Natural gas producer,
Ultra Petroleum Corporation
) is set to offer senior unsecured notes worth $700 million. The
company added that the notes, anticipated to mature by 2024, will
be offered to a few selected investors.
The net proceeds from the notes offering are expected to be
utilized to partly finance Ultra Petroleum's acquisition of the
Last month, Ultra Petroleum entered into a purchase and sale
agreement with a subsidiary of European oil major
Royal Dutch Shell plc
). Per the deal, Ultra Petroleum is expected purchase the entire
interest of Shell in the Pinedale field, which is rich in natural
gas. For the acquisition, Ultra Petroleum will pay a cash
consideration of $925 million and give away its partial interest in
the Marcellus Shale - which covers roughly 155,000 net acres.
Ultra Petroleum revealed that after the completion of the
acquisition - likely to close by the third quarter - its net proved
reserves will increase by 1.8 trillion cubic feet equivalent.
Houston, TX-based Ultra Petroleum is an independent energy firm
engaged in the acquisition, development, exploration and production
of oil and gas properties. The company's operations are focused on
the Green River Basin of southwest Wyoming, mainly covering the
Pinedale and the Jonah fields.
Ultra Petroleum currently holds a Zacks Rank #3 (Hold), implying
that it is expected to perform in line with the broader U.S. equity
market over the next one to three months.
Meanwhile, one can look at better-ranked players in the oil and gas
exploration and production industry like
Cheniere Energy Inc.
WPX Energy Inc.
). Both stocks sport a Zacks Rank #1 (Strong Buy).
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ULTRA PETRO CP (UPL): Free Stock Analysis
WPX ENERGY INC (WPX): Free Stock Analysis
ROYAL DTCH SH-A (RDS.A): Free Stock Analysis
CHENIERE ENERGY (LNG): Free Stock Analysis
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