Frontier, Teva down despite earnings beat; Denbury rises after quarterly numbers

By James McCandless

San Antonio, Aug. 7 – More earnings reports continued to take up much of the distressed space as the week progressed on Wednesday.

Frontier Communications Corp.’s notes moved lower despite the company’s topline earnings results.

Sector peer Intelsat SA’s issues improved.

Elsewhere, Teva Pharmaceutical Industries Ltd.’s paper declined after it also released its earnings to the public.

Endo International plc’s and Mallinckrodt plc’s notes skewed negative.

In energy, Denbury Resources Inc.’s issues jumped up after surpassing its earnings estimates.

Meanwhile, Hi-Crush Partners, LP’s paper shifted lower.

Despite oil futures declining, California Resources Corp.’s and Superior Energy Services, Inc.’s notes saw mixed movements.

Frontier lower, Intelsat up

Frontier’s notes were seen moving lower in Wednesday activity, traders said.

The 10½% senior notes due 2022 lost 6½ points to close at 51 bid. The 11% notes due 2025 slipped 3¼ points to close at 50¾ bid.

After the close on Tuesday, the Norwalk, Conn.-based wireline communications name released its second-quarter earnings report.

The company showed a 98 cents per share profit, well above the 34 cents per share loss expected by analysts.

Revenues were also better than expected at $2.067 billion.

The name also lowered its guidance for the rest of the year, blaming industry weakness and worries over its long-term capital structure.

“They’re seeing declining revenues over the next year, which is in line with what everyone else is expecting,” a trader said.

Over the last few months, the company has been working to come up with a solution on an impending maturity wall, considering a variety of distressed exchanges.

Luxembourg-based satellite operator Intelsat’s issues improved.

Intelsat Jackson Holdings SA’s 5½% senior notes due 2023 edged up ¼ point to close at 90¾ bid. Intelsat (Luxembourg) SA’s 8 1/8% notes due 2023 garnered 1¼ points to close at 80 bid.

Teva down

Elsewhere, in pharma, Teva’s paper declined, market sources said.

The 3.15% senior paper due 2026 dipped 1½ points to close at 75½ bid. The 6¾% paper due 2028 fell 1½ points to close at 86¼ bid.

On Wednesday, the Petach Tikva, Israel-based generic drug maker also released its second-quarter results to the public.

The company reported a profit of 60 cents per share, just beating analyst predictions of 58 cents per share.

Revenues were listed at $4.34 billion.

Facing the prospect of continued challenges over its role in the opioid epidemic, the company earmarked $646 million to pay all expenses related to any related legal proceedings.

Recently, the company paid multimillion-dollar settlements to Oklahoma over opioid propagation and to California on a separate matter.

After the Oklahoma settlement, analysts weighed in to predict that legal costs would reach into the hundreds of millions.

Endo, Mallinckrodt vary

Sector peer Endo’s notes were active but moved in separate directions, traders said.

The 6% senior notes due 2025 shaved off ½ point to close at 58¾ bid. The 6% notes due 2023 rose ¼ point to close at 62½ bid.

Another drug name under pressure, the Dublin-based peer released its earnings report in Tuesday’s after hours.

The company posted a profit of 52 cents per share and revenues of $699.73 million, though it faced a higher net loss, a reduction in adjusted net income and a fall in revenues.

Staines-upon-Thames, England-based Mallinckrodt’s issues moved downward.

The 5 5/8% senior notes due 2023 slid 7 points to close at 55 bid. The 5¾% notes due 2022 crashed 9¼ points to close at 64¼ bid.

Denbury up

Meanwhile, in energy, Denbury’s paper jumped up, market sources said.

The 7¾% paper due 2024 gained 3¼ points to close at 68¾ bid.

Early Wednesday, the Houston-based independent oil and gas producer released its second-quarter earnings results.

Where analysts had expected a 9 cents per share profit, the company reported a 13 cents per share profit.

Revenues were shown as $343.37 million.

The name also showed an uptick in oil production.

Hi-Crush lower

Elsewhere in the space, Hi-Crush’s notes shifted lower, traders said.

The 9½% senior notes due 2026 lost ½ point to close at 62 bid.

The Houston-based energy logistics company was another name to release its quarterly earnings on Wednesday morning.

The name showed a loss of 2 cents per share, better than the expected 5 cents per shares loss.

Revenues declined over the period to $178 million.

Oil names mixed

As oil futures dived, distressed energy names varied in movement, market sources said.

Los Angeles-based producer California Resources’ issues diverged.

The 6% senior notes due 2024 held level at 44 bid. The 8% notes due 2022 slipped 2 points to close at 54 bid.

Houston-based oilfield services provider Superior Energy’s paper saw trading in different directions.

The 7 1/8% senior paper due 2021 dropped 2 points to close at 70 bid. The 7¾% paper rose 1 point to close at 60¾ bid.

Facing an uncertain trade climate and an unexpected build of crude inventories, futures tumbled.

West Texas Intermediate crude oil futures for September delivery slid $2.54 to close the session at $51.09 per barrel.

North Sea Brent crude oil futures for October delivery finished the day at $56.23 per barrel after a $2.71 loss.

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