-----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, ZQ/A671gKQmMKOOgoJQE06cUmEAOwXunsqQX7o6lowUcHjmwYRAKYb+7LUHe2KnS W9WbvIltJoRXf6sckOv7/Q== 0000716039-95-000066.txt : 19950725 0000716039-95-000066.hdr.sgml : 19950725 ACCESSION NUMBER: 0000716039-95-000066 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19950724 ITEM INFORMATION: Other events FILED AS OF DATE: 19950724 SROS: CSX 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: 95555606 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: July 24, 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 July 24, 1995, the following news release was issued: UNOCAL REPORTS $78 MILLION EARNINGS FOR SECOND QUARTER ------------------------------------------------------- Los Angeles, July 24 -- Unocal Corporation today reported second quarter 1995 net earnings of $78 million, or 28 cents per common share, compared with $59 million, or 21 cents per common share, for the same period last year. Total revenues were $2.29 billion versus $2.05 billion a year ago. Excluding the effect of special items (detailed in attached table), Unocal's earnings from operations for the second quarter were $101 million, or 37 cents per common share. This compares with operating earnings of $74 million, or 27 cents per common share, last year. For the first six months of 1995, Unocal's reported net earnings were $152 million, or 55 cents per common share. This compares with a loss of $155 million, or 71 cents per common share, for the same period a year ago. Revenues were $4.2 billion, up from $3.96 billion last year. Adjusting for special items, earnings from operations for the six months were $155 million, up from $145 million last year. Adjusted earnings per common share for the six months were 56 cents, up from 52 cents last year. "Our operating results for the quarter reflect success in our strategic focus areas," said Roger C. Beach, Unocal chairman and chief executive officer. "We had higher earnings from our foreign exploration and production activities, agricultural products and carbon and minerals, while we reduced our administrative and general expense." Beach added, "In our upstream operations, our natural gas production continues to increase, and we reduced production costs. Downstream, sales volumes increased slightly and we lowered our operating and selling expenses." Beach noted that the company's agricultural products business posted significant gains again in the second quarter because of strong commodity prices and strong seasonal demand, particularly in Asia markets. Cash flows from operations in the second quarter, before working capital changes, were $317 million, down from $353 million last year. Capital expenditures for the second quarter were $329 million, up 30 percent from $254 million in the same period a year ago. The higher expenditures reflected spending for reformulated gasoline modifications at our refineries as well as increased development drilling in the Gulf of Mexico. -1- 2 SECOND QUARTER OPERATIONS Worldwide petroleum exploration and production earnings in the second quarter were $105 million, up from $89 million a year ago. Adjusted for special items, earnings from petroleum exploration and production operations for the quarter were $115 million, up from $102 million in the same period a year ago. The company benefitted from higher crude oil prices and increased natural gas production, particularly in the Far East. Worldwide crude oil sales prices for the quarter averaged $16.30 per barrel, up from $13.92 last year. Compared with the same period a year ago, natural gas production increased 3 percent to 1,774 million cubic feet per day, but the average sales price dropped 10 percent to $1.70 per thousand cubic feet. The 76 Products Company -- Unocal's West Coast refining, marketing and transportation unit -- posted a loss of $4 million in the second quarter, compared with earnings of $5 million last year. The second quarter results reflected an improvement from the first three months of 1995 when the refineries were undergoing major maintenance work. However, even with lower operating and selling expenses and slightly higher sales volumes in the second quarter, 76 Products earnings were adversely affected by low product margins in the West Coast markets. Geothermal and power earnings for the quarter were $11 million, up slightly from $9 million a year ago. These results reflected higher earnings from Unocal's new operations in Indonesia, which were partially offset by impact of electrical generating curtailments by the public utility at The