Lowers

Fitch has downgraded the ratings on some of Kerr-McGee Corp’s debt, citing a weaker-than-expected 2002 production forecast, a lack of hedged production and a poor titanium dioxide market.

Fitch has downgraded the ratings on some of Kerr-McGee Corp’s debt, citing a weaker-than-expected 2002 production forecast, a lack of hedged production and a poor titanium dioxide market.

Given the huge overhang of natural gas in storage at the end of November, the Energy Information Administration (EIA) has adjusted its prior-month forecast for spot gas prices “somewhat downward” to about $2.15/Mcf for the winter heating season. This is two-thirds lower than the average of $6.48/Mcf for last winter, and about 43 cents below the EIA’s November forecast for winter prices.

Given the huge overhang of natural gas in storage at the end of November, the Energy Information Administration (EIA) has adjusted its prior-month forecast for spot gas prices “somewhat downward” to about $2.15/Mcf for the winter heating season. This is two-thirds lower than the average of $6.48/Mcf for last winter, and about 43 cents below the EIA’s November forecast for winter prices.

CMS Energy announced a major reorganization plan that includes a $2.4 billion sale of its non-strategic international power generation and distribution assets. The sales are expected to strengthen its balance sheet, provide more predictable earnings and lower its business risk by focusing its future business growth primarily on its Michigan utility, interstate pipeline assets and energy trading operations in North America. However, the transactions will have a significant negative short-term impact on net income, forcing a $613 million asset write-down and a third quarter net loss of $569 million. Investors pushed down the company’s stock price by more than 2% in trading Friday.

CMS Energy announced a major reorganization plan that includes a $2.4 billion sale of its non-strategic international power generation and distribution assets. The sales are expected to strengthen its balance sheet, provide more predictable earnings and lower its business risk by focusing its future business growth primarily on its Michigan utility, interstate pipeline assets and energy trading operations in North America. However, the transactions will have a significant negative short-term impact on net income, forcing a $613 million asset write-down and a third quarter net loss of $569 million. Investors pushed down the company’s stock price by 3% in early trading Friday.

Due to a confluence of events, including ample natural gas storage supplies and the nation entering a recession, Ronald Barone of UBS Warburg said it should “come as no surprise” that the company has decided to lower its 2001 and 2002 natural gas spot price forecast. The analyst said he has lowered the 2001 projection of 12-region composite spot price to $3.80 from $4.10, compared to the current Street consensus of $4.00. UBS Warburg’s Henry Hub equivalent is $3.95.

Due to a confluence of events, including ample natural gas storage supplies and the nation entering a recession, Ronald Barone of UBS Warburg said it should “come as no surprise” that the company has decided to lower its 2001 and 2002 natural gas spot price forecast. The analyst said he has lowered the 2001 projection of 12-region composite spot price to $3.80 from $4.10, compared to the current Street consensus of $4.00. UBS Warburg’s Henry Hub equivalent is $3.95.

Offshore drilling contractor Global Marine reported last week that the company’s worldwide Summary of Current Offshore Rig Economics, or SCORE, for August 2001 was down 3.2% from July because of a softening in Gulf of Mexico day rates that overshadowed the strength of the international offshore rig markets.