Morning Commentary: Chesapeake Energy lower against higher shares; Emerald, Energy XXI quiet

By Rebecca Melvin

New York, Aug. 17 – U.S. convertibles were quiet early Monday with the dog days of summer, when financial markets generally trade lightly, remaining in effect. Equities turned from narrow losses to narrow gains and oil prices were weaker.

Chesapeake Energy Corp.’s convertibles were not actively traded but did change hands lower compared to Friday’s close, according to Trace data. Shares of the Oklahoma City-based energy company were bit higher, however, after trading down Friday after Moody’s Investors Service said that the company’s cash margins in 2016 will be hurt by high gathering and transportation costs.

Chesapeake’s 2.5% convertibles due 2037 (cusip 165167BZ9) traded at 87.3, and then lower at 85, which was down from 88.25 to 88.5 on Friday. Chesapeake shares were up 16, or 2%, at $7.65.

Elsewhere in the oil and gas sector, Emerald Oil Inc. was offered at 35, with no bid, a New York-based trader said. Emerald Oil shares were down 9 cents, or 4%, at $2.15.

Energy XXI (Bermuda) Ltd.’s convertibles were not heard to have traded, with shares of the Houston-based oil and gas company down 3 cents, or nearly 2%, at $1.70.

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