For energy investors, it is all about location, location, location. That is the message that emerges in the prices of bonds of oil-and-gas companies operating across North America. Bonds of companies with below-investment-grade credit ratings, or junk bonds, have held up best for producers in west Texas, Canada and parts of Oklahoma, as producers in those regions have proven relatively resilient to low commodity prices, according to data from Citi Research, part of Citigroup Inc. Meanwhile, bond prices of producers operating in east Texas, North Dakota and the Gulf of Mexico have dipped to distressed levels, indicating bond investors—focused on a company’s financial strength—aren’t keen on drilling properties in those areas. The are a few reasons for the divergence, including terrain and the costs of transporting oil and gas to market. But the biggest factor is simply how […]