-----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, P4EKo32wtt4u9XSa6F0ZkpQN2s+Z/2ksRdHtJLm/20IthvPuH865OAOp9B2KhKTS nBvsu9OlOr15WKkEVJmYiQ== 0000716039-99-000018.txt : 19990503 0000716039-99-000018.hdr.sgml : 19990503 ACCESSION NUMBER: 0000716039-99-000018 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19990428 ITEM INFORMATION: FILED AS OF DATE: 19990430 FILER: COMPANY DATA: COMPANY CONFORMED NAME: UNOCAL CORP CENTRAL INDEX KEY: 0000716039 STANDARD INDUSTRIAL CLASSIFICATION: CRUDE PETROLEUM & NATURAL GAS [1311] 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: 99605393 BUSINESS ADDRESS: STREET 1: 2141 ROSECRANS AVE STREET 2: STE 4000 CITY: EL SEGUNDO STATE: CA ZIP: 90245 BUSINESS PHONE: 3107267600 8-K 1 FIRST QUARTER 1999 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) April 28, 1999 ------------------------ 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. First Quarter 1999 Earnings Unocal Corporation stated that lower worldwide crude oil and natural gas prices coupled with lower production led to reduced 1999 first quarter earnings of $7 million, or 3 cents per share (diluted). This compares with reported earnings of $18 million, or 7 cents per share (diluted), in the first quarter of 1998. Adjusted earnings for the quarter, excluding special items, were $20 million, or 8 cents per share (diluted), compared with $72 million, or 30 cents per share (diluted), in the same quarter last year. Worldwide crude oil and natural gas prices were down approximately $2.81 per barrel, or 21 percent, and $0.21 per thousand cubic feet, or 10 percent, respectively, from the same period last year. The lower crude oil and natural gas prices reduced after-tax earnings by approximately $45 million, or 19 cents per share, compared with the same period a year ago. Worldwide crude oil production volumes were down 14 percent versus the same period in 1998. This decrease reflected production declines in Indonesia and the United States along with the effects of the sale of the company's Alberta, Canada, exploration and production assets in the third quarter of 1998. Capital expenditures for the first quarter of 1999 totaled $225 million. Total capital expenditures are expected to be approximately $1 billion for 1999. The company will continue to focus on high-potential deepwater exploration programs in Indonesia and the Gulf of Mexico. The company may adjust its capital spending estimate later depending on the timing of acquisitions and changes in commodity prices. In the first quarter, Unocal recorded special item after-tax losses of $10 million from the sale of its interest in The Geysers, a geothermal production venture in Northern California, and $3 million for various litigation matters. Forward-looking statements and estimates regarding exploration and production activities, oil and gas prices and their related earnings effects, and capital expenditures in this filing are based on assumptions concerning market, competitive, regulatory, environmental, operational and other conditions and considerations. Actual results could differ materially as a result of factors discussed in Unocal's 1998 Form 10-K report filed with the Securities and Exchange Commission.
CONSOLIDATED RESULTS UNOCAL CORPORATION (UNAUDITED) For the Three Months Ended March 31 -------------------- Millions of dollars except per share amounts 1999 1998 - ----------------------------------------------------------------- Reported after-tax earnings ...................... $ 7 $ 18 Special items .................................... (13) (54) - ----------------------------------------------------------------- Adjusted after-tax earnings ...................... $ 20 $ 72 - ----------------------------------------------------------------- Diluted reported earnings per share .............. $0.03 $0.07 Diluted adjusted earnings per share .............. $0.08 $0.30 - ----------------------------------------------------------------- EARNINGS BY BUSINESS SEGMENT EXCLUDING SPECIAL ITEMS (UNAUDITED) For the Three Months Ended March 31 --------------------- Millions of dollars 1999 1998 - ------------------------------------------------------------------ Exploration & Production United States Spirit Energy 76 (a) ....................... $ 2 $ 9 Alaska ..................................... 1 12 International Far East ................................... 48 42 Other ...................................... (15) (8) Global Trade & Transport Global Trade ............................... 2 6 Pipelines .................................. 17 15 Geothermal and Power Operations .................. 11 14 Diversified Business Group Agricultural Products ........................ 3 9 Carbon & Minerals (a) ......................... 9 14 Corporate and Unallocated New Ventures .................................. (1) (7) Administrative & General ...................... (21) (18) Interest Expense - Net ........................ (31) (26) Environmental & Litigation .................... (2) (1) Other ......................................... (3) 11 --------------- Total ............................................ $ 20 $ 72 - ------------------------------------------------------------------ (a) Includes minority interest expense of: Spirit Energy 76 .......................... $ 1 $ (1) Carbon & Minerals ......................... (1) (2)
CONSOLIDATED EARNINGS STATEMENT UNOCAL CORPORATION (UNAUDITED) For the Three Months Ended March 31 ---------------------- Millions of dollars 1999 1998 - ------------------------------------------------------------------------------------------ Revenues Sales and operating revenues .................................... $ 1,189 $ 1,171 Interest, dividends and miscellaneous income .................... 28 11 Equity in earnings of affiliated companies ...................... 27 25 Gain/(loss) on sales of assets .................................. (13) -- ---------------------- Total Revenues ..................................... $ 1,231 $ 1,207 Costs and Other Deductions Crude oil, natural gas and product purchases .................... 616 416 Operating expense ............................................... 235 324 Selling, administrative and general expense ..................... 32 24 Depreciation, depletion and amortization ........................ 200 181 Dry hole costs .................................................. 27 50 Exploration expense ............................................. 38 47 Interest expense ................................................ 45 41 Property and other operating taxes .............................. 13 16 Distributions on convertible preferred securities of subsidiary trust ............................... 8 8 Minority interests .............................................. -- 3 ---------------------- Total costs and other deductions ................... 1,214 1,110 ---------------------- Earnings before income taxes .................................... 17 97 Income taxes .................................................... 10 79 ---------------------- Net earnings applicable to common stock ......................... $ 7 $ 18 ---------------------- Basic earnings per share of common stock (a) .................... $ 0.03 $ 0.07 Diluted earnings per share of common stock (b) .................. $ 0.03 $ 0.07 ---------------------- (a) Basic weighted average shares outstanding (in thousands)..... 241,426 241,430 (b) Diluted weighted average shares outstanding (in thousands)... 242,153 242,861 - ------------------------------------------------------------------------------------------
