-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, RZOrf1BjOMkaF0+jUfbHjYg4J3VwJjfE2nScn2/p328n1RudQny+D4imJwabOR+U ep1A7CJtuStrSygGYFyWTA== 0000716039-97-000052.txt : 19971028 0000716039-97-000052.hdr.sgml : 19971028 ACCESSION NUMBER: 0000716039-97-000052 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19971027 ITEM INFORMATION: FILED AS OF DATE: 19971027 SROS: CSX SROS: NYSE SROS: PSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: UNOCAL CORP CENTRAL INDEX KEY: 0000716039 STANDARD INDUSTRIAL CLASSIFICATION: PETROLEUM REFINING [2911] IRS NUMBER: 953825062 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-08483 FILM NUMBER: 97701122 BUSINESS ADDRESS: STREET 1: 2141 ROSECRANS AVE STREET 2: STE 4000 CITY: EL SEGUNDO STATE: CA ZIP: 90245 BUSINESS PHONE: 3107267600 8-K 1 3RD QUARTER 1997 EARNINGS SECURITIES AND EXCHANGE COMMISSION Washington, DC. 20549 FORM 8-K Current Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of report (Date of earliest event reported) October 27, 1997 ------------------ UNOCAL CORPORATION - -------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) Delaware - -------------------------------------------------------------------------------- (State or Other Jurisdiction of Incorporation) 1-8483 95-3825062 - -------------------------------------------------------------------------------- (Commission File Number) (I.R.S. Employer Identification No.) 2141 Rosecrans Avenue, Suite 4000, El Segundo, California 90245 - -------------------------------------------------------------------------------- (Address of Principal Executive Offices) (Zip Code) (310) 726-7600 - -------------------------------------------------------------------------------- (Registrant's Telephone Number, Including Area Code) Item 5. Other Events. On October 27, 1997 the following news release was issued: UNOCAL POSTS HIGHER 3Q EARNINGS; SEES IMPROVED DOMESTIC NATURAL GAS PRICES ----------------------------------------- El Segundo, Calif., Oct. 27, 1997 -- Unocal Corporation today reported third quarter 1997 earnings from continuing operations of $177 million, or 71 cents per share, compared with earnings from continuing operations of $134 million, or 32 cents per share, for the same period a year ago. Earnings from continuing operations, excluding special items (detailed in attached tables) were $94 million, or 38 cents per share, compared with $118 million, or 25 cents per share, in the third quarter 1996. The 1997 third quarter operating earnings reflect improved foreign natural gas and crude oil production and higher worldwide natural gas prices. These were more than offset by lower domestic crude oil and natural gas production and lower worldwide crude oil prices. For the quarter, net natural gas production in Thailand was up 24 percent to 634 million cubic feet per day, compared with the third quarter 1996. In Indonesia, Unocal's net crude oil production (including host country share) averaged 73,033 barrels per day, up 14 percent from a year ago. The third quarter special items included $182 million in deferred income tax benefits -- $114 million related to a reassessment of Unocal's exposure for pending federal income tax appeals and $68 million related to the recent currency devaluation in Thailand. The 1996 earnings per share amounts reflect a one-time $54 million non-cash reduction resulting from the exchange of preferred stock. "We continued to post higher crude oil and natural gas production in our foreign operations," said Roger C. Beach, Unocal chairman and chief executive officer. "In addition, net interest expense declined $18 million due to debt reduction." Beach noted that the company's total debt was $2.08 billion, down $980 million from year-end 1996. Cash flow from operations in the third quarter, before working capital changes, was $307 million, compared with $450 million last year. To date, the company has purchased approximately 4.5 million common shares for $172 million under the company's $400 million stock repurchase program. Reported earnings for the third quarter, including discontinued operations and special items, were $177 million, or 71 cents per common share. This compares with $171 million, or 47 cents per common share, reported in the third quarter a year ago. FORECAST FOR 1997 EARNINGS, GAS PRICES "Based on our internal forecasts, we expect our fourth quarter adjusted earnings to be 57 to 63 cents per share," Beach said. The company's earnings forecast assumes that Unocal realizes domestic commodity prices based on the present NYMEX futures prices and improvements in operating results. The company estimates that Unocal's Lower 48 U.S. natural gas prices could average more than $3 per thousand cubic feet in the fourth quarter 1997, up 75 cents from the third quarter. This increase alone would boost Unocal's aftertax earnings by about 15 cents per share. Each 10-cent change in realized Lower 48 U.S. gas prices results in a quarterly earnings impact of $5 million, or about 2 cents per share. "We are also looking at stronger sales and improved earnings from nitrogen fertilizer products in the last three months of the year, compared with the third quarter, and higher geothermal earnings, reflecting additional