-----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, OaFSl6FqnaR92Ia/0xTa4chG8os47plSazHR2rbxErH8JhPi0wEgbUF+bnXwYhEr pKQT2Y/Dvy04N1lnw7AruQ== 0000716039-00-000019.txt : 20000502 0000716039-00-000019.hdr.sgml : 20000502 ACCESSION NUMBER: 0000716039-00-000019 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20000425 ITEM INFORMATION: FILED AS OF DATE: 20000501 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: 615479 BUSINESS ADDRESS: STREET 1: 2141 ROSECRANS AVE STREET 2: STE 4000 CITY: EL SEGUNDO STATE: CA ZIP: 90245 BUSINESS PHONE: 3107267600 8-K 1 1ST QUARTER 2000 EARNINGS & OTHER MATTERS 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 25, 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) Item 5. Other Events. - -------------------------- First Quarter 2000 Earnings Unocal Corporation's net earnings were $133 million, or 55 cents per share diluted, for the first quarter of 2000, with $124 million from continuing operations and $9 million from discontinued operations. This compared to $7 million, or 3 cents per share diluted, for the first quarter of 1999, with $4 million from continuing operations and $3 million from discontinued operations. Discontinued operations include the results of the company's Agricultural Products business segment, whose sale is pending. The sale is subject to clearance by the U.S. Federal Trade Commission. The first quarter 2000 results benefited principally from higher oil and gas prices. The company's worldwide average crude oil price increased by $13.99 per barrel, or 135 percent, to $24.39 per barrel from the same period a year ago. The company's worldwide average natural gas price increased by $0.42 per thousand cubic feet, or 23 percent, to $2.25 per mcf from the same period a year ago. The first quarter of 2000 included an after-tax restructuring charge of $11 million while the first quarter of 1999 included an after-tax loss of $10 million from the sale of the company's interest in a geothermal steam production operation at The Geysers in Northern California. Total revenues from continuing operations for the first quarter of 2000 were $1.9 billion, compared with $1.2 billion for the first quarter of 1999. Capital spending for the first quarter of 2000 was $295 million, compared with $225 million for the first quarter of 1999. Total debt at the end of the first quarter of 2000 was $2.688 billion, compared with $2.853 billion at the end of 1999. Outlook and Other Matters The company expects adjusted after-tax earnings per share to exceed $0.50 for the second quarter of 2000, assuming an average West Texas Intermediate (WTI) crude oil price of $25.60 per barrel and a Henry Hub natural gas price of $2.95 per mmbtu. The company also expects adjusted after-tax earnings per share of $2.20 to $2.50 for the full year 2000, assuming an average WTI crude oil price of $25.70 per barrel and a Henry Hub natural gas price of $2.90 per mmbtu. The second quarter and full year forecasts are also dependent on the company's deepwater drilling success. The company has engaged a financial advisor to assist in the possible sale of Poco Graphite, Inc., a Texas-based subsidiary which produces specialty graphite products, and certain other assets located in Illinois that manufacture petroleum coke products. This proposed sale is part of the company's continuing transformation into a global energy resource and project development company. Forward-looking statements and estimates regarding exploration and production activities, production levels, oil and gas prices and their related earnings effects, proposed asset sales, 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 1999 Annual Report on Form 10-K. 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: May 1, 2000 By: /s/ JOE D. CECIL - ------------------------- ------------------------------- Joe D. Cecil Vice President and Comptroller
CONSOLIDATED RESULTS (UNAUDITED) For the Three Months Ended March 31 ------------------------------- Millions of dollars except per share amounts 2000 1999 - ------------------------------------------------------------------------------------------------------------------------------------ ...................................................................................... Earnings from continuing operations ...................................................... $ 124 $ 4 Earnings from discontinued operations .................................................... 9 3 - ------------------------------------------------------------------------------------------------------------------------------------ Net earnings ......................................................................... $ 133 $ 7 Special items ............................................................................ (6) (13) - ------------------------------------------------------------------------------------------------------------------------------------ Adjusted after-tax earnings ......................................................... $ 139 $ 20 Diluted net earnings per share: Continuing operations................................................................ $ 0.51 $ 0.02 Discontinued operations.............................................................. $ 0.04 $ 0.01 - ------------------------------------------------------------------------------------------------------------------------------------ Diluted net earnings per share ........................................................... $ 0.55 $ 0.03 Diluted adjusted after-tax earnings per share ............................................ $ 0.57 $ 0.08 - ------------------------------------------------------------------------------------------------------------------------------------ Tota revenues from continuing operations.................................................. $ 1,881 $ 1,168
ADJUSTED AFTER-TAX EARNINGS BY BUSINESS SEGMENT (UNAUDITED) For the Three Months Ended March 31 ------------------------------- Millions of dollars 2000 1999 - ------------------------------------------------------------------------------------------------------------------------------------ Exploration & Production North America ...................................................................................... Lower 48 (a) ................................................................... 63 1 Alaska ......................................................................... 24 2 Canada (a) ..................................................................... 4 4 International Far East ....................................................................... 82 48 Other .......................................................................... (2) (19) Global Trade ............................................................................. (2) 2 Pipelines ................................................................................ 