Re: UPL may be turning a corner
Petroeng, thanks for the response. Agree those basis hedges are underwater if you compare them to current NW Rockies futures. After doing some more detailed work on this today, I think that the company will be cutting it very, very close on staying within 4.9x leverage at current HH, NWROX and WTI prices, at the company's midpoint guidance for production and costs. I believe that they have already went to the banks a couple of times for covenant relief since emerging from chapter 11, but as long as the revolver draw is small I can't see why the banks would want to send the company back into bankruptcy.