California Resources declines in earnings anticipation; Tenneco off after earnings beat

By James McCandless

San Antonio, Oct. 31 – The distressed debt market saw more focus on names releasing earnings in the last few days.

California Resources Corp.’s notes declined as the market anticipated the release of its third-quarter earnings.

The 6% senior notes due 2024 fell 4¾ points to close at 14¼ bid. The 8% senior secured notes due 2022 dived 8 points to close at 29½ bid.

The Los Angeles-based independent oil and gas producer’s structure was under water throughout Thursday activity in anticipation of the company’s third-quarter earnings release, which came after the close.

“It’s being dragged down so people are expecting a loss,” a trader said before earnings were released.

Also, a name with earnings behind it, auto parts name Tenneco Inc.’s notes dipped despite beating earnings expectations.

The 5% senior notes due 2026 fell ½ point to close at 79¾ bid.

The Lake Forest, Ill.-based automotive parts maker was another to release its third-quarter earnings results, making them public early Thursday.

The company reported a profit of $1.23 per share, better than what analysts had expected at 97 cents per share.

Revenues also topped estimates at $4.32 billion.

The company’s debt has been volatile over the last year as it alternates between surpassing quarterly predictions or missing them.

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