Cuts

El Paso Corp. amended an agreement related to the proposed merger of GulfTerra Energy Partners LP and Enterprise Products Partners LP that will cut El Paso’s stake in the general partner of the merged organization in exchange for $370 million in cash.

Fitch Ratings cut the credit ratings of PSEG Energy Holdings to junk Monday because of the company’s weak earnings relative to debt, and the risks inherent in its portfolio of international and financial assets. Fitch cut PSEG Energy Holdings’ senior unsecured ratings to BB, the second highest junk rating, from BBB-minus, and kept a negative outlook on company.

In response to continuing regulatory investigations, financial reporting delays and audits, Moody’s cut the credit ratings of NUI Corp. to Caa1 from B3 and cut the ratings on subsidiary NUI Utilities’ to B1 from Ba3 Tuesday. The decision affects $360 million of NUI Utilities debt and $255 million of NUI Corp. debt. Moody’s said its outlook for both entities remains negative.

El Paso Corp. has completed the “creation of a fit-for-purpose organization” that resulted in job losses for about 40% of its corporate officers, 21% of its directors and 9% of the rest of the organization, not including field operations or field services businesses.

El Paso Corp. announced that it had “completed the creation of a fit-for-purpose organization” last week that resulted in a 40% reduction in corporate officers, 21% of its directors and 9% of the rest of the organization, not including field operations or field services businesses.

Besieged Royal Dutch/Shell Group last week cut its proven oil and natural gas reserves again amid an unconfirmed report that the Department of Justice has opened an inquiry into whether the company or its executives violated any U.S. laws by failing to timely report the overbooking of reserves.

Royal Dutch/Shell Group said Thursday it recategorized an additional 250 million barrels of oil equivalent (boe) of proven reserves at the end of 2002. It also reduced the volume of proved reserves that it planned to book in 2003 by 220 million boe.

Bellevue, WA-based Puget Sound Energy (PSE) reported Tuesday that a bad investment in a venture capital fund for energy start-ups lowered its 2003 earnings by $4 million.

Canadian natural gas production dropped for the second consecutive year in 2003, confirming widespread industry and government expectations that it will contribute to tight supplies and high prices across North America.