revenues from new power plants in Indonesia," Beach said. Beach also noted that the company's deepwater exploration program in Indonesia continues to yield successes. Unocal recently completed a 3-D seismic survey in the Makassar contract area, and an additional confirmation well, Merah Besar #4, tested 21.7 million cubic feet of gas per day. This was a horizontal well in the Pliocene gas sands and provided important new data critical to development of the area. Four additional confirmation wells are planned in the area to test the Miocene oil-bearing sands. NINE-MONTH 1997 RESULTS For the nine months, earnings from continuing operations were $521 million or $2.09 per share, compared with $453 million, or $1.54 per share in 1996. Excluding special items, earnings from continuing operations for the nine months were $381 million, or $1.53 per share, compared with $402 million, or $1.32 per share. The reported net earnings for the first nine months of 1997, including discontinued operations and special items, were $439 million, or $1.76 per share. This compares with $533 million or $1.86 per share, recorded for the first nine months 1996. Unocal is a leading global energy resource and project development company, with reserves of more than 9.8 trillion cubic feet of natural gas equivalent (1.6 billion barrels of oil equivalent) and major oil and gas production activities in Asia and the U.S. Gulf of Mexico. Forward-looking statements in this news release, including estimates of profitability and cash flows, are based on assumptions concerning market, competitive, regulatory, environmental, operational and other considerations. Actual results could differ materially. News releases and other information about Unocal are available at the company's Internet website, www.unocal.com.
NEWS RELEASE UNOCAL CORPORATION CONDENSED CONSOLIDATED EARNINGS STATEMENT (UNAUDITED) For the Three Months For the Nine Months Ended September 30 Ended September 30 ---------------------- ------------------------ Dollars in millions except per share amounts 1997 1996 1997 1996 - --------------------------------------------------------------------------------------------------------------------- Total revenues ................................................. $ 1,397 $ 1,337 $ 4,507 $ 3,943 Costs and other deductions ..................................... 1,394 1,145 3,918 3,206 ------- ------- ------- ------- Earnings from continuing operations before income taxes ........ 3 192 589 737 Income taxes ................................................... (174) 58 68 284 ------- ------- ------- ------- Earnings from continuing operations ............................ 177 134 521 453 Earnings from discontinued operations (net of tax) ............ -- 37 -- 80 Loss on disposal (net of tax) ................................. -- -- (44) -- Extraordinary charge - extinguishment of debt (net of tax) ..... -- -- (38) -- ------- ------- ------- ------- Net earnings ................................................... $ 177 $ 171 $ 439 $ 533 Dividends on preferred stock ................................... -- -- -- 18 Non-cash charge related to exchange of preferred stock ......... -- 54 -- 54 ------- ------- ------- ------- Net earnings applicable to common stock ........................ $ 177 $ 117 $ 439 $ 461 Earnings/(loss) per common share assuming no dilution (a) Continuing operations .................................... $ 0.71 $ 0.32 $ 2.09 $ 1.54 Discontinued operations .................................. -- 0.15 (0.18) 0.32 Extraordinary item - extinguishment of debt (net of tax) -- -- (0.15) -- ------- ------- ------- ------- Net earnings per share ......................................... $ 0.71 $ 0.47 $ 1.76 $ 1.86 (a) ..Based on weighted average common shares outstanding (in millions) ............................... 247 249 249 248 - -------------------------------------------------------------------------------------------------------------------- CONDENSED CONSOLIDATED BALANCE SHEET (UNAUDITED) Sep. 30 Dec. 31 Millions of dollars 1997 1996 - -------------------------------------------------------------------------------------------------------------------- Assets Cash and cash equivalents ..................................... $ 516 $ 217 Net assets of discontinued operations (b) .................... -- 1,774 Other current assets .......................................... 1,045 1,237 Investments and long-term receivables ......................... 1,081 1,206 Properties - net .............................................. 4,688 4,590 Other assets .................................................. 127 99 ------- ------ Total assets .......................................... $7,457 $9,123 Liabilities and Equity Current portion of long-term debt and capital lease obligations $ -- $ 118 Other current liabilities ..................................... 975 1,504 Long-term debt and capital lease obligations .................. 2,078 2,940 Deferred income taxes ......................................... 166 348 Other deferred credits and liabilities ........................ 1,311 1,416 Convertible preferred securities .............................. 522 522 Stockholders' equity .......................................... 2,405 2,275 ------- ------- Total liabilities and equity .......................... $7,457 $9,123 (b) Excludes retained working capital ......................... Table 1
