Midstates Petroleum gives update, bonds fall; SandRidge under pressure; Alliance One dives

By Stephanie N. Rotondo

Phoenix, Feb. 10 – It was another energy-focused day in the distressed debt market, as oil prices retreated over 4% on the day.

However, the energy sector’s debt ended mixed, as some names had credit-specific news out to help push them around.

For example, Midstates Petroleum Co. Inc. announced the date of its fourth-quarter earnings release and also gave an operational update for said quarter. The update provided a lower EBITDA guidance and announced the hiring of advisers to look into the company’s strategic alternatives.

Away from energy, Alliance One International Inc. paper took a hit after the company reported “bad numbers,” according to a trader.

Bonds were down 9 to 10 points on the news, the trader said.

SandRidge Energy Inc. was also weaker on the day, as investors continued to react hesitantly to news the company was cutting its drilling rig count by 75%.

Elsewhere in the oil and gas space, bonds were mixed as oil prices ended weaker.

West Texas Intermediate crude fell $2.35, or 4.45%, to $50.51 per barrel. Brent crude lost $1.43, or 2.45%, to close at $56.91.

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