Ultra Petroleum Corp. (NASDAQ:UPL) has announced the litigation battle with Cross Sound management has been dismissed.
The company revealed that it struck a mutual stipulation and settlement deal with Cross Sound management, thus leading to a full resolution of the ongoing litigation between the involved parties. This means that the last and only objection that stood in the way of the implementation of the company’s reorganization plan has been settled. Of course this means the company will go ahead with the plan for reorganization.
Ultra Petroleum releases its First Quarter results
Some more good news from Ultra Petroleum apart from the litigation settlement include the recently announced first quarter results. The company revealed that it managed to raise roughly $3 billion in exit financing.
“Our focus during the quarter was to get out of bankruptcy as evidenced by the first three highlights listed above. We achieved that on April 12, 2017 while raising nearly $3.0 billion in exit financing. We were successful in preserving and maximizing value for all stakeholders,” stated Ultra Petroleum CEO, Michael D. Watford.
The company managed to increase its revenue to $221 million, marking a 31 percent increase compared to Q1 in the previous year. The first Quarter cash operating margins were also up by $2.33 per mcfe compared to $0.91 per mcfe in the first quarter of 2016, thus registering a $156% improvement.
The company stated that the in-court restructuring process was significant because it allowed it to materially improve its low cost structure through the elimination of legacy transportation costs. It also allowed the firm to lower its gathering and processing fees as well as interest costs, thus leading to better margins. Watford stated that the material savings played a key part in strengthening the company’s corporate economics of its vast inventory which is characterized by low risk.
Watson also added that his firm was able to boost its recycle ratio by 2.4 times after implementing the material savings. This helped to put Ultra Petroleum ahead of the competition.
Ultra Petroleum stock closed the latest trading session on Thursday at $10.26 after tanking by 1.82 percent compared to the value of the stock during the previous close.