Geysers in Northern California. Earnings from diversified businesses - agricultural products, carbon and minerals, real estate and the company's equity interest in various pipelines and The UNO-VEN Company -- were up 77 percent to $69 million in the quarter. Major gains came from strong nitrogen fertilizer sales prices and volumes and improved lanthanide earnings. Excluding special items, earnings from diversified businesses were $64 million in the quarter, up from $39 million last year. Net corporate and unallocated expense -- including administrative and general expense, net interest expense, and environmental and litigation expense -- was $103 million in the second quarter 1995. This compares with expense of $88 million in the same period of 1994. Adjusted for special items, net expense for corporate and unallocated was $80 million, down from $89 million last year. -2- 3 NEWS RELEASE UNOCAL CORPORATION CONDENSED CONSOLIDATED EARNINGS STATEMENT (UNAUDITED)
For the Three Months For the Six Months Ended June 30 Ended June 30 ---------------------------------------------------------- Dollars in millions except per share amounts 1995 1994 (c) 1995 1994 (c) ------------------------------------------------------------------------------------------------------------------------------- Total revenues (a) $ 2,290 $ 2,045 $ 4,196 $ 3,961 Costs and other deductions (a) 2,165 1,935 3,940 3,731 -------------------------------------------------------------- Earnings before income taxes 125 110 256 230 Income taxes 47 51 104 108 -------------------------------------------------------------- Earnings before cumulative effect of accounting change 78 59 152 122 Cumulative effect of accounting changes - - - (277) -------------------------------------------------------------- Net earnings (loss) $ 78 $ 59 $ 152 $ (155) Dividends on preferred stock 9 9 18 18 -------------------------------------------------------------- Net earnings (loss) applicable to common shares $ 69 $ 50 $ 134 $ (173) Earnings per common share: (b) Before cumulative effect of accounting change $ 0.28 $ 0.21 $ 0.55 $ 0.40 Cumulative effect of accounting change - - - (1.11) --------------------------------------------------------------- Net earnings (loss) $ 0.28 $ 0.21 $ 0.55 $ (0.71) (a) Includes consumer excise taxes of $ 228 $ 234 $ 437 $ 457 (b) Based on weighted average common shares outstanding 246 242 245 242 (in millions). (c) Restated for the effect of the accounting policy change recorded in the fourth quarter of 1994.
- ------------------------------------------------------------------------------- CONDENSED CONSOLIDATED BALANCE SHEET (UNAUDITED)
June 30 Dec. 31 ---------------------- Millions of dollars 1995 (a) 1994 ----------------------------------------------------------------------------------------------------------------------------- ASSETS Cash and cash equivalents $ 130 $ 148 Other current assets 1,345 1,380 Investments and long-term receivables 1,081 895 Properties - net 6,894 6,823 Other assets 119 91 --------------------- Total assets $ 9,569 $ 9,337 LIABILITIES Current Liabilities $ 1,070 $ 1,257 Long-term debt and capital lease obligations 3,771 3,461 Deferred Income taxes 603 643 Other deferred credits and liabilities 1,219 1,161 --------------------- Total liabilities 6,663 6,522 STOCKHOLDERS' EQUITY 2,906 2,815 --------------------- Total liabilities and stockholders' equity $ 9,569 $ 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".
-3- 4 NEWS RELEASE UNOCAL CORPORATION CONDENSED CONSOLIDATED CASH FLOWS (UNAUDITED)
For the Three Months For the Six Months Ended June 30 Ended June 30 --------------------------------------------- Millions of dollars 1995 1994 1995 1994 ---------------------------------------------------------------------------------------------------------------------------- CASH FLOWS FROM OPERATING ACTIVITIES Cash flow from operations $ 317 $ 353 $ 553 $ 703 Working capital and other changes related to operations (73) (113) (195) (175) ----------------------------------------------------------- Net cash provided by operating activities 244 240 358 528 CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditures (includes dry hole costs) (329) (254) (596) (518) Proceeds from asset sales 34 17 128 55 ----------------------------------------------------------- Net cash used in investing activities (295) (237) (468) (463) CASH FLOWS FROM FINANCING ACTIVITIES Long-term borrowings 446 185 712 547 Reduction of long-term debt and capital lease obligations (336) (207) (536) (570) Dividends paid (59) (58) (117) (115) Other 17 10 33 18 ----------------------------------------------------------- Net cash provided by (used in) financing activities 68 (70) 92 (120) Increase (decrease) in cash and cash equivalents 17 (67) (18) (55) Cash and cash equivalents at beginning of period 113 217 148 205 ----------------------------------------------------------- Cash and cash equivalents at end of period $ 130 $ 150 $ 130 $ 150
