Oil, gas names weak despite increase in price of oil; McClatchy, Abengoa bonds decline

By Stephanie N. Rotondo

Phoenix, Aug. 10 – A rally in crude oil prices on Monday did very little to help improve the tone of distressed oil and gas bonds.

Benchmark crude saw a more than 2% gain on the day, due in part to a refinery issue at a BP plant in Indiana. The issue had some investors thinking that the event could help oversupply concerns.

Among oil and gas names, a trader saw Energy XXI Ltd.’s 8¼% notes due 2018 falling over a point to 44.

California Resources Corp.’s 6% notes due 2024 meantime slipped nearly a point to 75¾, the trader said.

Also losing were Chesapeake Energy Corp.’s 5 5/8% notes due 2020, which declined almost a point to 80 5/8.

But it was SandRidge Energy Inc. that had one of the day’s larger drops, according to a trader. He said the 8 1/8% notes due 2022 fell 3 points to 25 and the 7½% notes due 2021 weakened a deuce to 25¾.

McClatchy Co.’s 9% notes due 2022 were under pressure Monday as investors reacted to the newspaper publisher’s revised earnings, which showed the company swinging from a previously reported profit to a loss.

Abengoa SA’s 6½% notes due 2019 remained weak Monday despite news that the company had been tapped to build a new biomass plant in Northern England. A trader said the notes were off “another 7 points” at 51.

© 2015 Prospect News.
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