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What is a .out file extension mean in SQL Server 2000?

I have a file called SQLAGENT.OUT and it seems to be some kind of log file for SQL server agent.  It is getting huge in size and I want to know if I can either shrink it down or delete it all together.  What are the steps in accomplishing this if it can be done?  If I delete this file, what will be affected?  Any information would be appreciated.  Thank you.
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elimesika
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Yep, it is the SQLAgent log file.

Have a look at http://msdn.microsoft.com/en-us/library/aa215210.aspx