 million, or 67 cents, a year earlier, according to a statement today. Ultra said it recorded the one-time charge on certain properties after gas in the U.S. touched a 10-year low in 2012.

Investors also may be disappointed that a planned sale of some midstream properties wasn’t announced, while results from the Niobrara formation in the western U.S. may be some time off, Leo Mariani, an analyst a RBC Capital Markets in Austin, Texas, said in a telephone interview. Mariani has a sector perform rating on Ultra shares, meaning investors should hold them, and doesn’t own any.

To contact the reporter on this story: Edward Klump in Houston at eklump@bloomberg.net

To contact the editor responsible for this story: Susan Warren at susanwarren@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.