McDermott jumps on earnings; Midstates cancels earnings release; Goodrich preferreds firm

By Stephanie N. Rotondo

Phoenix, March 3 – There continued to be some strength in the distressed energy space on Tuesday, spurred in part by a gain in oil prices and in part to credit-specific news.

West Texas Intermediate crude ended the day up 72 cents, or 1.45%, at $50.31 a barrel. Brent crude gained $1.51, or 2.54%, to $61.05.

McDermott International Inc. popped in trading as investors reacted to the company’s earnings, which were deemed as solid by analysts.

In addition to posting the much-improved numbers, the company said it had come up with a plan to improve its cost structure. Its three-point plan included increasing organizational efficiency, centralizing front- and back-office function and operational cost initiatives.

Investors also shook off a postponed earnings announcement from Midstates Petroleum Co. Inc. The company was slated to release the numbers after the market closed on Tuesday, with a conference call scheduled for Wednesday.

While those names gained traction, Samson Investments Co.’s 9¾% notes due 2020 weakened after Moody’s Investors Service downgraded the company to Caa3 from B3.

A trader called the issue down almost a point at 33¾.

Moody’s said the rating change was due to the company’s “high risk of default.”

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