Pomerantz Law Firm Announces the Filing of a Class Action against Certain Officers of Ultra Petroleum Corporation - UPLCQ

NEW YORK, Sept. 21, 2020 /PRNewswire/ -- Pomerantz LLP announces that a class action lawsuit has been filed against certain officers of Ultra Petroleum Corporation  ("Ultra Petroleum" or the "Company") (OTCMKTS: UPLCQ).  The class action, filed in United States District Court for the District of Colorado, and docketed under 20-cv-02820, is on behalf of a class consisting of all persons other than Defendants who purchased or otherwise, acquired Ultra securities between April 13, 2017, and August 8, 2019, inclusive (the "Class Period"), seeking to pursue remedies under the Securities Exchange Act of 1934 (the "Exchange Act") against certain of the Company's current and former senior executives.

If you are a shareholder who purchased Ultra Petroleum securities during the class period, you have until November 9, 2020, to ask the Court to appoint you as Lead Plaintiff for the class.  A copy of the Complaint can be obtained at www.pomerantzlaw.com.   To discuss this action, contact Robert S. Willoughby at [email protected] or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased. 

[Click here for information about joining the class action] 

Non-party Ultra is a petrochemical company focused on developing its natural gas reserves located in southwest Wyoming. 

Ultra is an oil and gas development company with primary assets in the Pinedale and Jonah fields of the Green River Basin of southwest Wyoming.  Over 80% of the Company's revenues have historically been derived from the development and sale of natural gas.  On May 14, 2020, Ultra filed for bankruptcy protection for the second time in four years and, as a result, is not named as a defendant in this action.

The Complaint alleges that throughout the Class Period, Defendants, inter alia: (i) materially overstated the value of Ultra's oil and gas reserves; (ii) materially misrepresented the Company's ability to ramp up production and its financial flexibility; (iii) failed to disclose the Company's extreme sensitivity to even a modest decline in natural gas prices; and (iv) concealed significant setbacks in the Company's vaunted horizontal well drilling program.

On July 31, 2019, Ultra issued a press release announcing that NASDAQ had commenced proceedings to delist Ultra's stock "as a result of the Company not regaining compliance with the $1.00 per share minimum bid price requirement for continued inclusion on Nasdaq."

On August 9, 2019, Ultra issued a press release announcing its second-quarter 2019 ("2Q19") financial and operational results.  The Company disclosed that total revenues for the quarter had decreased by 18% to $155.4 million as compared to $190.1 million during 2Q18.  The release stated that the Company's once-vaunted horizontal well program had been effectively halted.  It also lowered 2019 projected capital investments to a range of $260 million to $290 million and annual production to a range of 238 to 244 Bcfe.

On this news, the price of Ultra stock declined 31% to just $0.09 per share on an unusually high volume of nearly 14 million shares traded.

On August 22, 2019, NASDAQ formally delisted Ultra stock.

On September 16, 2019, Ultra issued a press release announcing that the Company had amended its credit facility and suspended all drilling in its Pinedale field to "preserve its highest value inventory for future development locations to be developed under more favorable commodity pricing conditions."  The release further announced that "[i]n connection with the approval of the amendment to the Credit Facility, the fall borrowing base redetermination has been established at $1.175 billion, including $200 million of the commitment allocated to the Credit Facility."

On November 7, 2019, Ultra issued its third-quarter 2019 ("3Q19") financial results in a press release, revealing that total revenues for the quarter had decreased to $144.2 million as compared to $203.8 million in 3Q18.  The release also stated that Ultra had produced just 60.2 Bcfe during the quarter, a 4% decrease from 2Q19.

On February 18, 2020, Ultra filed a current report on Form 8-K with the SEC, announcing a number of negative changes to Ultra's credit facilities.

On March 5, 2020, Ultra filed a current report on Form 8-K with the SEC, revealing that Ultra had unsuccessfully attempted to renegotiate its debt out of court.

On March 31, 2020, Ultra filed with the SEC a Notification of Late Filing on Form 12b-25 with respect to its Form 10-K for the 2019 fiscal year ("FY19") (the "2019 10-K").  As explained in the notification, Ultra was unable to timely file its 2019 10-K because Ultra was "currently engaged in liability management efforts, through its ongoing engagement with Centerview Partners and is actively engaging in discussions with certain holders of the Company's long-term debt with respect to potential deleveraging or restructuring transactions."

On April 14, 2020, the Company issued a press release announcing its financial and operational results for the fourth quarter of 2019 ("4Q19") and FY19 and disclosing that the Company's forthcoming annual report on Form 10-K would include a report from the Company's accounting firm expressing "substantial doubt about the Company's ability to continue as a going concern."  As the release revealed: "The failure to deliver audited, consolidated financial statements without a going concern or like qualification or explanation results in a default under each of the Credit Agreement and Term Loan Agreement as of April 14, 2020."  The release also reported that Ultra's revenue had declined significantly in the quarter to $170.9 (from $273.2 million in 4Q18) and to $742.0 million in FY19 (from $892.5 million in FY18).  The release further revealed that year-end proved reserves stood at just 1,990 Bcfe and that, because the Company had suspended its drilling operations, it no longer included its PUD reserves in its reserve valuations.  It stated that 2020 production was expected to plummet to a range of just 182 to 192 Bcfe, with an annual capital investment budget of only $10 million to $20 million.

On May 14, 2020, Ultra filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court, Southern District of Texas, Houston Division, under the caption In re Ultra Petroleum Corp., et al., Case No. 20-bk-32631 (the "2020 Bankruptcy").  Also on May 14, 2020, Ultra announced a restructuring agreement that it had secured with a number of its creditors.  Ultra continued to operate as a "debtor in possession" following its bankruptcy petition.

In its 2020 Bankruptcy filings, Ultra estimated that the values of its oil and gas reserves based on a future net cash flows analysis and on a discounted future net cash flows analysis at a 10% discount rate, each before income tax, were just $1.907 billion and $1.217 billion, respectively, as of March 31, 2020.  The Company ascribed no value to its PUD reserves.

On August 21, 2020, the bankruptcy court in the 2020 Bankruptcy approved the Company's proposed plan of reorganization, which provided zero recoveries to existing Ultra shareholders.

The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.

CONTACT:
Robert S. Willoughby
Pomerantz LLP
[email protected] 
888-476-6529 ext. 7980

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SOURCE Pomerantz LLP