NEWS RELEASE UNOCAL CORPORATION CONDENSED CONSOLIDATED CASH FLOWS (INCLUDES DISCONTINUED OPERATIONS) (UNAUDITED) For the Three Months For the Nine Months Ended September 30 Ended September 30 ----------------------------------------------------- Millions of dollars 1997 1996 1997 1996 - ---------------------------------------------------------------------------------------------------------------------------- Cash flows from operating activities Net earnings $ 177 $ 171 $ 439 $ 533 Adjustments to reconcile net earnings to net cash provided by operating activities Loss on disposal of discontinued operations (before-tax) -- -- 71 -- Depreciation, depletion and amortization 300 228 755 724 Dry hole costs 8 53 51 72 Deferred income taxes (255) 15 (226) 48 Gain on sales of assets (before-tax) 2 (36) (59) (173) Other 75 19 (83) 96 Working capital and other changes related to operations (8) 56 (212) (101) ----------------------------------------------------- Net cash provided by operating activities 299 506 736 1,199 Cash flows from investing activities Capital expenditures (includes dry hole costs) (308) (318) (953) (940) Proceeds from sale of discontinued operations 3 -- 1,789 -- Proceeds from asset sales 7 46 55 585 ----------------------------------------------------- Net cash provided by/(used in) investing activities (298) (272) 891 (355) Cash flows from financing activities Net decrease in long-term debt and capital lease obligations (241) (171) (959) (560) Dividends paid (50) (59) (150) (176) Repurchase of common stock (81) -- (173) -- Other 3 12 (46) 23 ----------------------------------------------------- Net cash used in financing activities (369) (218) (1,328) (713) Increase/(decrease) in cash and cash equivalents (368) 16 299 131 Cash and cash equivalents at beginning of period 884 209 217 94 ----------------------------------------------------- Cash and cash equivalents at end of period $ 516 $ 225 $ 516 $ 225 - ---------------------------------------------------------------------------------------------------------------------------- CONDENSED CAPITAL EXPENDITURES (UNAUDITED) Millions of dollars - ---------------------------------------------------------------------------------------------------------------------------- United States Exploration & Production $ 88 $ 92 $ 200 $ 327 International Exploration & Production 171 96 574 312 Geothermal Operations 29 39 76 91 Diversified Business Group 18 8 40 26 New Ventures (Non E & P) 2 5 5 5 Corporate & Unallocated -- 10 9 22 Discontinued Operations -- 68 49 157 ----------------------------------------------------- Total (a) $ 308 $ 318 $ 953 $ 940 (a) Includes capitalized interest of: $ 10 $ 3 $ 26 $ 9 - ---------------------------------------------------------------------------------------------------------------------------- DEPRECIATION, DEPLETION & AMORTIZATION (UNAUDITED) Millions of dollars - ---------------------------------------------------------------------------------------------------------------------------- Depreciation, depletion & amortization from continuing operations $ 300 $ 192 $ 755 $ 617 Table 2
NEWS RELEASE UNOCAL CORPORATION DISCRETIONARY CASH FLOW (INCLUDES DISCONTINUED OPERATIONS) (UNAUDITED) For the Three Months For the Nine Months Ended September 30 Ended September 30 -------------------------------------------------------- Millions of dollars 1997 1996 1997 1996 - ------------------------------------------------------------------------------------------------------------------------------------ Net earnings ....................................................... $ 177 $ 171 $ 439 $ 533 Adjustments to net earnings Depletion, depreciation & amortization .............. 238 228 693 724 SFAS no. 121 impairment ............................. 62 -- 62 -- Dry hole costs ...................................... 8 53 51 72 Deferred income taxes ............................... (255) 15 (226) 48 (Gain) Loss on sales of assets ...................... 2 (36) (59) (173) Exploration expenses ................................ 50 33 114 83 Proceeds from asset sales ........................... 10 46 1,844 585 Environmental and litigation provision .............. 97 51 120 113 Environmental and litigation payments ............... (21) (23) (133) (53) Other, net .......................................... (1) (9) 1 36 -------------------------------------------------------- Total discretionary cash flow ................. $ 367 $ 529 $ 2,906 $ 1,968 The preceding table of discretionary cash flow is provided for analysts and others in the investment community as a supplement to conventional financial data prepared in accordance with generally accepted accounting principles. Discretionary cash flow does not give effect to significant uses of cash, including those for capital projects, debt reduction and regular dividends, some of which result from previous commitments, and should only be considered in conjunction with the full presentation of condensed consolidated cash flows on the preceding page.
