-----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, EH+VmG1MEO2b0gT8KTJG3nxJ6+oq1nPIbe9HvcI2nwVR6/Wumc3t80/iwq44mxFw DFQjLo2ceRWu9benjPvH6A== 0000716039-98-000002.txt : 19980129 0000716039-98-000002.hdr.sgml : 19980129 ACCESSION NUMBER: 0000716039-98-000002 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19980128 ITEM INFORMATION: FILED AS OF DATE: 19980128 SROS: CSX SROS: NYSE 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: 98515091 BUSINESS ADDRESS: STREET 1: 2141 ROSECRANS AVE STREET 2: STE 4000 CITY: EL SEGUNDO STATE: CA ZIP: 90245 BUSINESS PHONE: 3107267600 8-K 1 UNOCAL'S 4TH 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) January 28, 1998 ----------------- 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 January 28, 1998 the following news release was issued: UNOCAL POSTS 4Q 1997 EARNINGS; COMPANY EXPECTS FURTHER OIL AND GAS PRODUCTION INCREASES ------------------------------------------------ El Segundo, Calif., Jan. 28, 1998 - Unocal Corporation today reported preliminary fourth-quarter 1997 earnings from continuing operations, excluding special items, of $134 million, or 55 cents per share. These results are on the same basis as the latest First Call consensus for basic earnings. In the fourth quarter 1996, Unocal's earnings from continuing operations, excluding special items, were $160 million, or 64 cents per share. "Our international oil and gas operations reported a 4 percent increase in net production on an oil-equivalent basis to more than 265,000 barrels per day," said Roger C. Beach, Unocal chairman and chief executive officer. "Net gas production in Thailand was up 2 percent over a year ago, and net oil production in Indonesia (including host country share) was up 9 percent." Beach added that the company expects to see further international production increases in 1998 with new output from Azerbaijan, Myanmar, and Bangladesh, as well as full-year production in Yemen. Beach noted that the company's Lower 48 U.S. production declined considerably in the last half of 1997. "We expect to reverse this decline in 1998 so that the full-year average will be on par with 1997," Beach said. Beach added that the company's fourth quarter operating results also reflected lower prices for crude oil and export urea and higher domestic and international exploration expenses. These negative factors were offset partially by significantly reduced foreign taxes due principally to the effects of currency devaluation in Asia. The higher exploration expenses reflect Unocal's increased emphasis on increasing production and reserves through an aggressive exploration program. Beach commented on the impact on Unocal of the current financial turmoil in Asia. "Unocal's earnings and cash flow are mostly protected from a foreign exchange perspective," Beach said, "and we remain optimistic about our long-term prospects in Asia." Beach went on to say that the carbon and minerals segment recorded higher-than-anticipated earnings because of an increased contribution from Unocal's equity interest in a Brazilian niobium operation. Earlier, Unocal had indicated that the segment's earnings in the quarter would be lower because of a two-month production shutdown at the Molycorp, Inc., molybdenum mine in New Mexico. Unocal's interest expense dropped $18 million in the quarter, reflecting a reduction in the company's total debt to $2,170 million. This compares with total debt of $3,058 million at the end of 1996. Unocal completed its $400 million share repurchase program earlier this month, with a total of 10.3 million shares purchased over the past year. Beach said the board of directors has authorized extending the program and the company may repurchase up to $200 million in Unocal common stock. Net cash provided from operating activities, excluding working capital changes, was $347 million, compared with $381 million in the fourth quarter 1996. Unocal's preliminary reported net earnings for the fourth quarter, including special items and discontinued operations, were $142 million, compared with a loss of $497 million in the fourth quarter 1996. Reported basic net earnings were 58 cents per share, compared with a loss of $1.99 per share a year ago. Reported diluted net earnings per share were 57 cents, compared with a loss of $1.97 per share in 1996. The 1996 results reflected a loss on the disposal of the company's West Coast refining, marketing and transportation assets. FULL-YEAR 1997 RESULTS Preliminary full-year 1997 earnings from continuing operations, excluding special items, were $515 million, or $2.08 per share, compared with $562 million, or $1.97 per 2 share, the year before. Reported full-year 1997 net earnings (including special items, discontinued operations, and an extraordinary charge for the early retirement of debt) were $581 million, compared with earnings of $36 million in 1996. Reported basic net earnings per share were $2.34, compared with a loss of 15 cents a year ago. Reported diluted net earnings per share were $2.31, compared with a loss of 7 cents per share in 1996. Unocal is a leading global energy resource and project development company, with major oil and gas exploration and production activities in Asia and the U.S. Gulf of Mexico. The company maintains twin headquarters in California and Malaysia, with major offices in Singapore, Jakarta, Bangkok and Sugar Land, Texas. Forward-looking statements, including estimates of future exploration and production activities and other business plans and outlook in this news release are based on assumptions concerning market, competitive, regulatory, environmental, operational and other considerations. Actual results could differ materially. For more information about Unocal and its activities, visit Unocal's website at www.unocal.com. 3
