-----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, UqGIF1iuhBe9O7yqXxdciRWdwhtH5NV6exQCyqLKM0Rm3YDzg/+O4hWbB5EDt5Gv xQykgSrPF1S2klwDXQZ7vw== 0000716039-00-000007.txt : 20000216 0000716039-00-000007.hdr.sgml : 20000216 ACCESSION NUMBER: 0000716039-00-000007 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20000126 ITEM INFORMATION: FILED AS OF DATE: 20000215 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: 545310 BUSINESS ADDRESS: STREET 1: 2141 ROSECRANS AVE STREET 2: STE 4000 CITY: EL SEGUNDO STATE: CA ZIP: 90245 BUSINESS PHONE: 3107267600 8-K 1 4TH QUARTER EARNINGS RELEASE 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 26, 2000 ------------------------ 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) 1 Item 5. Other Events. - -------------------------- Fourth Quarter Earnings Unocal Corporation's net earnings were $97 million, or 40 cents per share diluted, for the fourth quarter of 1999, with $71 million coming from continuing operations and $26 million coming from discontinued operations. This compared to a loss of $29 million, or 12 cents per share diluted, for the fourth quarter of 1998, with a loss of $33 million coming from continuing operations and earnings of $4 million coming from discontinued operations. Discontinued operations include the former West Coast Refining and Marketing business segment and the recently announced sale of the company's Agricultural Products business segment. The fourth quarter 1999 results benefited from higher oil and gas prices. In addition, the fourth quarter of 1999 included after-tax benefits of $32 million from a settlement with Tosco Corporation to resolve certain contingent payment issues related to gasoline margins in Unocal's former West Coast Refining and Marketing business segment and $16 million from an insurance recovery related to various environmental matters. The fourth quarter 1999 positive results were partially offset by lower net oil and gas sales volumes and a higher international effective tax rate. In addition, the fourth quarter of 1999 included after-tax charges of $12 million in oil and gas asset write-downs, an $11 million charge related to the company's disposal of its former West Coast Refining and Marketing business segment and $5 million in environmental and litigation provisions. The fourth quarter of 1998 included after-tax charges of $65 million in asset write-downs related primarily to oil and gas assets and minerals assets, $30 million in environmental and litigation provisions, $17 million in restructuring costs; and after-tax benefits of $45 million from an insurance recovery and $18 million from asset sale gains. For the full year of 1999, the company's net earnings were $137 million, or 56 cents per share diluted, with $113 million coming from continuing operations and $24 million coming from discontinued operations. This compared with net earnings of $130 million, or 54 cents per share diluted, for the full year of 1998, with $93 million coming from continuing operations and $37 million coming from discontinued operations. The full year 1999 results, compared with the full year 1998 results, benefited from higher worldwide crude oil prices, lower depreciation, depletion, and amortization expense, lower operating and exploration expenses. These positive results were partially offset by lower net oil and gas sales volumes, reduced earnings from other non-exploration and production businesses and higher corporate net interest expense. The full year of 1999 included after-tax charges of $19 million for net environmental and litigation provisions, $12 million in oil and gas asset write-downs, $11 million in restructuring costs, $11 million charge related to the company's disposal of its former West Coast Refining and Marketing business segment, $10 million related to the loss on sale of The Geysers geothermal assets, $6 million charge related to the Kenai Plant accident in the Agricultural Products business segment which is now part of discontinued operations, offset by after-tax benefits of $32 million from the former Refining and Marketing business segment discussed above and $16 million benefit from an insurance recovery. The full year of 1998 included after-tax charges of $101 million in environmental and litigation provisions, $65 million in asset write-downs related primarily to oil and gas assets and minerals assets and $17 million in restructuring costs; and after-tax benefits of $101 million relating to the gain from the sale of assets in Canada, $45 million benefit from an insurance recovery and $19 million from other asset sale gains. Total revenues from continuing operations for the fourth quarter of 1999 were $1.9 billion, compared with $1.4 billion for the fourth quarter of 1998. Total revenues from continuing operations for the full year of 1999 were $6.1 billion, compared with $5.1 billion for the full year of 1998. Capital expenditures for the fourth quarter of 1999 were $410 million, compared with $456 million for the fourth quarter of 1998. Capital expenditures for the full year of 1999 were $1,171 million, compared with $1,704 million for the full year of 1998. The full year of 1999 capital expenditures excluded $205 million for the acquisition of Northrock Resources Ltd. (Northrock). 2 Total debt at the end of 1999 was $2.85 billion, compared with $2.56 billion at the end of 1998. Most of this increase reflected the consolidation of the company's investment in Northrock. Forward-looking statements and estimates regarding exploration and production activities, production levels, oil and gas prices and their related earnings effects, costs and capital expenditures in this filing are based on assumptions about operational, market, competitive, regulatory, environmental, political and other considerations. Actual results could differ materially as a result of factors discussed in Unocal 's 1998 Annual Report on Form 10-K. 3 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: Februrary 14, 2000 By: /s/ JOE D. CECIL - ------------------------- ------------------------------- Joe D. Cecil Vice President and Comptroller 4
