Wyoming’s largest gas producer said Friday it may file for bankruptcy.
Ultra Petroleum disclosed the possibility of bankruptcy in a filing with the Securities and Exchange Commission.
Ultra has substantial debts from large purchases of oil and gas reserves in recent years and is struggling to pay back those debts with current low natural gas and crude oil prices.
Natural gas is used for home heating and thanks to an unusually warm winter, demand has been weak—prices are at their lowest in decades. Crude oil prices are also less than half what they were two years ago.
Ultra said it is still in negotiations with its creditors, but that it believes it is "highly unlikely" it will be able to reach an agreement with them.
