Ultra Petroleum Corp. (OTCMKTS:UPLMQ) delivered a strong performance, for its 3Q2016. In its financial report for the period, the company revealed that it had improved its cash position, by $343.5 million, while generating a positive cash flow of $129 million. Despite the depressed market environment in the oil & gas sector, Ultra Petroleum was amongst the few to report a net income for the 3Q2016. The company’s adjusted net income stood at $102.4 million.
Providing an operational update for the period, UPLMQ reported that it produced 65.2 billion cubic feet of natural gas and 680,100 barrels of oil and condensate. Moreover, the company realized pricing was $2.62 per thousand cubic feet for natural gas and $41.55 per barrel of oil and condensate. At a time when most oil & gas companies are downsizing, UPLMQ has been working to expand operations. The company claimed that since the 3Q2016, they have added another rig at the Pinedale development wells and plan to add a fourth rig soon.
For its FY2016 guidance, the company stated that it expects its capital expenditure to be approximately $295 million, with production ranging between 281 and 284 Bcfe. It should be noted here that the company is undergoing an in-court-financial restructuring process. During the 3Q2016, UPLMQ was awarded an extension, in the time period to file a reorganization plan, up to March 2017. Moreover, the management was working to improve the value of the company, by negotiating with counterparties, to revise the terms of contracts.
Analysts at Bloomberg have claimed that the bankruptcy case for Ultra is unique. This is because the company’s $3.76 billion debt is not secured by any of its assets, worth over $1 billion. As such, senior bank lenders are at the same level, as the note holders of UPLMQ. As such, senior banks have been working to exit the deal, amid uncertainty of their payments.
Ultra Petroleum Corp. (OTCMKTS:UPLMQ) lost 12.29% of its share value, during the November 3 trading session, to reach a close at $4.78 per share. The stock had a trade volume of 4.38 million, during the session.