Long Term Liabilities

12 Months Ended

Dec. 31, 2012

Long Term Liabilities Tables [Abstract]

LONG-TERM LIABILITIES

5. LONG-TERM LIABILITIES:

		December 31,		December 31,
		2012		2011
Bank indebtedness	$	277,000	$	343,000
Senior notes		1,560,000		1,560,000
Other long-term obligations		76,038		67,008
	$	1,913,038	$	1,970,008

Aggregate maturities of debt at December 31, 2012:
											Beyond
	2013		2014		2015		2016		2017		5 years		Total
$	-	$	-	$	100,000	$	339,000	$	116,000	$	1,282,000	$	1,837,000

Bank indebtedness.  The Company (through its subsidiary, Ultra Resources, Inc.) is a party to a revolving credit facility with a syndicate of banks led by JP Morgan Chase Bank, N.A. (the “Credit Agreement”). The Credit Agreement provides an initial loan commitment of $1.0 billion, which may be increased up to $1.25 billion at the request of the borrower and with the lenders' consent, provides for the issuance of letters of credit of up to $250.0 million in aggregate, and matures in October 2016 (which term may be extended for up to two successive one-year periods at the Borrower's request and with the lenders' consent). At December 31, 2012, the Company had $277.0 million in outstanding borrowings and $723.0 million of available borrowing capacity under the Credit Agreement.

Loans under the Credit Agreement are unsecured and bear interest, at the Borrower's option, based on (A) a rate per annum equal to the prime rate or the weighted average fed funds rate on overnight transactions during the preceding business day plus 100 basis points, or (B) a base Eurodollar rate, substantially equal to the LIBOR rate, plus a margin based on a grid of the Borrower's consolidated leverage ratio (200 basis points per annum as of December 31, 2012).The Company also pays commitment fees on the unused commitment under the facility based on a grid of its consolidated leverage ratio.

The Credit Agreement contains typical and customary representations, warranties, covenants and events of default. The Credit Agreement includes restrictive covenants requiring the Borrower to maintain a consolidated leverage ratio of no greater than three and one half times to one and, as long as the Company's debt rating is below investment grade, the maintenance of an annual ratio of the net present value of the Company's oil and gas properties to total funded debt of no less than one and one half times to one. At December 31, 2012, the Company was in compliance with all of its debt covenants under the Credit Agreement.

Senior Notes:  The Company's Senior Notes rank paripassu with the Company's Credit Agreement. Payment of the Senior Notes is guaranteed by Ultra Petroleum Corp. and UP Energy Corporation. The Senior Notes are pre-payable in whole or in part at any time and are subject to representations, warranties, covenants and events of default customary for a senior note financing. At December 31, 2012, the Company was in compliance with all of its debt covenants under the Senior Notes.

Other long-term obligations:  These costs primarily relate to the long-term portion of production taxes payableand our asset retirement obligations.