EX-99 4 exh99-3.txt FILED FINANCIAL STATEMENTS Exhibit 99.3
CONSOLIDATED EARNINGS (UNAUDITED) UNOCAL CORPORATION For the For the Three Months Six Months Ended June 30, Ended June 30, ----------------------------------- Millions of dollars except per share amounts 2005 2004 2005 2004 -------------------------------------------------------------------------------- Revenues Sales and operating revenues (a) $2,161 $1,799 $4,200 $3,519 Interest, dividends and miscellaneous income 42 19 51 30 Gain on sales of assets 10 40 30 84 -------------------------------------------------------------------------------- Total revenues 2,213 1,858 4,281 3,633 Costs and other deductions Crude oil, natural gas and product purchases (a) 748 729 1,478 1,452 Operating expense 324 350 610 609 Administrative and general expense 66 46 144 109 Depreciation, depletion and amortization 269 213 512 416 Impairments 1 9 1 14 Dry hole costs 12 36 31 59 Exploration expense 36 41 66 85 Interest expense 32 46 65 87 Property and other operating taxes 29 22 50 42 -------------------------------------------------------------------------------- Total costs and other deductions 1,517 1,492 2,957 2,873 Earnings from equity investments 18 38 57 75 -------------------------------------------------------------------------------- Earnings from continuing operations before income taxes and minority interests 714 404 1,381 835 -------------------------------------------------------------------------------- Income taxes 272 138 505 309 Minority interests 2 (1) 4 4 -------------------------------------------------------------------------------- Earnings from continuing operations 440 267 872 522 Earnings from discontinued operations (b) 35 74 57 88 -------------------------------------------------------------------------------- Net earnings $ 475 $ 341 $ 929 $ 610 ================================================================================ Basic earnings per share of common stock (c) Continuing operations $ 1.62 $ 1.00 $ 3.22 $ 1.98 Discontinued operations 0.13 0.29 0.21 0.34 -------------------------------------------------------------------------------- Net earnings $ 1.75 $ 1.29 $ 3.43 2.32 ================================================================================ Diluted earnings per share of common stock (d) Continuing operations $ 1.60 $ 0.98 $ 3.18 $ 1.93 Discontinued operations 0.13 0.27 0.21 0.32 -------------------------------------------------------------------------------- Net earnings $ 1.73 $ 1.25 $ 3.39 $ 2.25 ================================================================================ (a) Includes crude oil buy/sell transactions settled in cash of: $ 197 $ 210 $ 360 $ 462 (b) Net of tax (benefit) $ 30 $ 36 $ 48 $ 46 (c) Basic weighted average shares outstanding (in thousands) 271,993 263,916 271,219 262,945 (d) Diluted weighted average shares outstanding (in thousands) 274,811 277,754 274,057 277,232
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CONDENSED CONSOLIDATED BALANCE SHEET (UNAUDITED) UNOCAL CORPORATION At June 30, At December 31, Millions of dollars 2005 2004 -------------------------------------------------------------------------------- Assets Cash and cash equivalents $ 1,775 $ 1,160 Assets held for sale 1,372 - Other current assets - net 1,551 1,770 Investments and long-term receivables - net 720 777 Properties - net 7,806 8,819 Goodwill 81 136 Other assets 464 439 -------------------------------------------------------------------------------- Total assets $ 13,769 $ 13,101 ================================================================================ Liabilities and Stockholders' Equity Liabilities of assets held for sale $ 411 $ - Other current liabilities (a) 2,345 2,581 Long-term debt and capital leases 2,076 2,571 Deferred income taxes 591 839 Accrued abandonment, restoration and environmental liabilities 866 897 Other deferred credits and liabilities 1,093 969 Minority interests 29 27 Stockholders' equity 6,358 5,217 -------------------------------------------------------------------------------- Total liabilities and stockholders' equity $ 13,769 $ 13,101 ================================================================================ (a) Includes current portion of Long-term debt and capital leases of: 464 491
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CONSOLIDATED CASH FLOWS (UNAUDITED) For the Six Months Ended June 30, ------------------------- Millions of dollars 2005 2004 -------------------------------------------------------------------------------- Cash Flows from Operating Activities Net earnings $ 929 $ 610 Adjustments to reconcile net earnings to net cash provided by operating activities Depreciation, depletion and amortization 567 472 Impairments 1 14 Dry hole costs 32 65 Amortization of exploratory leasehold costs 22 32 Deferred income taxes 119 (6) Gain on sales of assets (30) (84) Gain on disposal of discontinued operations (23) (84) Pension expense net of contributions 47 44 Other (10) (51) Working capital and other changes related to operations (22) 114 -------------------------------------------------------------------------------- Net