CONDENSED CONSOLIDATED BALANCE SHEET UNOCAL CORPORATION (UNAUDITED) March 31 December 31 Millions of dollars 1999 1998 - ------------------------------------------------------------------------------------------------- Assets Cash and cash equivalents ................................................. $ 182 $ 238 Other current assets ...................................................... 1,077 1,150 Investments and long-term receivables ..................................... 1,177 1,143 Properties - net .......................................................... 5,172 5,276 Other assets .............................................................. 201 145 ------------------- Total assets ........................................... $ 7,809 $ 7,952 Liabilities and Equity Current liabilities ....................................................... $ 1,175 $ 1,376 Long-term debt ............................................................ 2,568 2,558 Deferred income taxes ..................................................... 122 132 Other deferred credits and liabilities .................................... 1,253 1,162 Company-obligated mandatorily redeemable convertible preferred securities of a subsidiary trust holding solely parent debentures ......... 522 522 Stockholders' equity Common stock ........................................................... 721 712 Retained earnings ...................................................... 1,893 1,935 Accumulated other comprehensive loss ................................... (34) (34) Less treasury stock at cost (10,623 thousand shares).................... (411) (411) ------------------- Total liabilities and equity ........................... $ 7,809 $ 7,952 - -------------------------------------------------------------------------------------------------
CONSOLIDATED CASH FLOWS (UNAUDITED) For the Three Months Ended March 31 -------------------- Millions of dollars 1999 1998 - ------------------------------------------------------------------------------------------------- Cash flows from operating activities Net earnings (loss) .............................................. $ 7 $ 18 Adjustments to reconcile net earnings to net cash provided by operating activities Depreciation, depletion and amortization .................... 200 181 Dry hole costs .............................................. 27 50 Deferred income taxes ....................................... (32) 13 (Gain)/loss on sales of assets (before-tax) ................. 13 -- Other ....................................................... (13) 20 Working capital and other changes related to operations........... (103) (188) ----------------- Net cash provided by operating activities ................... 99 94 Cash flows from investing activities Capital expenditures (includes dry hole costs) ................... (225) (326) Proceeds from asset sales ........................................ 106 4 ----------------- Net cash (used in) provided by investing activities.......... (119) (322) Cash flows from financing activities Net increase (decrease) in long-term debt ........................ 10 262 Dividends paid ................................................... (48) (48) Repurchase of common stock ....................................... -- (48) Other ............................................................ 2 (1) ----------------- Net cash provided by (used in) financing activities.......... (36) 165 Increase (decrease) in cash and cash equivalents ............................... (56) (63) Cash and cash equivalents at beginning of period ............................... 238 338 ----------------- Cash and cash equivalents at end of period ..................................... $ 182 $ 275 - -------------------------------------------------------------------------------------------------
OPERATING HIGHLIGHTS UNOCAL CORPORATION (UNAUDITED) For the Three Months Ended March 31 -------------------- 1999 1998 - ------------------------------------------------------------------------------------------------- United States Net Daily Production Crude oil (thousand barrels daily) Spirit Energy 76 ............................................................ 39 44 Alaska ...................................................................... 27 30 Natural gas - wet basis (million cubic feet daily) Spirit Energy 76 ............................................................ 775 788 Alaska ...................................................................... 153 138 United States Average Sales Prices (a) Crude oil (per barrel) Spirit Energy 76 ............................................................$11.85 $13.94 Alaska ...................................................................... $7.86 $10.84 Natural gas (per mcf) Spirit Energy 76 ............................................................ $1.92 $2.14 Alaska ...................................................................... $1.20 $1.47 - ------------------------------------------------------------------------------------------------- International Net Daily Production (b) Crude oil (thousand barrels daily) Far East .................................................................... 70 89 Other ....................................................................... 31 31 Natural gas (million cubic feet daily) Far East .................................................................... 848 861 Other ....................................................................... 39 52 International Average Sales Prices (a) Crude oil (per barrel) Far East ....................................................................$10.65 $13.97 Other .......................................................................$10.22 $12.30 Natural gas (per mcf) Far East .................................................................... $1.88 $2.03 Other ....................................................................... $1.76 $2.09 - ------------------------------------------------------------------------------------------------- Worldwide Net Daily Production (b) Crude oil (thousand barrels daily) ............................................. 167 194 Natural gas (per mcf) .......................................................... 1,815 1,839 Worldwide Average Sales Prices (a) Crude oil (per barrel) .........................................................$10.34 $13.15 Natural gas (per mcf) .......................................................... $1.83 $2.04 - ------------------------------------------------------------------------------------------------- (a) Prices exclude Global Trade margins (b) Production includes certain host countries' shares of:Crude oil 12 19 Natural gas 73 50
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: April 28, 1999 By: /s/ JOE D. CECIL - ------------------------ ------------------------------------ Joe D. Cecil Vice President and Comptroller -----END PRIVACY-ENHANCED MESSAGE-----