Boston, MA 05/06/2014 (wallstreetpr) – Ultra Petroleum Corp. (NYSE:UPL) has announced that the company would be moving its gas production to another plant, namely, to the Pioneer Plant. This move was necessary on account of the blast that occurred at the William Partners LP Wyoming Plant.
The company is engaged in the production of oil and gas, along with explorations and drilling of prospective oil fields and the acquisition of some of them if the terms were favourable.
The Unexplained Explosion
The cause of the explosion is still under investigation, but the primary cause could be a small fire that ignited the issue and caused an explosion. As a result, all the residents of the nearby town were evacuated to prevent any further impending disaster.
Fortunately, all the 42 employees present at that time were rescued without any injuries. This, however impacted Ultra Petroleum Corp. (NYSE:UPL)s flow of gas to its consumers for a short while, but, UPL reacted almost immediately and shifted its base to the Pioneer Plant.
The Resultant Effect
Although the present gas supply in the US is above the expected levels, this explosion will result in an increase in the prices in this region as the temporary shortfall in this area can be instrumental in the short term for higher prices.
As a result of the blast, and the spontaneous shift of the operations from the William’s Plant to UPL’s Pioneer Plant, the company’s initial loss of the amount of gas supply to its consumers would be more than substantiated by the increase in prices due to the short supply in the region.
Future Prospects
Irrespective of the unfortunate incident of the blast and the resultant increase in prices on account of short supply, Ultra Petroleum Corp., Ultra Petroleum Corp. (NYSE:UPL) had ambitious plans of expanding its market share and creating additional value for its shareholders.
