Due to certain charges that occurred in the fourth quarter, Southern Union Co. said Wednesday that it now expects net earnings available for common shareholders for the year ended Dec. 31, 2004 to be between $0.90 and $1.00 per share. Earnings guidance previously provided by the company was $1.00 to $1.10 per share. The charges are associated with the integration of its investment in CCE Holdings LLC, and non-recurring charges associated with an environmental site remediation and a cost-based investment in a technology enterprise. Excluding these charges, Southern Union’s net earnings available for common shareholders are expected to be between $1.10 and $1.20 per share. The company also announced that it has changed from a June 30 fiscal year end to a Dec. 31 calendar year end, effective Dec. 31, 2004. As a result, Southern Union expects to announce earnings for the period ended Dec. 31, 2004 on March 16. The Wilkes-Barre, PA-based company reconfirmed its calendar 2005 earnings guidance of $1.45 to $1.55 per share. Through its Panhandle Energy subsidiary, the company owns and operates Panhandle Eastern Pipe Line Co., Trunkline Gas Co., Sea Robin Pipeline Co., Southwest Gas Storage Co. and Trunkline LNG Co. — one of North America’s largest liquefied natural gas import terminals.

Kerr-McGee Corp. said its profit more than doubled in the fourth quarter, but its earnings fell short of analysts’ estimates. Its income from continuing operations rose to $133.8 million, or 86 cents a share, from $50.3 million, or 50 cents a share, in 4Q2003. Analysts had been expecting earnings of 98 cents/share. Excluding items such as commodity derivatives, foreign currency losses, asset impairments and gains on asset sales, quarterly income rose to $167.5 million, or $1.07 a share, from $86.9 million, or 86 cents a share. Revenue rose about 56% to $1.6 billion from $1.03 billion. Fourth-quarter production averaged 372,100 boe/d, up 41% from 4Q2003. Its domestic natural gas sales soared 65% to 1,041 MMcf/d in the fourth quarter compared to 4Q2003. Oil production averaged 184,700 bbl/d, up 32%. The company grew proved oil and natural gas reserves by nearly 20% to 1.2 billion boe. Full-year 2004 net income excluding special items, rose to $622.9 million, or $4.71 a share, from $403.9 million, or $3.84 a share. Analysts were expecting $4.58/share for the year.

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