Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Ultra Petroleum files for Chapter 11 Bankruptcy Protection
Author: Joel R. Glucksman
Date: June 24, 2016
Key Contacts
Back
Ultra Petroleum files Chapter 11
Recently, Ultra Petroleum, the largest natural gas company in Wyoming and one of the biggest firms in the nation, announced that it had filed for Chapter 11 bankruptcy protection. According The Wall Street Journal, the company cited several months of financial decline for its decision.
Ultra Petroleum falls into insolvency
In its bankruptcy documents, the company claimed that it amassed a massive debt load that was directly correlated to the collapse of oil and natural gas prices. For a majority of the previous two years, natural gas prices have declined, and subsequently struggled to rebound, as they have averaged under $2 million per British Thermal Unit.
A Houston Business Journal report noted that the company has struggled with its debt load since 2014, as revenues fell from $183 million in the first quarter of 2015 to under $138 million by the first quarter of this year. Even so, the company only reported $21.8 million in losses in Q1 this year, as opposed to $25 million in revenues at the same time last year.
Nevertheless, this left the company with assets of only $1.28 billion and debts of more than $3.92 billion – all of which were unsecured. Then, after Ultra Petroleum failed over a series of months to negotiate refinancing agreements with any of its lenders and bondholders, the company was forced to seek bankruptcy protection.
The significance of the Ultra Petroleum filing
Ultra Petroleum’s bankruptcy petition comes less than a week after Midstates Petroleum announced that it had filed for Chapter 11 bankruptcy protection. According to The Journal, this has become a growing trend in the energy sector as more companies have struggled to adjust to the collapse of oil and natural gas prices. To date, 67 production and exploration firms have filed for Chapter 11 bankruptcy protection since 2015, which represents a 380 percent increase over 2014.
Are you a creditor in a bankruptcy? Have you been sued by a bankrupt? If you have any questions about your rights, please contact me, Joel Glucksman, at 201-806-3364.
For more posts regarding oil & gas companies filing for Bankruptcy, check out:
- Venoco files for Chapter 11 Bankruptcy Protection
- Emerald Oil Inc Files for Chapter 11 Bankruptcy Protection
- Goodrich Petroleum Corp. Files for Chapter 11 Bankruptcy Protection
- Practices: Bankruptcy & Creditors' Rights, Corporate Transactions & Business, Bankruptcy Litigation
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
New Jersey’s Revised UHAC Regulations: What Residential Developers Need to Know About Affordable Housing Commitments
New Jersey residential developers with affordable housing obligations should carefully review their existing approvals, development agreements, and proposed deed restrictions in light of the State’s revised UHAC regulations (Uniform Housing Affordability Controls). The regulations, which took effect on November 6, 2025, significantly change the administration and physical requirements for affordable housing units. For developers with […]
Author: Wendy Rubinstein Quiroga
“No Comment” Culture: Why Silence Is Often the Riskiest Legal Strategy
A “no comment” response is sometimes the right call when a legal problem arises. As a blanket policy, however, it lets allegations go unanswered, deadlines pass, evidence disappear, and manageable disputes grow into expensive litigation. The businesses that fare best are usually the ones that say little publicly while acting decisively behind the scenes. When […]
Author: Sean M. Pena
Utility-Scale Battery Storage Projects: A Legal Roadmap for Developers, Property Owners and Other Stakeholders
Utility-scale battery energy storage systems (BESS) are becoming an increasingly important component of the electric grid throughout New Jersey, New York, and Pennsylvania. As renewable generation expands, electricity demand increases and grid operators seek greater flexibility, battery storage can help balance supply and demand while providing additional capacity and reliability. For developers, battery storage presents […]
Author: Nicholas Wall
Navigating Disputes: Hire a Partnership Dispute Lawyer
A falling out between partners can be disastrous for any business. In many cases, the partnership will not survive. If you are in an unworkable situation with your partners, it may be time to consult a partnership dispute lawyer experienced in handling partnership breakups and dissolutions before the situation deteriorates any further. It is easy […]
Author: Jay McDaniel
Section 363 Sales in Bankruptcy: What Businesses, Lenders, and Buyers Need to Know
When a company enters Chapter 11 bankruptcy, many assume the process will culminate in a lengthy reorganization plan. However, distressed businesses are increasingly being sold through a different mechanism — a sale under Section 363 of the United States Bankruptcy Code. A Section 363 sale allows a company, as a debtor-in-possession in bankruptcy, to sell […]
Author: John D. Giampolo
Zoning Laws Explained: What You Need to Know Before Buying Property
Before buying property, it is critical to determine whether local zoning laws may affect your plans. If you plan to redevelop the property, you will want to confirm that local zoning regulations permit development as intended. If acquiring property that is already developed, you must verify that the use is permitted in the underlying zoning […]
Author: Wendy Rubinstein Quiroga
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.