Preferred trading muted; energy preferreds up on oil price gains; CorEnergy lists on NYSE

By Stephanie N. Rotondo

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

The Wells Fargo Hybrid and Preferred Securities index finished up 18 basis points. However, it did so amid limited liquidity, according to a market source.

“Volume was very, very light,” the source said. “Between New York and Boston, the weather in the past couple of hours has taken a turn for the worse.”

In the oil and gas realm, preferreds were ending stronger amid rising oil prices. Prices were surging as union workers at U.S. refineries and chemical plants were striking for a second day, demanding a new national contract.

West Texas Intermediate crude gained $1.50, or 3.11%, closing at $49.74 per barrel. Brent crude ended at $54.80, up $1.80, or 3.42%.

Breitburn Energy Partners LP’s 8.25% series A cumulative redeemable perpetual preferred units (Nasdaq: BBEPP) ended the session up 95 cents, or 4.67%, at $21.31. Goodrich Petroleum Corp.’s preferreds were meantime seen getting a nice boost as well.

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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