Unocal re-evaluated its third quarter estimate yesterday toannounce that it expected earnings not to be 70 cents per share asannounced on July 27, but that its earnings would be between 90-95cents per share. The new expectation beats First Call/ThomsonFinancial’s consensus estimate of 79 cents by at least 11 cents.

The updated earnings estimate can be attributed to risingnatural gas and oil prices. The new estimate took into account theexpected average price for West Texas Intermediate (WTI) crude oilof $31.60 per barrel and a Henry Hub natural gas price of $4.35 perMcf. The July 27 forecast was based on a WTI price of $29.75 perbarrel and a Henry Hum price of $4.00 per Mcf.

Unocal said the latest estimate does not include “miscellaneousspecial items,” but announced it will take a $36 million aftertaxcharge for derivatives accrual. Last year Unocal posted earnings of17 cents per share for the third quarter. The company’s thirdquarter ended Sept. 30, and it plans to announce its earnings prioron Oct. 25.

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