-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, sH8UQq5aeTUKhEoKASvW9n+bPUC3vBMKaf+qWs79GRj/k5izTbUDRWMnCLZyxXB2 +U7Rb6sFPu0y6Q0heSqhYw== 0000716039-95-000052.txt : 19950427 0000716039-95-000052.hdr.sgml : 19950427 ACCESSION NUMBER: 0000716039-95-000052 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19950426 ITEM INFORMATION: Other events FILED AS OF DATE: 19950426 SROS: MSE SROS: NYSE SROS: PSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: UNOCAL CORP CENTRAL INDEX KEY: 0000716039 STANDARD INDUSTRIAL CLASSIFICATION: PETROLEUM REFINING [2911] IRS NUMBER: 953825062 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-08483 FILM NUMBER: 95531528 BUSINESS ADDRESS: STREET 1: 1201 W FIFTH ST CITY: LOS ANGELES STATE: CA ZIP: 90017 BUSINESS PHONE: 2139777600 8-K 1 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934 Date of Report: April 26, 1995 UNOCAL CORPORATION ------------------ (Exact name of registrant as specified in its charter) Delaware 1-8483 95-3825062 - ----------------------------------------------------------------------------- (State or other jurisdiction of (Commission (I.R.S. Employer incorporation or organization) File Number) Identification No.) 1201 West Fifth Street, Los Angeles, California 90017 - ----------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (213) 977-7600 ITEM 5. OTHER EVENTS On April 26, 1995, the following news release was issued: Los Angeles, April 26 -- Unocal Corporation today reported first quarter 1995 net earnings of $74 million, or 27 cents per common share. This compares with a loss of $214 million, or 92 cents per common share, for the same period a year ago. Excluding the effect of special adjustments (detailed in the attached table), Unocal's earnings for the quarter were $54 million, or 19 cents per common share, compared with $71 million, or 26 cents per common share, the year before. Roger C. Beach, Unocal chief executive officer, said the first quarter results reflected increased crude oil and nitrogen fertilizer prices, which were offset by lower natural gas prices and losses in the company's West Coast refining and marketing operations. "We maintained solid earnings in our exploration and production operations because of higher crude oil prices, lower domestic operating costs and increased natural gas, crude oil and condensate production in the Far East," Beach said. "On the downstream side, though, our refining and marketing earnings were buffeted by lower product margins and reduced crude oil runs because of major turnarounds at our California refineries in the quarter. "As we head into the second quarter, the spot price for both crude oil and natural gas continues to rise, which has a significant impact on earnings. We have also completed the major turnarounds at our Los Angeles Refinery, and we can hopefully look forward to improved margins in our downstream operations." Beach also noted that the company's agricultural products business unit posted significant gains from continued higher prices for ammonia and urea as well as increased domestic and export sales volumes. Total revenues for the quarter were $1.96 billion, compared with $1.92 billion in the first quarter 1994. Cash flow from operations, before working capital changes, was $236 million for the quarter, compared with $350 million last year. The first quarter 1994 cash flow included the benefit from a $38 million settlement of a lawsuit in favor of Unocal, while the first quarter 1995 reflected significantly lower refining and marketing operating earnings from 76 Products Company. Capital expenditures for the first quarter were $267 million, compared with $264 million a year ago. -1- 2 Beach added that the company revised its financial reporting of business segments to reflect the reorganization of the company last year. "By changing our reporting segments, we will present a clearer picture of performance for each of our key business units and better reflect how Unocal's business is run," Beach said. First Quarter Operations - ------------------------ Worldwide petroleum exploration and production earnings were $109 million, up 35 percent from $81 million last year. Adjusted for special items, earnings from petroleum exploration and production operations were $98 million, compared with $97 million in the first quarter a year ago. In the first quarter, the company continued its emphasis on controlling