CONSOLIDATED EARNINGS UNOCAL CORPORATION (Unaudited) For the Three Months For the Twelve Months Ended December 31 Ended December 31 ------------------------------------------------------ Millions of dollars except per share amounts 1999 1998 1999 1998 - ------------------------------------------------------------------------------------------------------------------------------------ Revenues Sales and operating revenues ......................................... $ 1,857 $ 1,243 $ 5,842 $ 4,627 Interest, dividends and miscellaneous income ......................... 34 95 106 169 Equity in earnings of affiliated companies ........................... 23 21 95 96 Gain/(loss) on sales of assets ....................................... 14 45 14 211 - ------------------------------------------------------------------------------------------------------------------------------------ Total revenues ................................................. 1,928 1,404 6,057 5,103 - ------------------------------------------------------------------------------------------------------------------------------------ Costs and Other Deductions Crude oil, natural gas and product purchases ......................... 1,074 607 3,299 2,036 Operating expense .................................................... 274 310 949 1,171 Selling, administrative and general expense .......................... 21 61 135 130 Depreciation, depletion and amortization ............................. 243 296 818 849 Dry hole costs ....................................................... 41 34 148 184 Exploration expense .................................................. 59 64 176 203 Interest expense ..................................................... 54 46 199 177 Property and other operating taxes ................................... 13 12 50 52 Distributions on convertible preferred securities of subsidiary trust .................................... 9 9 33 33 Minority interests ................................................... 8 -- 16 7 - ------------------------------------------------------------------------------------------------------------------------------------ Total costs and other deductions ............................... 1,796 1,439 5,823 4,842 - ------------------------------------------------------------------------------------------------------------------------------------ Earnings before income taxes ......................................... 132 (35) 234 261 Income taxes ......................................................... 61 (2) 121 168 - ------------------------------------------------------------------------------------------------------------------------------------ Earnings from continuing operations .................................. 71 (33) 113 93 - ------------------------------------------------------------------------------------------------------------------------------------ Discontinued operations Agricultural Products Earnings (loss) from operations (net of tax) (a) .................. 1 4 (1) 37 Refining & Marketing Gain (Loss) on disposal (net of tax) (b) .......................... 25 -- 25 -- - ------------------------------------------------------------------------------------------------------------------------------------ Earnings (loss) from discontinued operations ................... 26 4 24 37 - ------------------------------------------------------------------------------------------------------------------------------------ Net earnings (loss) applicable to common stock ................. $ 97 $ (29) $ 137 $ 130 ==================================================================================================================================== Basic earnings (loss) per share of common stock (c) Continuing operations ............................................. $ 0.29 $ (0.14) $ 0.47 $ 0.39 Discontinued operations ........................................... 0.11 0.02 0.10 0.15 - ------------------------------------------------------------------------------------------------------------------------------------ Basic earnings per share of common stock ....................... $ 0.40 $ (0.12) $ 0.57 $ 0.54 - ------------------------------------------------------------------------------------------------------------------------------------ Diluted earnings (loss) per share of common stock (d) Continuing operations ............................................. $ 0.29 $ (0.14) $ 0.46 $ 0.39 Discontinued operations ........................................... 0.11 0.02 0.10 0.15 - ------------------------------------------------------------------------------------------------------------------------------------ Diluted earnings per share of common stock ..................... $ 0.40 $ (0.12) $ 0.56 $ 0.54 - ------------------------------------------------------------------------------------------------------------------------------------ Cash dividends declared per share of common stock .................... $ 0.20 $ 0.20 $ 0.80 $ 0.80 - ------------------------------------------------------------------------------------------------------------------------------------ (a) Net of income tax (benefit) of: 4 - (5) 7 (b) Net of income tax (benefit) of: 14 - 14 - (c) Weighted average shares outstanding - basic (in thousands) 242,427 241,372 242,167 241,332 (d) Weighted average shares outstanding - diluted (in thousands) 243,229 242,215 243,112 242,288