Table 2a
NEWS RELEASE UNOCAL CORPORATION RESULTS OF OPERATIONS FOR EXPLORATION AND PRODUCTION ACTIVITIES (UNAUDITED) For the Nine Months Ended September 30, 1997 --------------------------------------------------------- Spirit Other Other Millions of dollars Energy 76 U.S. Far East International Total - ------------------------------------------------------------------------------------------------------- Sales (includes intercompany sales) (a) Crude oil and condensate .............. $ 245 $ 136 $ 342 $ 119 $ 842 Natural gas ........................... 546 47 485 35 1,113 Natural gas liquids ................... 41 3 18 3 65 Other ................................. 2 -- -- -- 2 ------- ------- ------- ------- ------- Total .......................... 834 186 845 157 2,022 Other revenue ................................ 10 4 2 16 32 Gain/(loss) on asset sales ................... 2 -- -- (16) (14) ------- ------- ------- ------- ------- Total revenues ................. 846 190 847 157 2,040 Production costs ............................. 139 73 93 53 358 Exploration expenses ......................... 37 -- 43 28 108 Dry hole costs ............................... 10 -- 39 1 50 Depreciation, depletion & amortization ....... 374 42 235 53 704 Other operating expenses ..................... 56 8 48 31 143 ------- ------- ------- ------- ------- Results of operations before income tax $ 230 $ 67 $ 389 $ (9) $ 677 - ------------------------------------------------------------------------------------------------------- For the Nine Months Ended September 30, 1996 -------------------------------------------------------- Spirit Other Other Energy 76 U.S. Far East International Total -------------------------------------------------------- Sales (includes intercompany sales) (a) Crude oil and condensate .............. $ 287 $ 209 $ 278 $ 137 $ 911 Natural gas ........................... 562 61 362 35 1,020 Natural gas liquids ................... 47 4 12 3 66 Other ................................. 3 -- -- -- 3 ------- ------- ------- ------- ------- Total .......................... 899 274 652 175 2,000 Other revenue ................................ 8 2 -- 17 27 Gain on asset sales .......................... 8 110 1 23 142 ------- ------- ------- ------- ------- Total revenues ................. 915 386 653 215 2,169 Production costs ............................. 134 96 94 57 381 Exploration expenses ......................... 19 -- 31 28 78 Dry hole costs ............................... 49 -- 13 5 67 Depreciation, depletion & amortization ....... 268 74 163 44 549 Other operating expenses ..................... 100 13 30 4 147 ------- ------- ------- ------- ------- Results of operations before income tax $ 345 $ 203 $ 322 $ 77 $ 947 (a) Sales revenues are net of royalty payments, net profits interests and marketing related purchases. Table 3
NEWS RELEASE UNOCAL CORPORATION RESULTS OF OPERATIONS FOR EXPLORATION AND PRODUCTION ACTIVITIES (UNAUDITED) For the Three Months Ended Ended September 30, 1997 ------------------------------------------------------- Spirit Other Other Millions of dollars Energy 76 U.S. Far East International Total - ----------------------------------------------------------------------------------------------------- Sales (includes intercompany sales) (a) Crude oil and condensate .............. $ 67 $ 40 $ 112 $ 34 $ 253 Natural gas ........................... 171 15 168 11 365 Natural gas liquids ................... 12 -- 4 1 17 Other ................................. 1 -- -- -- 1 ------ ------ ------ ------ ------ Total .......................... 251 55 284 46 636 Other revenue ................................ 4 3 (4) 3 6 Loss on asset sales .......................... (2) -- -- -- (2) ------ ------ ------ ------ ------ Total revenues ................. 253 58 280 49 640 Production costs ............................. 41 27 30 17 115 Exploration expenses ......................... 13 -- 25 10 48 Dry hole costs ............................... 3 -- 4 -- 7 Depreciation, depletion & amortization ....... 169 13 81 17 280 Other operating expenses ..................... 