Frontier mixed after releasing Q3 earnings; Noble Energy higher on proposition win

By James McCandless

San Antonio, Nov. 7 – Trading in the distressed space saw another day of activity centered on names putting out earnings on Wednesday.

Frontier Communications Corp.’s notes were mixed after the company released its earnings late Tuesday.

European peer Intelsat SA’s issues moved higher.

In the energy space, Noble Energy, Inc.’s paper traded up after a Colorado proposition that would increase setback distances for oil and gas well drilling was voted down.

Elsewhere, Parker Drilling Co.’s notes have been falling since the company posted a loss in its third quarter earnings Monday.

Sector peers Sanchez Energy Corp., California Resources Corp. and EP Energy Corp.’s issues saw significant gains despite another decline in oil prices.

Luxury retailer Neiman Marcus Group, Inc.’s paper improved. PetSmart, Inc.’s notes also rose.

Dean Foods Co.’s issues dipped after missing earnings estimates for the third quarter.

Frontier mixed

Frontier’s notes were mixed Wednesday, traders said.

The 7 5/8% notes due 2024 fell 2¼ points to close at 59¼ bid. The 10½% notes due 2022 shaved off ¼ point to close at 83¼ bid. The 11% notes due 2025 picked up ¼ point to close at 74¼ bid.

At the close Tuesday, the Norwalk, Conn.-based wireline telecom name reported third-quarter earnings.

The company showed a 7 cents per share loss against analyst expectations of a 23 cents per share loss

However, the market saw negativity elsewhere in the report, focusing on the company’s lowering of its guidance and leaking subscriber numbers.

“The numbers weren’t horrible, just disappointing,” a trader said. “They’re still saddled with all of that debt and that doesn’t look like it’s getting resolved soon.”

Meanwhile, Luxembourg-based satellite operator Intelsat’s issues improved.

Intelsat Jackson SA’s 5½% notes due 2023 added ½ point to close at 90½ bid. Intelsat (Luxembourg) SA’s 8 1/8% notes due 2023 jumped 3 points to close at 87½ bid.

Noble gains

In the energy space, Noble Energy’s paper gained, market sources said.

The 3.85% paper due 2028 rose ¾ point to close at 92¾ bid. The 4.95% bonds due 2047 gained ¼ point to close at 92¾ bid.

The Houston-based oil and gas driller saw positivity in the market a day after a Colorado proposition that would have increased setback distances for oil and gas drilling to 2,500 feet was defeated in the midterm elections.

Noble was a part of a consortium of energy companies that sponsored campaigns against the measure.

“There’s a segment of names that operate in Colorado that are riding high today,” a trader said.

Meanwhile, Parker Drilling’s notes declined.

The 6¾% notes due 2022 dropped 5½ points to close at 64¼ bid. The 7½% notes due 2020 shed 4 points to close at 71½ bid.

Late Monday, the Houston-based driller caught the market’s attention after posting a $2.99 profit loss for the third-quarter.

Elsewhere in the sector, despite a drop in crude oil futures, bellwether oil names saw gains.

Houston-based peer Sanchez Energy’s 6 1/8% notes due 2023 added 1¼ points to close at 37¾ bid.

Los Angeles-based producer California Resources’ 6% paper due 2024 gained 1½ points to close at 82 bid. The 8% paper due 2022 rose 2 points to close at 91¾ bid.

EP Energy, another Houston-based producer, saw its 7¾% notes due 2022 climbed 6¼ points to close at 76¼ bid.

The gains went against the trend of oil futures. West Texas Intermediate crude went 54 cents lower to $61.67 per barrel. North Sea Brent crude futures lost 13 cents to 72 per barrel.

Retailers rise

Neiman Marcus’ notes traded higher, traders said.

The 8% notes due 2021 rose 2¼ points to close at 63¼ bid. The 7 1/8% notes due 2028 added ½ point to close at 77¾ bid.

The Dallas-based luxury retailer saw the most high-profile gains in the sector, market sources said.

“There wasn’t any news behind it, as far as we could see,” a trader said. “But it’s one of the heavy traders in retail right now.”

Elsewhere, Phoenix-based pet supplies chain PetSmart’s 8 7/8% notes due 2025 gained ½ point to close at 70½ bid. The 5 7/8% notes due 2025 also rose ½ point to close at 79½ bid.

Dean Foods drops

Dean Foods’ paper took a dive, market sources said.

The 6½% paper due 2023 fell 4¼ points to close at 88½ bid.

On Wednesday morning, the Dallas-based dairy products producer issued a disappointing third-quarter earnings report, showing a 28 cents per share loss versus analyst expectations of a 6 cents per share loss.

The company also posted $1.89 billion in revenues.

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