Whiting Petroleum debt jumps up on debt exchange news; energy sector firm

By Stephanie N. Rotondo

Seattle, March 18 – Whiting Petroleum Corp. was the nom du jour in the distressed debt market on Friday, jumping as much as 10 points on word the company had wrapped a private debt swap.

A trader said the 5% notes due 2019 traded up almost 5 points to 76 on “tons of trades.” He also saw the 6½% notes due 2018 rising 10½ points to 71¼.

The Denver-based oil and gas producer said Friday that it had reached a deal with bondholders to privately exchange approximately $430 million of unsecured notes for new convertible notes due in 2018, 2019 and 2021.

Elsewhere in the oil and gas space, bonds were trending higher, even as oil prices came in towards the end of the day.

The weakness in the commodity – domestic crude closed off almost 1% at $41.27 a barrel – came as Baker Hughes reported active drill rigs in the U.S. increased by one this week, after 12 weeks of declines.

A trader said Linn Energy LLC’s 8 5/8% notes due 2020 were up a point at 11¾. The trader also saw Continental Resources Inc.’s 3.8% notes due 2024 popping 3 points to 85½.

Marathon Oil Corp. – a “crossover name that’s trading into our area,” a trader said –saw its 5.2% notes due 2045 inching up half a point to 73.

Late Thursday, it was reported that the Houston-based company was looking to sell its assets in Wyoming.

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