Drops

As tropical depression six fizzled into a tropical wave with slim chances of revival, so did any hope for a gas futures market reversal. The August contract quickly resumed its downward course in overnight trading, and sailed right down through $5 Tuesday morning to a low of $4.84. The contract ended the day down 23.9 cents at $4.868, just a few cents above its daily low. Its daily high of $5.040 was reached just after the opening bell.

Amid concerns that Mirant may be likely to file for Chapter 11 bankruptcy protection if it cannot extend its near- and intermediate-term debt maturities, Standard & Poor’s Ratings Services (S&P) last week lowered the Atlanta-based energy supplier’s ratings to “CC” from “CCC.” Mirant has about $9.7 billion in debt, including lease-related debt.

Amid concerns that Mirant may be likely to file for Chapter 11 bankruptcy protection if cannot extend its near- and intermediate-term debt maturities, Standard & Poor’s Ratings Services (S&P) on Monday lowered the Atlanta-based energy supplier’s ratings to “CC” from “CCC.” Mirant has about $9.7 billion in debt, including lease-related debt.

Eastern markets proved unable to sustain the bullishness of the day before and registered drops ranging from a nickel to 20 cents or so Wednesday. Thanks to heavy air conditioning load in some sections and supply issues, however, the West was able to keep its numbers flat to up more than 20 cents in the Rockies.

Standard & Poor’s Ratings Services (S&P) dropped Mirant Corp. ratings lower into junk territory Tuesday, following on the company’s announcement late Monday of a debt restructuring plan that it said also could serve as a pre-packaged Chapter 11 bankruptcy filing if lenders did not cooperate. S&P cut the corporate credit rating and senior unsecured debt ratings on Mirant and its subsidiaries to ‘CCC’ from ‘B’.

The previous day’s screen weakness, along with a dearth of weather-related load outside the interior West and western portions of the South, were cited as Wednesday’s chief swing price depressants. Except for flat to substantially higher numbers for a few Rockies points, San Juan Basin and Southern California border, quotes fell by anywhere from about a nickel to a quarter Wednesday. Losses in the teens were most common.

Dynegy Energy Partners LP, a master limited partnership (MLP) formed last year to raise money for its cash-poor parent, on Friday canceled plans to go public.

Spokespeople for both sides confirmed that a lawsuit brought by California’s lieutenant governor in a state Superior Court in Los Angeles quietly late last month dropped McGraw-Hill and its two industry publications from the legal action against trading companies that alleges widespread wholesale natural gas market manipulation.

Spokespeople for both sides confirmed that a lawsuit brought by California’s lieutenant governor in a state Superior Court in Los Angeles quietly late last month dropped McGraw-Hill and its two industry publications from the legal action against trading companies that alleges widespread wholesale natural gas market manipulation.