Reduces

KeySpan Corp. and Houston Exploration Co. announced Friday that Keyspan is reducing its ownership interest in the Houston-based E&P company in its continuing effort to monetize its non-core assets.

KeySpan Corp. and Houston Exploration Co. announced Friday that Keyspan is reducing its ownership interest in the Houston-based E&P company in its continuing effort to monetize its non-core assets.

Williams Cos. took on more water Tuesday as Standard & Poor’s (S&P) lowered the energy giant’s corporate credit rating two notches to “BB+” (junk bond status) from “BBB.” The move followed the company’s second quarter outlook released Monday, which precipitated a stock price drop-off to a 20-year low in trading that day, and sparked speculation that cash-strapped Williams could become the target of a takeover (see Daily GPI, July 23). Williams Cos. stock closed at $1.19 after an 82-cent (40%) plummet in Tuesday’s trading.

Williams Cos. took on more water Tuesday as Standard & Poor’s (S&P) lowered the energy giant’s corporate credit rating two notches to “BB+” (junk bond status) from “BBB.” The move followed the company’s second quarter outlook released Monday, which precipitated a stock price drop-off to a 20-year low in trading that day, and sparked speculation that cash-strapped Williams could become the target of a takeover (see Daily GPI, July 23). Williams Cos. stock closed at $1.19 after an 82-cent (40%) plummet in Tuesday’s trading.

Financial incentives proposed in the Senate omnibus energy bill would lower the “trigger price” required for construction of an Alaska natural gas pipeline to be economically favorable to $3.05/Mcf, according to a new report issued by the Energy Information Administration (EIA).

Burlington Resources Inc. plans to lower its capital investments in 2002 to $1.3 billion, compared with combined full-year expenditures by the company and merger partner Canadian Hunter Exploration Ltd. of $1.6 billion this year. Excluding capital for acquisitions, next year, about 40% of Burlington’s exploration and production budget will be spent in Canada, with another 30% allocated to develop the San Juan Basin and Midcontinent areas of the United States. Another 30% will be spent on major development programs around the world.

Burlington Resources Inc. said Tuesday it would lower its capital investments in 2002 to $1.3 billion, compared with combined full-year expenditures by the company and merger partner Canadian Hunter Exploration Ltd. of $1.6 billion this year. Totals for both years exclude capital for acquisitions. Next year, about 40% of Burlington’s exploration and production budget will be spent in Canada, with another 30% allocated to develop the San Juan Basin and Midcontinent areas of the United States. Another 30% will be spent on major development programs around the world.

During this period of record volatility in the natural gas market, Devon Energy has made an effort to reduce its downside commodity price risk with several hedging instruments, including costless collars, price swaps and fixed price transactions that cover a substantial amount of its natural gas production. The company became the largest independent natural gas producer in North America last month with its Oct. 15 acquisition of Anderson Exploration. The deal increased its gas production to 2.2 Bcf/d.

In an attempt to improve the company’s cash flow and earnings, Southern Union Co. said it intends to implement corporate reorganization and restructuring, a move it expects will save $35-40 million annually. As part of the restructuring, Southern Union said it is offering voluntary early retirement programs in some of its operating divisions and a limited reduction in workforce within its corporate division.