ATP Diverts Default in Iran-Fueled Oil Rally: Corporate Finance
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ATP Oil & Gas Corp. bonds are generating the biggest returns this month among junk-rated U.S. energy companies as the driller takes advantage of higher oil prices and a recovering credit market to stave off default.
ATP’s debentures have gained 12.9 percent through yesterday, even as speculative-grade debt from energy companies posted a 0.3 percent loss, according to a Bank of America Merrill Lynch index of 276 securities with a market value of about $129 billion. Energy suppliers that derive most of their revenue from natural gas production have lagged behind after prices for the commodity plunged to a 10-year low.