Morning Commentary: Oil and gas preferreds rise with oil price gains; CorEnergy lists on NYSE

By Stephanie N. Rotondo

Phoenix, Feb. 2 – Preferred stocks were trending higher in early Monday trading, and oil and gas preferreds were firming along with oil prices.

The Wells Fargo Hybrid and Preferred Securities index was up 5 basis points at mid-morning.

In the oil and gas realm, Breitburn Energy Partners LP’s 8.25% series A cumulative redeemable perpetual preferred units (Nasdaq: BBEPP) were 59 cents, or 2.9%, higher at $20.95 in early trading.

Goodrich Petroleum Corp.’s preferreds were meantime seen getting a nice boost as well.

The 10% series C cumulative preferreds (NYSE: GDPPC) were up $1.46, or 24.13%, at $7.51. The 9.75% series D cumulative preferreds (NYSE: GDPPD) had gained $1.60, or 27.13%, as of mid-morning, trading around $7.50.

Oil prices were surging as union workers at U.S. refineries and chemical plants were striking for a second day, demanding a new national contract.

In the primary arena, a trader said he was “hoping we would get some hints of possible deals this week, but I’m not seeing anything.”

Among recently priced issues, CorEnergy Infrastructure Trust Inc.’s $50 million of 7.375% series A cumulative redeemable preferred stock hit the New York Stock Exchange Monday.

The deal came Jan. 22. The ticker symbol is “CORRPA.”

Paper was trading at $25.25 early in the session, up from par at the open.

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