NEWS RELEASE UNOCAL CORPORATION CONDENSED CONSOLIDATED EARNINGS STATEMENT (UNAUDITED) For the Three Months For the Twelve Months Ended December 31 Ended December 31 ----------------------------------------- Dollars in millions except per share amounts 1997 1996 1997 1996 - ------------------------------------------------------------------------------------------------------------- Total revenues ............................................. $ 1,557 $ 1,385 $ 6,064 $ 5,328 Costs and other deductions ................................. 1,375 1,364 5,293 4,570 ----------------------------------------- Earnings from continuing operations before income taxes .... 182 21 771 758 Income taxes ............................................... 34 18 102 302 ----------------------------------------- Earnings from continuing operations ........................ 148 3 669 456 Earnings from discontinued operations (net of tax) ........ -- (9) -- 71 Loss on disposal (net of tax) ............................. (6) (491) (50) (491) Extraordinary charge - extinguishment of debt (net of tax) . -- -- (38) -- ----------------------------------------- Net earnings ............................................... $ 142 $ (497) $ 581 $ 36 Dividends on preferred stock ............................... -- -- -- 18 Non-cash charge related to exchange of preferred stock ..... -- -- -- 54 ----------------------------------------- Net earnings applicable to common stock .................... $ 142 $ (497) $ 581 $ (36) Basic earnings/(loss) per common share (a) Continuing operations ................................ $ 0.60 $ 0.01 $ 2.69 $ 1.54 Discontinued operations .............................. (0.02) (2.00) (0.20) (1.69) Extraordinary item - extinguishment of debt (net of tax) -- -- (0.15) -- ----------------------------------------- Basic net earnings/(loss) per share ........................ $ 0.58 $ (1.99) $ 2.34 $ (0.15) Diluted earnings per common share (b) (c) Continuing operations ................................ $ 0.59 $ 0.01 $ 2.65 $ 1.53 Discontinued operations .............................. (0.02) (1.98) (0.19) (1.60) Extraordinary item - extinguishment of debt (net of tax) -- -- (0.15) -- ----------------------------------------- Diluted net earnings/(loss) per share ...................... $ 0.57 $ (1.97) $ 2.31 $ (0.07) (a) Weighted average shares - basic (millions)............. 245 250 248 249 (b) Weighted average shares - diluted (millions).......... 259 252 262 263 (c) Distributions on preferred securities excluded in numerator $ 6 $ -- $ 24 $ -- - ------------------------------------------------------------------------------------------------------------- CONDENSED CONSOLIDATED BALANCE SHEET (UNAUDITED) Dec. 31 Dec. 31 Millions of dollars 1997 1996 - --------------------------------------------------------------------------------------- Assets Cash and cash equivalents .................................. $ 338 $ 217 Net assets of discontinued operations (d) ................. -- 1,774 Other current assets ....................................... 1,163 1,237 Investments and long-term receivables ...................... 1,113 1,206 Properties - net ........................................... 4,816 4,590 Other assets ............................................... 100 99 ------------------- Total assets ....................................... $ 7,530 $ 9,123 Liabilities and Equity Current portion of long-term debt and capital leases ...... $ 1 $ 118 Other current liabilities .................................. 1,159 1,504 Long-term debt and capital lease obligations ............... 2,169 2,940 Deferred income taxes ...................................... 137 348 Other deferred credits and liabilities ..................... 1,228 1,416 Convertible preferred securities ........................... 522 522 Stockholders' equity ....................................... 2,314 2,275 ------------------- Total liabilities and equity ....................... $ 7,530 $ 9,123 (d) Excludes retained working capital
Table 1
NEWS RELEASE UNOCAL CORPORATION CONDENSED CONSOLIDATED CASH FLOWS (INCLUDES DISCONTINUED OPERATIONS) (UNAUDITED) For the Three Months For the Twelve Months Ended December 31 Ended December 31 --------------------------------------------- Millions of dollars 1997 1996(a) 1997 1996(a) - --------------------------------------------------------------------------------------------------------------------------- Cash flows from operating activities Net earnings ................................................ $ 142 $ (497) $ 581 $ 36 Adjustments to reconcile net earnings to net cash provided by operating activities Loss on disposal of discontinued operations (before-tax) 10 743 81 743 Depreciation, depletion and amortization .............. 207 335 962 1,059 Dry hole costs ........................................ 