15 17 Geothermal and Power Operations .......................................................... 9 10 Carbon & Minerals (a) .................................................................... 8 9 Corporate and Unallocated Administrative & General ....................................................... (22) (21) Interest Expense - Net (a) ..................................................... (36) (31) Environmental & Litigation ..................................................... (3) (2) Other .......................................................................... (1) (3) - ------------------------------------------------------------------------------------------------------------------------------------ Adjusted after-tax earnings from continuing operations ................................... 139 17 Adjusted after-tax earnings from discontinued operations ................................. -- 3 - ------------------------------------------------------------------------------------------------------------------------------------ Adjusted after-tax earnings .............................................................. $ 139 $ 20 ==================================================================================================================================== (a) Includes minority interests of: Lower 48 ....................................................................... (5) 1 Canada ......................................................................... 8 -- Carbon & Minerals .............................................................. -- (1) Corporate and Unallocated ...................................................... 1 --
-3-
OPERATING HIGHLIGHTS (UNAUDITED) For the Three Months Ended March 31 ------------------------------- 2000 1999 - ------------------------------------------------------------------------------------------------------------------------------------ North America Net Daily Production Crude oil (thousand barrels) ...................................................................................... Lower 48 (a) ........................................................................ 45 39 Alaska .............................................................................. 27 27 Canada (b) .......................................................................... 16 8 - ------------------------------------------------------------------------------------------------------------------------------------ Total North America crude oil .................................................. 88 74 Natural gas - wet basis (million cubic feet) Lower 48 (a) ........................................................................ 737 775 Alaska .............................................................................. 154 153 Canada (b) .......................................................................... 101 3 - ------------------------------------------------------------------------------------------------------------------------------------ Total North America natural gas ................................................ 992 931 North America Average Prices (c) Crude oil (per barrel) Lower 48 ............................................................................ $ 27.52 $ 11.26 Alaska .............................................................................. $ 23.15 $ 8.05 Canada .............................................................................. $ 19.24 $ 9.65 Average North America crude oil prices ......................................... $ 24.60 $ 9.85 Natural gas (per mcf) Lower 48 ............................................................................ $ 2.50 $ 1.92 Alaska .............................................................................. $ 1.20 $ 1.20 Canada .............................................................................. $ 1.50 $ 1.84 Average North America natural gas prices ....................................... $ 2.18 $ 1.80 - ------------------------------------------------------------------------------------------------------------------------------------ International Net Daily Production (d) Crude oil (thousand barrels) Far East ............................................................................ 71 70 Other ............................................................................... 19 23 - ------------------------------------------------------------------------------------------------------------------------------------ Total International crude oil .................................................. 90 93 Natural gas - wet basis (million cubic feet) Far East ............................................................................ 911 842 Other ............................................................................... 62 36 - ------------------------------------------------------------------------------------------------------------------------------------ Total International natural gas ................................................ 973 878 International Average Prices (c) Crude oil (per barrel) Far East ............................................................................ $ 23.63 $ 10.85 Other ............................................................................... $ 25.53 $ 11.17 Average International crude oil prices ......................................... $ 24.05 $ 10.93 Natural gas (per mcf) Far East ............................................................................ $ 2.29 $ 1.88 Other ............................................................................... $ 2.73 $ 1.75 Average International natural gas prices ....................................... $ 2.33 $ 1.87 - ------------------------------------------------------------------------------------------------------------------------------------ Worldwide Net Daily Production (a) (b) (d) Crude oil (thousand barrels) ........................................................... 178 167 Natural gas (million cubic feet) ....................................................... 1,965 1,809 Barrels oil equivalent (thousands) ..................................................... 506 469 Worldwide Average Prices (c) Crude oil (per barrel) ................................................................. $ 24.39 $ 10.40 Natural gas (per mcf) .................................................................. $ 2.25 $ 1.83 (a) production includes proportionate shares of equity affiliates ....................... (b) production includes 100% of Northrock Resources Ltd: Crude oil .................... 9 -- Natural gas .................. 99 -- (c) average prices include hedging gains and losses, but exclude other Global Trade margins (d) production includes certain host countries' shares of: Crude:oil .................... 29 12 Natural gas .................. 110 84
-4- -----END PRIVACY-ENHANCED MESSAGE-----