Oil and gas preferreds drop as commodity prices remain weak; Cherry Hill delays offering

By Stephanie N. Rotondo

Seattle, Dec. 8 – The preferred stock market remained under pressure on Tuesday, driven in large part by a slumping oil market.

“Oil and gas was smashed yesterday on the Saudi’s comments that they are going to pump until everybody else goes out of business,” a trader said.

In Tuesday trading, domestic crude closed with a $37 handle, though it had been trading south of that mark earlier in the day. The weakness came ahead of the U.S. Energy Information Administration’s weekly inventory report on Wednesday. The report is expected to show a stockpile build for the 11th straight week.

Among oil and gas preferreds, the results were initially a little mixed, but ultimately came out negative.

Goodrich Petroleum Corp.’s 10% series C cumulative preferreds (NYSE: GDPPC) closed off 3 cents, or 4.41%, at 65 cents. The preferreds were up 2 cents, or 2.94%, at 70 cents at mid-morning.

Vanguard Natural Resources LLC’s 7.625% series B cumulative redeemable preferred units (Nasdaq: VNRBP) meantime declined 71 cents, or 10.52%, to $6.04. The units were down a quarter, or 3.7%, at $6.50 earlier in the day.

As for coming deals, a trader said a $50 million offering of series A cumulative redeemable preferred stock from Cherry Hill Mortgage Investment Corp. was expected to price Tuesday but was later postponed.

Price talk on the non-rated deal was around 9%, he said.

The deal had been postponed due to market conditions, the trader said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.