British energy giant BP said Tuesday it expects to report a decline in fourth-quarter earnings because of weaker-than-expected performance by its refining and marketing division. The news came a day after BP announced $1.3 billion in asset sales in the North Sea and the Gulf of Mexico. In a brief interim update on fourth quarter financial and operating statistics, BP said U.S. gas price realizations are expected to rise slightly ahead of the change in Henry Hub prices. However, the overall refining, marketing and trading environment deteriorated relative to the third quarter of 2002. Liquids realizations are expected to be broadly in line with last quarter. But chemicals margins are expected to weaken as prices lagged the rise in feedstock costs. Demand remains sluggish, BP said. Hydrocarbon production is expected to be up about 3% and 1.5% for the full year and 4Q, respectively, compared with 2001. North American NGL margins are expected to be slightly lower than in the third quarter. Retail margins are expected to be down from 3Q02 due to seasonal declines compounded by significant crude price increases at year-end. All these financial data, however, are subject to change and may differ considerably from the final numbers that will be reported on Feb.11, BP said.

Enterprise Products Partners LP said that the underwriters of its recent equity offering have exercised their option to purchase an additional 1.9 million common units to cover over-allotments. The sale is part of the company’s equity offering that was priced on Jan. 9, and is at the offering price to the public of $18.01 per unit. The total net proceeds from the offering of $252.9 million, which includes the additional common units sold through the over-allotment, will be used to repay a portion of the debt incurred to finance the purchase of ownership interest in Mid-America Pipeline Co. and Seminole Pipeline Co. Enterprise is the second largest publicly traded, midstream energy partnership behind Kinder Morgan. Enterprise has an enterprise value of $6 billion.

KeySpan Corp. shares fell nearly 6% Tuesday to $33.79 following an offering of 13.9 million shares of its common stock through Credit Suisse First Boston at a price of $34.50 per share. The equity offering generated gross proceeds of $480 million and net proceeds to the company of $473 million. Credit Suisse First Boston was granted an option to purchase an additional 700,000 shares within 30 days to cover over-allotments. KeySpan Corp. on Monday updated its 2003 consolidated earnings guidance to a range between $2.45-2.60 per share. Earnings from core operations are now forecast to range between $2.15 and $2.20 per share, with earnings from its Exploration and Production unit forecast to range between 30 and 40 cents a share. CEO Robert B. Catell said Monday the equity sale would reduce the company’s debt-to-capitalization ratio by 450 basis points, but when coupled with expected interest rate savings from the pay down of commercial paper, would result in dilution of 7% per share. Earnings for 2002 were reaffirmed in a range of $2.60-2.75 a share.

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