18 2 26 7 53 ------ ------ ------ ------ ------ Results of operations before income tax $ 9 $ 16 $ 114 $ (2) $ 137 - ----------------------------------------------------------------------------------------------------- For the Three Months Ended Ended September 30, 1996 ------------------------------------------------------- Spirit Other Other Energy 76 U.S. Far East International Total ------------------------------------------------------- Sales (includes intercompany sales) (a) Crude oil and condensate .............. $ 104 $ 57 $ 95 $ 47 $ 303 Natural gas ........................... 178 18 132 10 338 Natural gas liquids ................... 17 1 3 1 22 Other ................................. 1 -- -- -- 1 ------ ------ ------ ------ ------ Total .......................... 300 76 230 58 664 Other revenue ................................ 5 -- 1 6 12 Gain on asset sales .......................... 3 -- 1 17 21 ------ ------ ------ ------ ------ Total revenues ................. 308 76 232 81 697 Production costs ............................. 46 19 31 20 116 Exploration expenses ......................... 8 -- 14 8 30 Dry hole costs ............................... 38 -- 11 1 50 Depreciation, depletion & amortization ....... 94 18 47 14 173 Other operating expenses ..................... 34 4 13 -- 51 ------ ------ ------ ------ ------ Results of operations before income tax $ 88 $ 35 $ 116 $ 38 $ 277 (a) Sales revenues are net of royalty payments, net profits interests and marketing related purchases. Table 4
NEWS RELEASE UNOCAL CORPORATION OPERATING HIGHLIGHTS (UNAUDITED) For the Three Months For the Nine Months Ended September 30 Ended September 30 --------------------------------------------------- 1997 1996 1997 1996 - ------------------------------------------------------------------------------------------------------------- Net daily production Crude oil and condensate (thousand barrels daily): United States Spirit Energy 76 .......................... 40.8 51.4 45.0 51.7 Other (a) ................................ 29.8 34.7 31.5 47.2 ------- ------- ------- ------- Total United States ................. 70.6 86.1 76.5 98.9 International Far East (b) ............................. 96.2 82.2 94.9 82.4 Other ..................................... 24.9 27.2 25.9 27.6 ------- ------- ------- ------- Total International ................. 121.1 109.4 120.8 110.0 ------- ------- ------- ------- Total Worldwide ..................... 191.7 195.5 197.3 208.9 Natural gas (million cubic feet daily): United States Spirit Energy 76 .......................... 844.5 928.4 875.7 917.0 Other (a) ................................ 109.6 146.8 130.8 164.5 ------- ------- ------- ------- Total United States ................. 954.1 1,075.2 1,006.5 1,081.5 International Far East (b) ............................. 790.0 666.5 789.5 625.7 Other ..................................... 54.8 63.0 61.7 71.1 ------- ------- ------- ------- Total International ................. 844.8 729.5 851.2 696.8 ------- ------- ------- ------- Total Worldwide .....................1,798.9 1,804.7 1,857.7 1,778.3 Natural gas liquids (thousand barrels daily) (a) ........ 17.8 19.3 18.7 19.6 Geothermal (million kilowatt-hours daily) ................ 18.7 21.0 17.2 17.3 Average sales prices Crude oil and condensate (per barrel): United States Spirit Energy 76 ..........................$ 17.27 $ 21.80 $ 19.69 $ 20.33 Other ..................................... 13.36 17.37 15.39 16.52 Total United States ................. 15.57 20.01 17.90 18.31 International Far East ..................................$ 17.45 $ 18.89 $ 18.72 $ 18.32 Other ..................................... 16.58 19.89 17.58 18.53 Total International ................. 17.23 19.21 18.41 18.39 Total Worldwide .....................$ 16.48 $ 19.62 $ 18.18 $ 18.34 Natural gas (per mcf): United States Spirit Energy 76 ..........................$ 2.28 $ 2.23 $ 2.41 $ 2.34 Other ..................................... 1.47 1.36 1.39 1.42 Total United States ................. 2.19 2.09 2.28 2.20 International Far East ..................................$ 2.39 $ 2.27 $ 2.35 $ 2.23 Other ..................................... 2.40 2.05 2.23 1.82 Total International ................. 2.39 2.25 2.34 2.18 Total Worldwide .....................$ 2.28 $ 2.15 $ 2.30 $ 2.20 ------- ------- ------- ------- (a) Includes production from California upstream properties of: Crude oil and condensate ............................... -- 1.0 -- 10.9 Natural gas ............................................ -- -- -- 17.2 Natural gas liquids .................................... -- -- -- 0.2 (b) Includes host country share in Indonesia of: Crude oil and condensate ............................... 27.9 26.4 29.2 26.8 Natural gas ............................................ 21.9 29.1 26.6 26.2 Table 5
