High Yield Energy: Fracking Credit – JPM High Yield Energy Weekly

This week's issue of Fracking Credit (J.P. Morgan High Yield Energy Weekly) notes that the J.P. Morgan HY Energy index has returned 507bps year to date versus 194bps for the broader J.P. Morgan HY Index. Over the last week, Energy returned -51bps versus -60bps for the broader HY Index. The HY Energy STW stands at 185bp, 115bp tight to the broader HY index STW of 300bp, outperforming by 33bp month to date and 313bp year to date. Key news: Chord announced a subsidiary will sell its entire non-operated Marcellus position to POSCO International for total gross consideration of $550 million (~6x adj. EBITDA assuming $3.50/MMBtu Henry Hub), with closing expected in 4Q26; Transocean signed an $80 million two-well contract for the Deepwater Conqueror drillship in Equatorial Guinea (implied dayrate ~$471k/d), starting 2027;