Possibilities for Distressed Energy Investment

These are all the Energy Equipment & Services, Oil, Gas, and Consumable Fuels bonds traded within the past 30 days (on TRACE) at a yield greater than 10%.

OPTI CANADA INC 8.25 12/15/2014
OPTI CANADA INC 7.8 12/15/2014
DELTA PETROLEUM CORP 7.0 04/01/2015
CHENIERE ENERGY INC 2.25 08/01/2012
ATP OIL & GAS CORP 11.8 05/01/2015
CALLON PETROLEUM CO 13.0 09/15/2016

Not very many! Opti Canada's stock has gotten destroyed which implies bad things for the bonds and means we can't hedge by shorting the stock. We already follow and own Callon Petroleum.

The most interesting for further study look like ATP Oil & Gas (ATPG) and Delta Petroleum (DPTR). Quick calculation, it looks like DPTR has an EV/market value of debt around 7x. ATPG's is also high but I know they have a lot of new production coming online. I will take a closer look.