NEWS RELEASE UNOCAL CORPORATION OPERATING HIGHLIGHTS (continued) (UNAUDITED) For the Three Months Ended For the Nine Months Ended September 30 Ended September 30 -------------------------------------------------- 1997 1996 1997 1996 - ------------------------------------------------------------------------------------------------------------------------------------ Agricultural products production volumes (thousand tons) Ammonia ......................................................... 314 360 1,072 1,089 Urea ............................................................ 188 275 696 845 Other products .................................................. 146 149 494 494 Agricultural products sales volumes (thousand tons) Ammonia ......................................................... 187 206 590 574 Urea ............................................................ 191 198 690 779 Other products .................................................. 200 302 907 971 Table 6
NEWS RELEASE UNOCAL CORPORATION EARNINGS BY BUSINESS SEGMENT (Unaudited) 3rd Quarter of 1997 3rd Quarter of 1996 ------------------------------------------------------- Millions of dollars Before-tax After-tax Before-tax After-tax - ------------------------------------------------------------------------------------------------------------------------------------ Exploration and Production United States Spirit Energy 76 ........................................... $ 9 $ 6 $ 88 $ 55 Other ...................................................... 16 10 35 22 International ................................................ 112 128 154 107 Geothermal Operations .......................................... 7 6 15 6 Diversified Business Group Agricultural Products ...................................... 5 4 31 20 Carbon and Minerals ........................................ 13 10 15 13 Pipelines .................................................. 19 16 17 14 Other ...................................................... (1) -- 5 3 Corporate and Unallocated Administrative and general expense ......................... (20) (13) (33) (21) Net interest expense ....................................... (26) (19) (62) (37) Environmental and litigation expense........................ (104) (65) (60) (37) New Ventures ............................................... (3) (1) (10) (7) Other ...................................................... (24) 95 (3) (4) - ------------------------------------------------------------------------------------------------------------------------------------ Earnings from continuing operations before discontinued operations and extraordinary item ...................................... 3 177 192 134 Earnings from discontinued operations .......................... -- -- 59 37 - ------------------------------------------------------------------------------------------------------------------------------------ Extraordinary item ............................................. -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Total ................................................ $ 3 $ 177 $ 251 $ 171 ==================================================================================================================================== EXPLORATION AND PRODUCTION - this segment explores for, produces and markets crude oil, condensate, natural gas and natural gas liquids. GEOTHERMAL OPERATIONS - this segment explores for, produces and sells geothermal resources used to generate electricity. DIVERSIFIED BUSINESS GROUP: AGRICULTURAL PRODUCTS - this business unit manufactures and markets nitrogen-based products for wholesale agricultural and industrial markets supplying the western United States and the Pacific Rim. CARBON AND MINERALS - this business unit produces and markets petroleum coke, graphites, solvents and specialty minerals. PIPELINES - this business unit principally includes the company's equity interests in affiliated pipeline companies. OTHER- principally includes the company's equity interest in The UNO-VEN company.
