Ultra Petroleum falls after posting production numbers; Sanchez drops on oil guidance

By James McCandless

San Antonio, April 20 – Traders reported an increase in activity in the distressed debt market as companies report or prepare to report first-quarter results.

Ultra Petroleum Corp.’s notes declined again after the company posted first-quarter production numbers on Thursday, disappointing some investors.

The company also amended its credit agreement to account for a higher maximum net leverage covenant to 4.50 times from 4.25 times.

The 7 1/8% notes due 2025 lost about 2¾ points to close at around 70½ bid. The 6 7/8% notes due 2022 fell about 3 points to close at around 76½ bid.

The 7 1/8% notes lost 2½ points and the 6 7/8% lost ¾ point on Thursday.

Sanchez Energy Corp.’s bonds fell as it also posted production numbers after the market close on Thursday, falling short of its estimates on oil production.

The 6 1/8% notes due 2023 cratered about 3¾ points to close at around 75½ bid.

Community Choice Financial Inc. traded down amid talk from traders over when the company will decide to restructure.

Intelsat SA’s notes were mixed, continuing trading off of news that a subsidiary would take part in a government project. Frontier Communications Corp.’s issues were mixed as it searches for a buyer for certain assets. Community Health Systems, Inc.’s notes were mixed after Wednesday’s announcement of another asset sale.

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