59 67 110 139 Deferred income taxes ................................. (23) (380) (249) (332) Gain on sales of assets (before-tax) .................. (21) 96 (80) (77) Other ................................................. (27) 17 (110) 113 Working capital and other changes related to operations ..... 50 104 (162) 3 --------------------------------------------- Net cash provided by operating activities ............. 397 485 1,133 1,684 Cash flows from investing activities Capital expenditures (includes dry hole costs) ............. (474) (458) (1,427) (1,398) Proceeds from sale of discontinued operations ............... -- -- 1,789 -- Proceeds from asset sales ................................... 45 24 100 609 --------------------------------------------- Net cash provided by/(used in) investing activities ... (429) (434) 462 (789) Cash flows from financing activities Net increase/(decrease) in long-term debt ................... 93 (8) (866) (568) Dividends paid .............................................. (49) (50) (199) (226) Repurchase of common stock .................................. (189) -- (362) -- Other ....................................................... (1) (1) (47) 22 --------------------------------------------- Net cash used in financing activities ................. (146) (59) (1,474) (772) Increase/(decrease) in cash and cash equivalents .......................... (178) (8) 121 123 Cash and cash equivalents at beginning of period .......................... 516 225 217 94 --------------------------------------------- Cash and cash equivalents at end of period ................................ $ 338 $ 217 $ 338 $ 217 (a) Cash flows related to discontinued operations have not been segregated for the 1997 and 1996 periods. - --------------------------------------------------------------------------------------------------------------------------- CONDENSED CAPITAL EXPENDITURES (UNAUDITED) Millions of dollars - --------------------------------------------------------------------------------------------------------------------------- United States Exploration & Production .................................... $ 167 $ 89 $ 367 $ 416 International Exploration & Production .................................... 227 195 801 507 Geothermal Operations ..................................................... 26 23 102 114 Diversified Business Group ................................................ 19 56 59 82 New Ventures (Non E & P) ................................................. -- -- 5 5 Corporate & Unallocated ................................................... 35 28 44 50 Discontinued Operations ................................................... -- 67 49 224 --------------------------------------------- Total (b) ................................................... $ 474 $ 458 $ 1,427 $ 1,398 (b) Includes capitalized interest of: .................................... $ 9 $ 4 $ 35 $ 13
Table 2
NEWS RELEASE UNOCAL CORPORATION DISCRETIONARY CASH FLOW (INCLUDES DISCONTINUED OPERATIONS) (UNAUDITED) For the Three Months For the Twelve Months Ended December 31 Ended December 31 ----------------------------------------------------------- Millions of dollars 1997 1996 1997 1996 - ------------------------------------------------------------------------------------------------------------------------------------ Net earnings ........................................................... $ 142 $ (497) $ 581 $ 36 Adjustments to net earnings Depletion, depreciation & amortization .................. 200 260 893 984 Impairment .............................................. 7 75 69 75 Dry hole costs .......................................... 59 67 110 139 Deferred income taxes ................................... (23) (380) (249) (332) (Gain) Loss on sales of assets .......................... (21) 96 (80) (77) Exploration expenses .................................... 79 34 193 117 Proceeds from asset sales ............................... 45 24 1,889 609 Environmental and litigation provision .................. 14 106 134 219 Environmental and litigation payments ................... (29) (32) (162) (85) Loss on disposal of discontinued operations ............. 10 743 81 743 Other ................................................... (12) (57) (82) (21) - ------------------------------------------------------------------------------------------------------------------------------------ Total discretionary cash flow ..................... $ 471 $ 439 $ 3,377 $ 2,407 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 Three Months Ended December 31, 1997 ---------------------------------------------------- Spirit Other Other Millions of dollars Energy 76 U.S. Far East International Total - ------------------------------------------------------------------------------------------------------------------- Sales (includes intercompany sales) Crude oil and condensate ........................... $ 63 $ 44 $ 111 $ 42 $ 260 Natural gas ........................................ 197 18 157 11 383 Natural gas liquids ................................ 15 1 7 1 24 Other .............................................. 1 -- -- -- 1 ---------------------------------------------------- Total ........................................ 276 63 275 54 668 Other revenue .............................................. 