Table 7
NEWS RELEASE UNOCAL CORPORATION SPECIAL ITEMS (Unaudited) 3rd Quarter of 1997 3rd Quarter of 1996 ------------------------------------------------------ Dollars in millions except per share amounts Before-tax After-tax Before-tax After-tax - ------------------------------------------------------------------------------------------------------------------------------------ Reported earnings .............................................. $ 3 $ 177 $ 251 $ 171 Less: Special items Exploration and Production United States Spirit Energy Asset Sales ....................................... (1) -- 4 3 SFAS no.121 impairment ............................ (62) (39) -- -- International Asset Sales ....................................... (1) (1) 18 37 Uninsured loss - Bangladesh ....................... -- -- -- -- Deferred tax adjustment ........................... -- 68 -- -- Geothermal Operations Deferred tax adjustment ........................... -- 3 -- -- Corporate and Unallocated Asset Sales ....................................... -- (1) 14 8 Environmental provision ........................... (65) (41) (20) (12) Litigation provision .............................. (32) (20) (31) (20) Deferred tax adjustment ........................... -- 114 -- -- Discontinued Operations Asset Sales ....................................... -- -- 1 1 Other ........................................... -- -- 2 1 - ------------------------------------------------------------------------------------------------------------------------------------ Total special items ....................................... (161) 83 (12) 18 - ------------------------------------------------------------------------------------------------------------------------------------ Adjusted earnings .............................................. $ 164 $ 94 $ 263 $ 153 ==================================================================================================================================== Table 8
NEWS RELEASE UNOCAL CORPORATION EARNINGS BY BUSINESS SEGMENT EXCLUDING SPECIAL ITEMS (Unaudited) 3rd Quarter of 1997 3rd Quarter of 1996 --------------------------------------------------------- Millions of dollars Before-tax After-tax Before-tax After-tax - ------------------------------------------------------------------------------------------------------------------------------------ Exploration and Production United States Spirit Energy 76 .......................................... $ 72 $ 45 $ 84 $ 52 Other ..................................................... 16 10 35 22 International ................................................ 113 61 136 70 Geothermal Operations .......................................... 7 3 15 6 Diversified Business Group Agricultural Products ...................................... 5 4 31 20 Carbon and Minerals ........................................ 13 10 15 13 Pipelines .................................................. 19 16 17 14 Other ...................................................... (1) -- 5 3 Corporate and Unallocated Administrative and general expense ......................... (20) (13) (33) (21) Net interest expense ....................................... (26) (19) (62) (37) Environmental and litigation expense ....................... (7) (4) (9) (5) New Ventures ............................................... (3) (1) (10) (7) Other ...................................................... (24) (18) (17) (12) - ------------------------------------------------------------------------------------------------------------------------------------ Earnings from continuing operations ............................ 164 94 207 118 Earnings from discontinued operations .......................... -- -- 56 35 - ------------------------------------------------------------------------------------------------------------------------------------ Total ................................................ $ 164 $ 94 $ 263 $ 153 Non-cash charge related to exchange of preferred stock ................................. -- -- -- 54 - ------------------------------------------------------------------------------------------------------------------------------------ Adjusted net earnings applicable to common stock ............................................. $ 94 $ 99 - ------------------------------------------------------------------------------------------------------------------------------------ Adjusted net earnings per common share ............................................ $0.38 $0.39 Adjusted net earnings from continuing operations per common share ................................. $0.38 $0.25 ===================================================================================================================================
Table 9
NEWS RELEASE UNOCAL CORPORATION EARNINGS BY BUSINESS SEGMENT (Unaudited) First Nine Months of 1997 First Nine Months of 1996 --------------------------------------------------------- Millions of dollars Before-tax After-tax Before-tax After-tax - ------------------------------------------------------------------------------------------------------------------------------------ Exploration and Production United States Spirit Energy 76 ........................................ $ 230 $ 144 $ 345 $ 215 Other ................................................... 67 42 203 126 International .............................................. 380 259 399 245 Geothermal Operations .......................................... 28 25 33 15 Diversified Business Group Agricultural Products .................................... 75 50 113 73 Carbon and Minerals ...................................... 110 76 52 40 Pipelines ................................................ 54 46 64 51 Other .................................................... 43 37 15 9 Corporate and Unallocated Administrative and general expense ....................... (62) (40) (87) (55) Net interest expense ..................................... (109) (84) (197) (135) Environmental and litigation expense ..................... (138) (86) (136) (84) New Ventures ............................................. (34) (23) (20) (13) Other .................................................... (55) 75 (47) (34) - ------------------------------------------------------------------------------------------------------------------------------------ Earnings from continuing operations before discontinued operations and extraordinary item ...................................... 589 521 737 453 Earnings (loss) from discontinued operations ................... (71) (44) 128 80 Extraordinary item ............................................. (52) (38) -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Total .............................................. $ 466 $ 439 $ 865 $ 533 ==================================================================================================================================== Table 10
