Denbury, Windstream notes mixed post-earnings; Air Methods issues plummet

By James McCandless

San Antonio, Nov. 8 – Another round of third-quarter earnings results generated Thursday’s buzz in the distressed debt space.

Denbury Resources Inc.’s notes were mixed after the company released its third-quarter earnings on Thursday.

After a late Wednesday earnings release, EP Energy Corp.’s issues were slightly higher.

Elsewhere in the sector, Parker Drilling Co.’s paper continued to be a target after its Monday earnings release.

Weatherford International plc’s notes moved lower.

In telecom, Windstream Holdings, Inc.’s issues were also mixed after releasing its earnings on Thursday morning.

Sector peers Frontier Communications Corp. and Intelsat’s paper were mixed.

Medical transport name Air Methods Corp.’s notes plummeted on its results.

Hexion, Inc.’s issues continued to trend negative.

Denbury mixed

Denbury’s notes were mixed, traders said.

The 5½% notes due 2022 lost 1¼ points to close at 86 bid. The 6 3/8% notes due 2021 rose about 1 point to close at 94¼ bid.

On Thursday morning, the Houston-based independent oil and gas producer released its third-quarter earnings report.

The company showed a 13 cents per share profit, beating analyst predictions of 11 cents per share.

It also reported $394.97 million in revenues for the quarter.

The notes have been under pressure since the company announced the $1.7 billion acquisition of Penn Virginia Inc., with some noteholders voicing concern about the debt structure of a potential new entity.

“The numbers weren’t as good as they needed to be,” a trader said.

EP Energy’s issues were slightly higher after releasing earnings late Wednesday.

The 6 3/8% notes due 2023 picked up ¼ point to close at 60¼ bid.

Another Houston-based producer, the company reported a loss of 4 cents per share, falling just shy of analyst expectations of a 2 cents per share loss.

The company reported $338 million in revenues.

Parker Drilling’s paper continued to crater.

The 6¾% paper due 2022 lost 1¾ points to close at 62½ bid. The 7½% paper due 2020 fell 2½ points to close at 69 bid.

On Wednesday, the 6¾% paper dropped 5½ points and the 7½% paper shed 4 points.

After the close on Monday, the Houston-based contract driller reported a $2.99 profit loss for the third-quarter.

Baar, Switzerland-based oilfield services provider Weatherford’s notes declined.

The 9 7/8% notes due 2024 dropped ¾ point to close at 74¼ bid. The 8¼% notes due 2023 lost 1 point to close at 73 bid.

Windstream also mixed

Elsewhere, Windstream’s issues were also mixed, market sources said.

The 6 3/8% notes due 2023 fell 2 points to close at 48 ¾ bid. The 7½% notes due 2022 rose ¾ point to close at 54½ bid.

The Little Rock, Ark.-based telecom name also released its third-quarter results Thursday morning.

The company reported a loss of $2.57 per share, narrowly missing the $2.58 per share loss that analysts had anticipated.

Revenues were listed at $1.42 billion for the quarter.

“On its face, the numbers weren’t great, but it wasn’t as bad as it could’ve been so people ran with that.”

Sector peer Frontier’s paper varied in direction.

The 7 5/8% paper due 2024 edged up ¼ point to close at 59½ bid. The 10½% paper due 2022 lost 1 point to close at 82¼ bid. The 11% paper due 2025 fell ½ point to close at 73¾ bid.

Late Tuesday, the Norwalk, Conn.-based wireline telecom company reported a 7 cents per share loss for the third quarter.

Luxembourg-based satellite operator Intelsat’s notes followed the day’s trend, ending mixed.

Intelsat Jackson SA’s 5½% notes due 2023 added ¼ point to close at 90¾ bid. Intelsat (Luxembourg) SA’s lost 1½ points to close at 86 bid.

Air Methods plummets

Meanwhile, Air Methods’ issues plummeted, traders said.

The 8% notes due 2025 dropped 7¾ points to close at 68½ bid.

“That was one of the more topical names,” a trader said.

On Thursday, the Englewood, Colo.-based medical transport name issued its third-quarter report as a private company,” a trader said.

“You can infer what’s happening with the bond movement but suffice to say the chatter has been all negative,” another trader said.

Hexion lower

Hexion’s paper extended a run of negativity, market sources said.

The 9% paper due 2020 slipped ¼ point to close at 55½ bid. The 6 5/8% paper due 2020 fell 1 point to close at 86½ bid.

The Columbus, Ohio-based chemical company, also private, issued its third-quarter earnings report, disappointing holders, a market source said.

The notes have maintained a negative run after news broke that second-lien holders were growing increasingly concerned about their position in future debt talks.

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