NEW YORK (TheStreet) -- Shares of Ultra Petroleum Corp. (UPL) are higher by 1.51% to $22.80 on Thursday morning, after the company announced it has agreed to acquire all Pinedale field properties from SWEPI LP, an affiliate of Royal Dutch Shell (RDS.A).
The sale will be made in exchange for a portion of Ultra Petroleum’s Marcellus Shale properties and a cash consideration of $925 million.
Ultra Petroleum is purchasing Shell’s interest in the Pinedale filed, which is currently producing approximately 189 million cubic feet equivalent per day of natural gas and condensate.
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Following the transaction Ultra will operate 68% of the Pinedale field.
Separately, TheStreet Ratings team rates ULTRA PETROLEUM CORP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate ULTRA PETROLEUM CORP (UPL) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we find that the growth in the company's net income has been quite unimpressive."