Writes

American Electric Power (AEP) spilled its guts on Friday, announcing a long series of negative conditions, including the removal of about $1.6 billion in common equity from its balance sheet in the fourth quarter, plans to cut its dividend by 40% and reduce its work force, and fourth quarter and full-year net losses. But credit rating agency Standard & Poors expressed confidence in the measures the company is taking to right its financial ship. AEP shares fell sharply initially on Friday but ended the day down only 5% to $25.65.

American Electric Power (AEP) spilled its guts on Friday, announcing a long series of negative conditions, including the removal of about $1.6 billion in common equity from its balance sheet in the fourth quarter, plans to cut its dividend by 40% and reduce its work force, and fourth quarter and full-year net losses. But credit rating agency Standard & Poors expressed confidence in the measures the company is taking to right its financial ship. AEP earnings fell sharply initially on Friday but ended the day down only 5% to $25.65.

With refining margins down, production problems up and its Dynegy Inc. investment blown, ChevronTexaco Corp. (CVX) reported a net loss of $904 million (85 cents/share) for the third quarter, compared to earnings of $1.27 billion ($1.19/share) for the same period a year ago. Total net charges were $2.07 billion, including the $1.55 billion Dynegy write-off.

Writedowns totaling $342 million related to investments in power generation assets and oil reserves in financially-troubled Argentina in the first half of the year added up to a net loss of $99 million for El Paso Tennessee Pipeline Co. for the six-month period ending June 30, the company announced Wednesday.