Energy names surge as oil, natural gas prices rise, but Weatherford drops; Hot Topic gains

By Paul Deckelman

New York, Jan. 2 – Activity in distressed debt and in the notes and shares of otherwise underperforming companies was relatively quiet Tuesday on the first trading day of the new month, first quarter and 2018, in line with a generally quiet session in the broader high-yield bond market, traders said.

But there was brisk volume in some energy related names, such as oil and natural gas exploration and production operators California Resources Corp. and Chesapeake Energy Corp., helped by strong commodity prices.

The former’s benchmark bonds – continuing a recent surge – firmed smartly as crude oil prices opened the new trading year at their highest point since 2014, pushed up by supply concerns stoked by the current political unrest in major oil producer Iran.

The latter company’s paper meanwhile popped along with natural gas prices, which are rallying on investor hopes for big demand, as much of the United States remains locked in an early-winter deep freeze.

But another energy-oriented name – oilfield services concern Weatherford International Ltd. – was lower in both the bond and convertibles markets, falling alongside its equity after the company announced it was scrapping its joint venture with Schlumberger NV in favor of divestment.

Away from the energy sphere, specialty retailer Hot Topic Inc.’s paper continued to trade at levels well up from where it was as recently as the day after Christmas.

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