web analytics
2.1 C
Munich
Friday, December 2, 2022

A Close Look at Ultra Petroleum Corp (OTCMKTS:UPLMQ)

Ultra Petroleum Corp (OTCMKTS:UPLMQ) has continued to move higher in recent weeks on fast accelerating volume. The stock hit the OTC at the beginning of May at $0.16 a share and has been exploding upwards since making spectacular gains to well over $0.75 a share and transforming into one of the top most traded stocks on the entire exchange.

Pushing UPLMQ higher is a significant short position as well as Eric Cole from Appaloosa Management backed by his billionaire boss David Tepper who has been quietly buying up UPLMQ and know owns a position approaching 17 million free-trading shares.

Ultra Petroleum Corp (OTCMKTS:UPLMQ) is an independent energy company engaged in domestic natural gas and oil exploration, development and production. The Company is listed on the NYSE and trades under the ticker symbol “UPL”.

According to flings on April 29, 2016, Ultra Petroleum Corp. and certain of its subsidiaries, including Keystone Gas Gathering, LLC, Ultra Resources, Inc., Ultra Wyoming, Inc., Ultra Wyoming LGS, LLC, UP Energy Corporation, UPL Pinedale, LLC, and UPL Three Rivers Holdings, LLC filed voluntary petitions for reorganization under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Southern District of Texas. The Debtors have filed a motion with the Court seeking joint administration of their Chapter 11 cases under the caption In re Ultra Petroleum Corp., et al, Case No. 16-32202 (MI). The Debtors will continue to operate their businesses as “debtors-in-possession” under the jurisdiction of the Court and in accordance with the applicable provisions of the Bankruptcy Code and orders of the Court.

To Find out the inside Scoop on UPLMQ Subscribe to MicroCapDaily.com Right Now by entering your Email in the box below.

UPLMQ stated in their latest 10Q ”because low crude oil and natural gas prices during 2015 had a significant adverse impact on our business and our financial condition, substantial doubt exists that we will be able to continue as a going concern. Although crude oil and natural gas prices have improved somewhat in recent weeks, product prices continue to be historically low, our financial condition continues to be distressed, and substantial doubt continues to exist that we will be able to continue as a going concern. Our ability to continue as a going concern is dependent on many factors, including our ability to comply with the obligations in our existing debt agreements, to obtain waivers or other relief if we are unable to comply, and/or to be able to repay or replace our indebtedness as it matures. We can offer no assurance that we will be able to obtain waivers or other relief, and it is unlikely we will be able to comply with all of the obligations and covenants in our debt agreements.

In addition, we have substantial unpaid principal maturities and interest payments that are past due, and we have substantial additional principal maturities and interest payments coming due in the near future. We do not have sufficient liquidity to pay our unpaid and near-term principal maturities and interest payments without raising additional capital. We do not have sufficient liquidity to pay our indebtedness if it is accelerated and becomes immediately due and payable without raising additional capital. Additional capital may be available only on extremely onerous terms if it is available at all. Due to our current financial constraints, including the likelihood of the occurrence of events of default under our debt agreements, there is a substantial risk that it may be necessary for us to seek protection from our creditors under Chapter 11 of the U.S. Bankruptcy Code (“Chapter 11”) or the Canadian Bankruptcy and Insolvency Act, or an involuntary petition for bankruptcy may be filed against us in the U.S. or in Canada.”

According to the 10Q from April 29 UPLMQ had 281 million in cash and total debt of $3.9 billion as of March 31. UPLMQ entered into a waiver period extending until April 30 over $100 million in payments that were due March 1. They also deferred making a $26 million interest payment due on April 1, beginning a 30 day-grace period.

We have a Monster Pick Coming. Subscribe Right Now!

Currently trading at a $283 million market valuation UPLMQ is the largest energy Company to date to file for reorganization under Chapter 11. The stock has seen a spectacular rise on the OTC helped along by is Eric Cole from Appaloosa Management backed by his billionaire boss David Tepper who has been quietly buying up UPLMQ and know owns a position approaching 17 million free-trading shares. Clearly he sees value in the Company and questions have arisen that he may be planning a takeover. This seems possible considering UPL’s unsecured debt which leaves them wide open to being bought out. Speculators will have to wait until the June 13 BK court date to find out. We will be updating on UPLMQ on a daily basis so make sure you are subscribed to microcapdaily.com so you know what is going on with UPLMQ.

Subscribe to Our 100% Free Penny Stock Newsletter. We Have Something Big Coming!

Disclosure: we hold no position in UPLMQ either long or short and we have not been compensated for this article.

More articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest article

Sign up now for our 100% FREE Penny Stock Newsletter

Privacy Policy. we will never share your email with anyone.