Lowered

Fitch credit ratings service Thursday lowered the rating on Reliant Resources (RRI), the merchant power subsidiary of Reliant Energy, to BBB from BBB+, reflecting Fitch’s analysis of RRI’s plan for financing and integrating the pending acquisition of Orion Power Holdings Inc.

Unseasonably warm weather reduced energy demand in the Northeast, lowered prices and cut into KeySpan’s fourth quarter earnings. The company reported slightly lower earnings, excluding special items, of $99 million, or 71 cents per share, down from $100.9 million, or 75 cents per share, a year earlier. Wall Street analysts had expected earnings of 73-78 cents per share, with a consensus estimate of 75 cents. Including special items, earnings fell to $34.4 million, or 25 cents per share, from $58.9 million, or 44 cents per share.

Unseasonably warm weather reduced energy demand in the Northeast, lowered prices and cut into KeySpan’s fourth quarter earnings. The company reported slightly lower earnings, excluding special items, of $99 million, or 71 cents per share, down from $100.9 million, or 75 cents per share, a year earlier. Wall Street analysts had expected earnings of 73-78 cents per share, with a consensus estimate of 75 cents. Including special items, earnings fell to $34.4 million, or 25 cents per share, from $58.9 million, or 44 cents per share.

Given the current sub-$2 natural gas prices and lower crude oil prices, Raymond James & Associates has lowered its forecast for North American oil and gas drilling activity in the first quarter of 2002, but the consulting firm anticipates activity to quickly rebound in the second quarter, fueled by stronger gas prices.

Fitch, the investment ratings and analysis firm, has joined the ranks of investment advisors with lowered expectations for the upstream natural gas and oil business, predicting stagnant prices through 2002 and into 2003.

Fitch, the investment ratings and analysis firm, has joined the ranks of investment advisors with lowered expectations for the upstream natural gas and oil business, predicting stagnant prices through 2002 and into 2003.

Fourth quarter profits are over the top but not natural gasproduction figures, according to a preliminary analysis of U.S.companies. Overall, the majors and the independents showed stunningmonetary gains in the final quarter of last year, but theproduction levels for many of the larger independents were actuallylower than those recorded in the third quarter.

Fourth quarter profits are over the top but not natural gasproduction figures, according to a preliminary analysis of U.S.companies. Overall, the majors and the independents showed stunningmonetary gains in the final quarter of last year, but theproduction levels for many of the larger independents were actuallylower than those recorded in the third quarter.

Canada’s National Energy Board has shaved about $2.2 million offof Maritimes & Northeast Pipeline’s requested cost of serviceand cut about $11.6 million out of the pipeline’s requested ratebase. The NEB also altered Maritimes’ plans regarding discounts.