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CONSOLIDATED BALANCE SHEET UNOCAL CORPORATION December 31 December 31 --------------------------------- Millions of dollars 1999 (a) 1998 - ------------------------------------------------------------------------------------------------------------------------------------ Assets Current assets Cash and cash equivalents ......................................... $ 332 $ 238 Accounts and notes receivable ..................................... 994 807 Inventories ....................................................... 179 179 Deferred income taxes ............................................. 100 142 Other current assets .............................................. 26 22 - ------------------------------------------------------------------------------------------------------------------------------------ Total current assets ........................................... 1,631 1,388 Investments and long-term receivables ................................ 1,264 1,143 Properties (b) ....................................................... 5,980 5,276 Deferred income taxes ................................................ 16 23 Other assets ......................................................... 76 122 - ------------------------------------------------------------------------------------------------------------------------------------ Total assets ................................................... $ 8,967 $ 7,952 - ------------------------------------------------------------------------------------------------------------------------------------ Liabilities and Stockholders' Equity Current liabilities Accounts payable .................................................. $ 979 $ 709 Taxes payable ..................................................... 192 260 Interest payable .................................................. 62 52 Current portion of environmental liabilities ...................... 100 142 Other current liabilities ......................................... 226 213 - ------------------------------------------------------------------------------------------------------------------------------------ Total current liabilities ...................................... 1,559 1,376 Long-term debt ....................................................... 2,853 2,558 Deferred income taxes ................................................ 230 132 Accrued abandonment, restoration and environmental liabilities ....... 567 622 Other deferred credits and liabilities ............................... 620 514 Minority interests ................................................... 432 26 Company-obligated mandatorily redeemable convertible preferred securities of a subsidiary trust holding solely parent debentures . 522 522 Common stock ($1 par value) .......................................... 253 252 Shares authorized: 750,000 (in thousands) (c) Capital in excess of par value ....................................... 493 460 Unearned portion of restricted stock issued .......................... (20) (24) Retained earnings .................................................... 1,902 1,959 Accumulated other comprehensive income (loss) ........................ (33) (34) Treasury stock - at cost (d) ........................................ (411) (411) - ------------------------------------------------------------------------------------------------------------------------------------ Total stockholders' equity ..................................... 2,184 2,202 - ------------------------------------------------------------------------------------------------------------------------------------ Total liabilities and stockholders' equity .................. $ 8,967 $ 7,952 - ------------------------------------------------------------------------------------------------------------------------------------ (a) Unaudited (b) Net of accumulated depreciation ................................. $ 10,535 $ 10,193 (c) Number of shares outstanding (in thousands) ..................... 242,441 241,378 (d) Number of shares (in thousands) ................................. 10,623 10,623
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CONSOLIDATED CASH FLOWS UNOCAL CORPORATION (Unaudited) For the Twelve Months Ended December 31 ------------------------------ Millions of dollars 1999 1998 - ------------------------------------------------------------------------------------------------------------------------------------ Cash Flows from Operating Activities Net earnings (loss) .................................................. $ 137 $ 130 Adjustments to reconcile net earnings to net cash provided by operating activities Depreciation, depletion and amortization ....................... 833 867 Dry hole costs ................................................. 148 184 Deferred income taxes .......................................... (58) (72) (Gain) loss on sales of assets (pre-tax) ....................... (14) (211) (Gain) loss on disposal of discontinued operations(pre-tax)..... (39) -- Other .......................................................... (117) 35 Working capital and other changes related to operations Accounts and notes receivable ............................... (173) 42 Inventories ................................................. -- (7) Accounts payable ............................................ 