Fall

Constellation Energy, continuing to cut back operations after taking a devastating hit from Lehman Brothers Holdings’ failure last fall, said last Tuesday it had agreed to divest the majority of its London-based international commodities business, including its coal and freight operations and European energy trading units, to an affiliate of Goldman Sachs.

Exelon Corp.’s Pennsylvania gas and electric utility, PECO, saw natural gas consumption fall approximately 3.3% in 2008, including a 1.4% drop in December compared to December 2007, the company said Wednesday.

Constellation Energy, continuing to cut back operations after taking a devastating hit from Lehman Brothers Holdings’ failure last fall, agreed to divest the majority of its London-based international commodities business, including its coal and freight operations and European energy trading units, to an affiliate of Goldman Sachs, it said Tuesday.

With the North American natural gas rig count in “free fall,” FBR Capital Markets Friday lowered 4Q2008 earnings estimates for the oil services sector by 9% and slashed 2009 estimates by an average of 21%.

With the North American natural gas rig count in “free fall,” FBR Capital Markets Friday lowered 4Q2008 earnings estimates for the oil services sector by 9% and slashed 2009 estimates by an average of 21%.

Prices continued to fall at nearly all points Friday, with previously spiking Northeast citygates taking part in the general softness. The previous Wednesday’s bearish storage report and the accompanying 23.7-cent drop by February futures that day were the primary cash market depressants, abetted by moderating weather trends in the South, Midcontinent and parts of the Midwest along with the weekend’s typical decline of industrial load.

FBR Capital Markets analysts Friday cut a dollar off their 2009 natural gas price deck and said prices could fall to $5/Mcf from $6 because of the saturated gas market.

FBR Capital Markets analysts Friday cut a dollar off their 2009 natural gas price deck and said prices could fall to $5/Mcf from $6 because of the saturated gas market.

North American natural gas producers have watched their fortunes soar and dramatically fall to earth in recent months and some of them, now unable to access bank financing, are doing what they have to do to remain solvent. Independents starved for cash but weighted with healthy assets are forming joint partnerships, selling assets and waiting for what may be the inevitable: a land grab by oil majors flush with cash.