Chesapeake Energy Corporation (CHK), And How Ultra Petroleum Corp. (UPL) Is Planning Its Turnaround

Perhaps most importantly, Ultra hasn’t made the same mistakes as some of its formerly gas-focused competitors in buying high and selling low. Chesapeake Energy Corporation (NYSE:CHK) and SandRidge Energy Inc. (NYSE:SD) largely gave up on gas, seeking to broaden their asset bases further into more lucrative oil and natural gas liquids. Yet as Chesapeake and SandRidge have sold off assets at the least desirable time, Ultra has stayed committed to gas and therefore stands to benefit more from its recent gains.

In Ultra’s quarterly report, look for any comments about whether the company is seeking to make any major strategic moves. Some have pegged Ultra as a takeover target in its own right, but a better move could come from Ultra Petroleum Corp. (NYSE:UPL) being the aggressor in grabbing up more gas assets on the cheap.

The article How Ultra Petroleum Is Planning Its Turnaround originally appeared on Fool.com and is written by Dan Caplinger.

Motley Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter @DanCaplinger. The Motley Fool recommends Ultra Petroleum. The Motley Fool owns shares of Ultra Petroleum and has the following options: Long Jan 2014 $20 Calls on Chesapeake Energy, Long Jan 2014 $30 Calls on Chesapeake Energy, Short Jan 2014 $15 Puts on Chesapeake Energy, Long Jan 2014 $30 Calls on Ultra Petroleum, Long Jan 2014 $40 Calls on Ultra Petroleum, and Long Jan 2014 $50 Calls on Ultra Petroleum.

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