operating costs while recording lower exploration expense. These positive factors were offset by the net effect of lower natural gas prices and higher crude oil prices. Worldwide crude oil production was lower, reflecting the impact of the sale of certain properties in the Central U.S. and coastal California during 1994. Worldwide crude oil sales prices for the quarter averaged $15.22 per barrel, up from $11.32 per barrel last year. Natural gas production was down slightly from a year ago when the company had a one-time gas draw-down from a field in Canada. Worldwide natural gas sales prices for the quarter averaged $1.62 per thousand cubic feet (mcf), down from $2.04 per mcf last year. The 76 Products Company, Unocal's West Coast refining and marketing unit, posted a loss of $19 million during the quarter, compared with earnings of $16 million a year ago. Maintenance of major refinery processing equipment reduced the average input to crude oil processing units. Sales of petroleum products for the quarter were 243,000 barrels per day, up 6 percent from a year ago. Geothermal and power earnings were $4 million, compared with $5 million a year ago. Earnings from Indonesian operations were offset by the effect of curtailments at The Geysers in Northern California. Earnings from diversified businesses -- agricultural products, carbon and minerals, and real estate and the company's equity interest in various pipelines and The UNO-VEN Company -- were up 68 percent to $52 million in the quarter. Agricultural products enjoyed strong gains due to continued increases in prices for urea and ammonia. Net corporate and unallocated expense -- including administrative and general expense, net interest expense and environmental and litigation expense -- was $73 million, unchanged from last year. Beach noted that administrative and general expense was essentially unchanged from last year. "We expect to see reduced expense in the coming quarters as we realize the impact of the staff cuts and other cost- reduction activities that we've put in place," he said. -2- 3
UNOCAL CORPORATION NEWS RELEASE EARNINGS BY BUSINESS SEGMENT (UNAUDITED) For Three Months For Three Months Ended March 31, 1995 Ended March 31, 1994 Millions of dollars Before-tax After -tax Before-tax After -tax - -------------------------------------------------------------------------------------------------------------- Petroleum Exploration & Production: United States $94 $58 $57 $35 Foreign 106 51 93 46 Refining & Marketing: 76 Products Company (31) (19) 26 16 Other 1 1 3 3 Geothermal & Power Operations 9 4 10 5 Diversified Businesses: Agricultural Products 27 17 5 3 Carbon & Minerals 24 18 20 14 Pipelines 23 18 19 15 Other (1) (1) (1) (1) Corporate & Unallocated Administrative & General (40) (25) (39) (24) Interest expense - net (64) (42) (68) (46) Environmental & Litigation expense (28) (17) (34) (21) Other 11 11 29 18 ------------------------------------------------------------------------------------------------------------------- Earnings before cumulative effect of accounting change 131 74 120 63 Cumulative effect of accounting change 0 0 (447) (277) ------------------------------------------------------------------------------------------------------------------- Total $131 $74 ($327) ($214) ==================================================================================================================== The Exploration & Production segment is engaged in the exploration for, and the production of crude oil, condensate, natural gas liquids and natural gas. This segment is also responsible for the marketing of natural gas. Refining & Marketing: 76 Products Company - principally is responsible for the company's West Coast petroleum refining operations, marketing and transportation of refined petroleum products. Other - primarily includes marketing of crude oil and natural gas liquids. The Geothermal & Power segment is involved in the exploration for, and the production and sale of geothermal resources. Diversified Businesses: Agricultural Products - manufactures and markets nitrogen-based fertilizers for wholesale markets. Carbon and Minerals - produces and markets petroleum cokes and specialty minerals. Pipelines - principally includes equity earnings from affiliated pipeline companies. Other - includes real estate operations and equity earnings from a refining and marketing joint venture.