234 (76) Taxes payable ............................................... (68) 134 Other ....................................................... 143 (23) - ------------------------------------------------------------------------------------------------------------------------------------ Net cash provided by (used in) operating activities ...... 1,026 1,003 - ------------------------------------------------------------------------------------------------------------------------------------ Cash Flows from Investing Activities Capital expenditures (include dry hole costs) ..................... (1,171) (1,704) Acquisition of Northrock Resources Ltd. ........................... (205) -- Proceeds from sales of assets ..................................... 238 435 - ------------------------------------------------------------------------------------------------------------------------------------ Net cash provided by (used in) investing activities ...... (1,138) (1,269) - ------------------------------------------------------------------------------------------------------------------------------------ Cash Flows from Financing Activities Long-term borrowings .............................................. 862 891 Reduction of long-term debt ....................................... (718) (472) Dividends paid on common stock .................................... (194) (193) Repurchases of common stock ....................................... -- (48) Minority interests ................................................ 233 (10) Other ............................................................. 23 (2) - ------------------------------------------------------------------------------------------------------------------------------------ Net cash provided by (used in) financing activities ......... 206 166 - ------------------------------------------------------------------------------------------------------------------------------------ Increase (decrease) in cash and cash equivalents ..................... 94 (100) Cash and cash equivalents at beginning of year ....................... 238 338 - ------------------------------------------------------------------------------------------------------------------------------------ Cash and cash equivalents at end of period ........................... $ 332 $ 238 - ------------------------------------------------------------------------------------------------------------------------------------
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CONSOLIDATED EARNINGS UNOCAL CORPORATION (Unaudited) For the Three Months For the Twelve Months Ended December 31 Ended December 31 ------------------------------------------------------ Millions of dollars except per share amounts 1999 1998 1999 1998 - ------------------------------------------------------------------------------------------------------------------------------------ Earnings (loss) from continuing operations ........................... $ 71 $ (33) $ 113 $ 93 Earnings (loss) from discontinued operations ......................... 26 4 24 37 - ------------------------------------------------------------------------------------------------------------------------------------ Net earnings (loss) .............................................. $ 97 $ (29) $ 137 $ 130 Less: Special items Continuing operations Asset Sales .............................................. -- 18 (10) 120 Asset write-downs ........................................ (12) (65) (12) (65) Deferred tax adjustments ................................. -- (8) -- (29) Net environmental and litigation provision ............... (5) (30) (19) (101) Insurance Benefits ....................................... 16 45 16 56 Restructuring costs....................................... -- (17) (11) (17) Discontinued operations Agricultural Products Kenai Plant accident ..................................... -- -- (6) -- Refining & Marketing Tosco settlement net of adjustments ....................... 21 -- 21 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total special items ............................................... $ 20 $ (57) $ (21) $ (36) - ------------------------------------------------------------------------------------------------------------------------------------ Adjusted net earnings ........................................... $ 77 $ 28 $ 158 $ 166 ==================================================================================================================================== Diluted net earnings (loss) per share: Continuing operations ........................................... $0.29 $(0.14) $0.46 $0.39 Discontinued operations ......................................... 0.11 0.02 0.10 0.15 - ------------------------------------------------------------------------------------------------------------------------------------ Diluted net earnings (loss) per share ........................... $0.40 $(0.12) $0.56 $0.54 - ------------------------------------------------------------------------------------------------------------------------------------ Diluted adjusted net earnings per share .............................. $0.32 $ 0.11 $0.65 $0.68 - ------------------------------------------------------------------------------------------------------------------------------------
