Ultra Petroleum lenders OK leverage covenant amendment, reaffirm base

By Angela McDaniels

Tacoma, Wash., Feb. 19 – Ultra Petroleum Corp. amended the financial covenant related to leverage under its reserve-based loan credit facility, according to a company news release.

The lenders approved an amendment that expands the company’s leverage metrics to 4.75x for March 31 and June 30, 4.90x from Sept. 30 to June 30, 2020, 4.50x at Sept. 30, 2020, and 4.25x onwards.

The amendment also provides adjustments to the calculation of EBITDAX in the company’s leverage calculation.

In conjunction with the amendment process, the company accelerated the semiannual redetermination of its borrowing base for spring 2019. The borrowing base was reaffirmed at $1.3 billion.

In September, the borrowing base had been reduced by $100 million from $1.4 billion.

“The affirmation of our borrowing base provides ample liquidity, and the amendment to the RBL credit facility provides flexibility and time for the company to execute on its business plan,” interim chief executive officer Brad Johnson said in the news release.

Ultra Petroleum is a natural gas and oil exploration, development and production company based in Englewood, Colo.

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