Chesapeake Energy notes weaken on earnings report; Endo declines despite posting profit

By James McCandless

San Antonio, Feb. 26 – More news out of the energy and pharma spaces continued to drive the distressed debt space on Wednesday.

Chesapeake Energy Corp.’s notes weakened after releasing its fourth-quarter earnings report and announcing plans for a reverse stock split.

The 11½% notes due 2025 declined by 4¾ points to close at 67½ bid. The 4 7/8% senior notes due 2022 fell 1½ points to close at 60¾ bid.

The two tranches saw about $47 million trading.

Early Wednesday morning, the Oklahoma City-based independent oil and gas producer released a lukewarm earnings report for the fourth quarter.

The company reported a 4 cents per share loss, slightly better than the 6 cents per share loss that analysts had anticipated.

Revenues were $969 million, under analyst predictions.

In an earnings call, president and chief executive officer Doug Lawler said that the company was planning for a reverse stock split in the next few weeks.

In the pharma space, Endo International plc’s notes declined despite posting a profit in its latest earnings report.

The 6% senior notes due 2025 were docked 1¼ points to close at 79¼ bid. The 6% senior notes due 2023 lost 1½ points to close at 84½ bid.

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