NEW YORK (TheStreet) -- Shares of Ultra Petroleum (UPL) are higher by 4.65% to $2.70 on Thursday morning, as some stocks within the energy sector are lifted by the rise in oil prices.

Crude oil (WTI) is up by 1.01% to $37.88 per barrel this morning and Brent crude is climbing by 1.42% to $37.89 per barrel, according to the CNBC.com index.

The price of the commodity is continuing to trade in the green from Wednesday, when a surprise decline in U.S. crude supplies gave prices a boost.

The latest report from the Energy Information Administration showed that stockpiles fell by 5.9 million barrels last week. Analysts and investors had been expecting a rise in U.S. supplies.

Ultra Petroleum is a Houston-based independent oil and gas company that is engaged in the development, production, exploration and acquisition of oil and natural gas properties.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:

We rate ULTRA PETROLEUM CORP as a Sell with a ratings score of D+. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed against the S&P 500 and did not exceed that of the Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 102.5% when compared to the same quarter one year ago, falling from $125.36 million to -$3.10 million.
  • The debt-to-equity ratio is very high at 15.85 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with this, the company manages to maintain a quick ratio of 0.35, which clearly demonstrates the inability to cover short-term cash needs.
  • Net operating cash flow has declined marginally to $167.88 million or 0.37% when compared to the same quarter last year. Despite a decrease in cash flow ULTRA PETROLEUM CORP is still fairing well by exceeding its industry average cash flow growth rate of -26.70%.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 86.37%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 102.46% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • ULTRA PETROLEUM CORP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, ULTRA PETROLEUM CORP increased its bottom line by earning $3.51 versus $1.54 in the prior year. For the next year, the market is expecting a contraction of 86.9% in earnings ($0.46 versus $3.51).
  • You can view the full analysis from the report here: UPL