Penn Virginia slips, advisors hired; Linn drops on downgrade; Tronox weak ahead of numbers

By Stephanie N. Rotondo

Phoenix, Aug. 4 – Despite a rebound in crude oil prices, there was still weakness in topical distressed oil and gas names on Tuesday.

Penn Virginia Corp. saw its debt drop as much as 5 points on the day. The declines came as the company said it had hired advisors for possible asset sales and other financial advice.

Specifically, Penn Virginia is looking at ways it can monetize its Eagle Ford assets. Jefferies LLC will also provide guidance on other ways the company can improve its bottom line.

On Wednesday, the company reported its second-quarter results, showing an increased loss of $86.2 million, or $1.19 per share.

Liquidity stood at $215 million.

Linn Energy LLC paper also continued to lose ground. The bonds began retreating on Thursday on the heels of its earnings results. Come Tuesday, the paper remained pressured as Moody’s Investors Service downgraded the company’s credit rating.

Additionally, Mark Ellis, chief executive officer, said that management was recommending that the board of directors suspend its stock dividend.

Away from oil and gas, chemical company Tronox Ltd. was slated to bring its earnings after the market closed Tuesday, with a conference call scheduled for Wednesday morning. Ahead of the release, the bonds were seen sliding.

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