Corporate News

Constar International Inc. (NASDAQ: CNST) has executed a four year agreement for supply of PET packaging products to Pepsi (NYSE: PEP). The agreement covers supply of both bottles and preforms for cold fill applications beginning on January 1, 2009. As expected, compared to the existing agreement, the new agreement provides for a reduction in total volumes with a mix shift towards fewer bottles and more preform volume.

In conjunction with the signing of the new supply contract with Pepsi, Constar is undertaking a plan of restructuring to reduce the Company's overhead cost structure. The estimated annual cash overhead savings from the restructuring, including the savings from the previously disclosed closure of the Company's Houston Texas facility, is expected to be approximately $28-32 million.

Based upon the Company's current estimates, the Company believes that the new Pepsi agreement will result in lower sales but, after taking into account the expected net reduction in costs from the restructuring program, will result in higher cash flows from operating activities, net of investing activities as compared to those realized from the Pepsi cold fill business in 2008.

Constar International Inc. (Constar) is a global producer of polyethylene terephthalate (PET) plastic containers for food, beverages, and other end use applications. [SM]

SandRidge Energy, Inc. (NYSE: SD) agreed with its Chairman and CEO, Tom L. Ward and certain of his affiliated entities, to acquire all of Mr. Ward's working interest and related reserves in wells drilled by SandRidge since June 2006 pursuant to SandRidge's Well Participation Plan. SandRidge paid $60.0 million in cash for the interests, subject to post-closing adjustments. In connection with the acquisition, Mr. Ward and SandRidge agreed to terminate the Plan. SandRidge expects that the acquisition and termination of the Plan will increase its net proved reserves by approximately 43 Bcf of natural gas equivalent.

The Plan provided that for as long as Mr. Ward was employed by SandRidge, he had a right to participate in and pay up to a 3% of 8/8ths working interest in all wells (subject to certain exceptions) drilled by SandRidge through at least 2016, after which the company could elect to terminate. Termination of the Plan will permit SandRidge to retain a greater working interest in future wells, thus increasing its net ownership in proved undeveloped reserves.[SM]

RANGE RESOURCES CORPORATION (NYSE: RRC) reported that third quarter 2008 production volumes rose to 387 Mmcfe per day, a 19% increase over the prior-year period. Range has now posted 23 consecutive quarters of sequential production growth. Approximately 80% of the Company's production in the quarter was natural gas.

The Company also reiterated that it has hedged 69% of its estimated fourth quarter 2008 gas production at a floor price of $8.84 per mcf and 60% of its 2009 estimated gas production at a floor of $8.31 per mcf. As of the close of business yesterday, Range's natural gas hedges were in the money by $97 million. Its oil hedges were out of the money by $55 million. Range's hedge counterparties include 14 financial institutions, 12 of which are in the Company's bank group. Mitsui & Co. and J. Aron & Company (Goldman Sachs) are the two counterparties not in Range's bank group. As of the close of business yesterday, Range's mark to market position was an unrealized loss of $4.0 million with Mitsui & Co. and an unrealized gain of $0.7 million with J. Aron & Co.

The WSJ is reporting that Oracle's (Nasdaq: ORCL) CEO, Lawrence Ellison, says that his company could take advantage of the slumping economy by buying other companies.

Oracle Corporation, an enterprise software company, engages in the development, manufacture, distribution, servicing, and marketing of database, middleware, and application software worldwide.

Bloomberg reports that Lehman Brothers (NYSE: LEH) CDS auction sets the final price of $0.08625 on bonds. Sellers of the Lehman crdit swaps would pay $0.91375 on the dollar.