Oil sector extends gains following OPEC accord; Memorial Production up after forbearance

By Colin Hanner

Chicago, Dec. 1 – Oil – and its oil-related distressed notes – continued its rise in Thursday’s markets, carried over from Wednesday’s supply cut accord reached by the Organization of Petroleum Exporting Countries.

A trader remarked on how abnormal it is “to see how many points these energy names are up in just two days,” due to the OPEC deal and the rallying cry seen in equity and bond markets alike.

California Resources Corp. continued to see upticks in its most heavily traded distressed notes. EP Energy Corp., though not as actively traded as Wednesday, was up by several points, and Denbury Resources Inc. continued to pace higher, in line with oil futures prices.

Oil-related names, like driller Transocean Ltd. and geoscience company CGG SA, continued to gain off the OPEC news, traders said.

Oil and natural gas acquirer and developer Memorial Production Partners LP announced it has entered a forbearance agreement with the holders of two of its distressed notes, both of which saw modest increases on the day’s trading.

And still reeling from an asset sale breakup was Valeant Pharmaceuticals International Inc., which continued to fall further after reports surfaced that a potential $10 billion sale of its stomach-drug business was no longer on the table.

Other health care and pharmaceutical names mirrored the downward trend, including Concordia International Corp. and Community Health Systems Inc.

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