Effective Date: August 1, 2004 Re: Amendment No. 1 to Employment Agreement Dear Mr. Stout:

EXHIBIT 10.3

Effective Date: August 1, 2004

Re: Amendment No. 1 to Employment Agreement

Dear Xx. Xxxxx:

When countersigned by you, this letter will serve as an amendment (referred to here as “Amendment No. 1”) to your existing employment agreement with KCS Energy, Inc. (the “Company”) dated December 1, 2001 (the “Original Agreement”).

          1. “Change in Control” Provision. Section 11.1 of the Original Agreement is amended by deleting the words “after the date of this Agreement and on or before August 31, 2004 (but not thereafter)” and substituting therefor the words “after the date of this Agreement and on or before August 31, 2006 (but not thereafter)”.

          2. Original Agreement Ratified. In all other respects, the Original Agreement remains in effect, and is ratified by you and by the Company.

* * *

Please sign below and return a signed copy to the Company to confirm your agreement with this Amendment No. 1.

Very truly yours,

KCS Energy, Inc.

/s/ Xxxxx Christmas
Chairman and Chief Executive Officer

Accepted and agreed to:

/s/ Xxxxx Xxx Xxxxx