At one point, UPL was being revered as one of the next up and comer oil majors, with significant natural gas and oil holdings. Leverage is a bitch. Now they get to sell off assets at fire sale prices to Exxon, and enter the wastebin of failed enterprises.
UPL is listing $3.9 billion in debt and $1.3 billion in assets.
“The low commodity prices, and especially the low natural gas prices that prevailed throughout 2015 and have continued through the first four months of 2016 have had a devastating impact,” Chief Financial Officer Garland Shaw said in a filing explaining events that led to the bankruptcy.
“and the energy sector trading at over 100x forward earnings expectations,”