Oasis Petroleum notes gain on Q2 earnings; American Airlines active in travel space

By James McCandless

San Antonio, Aug. 5 – Secondary trading in the distressed debt market largely focused on energy and travel names on Wednesday.

Oasis Petroleum Inc.’s notes gained after reporting better-than-expected earnings results for the second quarter.

The 6 7/8% senior notes due 2023 picked up ½ point to close at 19 bid. The 6 7/8% senior notes due 2022 added ½ point to close at 19½.

On Wednesday morning, the Houston-based independent oil and gas producer released its second-quarter earnings results.

The company reported earnings per share of 23 cents, surpassing analyst predictions of a 6 cents per share loss.

Revenues were also better than expected at $166.35 million.

“E&P’s have a relatively low bar to clear in terms of earnings,” a trader said. “With all of the pressures in the market right now, the surprise is what drives the structure up.”

The company reported a 40% decrease in production.

Meanwhile, American Airlines Group Inc.’s notes diverged in direction as the market reacted to news of a potential new round of aid for the sector.

The 5% senior notes due 2022 closed level at 58 bid. The 3¾% senior notes due 2025 jumped up 13½ points to close at 59 bid.

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