23 2 7 7 39 Gain(loss) on asset sales .................................. 9 -- -- 1 10 ---------------------------------------------------- Total revenues ............................... 308 65 282 62 717 Production costs ........................................... 54 20 37 21 132 Exploration expenses ....................................... 22 1 33 20 76 Dry hole costs ............................................. 19 -- 30 -- 49 Depreciation, depletion & amortization ..................... 94 11 68 16 189 Other operating expenses ................................... 21 4 13 12 50 ---------------------------------------------------- Results of operations before income tax ............ $ 98 $ 29 $ 101 $ (7) $ 221 - ------------------------------------------------------------------------------------------------------------------- For the Three Months Ended December 31, 1996 ---------------------------------------------------- Spirit Other Other Energy 76 U.S. Far East International Total ---------------------------------------------------- Sales (includes intercompany sales) Crude oil and condensate ........................... $ 113 $ 63 $ 117 $ 45 $ 338 Natural gas ........................................ 212 23 167 13 415 Natural gas liquids ................................ 23 2 7 1 33 Other .............................................. 1 -- -- -- 1 ---------------------------------------------------- Total ........................................ 349 88 291 59 787 Other revenue .............................................. 15 1 1 10 27 Gain(loss) on asset sales .................................. (7) (4) (1) 1 (11) ---------------------------------------------------- Total revenues ............................... 357 85 291 70 803 Production costs ........................................... 44 26 33 24 127 Exploration expenses ....................................... 7 -- 10 16 33 Dry hole costs ............................................. 13 5 37 9 64 Depreciation, depletion & amortization ..................... 130 54 45 25 254 Other operating expenses ................................... 36 6 16 (1) 57 ---------------------------------------------------- Results of operations before income tax ............ $ 127 $ (6) $ 150 $ (3) $ 268
Table 3
NEWS RELEASE UNOCAL CORPORATION RESULTS OF OPERATIONS FOR EXPLORATION AND PRODUCTION ACTIVITIES (UNAUDITED) For the Twelve Months Ended December 31, 1997 ------------------------------------------------- Spirit Other Other Millions of dollars Energy 76 U.S. Far East International Total - --------------------------------------------------------------------------------------------------- Sales (includes intercompany sales) Crude oil and condensate .................$ 308 $ 180 $ 453 $ 161 $ 1,102 Natural gas .............................. 743 65 642 46 1,496 Natural gas liquids ...................... 56 4 25 4 89 Other .................................... 3 -- -- -- 3 ------------------------------------------------- Total .............................. 1,110 249 1,120 211 2,690 Other revenue .................................... 33 6 9 23 71 Gain/(loss) on asset sales ....................... 11 -- -- (15) (4) ------------------------------------------------- Total revenues ..................... 1,154 255 1,129 219 2,757 Production costs ................................. 193 93 130 74 490 Exploration expenses ............................. 59 1 73 51 184 Dry hole costs ................................... 29 -- 69 1 99 Depreciation, depletion & amortization ........... 468 53 303 69 893 Other operating expenses ......................... 77 12 47 57 193 ------------------------------------------------- Results of operations before income tax ..$ 328 $ 96 $ 507 $ (33) $ 898 - --------------------------------------------------------------------------------------------------- For the Twelve Months Ended December 31, 1996 ------------------------------------------------- Spirit Other Other Energy 76 U.S. Far East International Total ------------------------------------------------- Sales (includes intercompany sales) Crude oil and condensate .................$ 400 $ 272 $ 395 $ 182 $ 1,249 Natural gas .............................. 774 84 529 48 1,435 Natural gas liquids ...................... 70 6 19 4 99 Other .................................... 4 -- -- -- 4 ------------------------------------------------- Total .............................. 1,248 362 943 234 2,787 Other revenue .................................... 23 3 1 27 54 Gain/(loss) on asset sales ....................... 1 106 -- 24 131 ------------------------------------------------- Total revenues ..................... 1,272 471 944 285 2,972 Production costs ................................. 178 122 127 81 508 Exploration expenses ............................. 26 -- 41 44 111 Dry hole costs ................................... 62 5 50 14 131 Depreciation, depletion & amortization ........... 398 128 208 69 803 Other operating expenses ......................... 136 19 46 3 204 ------------------------------------------------- Results of operations before income tax ..$ 472 $ 197 $ 472 $ 74 $ 1,215
Table 4
