Energy bonds continue retreat despite higher oil prices; Halcon Resources hires advisers

By Paul Deckelman

New York, March 9 – Distressed-debt traders said that many of the sector’s most recognizable names were seen mostly lower on the day Wednesday, even as the broader high-yield bond market turned mixed, recovering some of the losses it posted on Tuesday.

Traders said that energy issues continued the retreat that began on Tuesday even though world crude oil prices, whose fall Tuesday was one of the drivers behind that pullback, were on the rebound on Wednesday.

As has been the case pretty much all week so far, the busiest name in the sector was Continental Resources, Inc., whose bonds were lower on the day.

However, a trader noted that despite the two days of pullbacks, Continental is still trading well up from the levels it held last week and in the weeks before that.

Other losers among the oil and natural gas names on Wednesday included Halcon Resources Corp., Whiting Petroleum Corp. and Chesapeake Energy Corp. Halcon announced that it has hired legal and financial advisers to help it get through the current commodities market downturn.

Metals miner and oil and gas operator Freeport-McMoRan Inc.’s bonds were mostly lower despite an increase in copper prices.

And traders saw communications satellite provider Intelsat SA’s various bonds mostly losing altitude.

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