-----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, EPGHYkafdcE1Dxh56yDwTCQt6kff/o5ZVm8Sau2ZcdbgLgIfO25NOZp3jCGrPJf9 WIg6XlOfDNyAUBB+Rb2WqA== /in/edgar/work/20000802/0000716039-00-000030/0000716039-00-000030.txt : 20000921 0000716039-00-000030.hdr.sgml : 20000921 ACCESSION NUMBER: 0000716039-00-000030 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20000727 ITEM INFORMATION: FILED AS OF DATE: 20000802 FILER: COMPANY DATA: COMPANY CONFORMED NAME: UNOCAL CORP CENTRAL INDEX KEY: 0000716039 STANDARD INDUSTRIAL CLASSIFICATION: [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: 684798 BUSINESS ADDRESS: STREET 1: 2141 ROSECRANS AVE STREET 2: STE 4000 CITY: EL SEGUNDO STATE: CA ZIP: 90245 BUSINESS PHONE: 3107267600 8-K 1 0001.txt 2ND QUARTER 2000 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) July 27, 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. - -------------------------- Second Quarter 2000 Earnings - ---------------------------- Unocal Corporation's net earnings were $264 million, or $1.05 per share diluted, for the second quarter of 2000, with $250 million from continuing operations and $14 million from discontinued operations. This compared to $9 million, or 4 cents per share diluted, for the second quarter of 1999, with $6 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. Earnings from continuing operations were $250 million, or $1.00 per share (diluted), in the second quarter of 2000 compared to $6 million, or $0.03 per share (diluted), for the same period a year ago. The increase was primarily due to higher crude oil and natural gas prices. The company's worldwide average crude oil price was $24.78 per barrel, up $10.79, or 77 percent, in the second quarter of 2000 compared with the same period a year ago. The company's worldwide average natural gas price was $2.62 per thousand cubic feet (mcf) in the second quarter of 2000, an increase of 33 percent, compared with the same period a year ago. The second quarter of 2000 included a $55 million after-tax benefit from payment received for infringement of one of the company's five reformulated gasoline patents during a five-month period in 1996. The company also recorded $21 million after-tax insurance recovery and a $42 million after-tax gain from the Pure Resources, Inc. (Pure) transaction. These positive factors in the second quarter of 2000 were partially offset by $30 million after-tax in higher litigation and environmental costs. For the first six months of 2000, the company's net earnings were $397 million, or $1.60 per share diluted, with $374 million from continuing operations and $23 million from discontinued operations. This compared to $16 million, or 7 cents per share diluted, for the first six months of 1999, with $10 million coming from continuing operations and $6 million from discontinued operations. Earnings from continuing operations increased by $364 million in the first six months of 2000 compared with the first six months of 1999. Higher crude oil and natural gas prices were major factors for this increase. The company's worldwide average crude oil price increased by $12.35 per barrel, or 102 percent, to $24.51 per barrel in the first six months of 2000 compared with the same period a year ago. The company's worldwide average natural gas price increased by $0.52 per mcf, or 27 percent, to $2.44 per mcf in the first six months of 2000 compared with the same period a year ago. Total revenues from continuing operations for the second quarter of 2000 were $2.2 billion, compared with $1.4 billion for the second quarter of 1999. Total revenues from continuing operations for the first six months of 2000 were $4.1 billion, compared with $2.6 billion for the same period a year ago. Capital spending for the second quarter of 2000 was $263 million, compared with $243 million for the second quarter of 1999. Capital spending in the second quarter of 2000 excluded $161 million for the acquisition of the remaining Northrock Resources, Ltd. (Northrock) common shares. The capital spending in the second quarter of 1999 excluded $184 million for the initial acquisition of Northrock shares. The company's total debt at the end of the second quarter of 2000 was $2.78 billion, compared with $2.85 billion at the end of 1999. -1- Outlook - ------- The company expects adjusted after-tax earnings per share to approximate 70 cents per share for the third quarter of 2000, assuming an average West Texas Intermediate (WTI) crude oil price of $29.75 per barrel and a Henry Hub natural gas price of $4.00 per million British thermal units (MMBtu). The company also expects adjusted after-tax earnings per share of $2.70 to $2.90 for the full year of 2000, assuming an average WTI crude oil price of $28.60 per barrel and a Henry Hub natural gas price of $3.55 per MMBtu. 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 1999 Annual Report on Form 10-K. -2- 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: August 2, 2000 By: /s/ JOE D. CECIL - ------------------------- ------------------------------- Joe D. Cecil Vice President and Comptroller -3-
CONSOLIDATED RESULTS (UNAUDITED) For the Three Months For the Six Months Ended June 30, Ended June 30, ------------------------ ------------------------ Millions of dollars except per share amounts 2000 1999 2000 1999 - ------------------------------------------------------------------------------------------------------------------------------------ ....................................................................... Adjusted after-tax earnings from continuing operations .................... $ 170 $ 16 $ 309 $ 33 Special items ............................................................. 80 (10) 65 (23) - ------------------------------------------------------------------------------------------------------------------------------------ Earnings from continuing operations ....................................... 250 6 374 10 Earnings from discontinued operations ..................................... 14 3 23 6 - ------------------------------------------------------------------------------------------------------------------------------------ Net earnings .......................................................... $ 264 $ 9 $ 397 $ 16 ==================================================================================================================================== DILUTED EARNINGS PER SHARE DATA (UNAUDITED) Adjusted after-tax earnings per share from continuing operations .......... $ 0.69 $ 0.06 $ 1.26 $ 0.13 - ------------------------------------------------------------------------------------------------------------------------------------ Net earnings per share: Continuing operations ................................................ $ 1.00 $ 0.03 $ 1.51 $ 0.05 Discontinued operations .............................................. 0.05 0.01 0.09 0.02 - ------------------------------------------------------------------------------------------------------------------------------------ Total net earnings per share .............................................. $ 1.05 $ 0.04 $ 1.60 $ 0.07 ==================================================================================================================================== REVENUES FROM CONTINUING OPERATIONS (UNAUDITED) ........................... $ 2,248 $ 1,441 $ 4,129 $ 2,609