NEWS RELEASE UNOCAL CORPORATION OPERATING HIGHLIGHTS (UNAUDITED) For the Threee Months For the Twelve Months Ended December 31 Ended December 31 ------------------------------------------------ 1997 1996 1997 1996 - -------------------------------------------------------------------------------------------------------------------------- Net daily production Crude oil and condensate (thousand barrels daily): United States Spirit Energy 76 ................................. 42.9 51.0 44.5 51.7 Other (a) ....................................... 34.1 35.7 32.2 44.1 ------------------------------------------------ Total United States ....................... 77.0 86.7 76.7 95.8 International Far East (b) .................................... 96.1 87.6 95.2 83.7 Other ............................................ 25.2 25.3 25.7 27.1 ------------------------------------------------ Total International ....................... 121.3 112.9 120.9 110.8 - -------------------------------------------------------------------------------------------------------------------------- Total Worldwide ........................... 198.3 199.6 197.6 206.6 Natural gas (million cubic feet daily): United States Spirit Energy 76 ................................. 813.4 895.6 860.0 911.6 Other (a) ....................................... 137.8 157.8 132.6 162.9 ------------------------------------------------ Total United States ....................... 951.2 1,053.4 992.6 1,074.5 International Far East (b) .................................... 809.3 797.2 794.5 668.8 Other ............................................ 56.9 58.4 60.5 67.9 ------------------------------------------------ Total International ....................... 866.2 855.6 855.0 736.7 - -------------------------------------------------------------------------------------------------------------------------- Total Worldwide ........................... 1,817.4 1,909.0 1,847.6 1,811.2 Natural gas liquids (thousand barrels daily) (a) ............... 16.8 20.2 18.3 19.5 Geothermal (million kilowatt-hours daily) ....................... 20.3 19.9 18.0 17.9 Average sales prices Crude oil and condensate (per barrel): United States Spirit Energy 76 ................................. $ 20.13 $ 24.09 $ 19.96 $ 21.27 Other ............................................ 14.83 19.29 15.25 16.83 Total United States ....................... 17.88 22.10 18.00 19.21 International Far East ......................................... $ 17.95 $ 21.62 $ 18.52 $ 19.17 Other ............................................ 16.90 21.48 17.39 19.20 Total International ....................... 17.65 21.58 18.21 19.18 Total Worldwide ........................... $ 17.75 $ 21.85 $ 18.11 $ 19.20 Natural gas (per mcf): United States Spirit Energy 76 ................................. $ 2.88 $ 2.83 $ 2.53 $ 2.46 Other ............................................ 1.47 1.51 1.41 1.40 Total United States ....................... 2.67 2.59 2.38 2.30 International Far East ......................................... $ 2.16 $ 2.39 $ 2.30 $ 2.28 Other ............................................ 2.34 1.95 2.25 1.85 Total International ....................... 2.17 2.36 2.30 2.23 Total Worldwide ........................... $ 2.43 $ 2.49 $ 2.34 $ 2.27 - -------------------------------------------------------------------------------------------------------------------------- (a) Includes production from California upstream properties of: Crude oil and condensate ..................................... -- 0.9 -- 7.4 Natural gas .................................................. -- -- -- 12.9 Natural gas liquids .......................................... -- -- -- 0.1 (b) Includes host country share in Indonesia of: Crude oil and condensate ..................................... 26.2 29.9 28.4 27.5 Natural gas .................................................. 33.5 27.9 28.3 26.6
Table 5
NEWS RELEASE UNOCAL CORPORATION OPERATING HIGHLIGHTS (continued) (UNAUDITED) For the Three Months For the Twelve Months Ended December 31 Ended December 31 ------------------------------------------ 1997 1996 1997 1996 - ------------------------------------------------------------------------------------------------------ Agricultural products production volumes (thousand tons) Ammonia ............................................ 383 379 1,455 1,468 Urea ............................................... 223 286 919 1,131 Other products ..................................... 207 164 701 658 Agricultural products sales volumes (thousand tons) Ammonia ............................................ 179 134 769 708 Urea ............................................... 285 343 975 1,122 Other products ..................................... 175 269 1,082 1,240
Table 6