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UNOCAL CORPORATION 1995 EARNINGS NEWS RELEASE SUPPLEMENT SPECIAL ADJUSTMENTS (UNAUDITED) For the Three Months For the Three Months Ended March 31, 1995 Ended March 31, 1994 -------------------------------------------------- Dollars in millions except per share amount Before -tax After-tax Before -tax After-tax - -------------------------------------------------------------------------------------------------------------------------- Reported earnings (loss) $131 $74 ($327) ($214) Less: Special items Exploration & Production United States Asset Sales 13 8 12 7 Write-down of investment and provision for abandonment and remediation of the Guadalupe oil field 0 0 (37) (23) Foreign Asset Sales 4 3 0 0 Diversified Businesses Other Asset Sales 3 2 2 1 Corporate & Unallocated Asset Sales 26 16 0 0 Environmental provision (7) (4) 0 0 Litigation provision (6) (4) (27) (17) Other (2) (1) 0 0 Mesa settlement 0 0 38 24 Cumulative effect of accounting change 0 0 (447) (277) - -------------------------------------------------------------------------------------------------------------------------- Total special items 31 20 (459) (285) - -------------------------------------------------------------------------------------------------------------------------- Adjusted earnings $100 $54 $132 $71 Less: Dividends on preferred stock 9 9 - -------------------------------------------------------------------------------------------------------------------------- Adjusted net earnings applicable to common shares 45 62 - -------------------------------------------------------------------------------------------------------------------------- Adjusted net earnings per common share $0.19 $0.26
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UNOCAL CORPORATION NEWS RELEASE EARNINGS BY BUSINESS SEGMENT EXCLUDING SPECIAL ADJUSTMENTS (Unaudited) For Three Months For Three Months Ended March 31, 1995 Ended March 31, 1994 -------------------- ----------------------- Millions of dollars Before-tax After -tax Before-tax After -tax - -------------------------------------------------------------------------------------------------------- Petroleum Exploration & Production: United States $81 $50 $82 $51 Foreign 102 48 93 46 Refining & Marketing: 76 Products Company (31) (19) 26 16 Other 1 1 3 3 Geothermal & Power Operations 9 4 10 5 Diversified Businesses: Agricultural Products 27 17 5 3 Carbon & Minerals 24 18 20 14 Pipelines 23 18 19 15 Other (4) (3) (3) (2) Corporate & Unallocated Administrative & General (40) (25) (39) (24) Interest expense - net (64) (42) (68) (46) Environmental & Litigation expense (15) (9) (7) (4) Other (13) (4) (9) (6) - --------------------------------------------------------------------------------------------------------- Total $100 $54 $132 $71 =========================================================================================================
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NEWS RELEASE UNOCAL CORPORATION CONDENSED CONSOLIDATED EARNINGS STATEMENT (UNAUDITED) For the Three Months Ended March 31 -------------------- Dollars in millions except per share amounts 1995 1994 (c) - ------------------------------------------------------------------------------------------------------------------------- Total revenues (a) $ 1,960 $ 1,916 Costs and other deductions (a) 1,829 1,796 ------------------------- Earnings before income taxes 131 120 Income taxes 57 57 -------------------------- Earnings before cumulative effect of accounting change 74 63 Cumulative effect of accounting changes - (277) -------------------------- Net earnings (loss) $ 74 $ (214) Dividends on preferred stock 9 9 -------------------------- Net earnings (loss) applicable to common shares $ 65 $ (223) Earnings per common share: (b) Before cumulative effect of accounting change $ 0.27 $ 0.19 Cumulative effect of accounting change - (1.11) -------------------------- Net earnings (loss) $ 0.27 $ (0.92) (a)Includes consumer excise taxes of $ 210 $ 222 (b)Based on weighted average common shares outstanding (in millions) 245 242 (c)Restated for the effect of the accounting policy change recorded in the fourth quarter of 1994.
- ------------------------------------------------------------------------------------------------------------------------- CONDENSED CONSOLIDATED BALANCE SHEET (UNAUDITED) March 31 Dec. 31 --------------------- Millions of dollars 1995 (a) 1994 - --------------------------------------------------------------------------------------------------------------------------- Assets Cash and cash equivalents $ 113 $ 148 Other current assets 1,321 1,380 Investments and long-term receivables 1,063 895 Properties - net 6,834 6,823 Other assets 84 91 -------------------------- Total assets $ 9,415 $ 9,337 Liabilities Current liabilities $ 1,084 $ 1,257 Long-term debt and capital lease obligations 3,664 3,461 Deferred income taxes 633 643 Other deferred credits and liabilities 1,176 1,161 -------------------------- Total liabilities $ 6,557 $ 6,522 Stockholders' Equity 2,858 2,815 -------------------------- Total liabilities and stockholders' equity $ 9,415 $ 9,337 (a) Certain amounts have been reclassified to conform to requirements of SFAS No. 119, "Disclosure about Derivative Financial Instruments and Fair Value of Financial Instruments".