cash provided by operating activities 1,632 1,126 -------------------------------------------------------------------------------- Cash Flows from Investing Activities Capital expenditures (includes dry hole costs) (873) (801) Proceeds from sales of assets 117 158 Proceeds from sales of discontinued operations 47 120 Return of capital from affiliate company - 48 -------------------------------------------------------------------------------- Net cash used in investing activities (709) (475) -------------------------------------------------------------------------------- Cash Flows from Financing Activities Long-term borrowings 1 135 Reduction of long-term debt and capital lease obligations (291) (241) Minority interests (3) (1) Repurchases of common stock - (20) Proceeds from issuance of common stock 120 94 Dividends paid on common stock (107) (105) Loans to key employees - 24 Other - (2) -------------------------------------------------------------------------------- Net cash used in financing activities (280) (116) -------------------------------------------------------------------------------- Total increase in cash and cash equivalents 643 535 Less: cash and cash equivalents of assets held for sale 28 - Cash and cash equivalents at beginning of year 1,160 404 -------------------------------------------------------------------------------- Cash and cash equivalents at end of period $ 1,775 $ 939 ================================================================================
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For the Three Months For the Six Months Ended June 30, Ended June 30, ---------------------------------------- 2005 2004 2005 2004 -------------------------------------------------------------------------------- North America Net Daily Production Liquids (thousand barrels) U.S. 61 55 59 55 Canada 14 15 15 16 -------------------------------------------------------------------------------- Total liquids 75 70 74 71 Natural gas - dry basis (million cubic feet) U.S. 442 511 448 512 Canada 83 83 83 83 -------------------------------------------------------------------------------- Total natural gas 525 594 531 595 North America Average Prices (excluding hedging activities) (a) Liquids (per barrel) U. S. $48.72 $35.91 $46.60 $33.66 Canada $37.67 $29.89 $38.00 $29.17 Average $46.56 $34.58 $44.85 $32.66 Natural gas (per mcf) U. S. $ 5.91 $ 4.80 $ 5.68 $ 5.20 Canada $ 6.35 $ 5.40 $ 6.02 $ 5.37 Average $ 5.98 $ 4.88 $ 5.74 $ 5.23 -------------------------------------------------------------------------------- North America Average Prices (including hedging activities) (a) Liquids (per barrel) U. S. $48.04 $30.52 $46.39 $29.64 Canada $37.67 $29.89 $38.00 $29.17 Average $46.02 $30.38 $44.68 $29.54 Natural gas (per mcf) U. S. $ 5.89 $ 4.53 $ 6.02 $ 5.34 Canada $ 6.35 $ 5.08 $ 6.02 $ 5.06 Average $ 5.97 $ 4.61 $ 6.02 $ 5.30 -------------------------------------------------------------------------------- (a) Excludes gains/losses on derivative positions not accounted for as hedges and ineffective portions of hedges.
For the Three Months For the Six Months Ended June 30, Ended June 30, ---------------------------------------- 2005 2004 2005 2004 -------------------------------------------------------------------------------- International Net Daily Production (a) Liquids (thousand barrels) Asia 74 61 75 64 Other (b) 28 20 24 20 -------------------------------------------------------------------------------- Total liquids 102 81 99 84 Natural gas - dry basis (million cubic feet) Asia 1,156 891 1,083 885 Other (b) 10 31 10 28 -------------------------------------------------------------------------------- Total natural gas 1,166 922 1,093 913 International Average Prices (c) Liquids (per barrel) Asia $49.77 $34.02 $47.63 $32.66 Other $48.31 $36.01 $47.74 $34.30 Average $49.43 $34.52 $47.66 $33.02 Natural gas (per mcf) Asia $ 3.38 $ 3.02 $ 3.39 $ 2.99 Other $ 5.45 $ 4.01 $ 5.35 $ 4.17 Average $ 3.40 $ 3.03 $ 3.41 $ 3.01 -------------------------------------------------------------------------------- Worldwide Net Daily Production (b) Liquids (thousand barrels) 177 151 173 155 Natural gas - dry basis (million cubic feet) 1,691 1,516 1,624 1,508 Barrels oil equivalent (thousands) 459 404 444 406 Worldwide Average Prices (excluding hedging activities)(d) Liquids (per barrel) $48.18 $34.55 $46.43 $32.86 Natural gas (per mcf) $ 4.20 $ 3.76 $ 4.17 $ 3.89 Worldwide Average Prices (including hedging activities) (d) Liquids (per barrel) $47.94 $32.61 $46.35 $31.41 Natural gas (per mcf) $ 4.20 $ 3.65 $ 4.26 $ 3.92 -------------------------------------------------------------------------------- (a) International production is presented utilizing the economic interest method. (b) Includes proportional interests in production of equity investees of: Liquids - 1 - 1 Natural gas - 20 - 17 Barrels oil equivalent - 5 - 4 (c) International did not have any hedging activities. (d) Excludes gains/losses on derivative positions not accounted for as hedges and ineffective portions of hedges.
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