Ultra Petroleum notes up after Q1 numbers posted; Revlon slides again on earnings

By James McCandless

San Antonio, May 10 – Traders reported an active day in the distressed debt market on Thursday, largely driven by earnings reports.

Ultra Petroleum Corp. notes rose during the session after the company posted positive Q1 numbers, reporting a profit after the previous quarter’s loss.

Revlon, Inc. issues declined after the company reported a fall in Q1 revenue and earnings below expectations.

DISH Network Corp. paper was mixed as the market continues to react to the company’s earnings and subscriber loss in Q1.

Intelsat SA notes were up. Last Tuesday, the company posted a disappointing Q1 report. Elsewhere in telecom, Frontier Communications Corp. issues traded up. The company also posted its lackluster Q1 numbers last Tuesday. Sanchez Energy Corp. paper rose.

Ultra Petroleum up

Houston-based independent oil and gas producer Ultra Petroleum notes traded up, market sources confirmed, after the company posted its Q1 report early Thursday. The company posted a profit of 24 cents per share and a net income of $47.5 million just a quarter after reporting a net loss.

“This was better than expected for them,” a trader said. “Combined with the way oil has been trading lately, they had a good day.”

The 7 1/8% notes due 2025 rose 4 points to close at 71¼ bid.

Revlon slides

New York City-based cosmetics producer Revlon issues declined, according to traders, after the company posted its Q1 report, the focal point of which was its loss of $1.43 per share and the 6% decrease in its net sales at $229.1 million.

“They aren’t expanding the online presence fast enough,” a trader said. “And there’s talk of selling off some of the brands.”

The 5¾% notes due 2021 lost about 2¾ points to close at around 71 bid. The 6¼% notes due 2024 fell about 2¼ points to close at 57½ bid.

DISH mixed

Englewood, Colo.-based pay-TV provider DISH Network paper was mixed, according to a market source, after the company posted its Q1 report on Tuesday. The company posted Q1 earnings of 70 cents per share, missing analyst estimates of 72 cents.

It also reported a subscriber count of 13,148,000, off from 13,528,000 in the previous quarter.

The 5 7/8% paper due 2024 shaved off about ¼ point to close at around 83½ bid. The 7¾% paper due 2026 remained level at around 88¾ bid.

The 5 7/8% paper lost about ¼ point and the 7¾% paper fell about ½ point on Wednesday.

Volume names trade

Luxembourg-based satellite communications company Intelsat’s notes rose Thursday. Last Tuesday, the company reported a 56 cents per share loss in its Q1 report, missing analyst predictions of 41 cents per share.

The Intelsat (Luxembourg) SA 7¾% notes due 2021 gained ½ point to close at 73½ bid. The 8 1/8% notes due 2023 jumped up 1 point to close at 67¼ bid.

Norwalk, Conn.-based wireline telecom name Frontier Communications issues gained Thursday. Last week, the company surpassed analyst estimates by reporting a Q1 loss of 58 cents per share and $2.20 billion in revenue.

The 7 5/8% notes due 2024 traded up about 1 point to close at around 72½ bid. The 10½% notes due 2022 rose ¾ point to close at 92 bid. The 11% notes due 2025 gained ¼ point to close at 81½ bid.

Houston-based independent oil and gas name Sanchez Energy paper climbed. On Tuesday, the company reported a 5 cents per share loss and an average production of 80,572 barrels of oil per day, missing analyst estimates.

The 6 1/8% paper due 2023 rose about 1¼ point to close at 70 bid.

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