ADJUSTED EARNINGS BY BUSINESS SEGMENT (After-tax)(Unaudited) For the Three Months For the Twelve Months Ended December 31 Ended December 31 ------------------------------------------------ Millions of dollars 1999 1998 1999 1998 - -------------------------------------------------------------------------------------------------------------- Exploration & Production United States Spirit Energy 76 (a) ................................... $ 26 $ (11) $ 50 $ 4 Alaska ................................................. 20 3 36 18 International Far East ............................................... 57 68 222 215 Other (a) .............................................. 9 (2) (12) (47) Global Trade Global Trade .............................................. 1 8 (2) 21 Pipelines ................................................. 16 18 62 62 Geothermal and Power Operations .............................. 7 8 38 52 Carbon & Minerals (a) ........................................ 1 2 23 25 Corporate and Unallocated New Ventures (Non E&P) .................................... (5) (6) (14) (22) Administrative & General .................................. (16) (21) (81) (79) Interest Expense - Net (a) ................................ (37) (30) (138) (113) Environmental & Litigation ................................ (2) (3) (10) (11) Other ..................................................... (5) (10) (25) 4 - -------------------------------------------------------------------------------------------------------------- Adjusted earnings from continuing operations ................. 72 24 149 129 Adjusted earnings from discontinued operations ............... 5 4 9 37 - -------------------------------------------------------------------------------------------------------------- Adjusted net earnings ........................................ $ 77 $ 28 $ 158 $ 166 (a) Includes minority interest of: Spirit Energy 76 ....................................... (4) -- (11) (1) International - Other .................................. (3) -- (5) -- Carbon & Minerals ...................................... -- -- (2) (3) Corporate and Unallocated .............................. (1) -- 2 --
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OPERATING HIGHLIGHTS UNOCAL CORPORATION (Unaudited) For the Three Months For the Twelve Months Ended December 31 Ended December 31 ---------------------------------------------------- 1999 1998 1999 1998 - ------------------------------------------------------------------------------------------------------------------------------------ United States Net Daily Production Crude oil (thousand barrels daily) Spirit Energy 76 .................................................. 41 42 40 44 Alaska ............................................................ 28 29 27 29 Natural gas - wet basis (million cubic feet daily) Spirit Energy 76 .................................................. 722 798 747 795 Alaska ............................................................ 154 147 133 133 United States Average Prices (a) Crude oil (per barrel) Spirit Energy 76 .................................................. $ 21.90 $ 11.00 $ 16.65 $ 12.41 Alaska ............................................................ $ 18.35 $ 8.78 $ 13.05 $ 9.35 Natural gas (per mcf) Spirit Energy 76 .................................................. $ 2.41 $ 2.05 $ 2.17 $ 2.07 Alaska ............................................................ $ 1.20 $ 1.20 $ 1.20 $ 1.33 - ------------------------------------------------------------------------------------------------------------------------------------ International Net Daily Production (b) Crude oil (thousand barrels daily) Far East .......................................................... 76 72 73 80 Other (c) ......................................................... 35 27 35 31 Natural gas (million cubic feet daily) Far East .......................................................... 825 857 847 853 Other (c) ......................................................... 158 26 109 45 International Average Prices (a) Crude oil (per barrel) Far East .......................................................... $ 20.08 $ 11.00 $ 15.38 $ 12.55 Other ............................................................. $ 20.33 $ 9.66 $ 15.78 $ 10.73 Natural gas (per mcf) Far East .......................................................... $ 2.22 $ 1.95 $ 2.03 $ 2.06 Other ............................................................. $ 2.44 $ 2.40 $ 2.27 $ 2.29 - ------------------------------------------------------------------------------------------------------------------------------------ Worldwide Net Daily Production (b)(c) Crude oil (thousand barrels daily) ................................... 180 170 175 184 Natural gas (per mcf) ................................................ 1,859 1,828 1,836 1,826 Worldwide Average Prices (a) Crude oil (per barrel) ............................................... $ 20.34 $ 10.37 $ 15.38 $ 11.67 Natural gas (per mcf) ................................................ $ 2.22 $ 1.96 $ 2.04 $ 2.01 - ------------------------------------------------------------------------------------------------------------------------------------ (a) average prices include hedging gains and losses, but exclude other Global Trade margins. (b) production includes certain host countries' shares of: Crude oil 27 9 24 10 Natural gas 75 67 82 49 (c) production includes 100% of Northrock Resources Ltd. : Crude oil 6 - 5 - Natural gas 104 - 69 -
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