ADJUSTED AFTER-TAX EARNINGS BY BUSINESS SEGMENT (UNAUDITED) For the Three Months For the Six Months Ended June 30, Ended June 30, ------------------------ ------------------------ Millions of dollars except per share amounts 2000 1999 2000 1999 - ------------------------------------------------------------------------------------------------------------------------------------ Exploration & Production ....................................................................... North America Lower 48 (a) .................................................... $ 92 $ 6 $ 155 $ 7 Alaska .......................................................... 23 6 47 8 Canada (a) ...................................................... (11) 5 (7) 9 International Far East ........................................................ 88 39 170 87 Other ........................................................... 19 (4) 17 (23) Global Trade .............................................................. 6 -- 4 2 Pipelines ................................................................. 15 16 30 33 Geothermal and Power Operations ........................................... 5 10 14 20 Carbon & Minerals (a) ..................................................... 6 7 14 16 Corporate and Unallocated Administrative & General ........................................ (21) (21) (43) (42) Interest Expense - Net (a) ...................................... (37) (34) (73) (65) Environmental & Litigation ...................................... (3) (4) (6) (6) Other ........................................................... (12) (10) (13) (13) - ------------------------------------------------------------------------------------------------------------------------------------ Adjusted after-tax earnings from continuing operations .................... 170 16 309 33 Adjusted after-tax earnings from discontinued operations .................. -- 3 -- 6 - ------------------------------------------------------------------------------------------------------------------------------------ Adjusted after-tax earnings ............................................... $ 170 $ 19 $ 309 $ 39 ==================================================================================================================================== (a) Includes minority interests of: Lower 48 ........................................................ (6) (4) (11) (3) Canada .......................................................... 12 (1) 20 (1) Carbon & Minerals ............................................... (1) -- (1) (1) Corporate and Unallocated ....................................... 1 1 2 1
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OPERATING HIGHLIGHTS (UNAUDITED) For the Three Months For the Six Months Ended June 30, Ended June 30, ------------------------ ------------------------ 2000 1999 2000 1999 - ------------------------------------------------------------------------------------------------------------------------------------ North America Net Daily Production Crude oil (thousand barrels) ....................................................................... Lower 48 (a) ......................................................... 44 40 44 40 Alaska ............................................................... 26 28 26 28 Canada (a) ........................................................... 15 12 16 10 - ------------------------------------------------------------------------------------------------------------------------------------ Total North America crude oil ................................... 85 80 86 78 Natural gas - wet basis (million cubic feet) Lower 48 (a) ......................................................... 756 764 744 772 Alaska ............................................................... 138 131 146 137 Canada (a) ........................................................... 94 59 97 31 - ------------------------------------------------------------------------------------------------------------------------------------ Total North America natural gas ................................. 988 954 987 940 North America Average Prices (c) Crude oil (per barrel) Lower 48 ............................................................. $27.12 $14.98 $27.16 $13.15 Alaska ............................................................... $23.81 $12.02 $23.25 $10.01 Canada ............................................................... $18.50 $11.91 $18.86 $11.01 Average North America crude oil prices .......................... $24.51 $13.47 $24.40 $11.72 Natural gas (per mcf) Lower 48 ............................................................. $3.41 $2.05 $2.96 $2.01 Alaska ............................................................... $1.20 $1.20 $1.20 $1.20 Canada ............................................................... $1.50 $1.90 $1.49 $1.90 Average North America natural gas prices ........................ $2.89 $1.93 $2.53 $1.88 International Net Daily Production (b) Crude oil (thousand barrels) Far East ............................................................. 71 72 71 71 Other ................................................................ 19 23 19 23 - ------------------------------------------------------------------------------------------------------------------------------------ Total International crude oil ................................... 90 95 90 94 Natural gas - wet basis (million cubic feet) Far East ............................................................. 945 851 928 840 Other ................................................................ 58 29 60 33 - ------------------------------------------------------------------------------------------------------------------------------------ Total International natural gas ................................. 1,003 880 988 873 International Average Prices (c) Crude oil (per barrel) Far East ............................................................. $24.40 $14.76 $24.03 $12.59 Other ................................................................ $26.38 $14.26 $26.19 $12.75 Average International crude oil prices .......................... $25.10 $14.61 $24.67 $12.64 Natural gas (per mcf) Far East ............................................................. $2.31 $2.03 $2.30 $1.95 Other ................................................................ $2.80 $1.89 $2.76 $1.81 Average International natural gas prices ........................ $2.35 $2.02 $2.34 $1.95 Worldwide Net Daily Production (a) (b) .................................... Crude oil (thousand barrels) ............................................ 175 175 176 172 Natural gas (million cubic feet) ........................................ 1,991 1,834 1,975 1,813 Barrels oil equivalent (thousands) ...................................... 507 481 506 474 Worldwide Average Prices (c) Crude oil (per barrel) .................................................. $24.78 $13.99 $24.51 $12.16 Natural gas (per mcf) ................................................... $2.62 $1.97 $2.44 $1.92 (a) production includes 100 percent of consolidated subsidiaries and proportionate share of equity affiliates. (b) production includes certain host countries' shares of: Crude oil...... 27 26 28 19 Natural gas ... 117 77 114 74 (c) average prices include hedging gains and losses but exclude gains or losses on derivative positions not accounted for as hedges and other Global Trade margins.
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