NEWS RELEASE UNOCAL CORPORATION EARNINGS BY BUSINESS SEGMENT (Unaudited) 4th Quarter of 1997 4th Quarter of 1996 -------------------------------------------------------------- Millions of dollars Before-tax After-tax Before-tax After-tax - ------------------------------------------------------------------------------------------------------------------------------------ Exploration and Production United States Spirit Energy 76 ........................................ $ 98 $ 61 $ 127 $ 74 Other ................................................... 29 18 (6) (3) International .............................................. 94 116 147 71 Geothermal Operations .......................................... 3 1 (109) (70) Diversified Business Group Agricultural Products .................................... 8 4 39 25 Carbon and Minerals ...................................... (1) -- 7 7 Pipelines ................................................ 16 13 22 18 Other .................................................... 2 1 7 5 Corporate and Unallocated Administrative and general expense ....................... (20) (16) (39) (24) Net interest expense ..................................... (24) (22) (59) (40) Environmental and litigation expense ..................... (8) (5) (94) (59) New Ventures ............................................. (15) (10) (16) (10) Other .................................................... -- (13) (5) 9 - ------------------------------------------------------------------------------------------------------------------------------------ Earnings from continuing operations before discontinued operations and extraordinary item ...................................... 182 148 21 3 Loss from discontinued operations .............................. (10) (6) (805) (500) - ------------------------------------------------------------------------------------------------------------------------------------ Total .......................................................... $ 172 $ 142 $(784) $(497) =================================================================================================================================== EXPLORATION AND PRODUCTION - this segment explores for, produces, purchases and markets crude oil, condensate, natural gas and natural gas liquids. GEOTHERMAL OPERATIONS - this segment explores for, produces and sells geothermal resources and constructs and operates electrical generating plants served by the resources. 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 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 prior to the May 1, 1997 restructuring.
Table 7
NEWS RELEASE UNOCAL CORPORATION SPECIAL ITEMS (Unaudited) 4th Quarter of 1997 4th Quarter of 1996 ------------------------------------------------------------------------ Millions of dollars Before- After-tax Before-tax After-tax - ----------------------------------------------------------------------------------------------------------------------------------- Reported earnings .................................................. $ 172 $ 142 $ (784) $ (497) Less: Special items Exploration and Production United States Spirit Energy Asset sales .......................................... 9 5 (7) (5) Impairment ........................................... (4) (2) (19) (11) Settlement of federal leases ......................... -- -- 12 7 Restructuring provision .............................. -- -- (7) (4) Other Asset sales .......................................... -- -- (4) (2) Impairment ........................................... -- -- (33) (21) International Asset sales .......................................... 2 1 -- -- Impairment ........................................... (3) (2) -- -- Uninsured loss - Bangladesh .......................... (2) (1) -- -- Deferred tax adjustment .............................. -- 26 -- -- Geothermal Operations Asset sales .......................................... -- -- (92) (57) Impairment ........................................... -- -- (23) (14) Other ................................................ -- -- 3 2 Diversified Business Group Carbon and Minerals Environmental and litigation provision ............... (10) (6) (2) (1) Restructuring costs .................................. (2) (1) -- -- Pipeline Asset sales .......................................... -- -- 3 2 Other UNO-VEN restructuring ................................ 2 1 -- -- Corporate and Unallocated Asset sales .......................................... 11 7 3 2 Environmental and litigation provision ............... (5) (3) (83) (52) Deferred tax adjustment .............................. -- (11) -- -- Other ................................................ -- -- (4) (3) Discontinued Operations Other ............................................... -- -- 1 1 Net loss on disposal ................................. (10) (6) (792) (491) Extraordinary item ............................................ -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Total special items ........................................... (12) 8 (1,044) (647) - ------------------------------------------------------------------------------------------------------------------------------------ Adjusted earnings .................................................. $ 184 $ 134 $ 260 $ 150 - ------------------------------------------------------------------------------------------------------------------------------------
Table 8
