Hercules Offshore dives as contract lost; JCPenney, Sears improve after earnings releases

By Stephanie N. Rotondo

Phoenix, Feb. 26 – The distressed debt market was flying higher yet again Thursday, though a 4% decline in oil prices weighed on most of the equity market.

The tumble in oil prices – brought on by fresh concerns of oversupply – was also not helping Hercules Offshore Inc., which was dealing with troubles of its own as it was reported the company lost a drilling contract.

Saudi Aramco terminated its contract for the Hercules 261 rig, though its contracts on the 262 and 266 rigs are intact.

Hercules said it is in negotiations with the company to continue the contract, as well as to possibly reduce rates for the other rigs.

As for oil prices, West Texas Intermediate crude oil dropped $2.08, or 4.08%, to $48.91 per barrel. Brent crude slid $1.15, or 1.87%, to $60.48.

On Wednesday, the Energy Information Administration said that U.S. crude oil inventories rose 8.4 million barrels during the week ending Feb. 20, bringing the total stockpile to 434.1 million barrels.

In the retail arena, both J.C. Penney Co. Inc. and Sears Holdings Corp. reported earnings on Thursday.

While both stores posted losses, their debt was gaining traction as the companies expressed hope for the near future.

© 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.