Shares of Ultra Petroleum Corporation UPL fell to a 52-week low of $4.00 on Friday, Nov 27, 2015. The fall in commodity price has affected the entire industry and the company was no exception either. For well over a year, this upstream firm’s stock price has been declining precipitously. To be precise, Ultra Petroleum’s shares have plummeted over 78% over a period of one year.

Though Ultra Petroleum surpassed earnings estimates when it reported third-quarter results on Oct 29, both the top line and bottom line of the company witnessed a substantial year-over-year decline on low commodity prices and rising costs.

Ultra Petroleum’s high natural gas exposure – the commodity accounts for about 93% of the total production – raises its sensitivity to gas price fluctuations compared with its more-diversified independent peers. Natural gas realizations during the last quarter recorded a 28% year-over-year fall.

Moreover, an increase in operating costs is putting further pressure on the company’s margins. Ultra Petroleum’s operating expenses rose 15%, while cash flow margin and net income margin witnessed a substantial decline. The company’s highly leveraged balance sheet is also a cause of concern.

Nonetheless, the company has increased production guidance for this year. An improvement in volumes should partly offset the pricing weakness. Ultra Petroleum is also planning asset sales to reduce its debt burden.

Currently, Ultra Petroleum carries a Zacks Rank #3 (Hold). This implies that the stock will perform in line with the broader U.S. equity market over the next one to three months.

Stocks That Warrant a Look

Some better-ranked stocks from the oil and gas explorations and production industry are Antero Resources Corporation AR, Contango Oil & Gas Company MCF and Matador Resources Company MTDR. While Antero Resources and Contango sport a Zacks Rank #1 (Strong Buy), Matador Resources holds a Zacks Rank #2 (Buy).

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