One has to wonder what Ultra Petroleum (UPL) will say when it reports earnings next week.
Shares of the Texas-based company fell more than 30% on Friday and are now trading around $0.60.
Ultra Petroleum's stock also fell 28% on Thursday as the price of oil sank below $27 a barrel. Meanwhile, WTI crude is up 11% as of midday trading on Friday while shares of Ultra Petroleum continue to plummet.
The price of Ultra Petroleum's bonds are falling as well as a note due to mature in 2018 is now quoted at 8.25 cents on the dollar, representing a 144% yield on the issue, according to data provided by Thomson Reuters. (On Thursday, Real Money reported the issued was quoted at 11 cents on the dollar.)
Earlier this month, Standard & Poor's Rating Service downgraded Ultra Petroleum's corporate rating five notches to CCC- from B+.
"The rating action reflects our view that Ultra Petroleum's leverage and liquidity continue to deteriorate in light of our recently reduced commodity price deck and our estimate that the company will breach financial covenants on both its unsecured credit facility and senior unsecured notes at the end of the first quarter," said Standard & Poor's credit analyst Carin Dehne-Kiley in a release.
At today's prices, Standard & Poor's assessment could be on the mark.
For more on Real Money's 20 distressed companies to watch: