Energy sector finishes higher after crude oil prices jump by more than 5%

By Stephanie N. Rotondo

Seattle, April 6 – Distressed bonds ended with a mostly firm tone on Wednesday.

The energy sector in particular was seen finishing higher as oil prices jumped over 5% for the day.

A trader said Whiting Petroleum Corp.’s 5¾% notes due 2021 bounced up almost 3 points to 64¼.

However, he also noted that the company’s 6½% notes due 2018 fell off over 1½ points to 66 5/8.

Oasis Petroleum Inc.’s 6 7/8% notes due 2022 were meantime better by “a point and change,” a trader said, seeing the issue ending at 74 1/8.

Sanchez Energy Corp. was another gainer, though its 6 1/8% notes due 2023 ticked up just a quarter-point to 51¾. MEG Energy Corp.’s 6 3/8% notes due 2023 were up a like amount at 59.

Preferred units of MLPs were also gaining ground.

In fact, Legacy Reserves LP and Breitburn Energy Partners LP had some of the largest percentage gains on the day.

Legacy’s 8% series B fixed-to-floating rate cumulative redeemable perpetual preferred units (Nasdaq: LGCYO) added 28 cents, or 13.21%, to close at $2.40. The 8% series A fixed-to-floating rate cumulative redeemable perpetual preferred units (Nasdaq: LGCYP) improved 23 cents, or 9.96%, to $2.54.

Breitburn’s 8.25% series A cumulative redeemable perpetual preferred units (Nasdaq: BBEPP) meantime put on 22 cents, or 3.93%, to end at $5.82.

For its part, oil prices surged after the U.S. Energy Information Administration reported that crude inventories fell by 4.9 million barrels last week.

© 2015 Prospect News.
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