Cobalt International paper continues to decline; Goodrich stock gyrates ahead of earnings

By Stephanie N. Rotondo

Phoenix, Aug. 6 – Cobalt International Energy Inc.’s convertible debt and equity remained on the decline Wednesday, just one day after the company reported weak earnings.

The 2.625% convertible notes due 2019 were pegged at 84.75 bid, 85 offered, which compared to 85.25 bid, 85.375 offered previously.

As for the stock, it was down 18 cents, or 1.27%, at $14.04.

On Tuesday, the Houston-based oil exploration and production company reported a wider-than-expected loss for the most recent quarter. The company also disclosed that it had received a Wells notice from the U.S. Securities and Exchange Commission – a warning that the SEC plans to bring an enforcement action against a person or company – relating to Cobalt’s oil operations in Angola.

As for its quarterly results, Cobalt said it lost $95 million for the second quarter, or 23 cents per share, compared with a net loss of $79 million, or 19 cents per share, in the year-earlier period. Analysts were expecting a loss of 17 cents per share.

Elsewhere, a trader noted that Goodrich Petroleum Corp.’s (Nasdaq: GDP) stock was “finally having an up day,” after steadily dropping over the last month and a half. But support faded late in the session, and the stock dropped.

The shares ended the day at $17.32, down 12 cents.

The 5% convertible notes due 2032 meantime finished at 110 bid, 111 offered.

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