Energy names lower as oil prices slide; Chesapeake exchange offer continues to take toll

By Paul Deckelman

New York, Dec. 7 – Amid an overall softer tone in the broader junk bond market, distressed bonds were seen lower on Monday.

Traders said that in particular, it was another tough day for the energy sphere.

Crude oil prices hit their lowest levels since 2009, which put oil and natural gas credits such as Energy XXI Ltd., Comstock Resources Inc. and Oasis Petroleum Inc. under pressure in active dealings.

Chesapeake Energy Corp.’s bonds were also lower, with the company’s recently announced exchange offer for its notes as well as oil prices weighing on its issues.

In the convertibles market also, Chesapeake’s paper dropped sharply, in line with a big fall in the value of the company’s underlying shares.

Whiting Petroleum Corp.’s convertibles also traded off.

Back among the bonds but away from oil names, coal names such as Peabody Energy Corp. and Consol Energy Inc. were also lower.

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