NEWS RELEASE UNOCAL CORPORATION SPECIAL ITEMS (Unaudited) First Nine Months of 1997 First Nine Months of 1996 --------------------------------------------------------- Dollars in millions except per share amounts Before-tax After-tax Before-tax After-tax - ------------------------------------------------------------------------------------------------------------------------------------ Reported earnings .............................................. $ 466 $ 439 $ 865 $ 533 Less: Special items Exploration and Production United States Spirit Energy Asset Sales ....................................... 2 2 8 5 SFAS no.121 impairment ............................ (62) (39) -- -- Other Asset Sales ....................................... -- -- 110 68 International Asset Sales ....................................... (17) (17) 24 41 Uninsured loss - Bangladesh ....................... (10) (7) -- -- Deferred tax adjustment ........................... -- 68 -- -- Geothermal Operations Deferred tax adjustment ........................... -- 10 -- -- Diversified Business Group Carbon and Minerals Asset Sales ....................................... 67 41 -- -- Pipeline Asset Sales ....................................... -- -- 12 7 Other UNO-VEN restructuring ............................. 46 39 -- -- Corporate and Unallocated Asset Sales ....................................... 7 4 15 9 Environmental provision ........................... (80) (50) (62) (38) Litigation provision .............................. (40) (25) (51) (32) Deferred tax adjustment ........................... -- 114 -- -- Other ............................................. -- -- (11) (9) Discontinued Operations Asset Sales ....................................... -- -- 5 3 Other .............................................. -- -- 2 1 Net loss on disposal .............................. (71) (44) -- -- Extraordinary item ......................................... (52) (38) -- -- --------------------------------------------------------- Total special items ....................................... (210) 58 52 55 --------------------------------------------------------- Adjusted earnings ............................................. $ 676 $ 381 $ 813 $ 478 =================================================================================================================================== Table 11
NEWS RELEASE UNOCAL CORPORATION EARNINGS BY BUSINESS SEGMENT EXCLUDING SPECIAL ITEMS (Unaudited) First Nine Months of 1997 First Nine Months of 1996 -------------------------------------------------------- Millions of dollars Before-tax After-tax Before-tax After-tax - ------------------------------------------------------------------------------------------------------------------------------------ Exploration and Production United States Spirit Energy 76 ........................................ $ 290 $ 181 $ 337 $ 210 Other ................................................... 67 42 93 58 International .............................................. 407 215 375 204 Geothermal Operations .......................................... 28 15 33 15 Diversified Business Group Agricultural Products .................................... 75 50 113 73 Carbon and Minerals ...................................... 43 35 52 40 Pipelines ................................................ 54 46 52 44 Other .................................................... (3) (2) 15 9 Corporate and Unallocated Administrative and general expense ....................... (62) (40) (87) (55) Net interest expense ..................................... (109) (84) (197) (135) Environmental and litigation expense ..................... (18) (11) (23) (14) New Ventures ............................................. (34) (23) (20) (13) Other .................................................... (62) (43) (51) (34) - ------------------------------------------------------------------------------------------------------------------------------------ Earnings from continuing operations ............................ 676 381 692 402 Earnings from discontinued operations .......................... -- -- 121 76 - ------------------------------------------------------------------------------------------------------------------------------------ Total ....................................................... $ 676 $ 381 $ 813 $ 478 Dividends on preferred stock ................................... -- 18 Non-cash charge related to exchange of preferred stock ................................. -- 54 - ------------------------------------------------------------------------------------------------------------------------------------ Adjusted net earnings applicable to common stock ............................................. $ 381 $ 406 - ------------------------------------------------------------------------------------------------------------------------------------ Adjusted net earnings per common share ............................................ $1.53 $1.63 - ------------------------------------------------------------------------------------------------------------------------------------ Adjusted net earnings from continuing operations per common share ................................. $1.53 $1.32 ==================================================================================================================================== Table 12
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. UNOCAL CORPORATION (Registrant) Date: October 27, 1997 By: /s/ STANLEY Y. HANAOKA - ----------------------- ------------------------------ Stanley Y. Hanaoka Assistant Comptroller -----END PRIVACY-ENHANCED MESSAGE-----