Oil fell below $27 a barrel on Thursday and shares of Texas-based Ultra Petroleum (UPL) fell much harder. Shares of the company were down more than 25% in midday trading and going for $1.
The new year hasn't been particularly kind to Ultra Petroleum. Shares of the company are down 45% for the year. Meanwhile, its bonds are in trouble, too. The company has a $450 million bond coming due in 2018 that currently trades for 11 cents on the dollar, representing a 121% yield, according to data provided by Thomson Reuters.
In its most recent quarterly filing with the Securities and Exchange Commission, the company acknowledged that it could have difficulty remaining in compliance with its debt convenants if low energy prices persist.
Surely Thursday's stock price coupled with the drop in oil doesn't provide much comfort.
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