Ultra Petroleum Corp. (OTC: UPLMQ), which filed for Chapter 11 bankruptcy protection in May 2016, has renegotiated its gas processing contracts with Enterprise Products Partners LP (NYSE: EPD) and Williams Partners LP (NYSE: WPZ).
Ultra said in a statement that it expects the new agreements, approved by the U.S. Bankruptcy Court on Feb. 22, to provide financial benefits related to its operations at the Pinedale Field asset in Wyoming, including:
- Processing fees: The contracts will increase EBITDA by about $12 million per year at current production volumes; and
- Gas sales revenues: An increase of about $0.02 per thousand cubic feet for gas processed through the Enterprise plant (which is expected to increase annual revenue by $1.6 million at current production volumes).
The company expects these benefits to increase as production volumes grow through its development drilling program in Pinedale. Primary terms of the new contracts extend through 2036.
“We have made every effort to utilize our in-court restructuring process to maximize the value of our business enterprise,” Michael Watford, Ultra’s chairman, president and CEO said in a written statement. “We are pleased to announce these new long-term gas processing contracts that will not only improve the profitability of our Pinedale asset, but will ensure that our gas will continue to be processed in reliable facilities operated by industry leaders.”
Recommended Reading
Bechtel Awarded $4.3B Contract for NextDecade’s Rio Grande Train 4
2024-08-06 - NextDecade’s Rio Grande LNG Train 4 agreed to pay Bechtel approximately $4.3 billion for the work under an engineering, procurement and construction contract.
Pemex Hits Debt Target, Struggles to Reverse Production Declines
2024-07-26 - Pemex achieved its long-term debt target, which aimed to gets its financial obligations below the $100 billion, while struggling to halt production declines.
Ingham Named President of Texas Alliance of Energy Producers
2024-08-12 - Karr Ingham served as interim president of the Texas Alliance of Energy Producers for nine months prior to assuming the full leadership position.
Petrobras’ 2Q Production Rises 2.4% YOY to 2.7 MMboe/d
2024-07-31 - Brazil’s state-owned Petrobras reported average production of 2.7 MMboe/d in second-quarter 2024 as offshore production continues to ramps up.
Equitrans, EQT Announce Preferred Stock Election Deadline
2024-06-24 - Equitrans Series A preferred stockholders have until July 9 to vote on the consideration they prefer to receive once the merger with EQT takes place.