Slash

Higher operating costs, combined with a decline in natural gas prices, has led Calgary-based Compton Petroleum Corp. to slash its spending and reduce its drilling program for the rest of the year. Compton also said it would sell some noncore assets, estimated to be worth about C$100 million, and would consider selling off its major conventional oil properties to focus more on resource plays.

Production shortfalls in South Texas assets and high natural gas prices forced El Paso Corp. to slash its proved oil and gas reserves by 41% following an independent review, which will lead to a fourth quarter pre-tax ceiling test charge of at least $1 billion, the company said Tuesday.

As part of American Electric Power’s (AEP) ongoing efforts to conserve cash, slash debt and improve its balance sheet, the electric utility last Wednesday said that its board of directors approved a 42% reduction in AEP’s quarterly dividend from 60 cents per share to 35 cents per share.

In an effort to conserve cash, slash debt and improve its balance sheet, American Electric Power announced Wednesday that it will cut its dividend by 42% to 35 cents per share. The move was first announced in January. The dividend cut will result in annual cash savings of $340 million, immediately improving retained earnings and creating free cash flow that can be used to pay down debt (see Power Market Today, Jan. 27).

Sens. Joseph Lieberman (D-CT) and John McCain (R-AZ) have offered up a legislative proposal that would place limits on the amount of greenhouse gas emissions from U.S. power plants and other sectors of the economy. The legislation also provides for the trading of emissions allowances and includes penalty provisions for companies failing to meet emissions limits set out in the proposed legislation.

TransCanada PipeLines said yesterday the loss of two shipperagreements enabled it to slash the price of its 1999 expansionproject by C$575.9 million, but it still anticipates being able toprovide 76% of the capacity (208 MMcf/d) of the original project byNovember 1999. The Canadian pipeline monopoly filed its originalproject application with the National Energy Board in April, butmodified its plans this week.