Panhandle Eastern said it has reached a settlement.

The Houston-based company said it agreed during arbitration proceedings to pay a total of $335 million to General Dynamics, Moore McCormack Resources and Sonatrach, an Algerian-owned oil and gas company. The three companies had alleged that Panhandle Eastern breached agreements to purchase and transport Algerian liquefied natural gas. The settlement will result in a net after-tax charge of about $460 million to Panhandle Eastern’s earnings in the second quarter.