UPL - Ultra Petroleum: Long Term Restructuring Risk Remains Significant Due To Natural Gas Prices
I had previously reported on Ultra Petroleum (UPL) prior to its bankruptcy filing, noting that it was likely to restructure in 2016. Although Ultra Petroleum rebounded well for a while post-restructuring, it faces significant challenges again due to its large remaining debt load and relatively mediocre Opal gas prices.
At a realised price of $2.50 per Mcf for natural gas, Ultra Petroleum may be able to maintain its production at Q4 2018 levels without incurring additional debt, but could still be stuck with a fairly high 4.4x leverage level despite the debt reduction