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NEWS RELEASE UNOCAL CORPORATION CONDENSED CONSOLIDATED CASH FLOWS (UNAUDITED) For the Three Months Ended March 31 -------------------- Millions of dollars 1995 1994 - ------------------------------------------------------------------------------------------------------------------------- Cash flows from operating activities Cash flow from operations $ 236 $ 350 Working capital and other changes related to operations (122) (62) -------------------------- Net cash provided by operating activities $ 114 $ 288 Cash flows from investing activities Capital expenditures (includes dry hole costs) (267) (264) Proceeds from asset sales 94 38 -------------------------- Net cash used in investing activities $ (173) $ (226) Cash flows from financing activities Long-term borrowings 266 362 Reduction of long-term debt and capital lease obligations (200) (363) Dividends paid (58) (57) Other 16 8 -------------------------- Net cash provided by (used in) financing activities $ 24 $ (50) Increase (decrease) in cash and cash equivalents (35) 12 Cash and cash equivalents at beginning of year 148 205 -------------------------- Cash and cash equivalents at end of period $ 113 $ 217
SELECTED FINANCIAL DATA For the Three Months Ended March 31 -------------------------- Millions of dollars 1995 1994 - ------------------------------------------------------------------------------------------------------------------------- Exploration expense Oil and gas United States $ 10 $ 3 Foreign 18 22 Geothermal 1 - -------------------------- Total $ 29 $ 25 Dry hole costs United States $ - $ 15 Foreign 4 9 -------------------------- Total $ 4 $ 24 Depreciation, Depletion & Amortization $ 228 $ 257
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NEWS RELEASE UNOCAL CORPORATION OPERATING HIGHLIGHTS (UNAUDITED) For the Three Months Ended March 31 -------------------------- 1995 1994 - ------------------------------------------------------------------------------------------------------------------------- Net daily production (a) Crude oil and condensate (thousand barrels): United States 131.2 141.4 Foreign: Far East 87.5 77.3 Other 31.1 38.3 -------------------------- Total Foreign 118.6 115.6 - ------------------------------------------------------------------------------------------------------------------------- Worldwide 249.8 257.0 Natural gas (million cubic feet): United States 1,120 1,118 Foreign: Far East 615 588 Other 33 98 -------------------------- Total Foreign 648 686 - ------------------------------------------------------------------------------------------------------------------------- Worldwide 1,768 1,804 Natural gas liquids (thousand barrels) 22.0 19.4 Geothermal (million kilowatt-hours) 15.6 19.6 Input to crude oil processing units (thousand barrels daily) 190 223 Sales of petroleum products (thousand barrels daily) (b) 243 230 Average sales prices Crude oil and condensate (per barrel): United States $ 14.74 $ 10.48 For Far East $ 16.19 $ 13.15 Other $ 15.62 $ 12.15 Total Foreign $ 15.98 $ 12.72 - ------------------------------------------------------------------------------------------------------------------------- Worldwide $ 15.22 $ 11.32 Natural gas (per mcf): United States $ 1.45 $ 2.08 For Far East $ 1.96 $ 2.01 Other $ 1.22 $ 1.79 Total Foreign $ 1.92 $ 1.97 - ------------------------------------------------------------------------------------------------------------------------- Worldwide $ 1.62 $ 2.04 (a)Includes production sharing agreements on a gross basis. (b)Restated 1994 to exclude 50% of the volumes of The UNO-VEN Company. -8-
9 SIGNATURE Pursuant to the requirement 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) Dated: April 26, 1995 By: CHARLES S. MCDOWELL - ------------------------ ------------------------------ Charles S. McDowell, Vice President and Comptroller -9- -----END PRIVACY-ENHANCED MESSAGE-----