NEWS RELEASE UNOCAL CORPORATION EARNINGS BY BUSINESS SEGMENT EXCLUDING SPECIAL ITEMS (Unaudited) 4th Quarter of 1997 4th Quarter of 1996 ---------------------------------------------------------------- Millions of dollars except per share amounts Before-tax After-tax Before-ta After-tax - ----------------------------------------------------------------------------------------------------------------------------------- Exploration and Production United States Spirit Energy 76 ........................................ $ 93 $ 58 $ 148 $ 87 Other ................................................... 29 18 31 20 International .............................................. 97 92 147 71 Geothermal Operations .......................................... 3 1 3 (1) Diversified Business Group Agricultural Products .................................... 8 4 39 25 Carbon and Minerals ...................................... 11 7 9 8 Pipelines ................................................ 16 13 19 16 Other .................................................... -- -- 7 5 Corporate and Unallocated Administrative and general expense ....................... (20) (16) (39) (24) Net interest expense ..................................... (24) (22) (59) (40) Environmental and litigation expense ..................... (3) (2) (11) (7) New Ventures ............................................. (15) (10) (16) (10) Other .................................................... (11) (9) (4) 10 - ------------------------------------------------------------------------------------------------------------------------------------ Earnings from continuing operations ............................ 184 134 274 160 Loss from discontinued operations .............................. -- -- (14) (10) - ------------------------------------------------------------------------------------------------------------------------------------ Total .............................................. $ 184 $ 134 $ 260 $ 150 - ------------------------------------------------------------------------------------------------------------------------------------ Adjusted earnings applicable to common stock ................... $ 134 $ 150 - ------------------------------------------------------------------------------------------------------------------------------------ Adjusted earnings per common share ............................. $0.55 $0.60 - ------------------------------------------------------------------------------------------------------------------------------------ Adjusted earnings from continuing operations per common share ................................. $0.55 $0.64 - ------------------------------------------------------------------------------------------------------------------------------------
Table 9
NEWS RELEASE UNOCAL CORPORATION EARNINGS BY BUSINESS SEGMENT (Unaudited) Twelve Months Ended Twelve Months Ended December 31, 1997 December 31, 1996 ------------------------------------------------------------------- Millions of dollars Before-tax After-tax Before-tax After-tax - ------------------------------------------------------------------------------------------------------------------------------------ Exploration and Production United States Spirit Energy 76 ........................................ $ 328 $ 205 $ 472 $ 293 Other ................................................... 96 60 197 119 International .............................................. 474 375 546 316 Geothermal Operations .......................................... 31 26 (76) (55) Diversified Business Group Agricultural Products .................................... 83 54 152 98 Carbon and Minerals ...................................... 109 76 59 47 Pipelines ................................................ 70 59 86 69 Other .................................................... 45 38 22 14 Corporate and Unallocated Administrative and general expense ....................... (82) (56) (126) (79) Net interest expense ..................................... (133) (106) (256) (175) Environmental and litigation expense ..................... (146) (91) (230) (143) New Ventures ............................................. (49) (33) (36) (23) Other .................................................... (55) 62 (52) (25) - ------------------------------------------------------------------------------------------------------------------------------------ Earnings from continuing operations before discontinued operations and extraordinary item ...................................... 771 669 758 456 Loss from discontinued operations .............................. (81) (50) (677) (420) Extraordinary item ............................................. (52) (38) -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Total .............................................. $ 638 $ 581 $ 81 $ 36 ====================================================================================================================================
Table 10
NEWS RELEASE UNOCAL CORPORATION SPECIAL ITEMS (Unaudited) Twelve Months Ended Twelve Months Ended December 31, 1997 December 31, 1996 ------------------------------------------------------ Dollars in millions except per share amounts Before After-tax Before-tax After-tax - ---------------------------------------------------------------------------------------------------------------------------------- Reported earnings ...................................................... $ 638 $ 581 $ 81 $ 36 Less: Special items Exploration and Production United States Spirit Energy Asset sales ......................................... 11 7 1 -- Impairment .......................................... (66) (41) (19) (11) Settlement of federal leases ........................ -- -- 12 7 Restructuring provision ............................. -- -- (7) (4) Other Asset sales ......................................... -- -- 106 66 Impairment .......................................... -- -- (33) (21) International Asset sales ......................................... (15) (16) 24 41 Impairment .......................................... (3) (2) -- -- Uninsured loss - Bangladesh ......................... (12) (8) -- -- Deferred tax adjustment ............................. -- 94 -- -- Geothermal Operations Asset sales ......................................... -- -- (92) (57) Deferred tax adjustment ............................. -- 10 -- -- Impairment .......................................... -- -- (23) (14) Other ............................................... -- -- 3 2 Diversified Business Group Carbon and Minerals Asset sales ......................................... 67 41 -- -- Environmental and litigation provision .............. (10) (6) (2) (1) Restructuring costs ................................. (2) (1) -- -- Pipeline Asset Sales ......................................... -- -- 15 9 Other UNO-VEN restructuring ............................... 48 40 -- -- Corporate and Unallocated Asset Sales ......................................... 18 11 18 11 Environmental and litigation provision .............. (125) (78) (196) (122) Deferred tax adjustment ............................. -- 103 -- -- Other ............................................... -- -- (15) (12) Discontinued Operations Asset Sales ......................................... -- -- 5 3 Other ................................................ -- -- 3 2 Net loss on disposal ................................ (81) (50) (792) (491) Extraordinary item ........................................... (52) (38) -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Total special items ............................................... (222) 66 (992) (592) - ------------------------------------------------------------------------------------------------------------------------------------ Adjusted earnings ...................................................... $ 860 $ 515 $ 1,073 $ 628 ====================================================================================================================================
Table 11
NEWS RELEASE UNOCAL CORPORATION EARNINGS BY BUSINESS SEGMENT EXCLUDING SPECIAL ITEMS (Unaudited) Twelve Months Ended Twelve Months Ended December 31, 1997 December 31, 1996 -------------------------------------------------------------------- Millions of dollars except per share amounts Before-tax After-tax Before-tax After-tax - ------------------------------------------------------------------------------------------------------------------------------------ Exploration and Production United States Spirit Energy 76 .................................... $ 383 $ 239 $ 485 $ 301 Other ............................................... 96 60 124 74 International .......................................... 504 307 522 275 Geothermal Operations ...................................... 31 16 36 14 Diversified Business Group Agricultural Products ................................ 83 54 152 98 Carbon and Minerals .................................. 54 42 61 48 Pipelines ............................................ 70 59 71 60 Other ................................................ (3) (2) 22 14 Corporate and Unallocated Administrative and general expense ................... (82) (56) (126) (79) Net interest expense ................................. (133) (106) (256) (175) Environmental and litigation expense ................. (21) (13) (34) (21) New Ventures ......................................... (49) (33) (36) (23) Other ................................................ (73) (52) (55) (24) - ------------------------------------------------------------------------------------------------------------------------------------ Earnings from continuing operations ........................ 860 515 966 562 Earnings from discontinued operations ...................... -- -- 107 66 - ------------------------------------------------------------------------------------------------------------------------------------ Total ................................................... $ 860 515 $ 1,073 $ 628 Dividends on preferred stock ............................... -- 18 Non-cash charge related to exchange of preferred stock ............................. -- 54 - ------------------------------------------------------------------------------------------------------------------------------------ Adjusted earnings applicable to common stock ......................................... $ 515 $ 556 - ------------------------------------------------------------------------------------------------------------------------------------ Adjusted earnings per common share ........................................ $ 2.08 $ 2.23 - ------------------------------------------------------------------------------------------------------------------------------------ Adjusted earnings from continuing operations per common share ............................. $ 2.08 $ 1.97 - ------------------------------------------------------------------------------------------------------------------------------------
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: January 28, 1998 By: /s/ JOE D. CECIL - ----------------------- ------------------------------ Joe D. Cecil Vice President and Comptroller -----END PRIVACY-ENHANCED MESSAGE-----