Preferreds tick up despite oil, Greece fears; oil and gas space loses ground by end of day

By Stephanie N. Rotondo

Phoenix, Jan. 6 – Preferred stocks were edging slightly higher in Tuesday trading as oil prices continued to soften.

One trader also noted that the “[Treasury] bond market was up because of oil,” as well as “fears of Greece leaving the euro.”

“Everybody’s focused on oil,” he remarked.

The Wells Fargo Hybrid and Preferred Securities index finished up 14 basis points.

As for oil prices, West Texas Intermediate crude drifted further into sub-$50 territory during the session, losing $2.23, or 4.46%, to end at $47.81 a barrel for February delivery. Brent crude meantime hit the $50-mark, ending down $2.22, or 4.18%, at $50.89.

Oil and gas preferreds, however, were mixed during the session.

Breitburn Energy Partners LP’s 8.25% series A cumulative redeemable perpetual preferred units (Nasdaq: BBEPP) got a boost after the company said it had slashed its common stock dividend, according to a trader.

The issue ended the day at $20.63, up 4 cents. The units were up 25 cents, or 1.21%, at mid-morning, trading at $20.84.

Goodrich Petroleum Corp.’s 10% series C cumulative preferreds (NYSE: GDPPC) were also moving up early in the day, putting on 24 cents, or 2.58%, to trade around $9.55. But those came off by the end of business, ending down 43 cents, or 4.62%, at $8.88.

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