Energy bonds gain on oil bounce; Memorial Production falls; Intelsat cools; Valeant up

By Colin Hanner

Chicago, Dec. 8 – Distressed energy bonds found their footing again on Thursday, after two sessions of depressing oil prices that had brought down most related notes.

After flirting with sub-$50 per barrel prices on Wednesday, oil futures bounced up several points. In the ongoing talks of supply cuts with non-Organization of Petroleum Exporting Countries – and the speculation that swirls around possible scenarios – Russia will discuss its compliance with production cuts at a supply cut meeting this weekend after saying the meeting could be moved.

Denbury Resources Inc., CGG SA and EP Energy Corp. were among the day’s gainers, and GenOn Energy, Inc., one of the day’s biggest decliners on Wednesday, remained unchanged.

Oil and natural gas developer and explorer Memorial Production Partners LP obtained an extension through the middle of the month with holders of two of its distressed notes, on the heels of the company’s decision to not make an interest payment on one set of the notes.

Intelsat SA took a reprieve from the nearly week-long stretch of gains after it announced the details on two of the three notes included in an exchange offer reached on Monday.

After going against the tide of pharmaceutical movers on Wednesday, Valent Pharmaceuticals International Inc. continued to see gains during Thursday’s session.

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