- ------------------------------------------------------------------------------- SELECTED FINANCIAL DATA
For the Three Months For the Six Months Ended June 30 Ended June 30 ------------------------------------------------------------- 1995 1994 1995 1994 ------------------------------------------------------------- Exploration expense United States $ 10 $ 6 $ 20 $ 9 Foreign 15 22 33 44 Geothermal 1 1 2 1 Total $ 26 $ 29 $ 55 $ 54 Dry hole costs United States $ 4 $ 6 $ 4 $ 21 Foreign 11 4 15 13 Total $ 15 $ 10 $ 19 $ 34 Depreciation, Depletion & Amortization $ 239 $ 252 $ 467 $ 509
-4- 5 NEWS RELEASE UNOCAL CORPORATION OPERATING HIGHLIGHTS (UNAUDITED)
For the Three Months For the Six Months Ended June 30 Ended June 30 ---------------------------------------------------- 1995 1994 1995 1994 - ----------------------------------------------------------------------------------------------------------------------- Net daily production (a) Crude oil and condensate (thousand barrels): United States 124.3 139.8 128.0 140.9 Foreign: Far East 85.1 86.3 86.2 81.9 Other 30.1 37.6 30.6 37.7 ----------------------------------------------------- Total Foreign 115.2 123.9 116.8 119.6 ---------------------------------------------------------------------------------------------------------------------- Worldwide 239.5 263.7 244.8 260.5 Natural gas (million cubic feet): United States 1,128 1,119 1,126 1,118 Foreign: Far East 602 574 608 583 Other 44 33 41 64 ----------------------------------------------------- Total Foreign 646 607 649 647 - ----------------------------------------------------------------------------------------------------------------------- Worldwide 1,774 1,726 1,775 1,765 Natural gas liquids (thousand barrels) 21.9 21.9 21.7 20.6 Geothermal (million kilowatt-hours) 14.9 20.7 15.2 20.0 Input to crude oil processing units (thousand barrels daily)(b) 210 230 200 226 Sales of petroleum products (thousand barrels daily) (b) 242 237 242 233 Average sales prices Crude oil and condensate (per barrel): United States $ 15.96 $ 13.59 $ 15.33 $ 12.03 Foreign Far East $ 16.77 $ 14.39 $ 16.49 $ 13.83 Other $ 16.77 $ 14.42 $ 16.19 $ 13.28 Total Foreign $ 16.77 $ 14.40 $ 16.39 $ 13.61 - ---------------------------------------------------------------------------------------------------------------------- Worldwide $ 16.30 $ 13.92 $ 16.39 $ 12.64 Natural gas (per mcf): United States $ 1.57 $ 1.84 $ 1.51 $ 1.96 Foreign Far East $ 2.00 $ 1.99 $ 1.98 $ 2.00 Other $ 1.00 $ 1.84 $ 1.10 $ 1.80 Total Foreign $ 1.93 $ 1.99 $ 1.92 $ 1.98 - ---------------------------------------------------------------------------------------------------------------------- Worldwide $ 1.70 $ 1.89 $ 1.66 $ 1.97 (a)Includes production sharing agreements on a gross basis. (b)Restated 1994 to exclude 50% of the volumes of The UNO-VEN Company.
-5- 6 UNOCAL CORPORATION NEWS RELEASE (Unaudited)
REPORTED EARNINGS BY BUSINESS SEGMENT 2nd Quarter of 1995 2nd Quarter of 1994 --------------------------------------------- Millions of dollars Before-tax After-tax Before-tax After -tax ------------------------------------------------------------------------------------------------- PETROLEUM EXPLORATION & PRODUCTION: United States $70 $44 $89 $55 Foreign 111 61 72 34 Refining & Marketing: 76 Products Company (7) (4) 8 5 Other 0 0 6 5 GEOTHERMAL & POWER OPERATIONS 18 11 16 9 DIVERSIFIED BUSINESSES: Agricultural Products 58 36 15 10 Carbon & Minerals 17 10 10 6 Pipelines 21 18 23 18 Other 8 5 8 5 CORPORATE & UNALLOCATED Administrative & General (38) (23) (45) (28) Interest expense - net (67) (45) (67) (44) Environmental & Litigation expense (48) (30) (20) (14) Other (18) (5) (4) (2) ----------------------------------------------------------------------------------------------- Total $125 $78 $111 $59 ================================================================================================ 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 the development and sale of real estate assets and equity earnings from a refining and marketing joint venture.
-6- 7 UNOCAL CORPORATION NEWS RELEASE (Unaudited) REPORTED EARNINGS BY BUSINESS SEGMENT
First Six Months of 1995 First Six Months of 1994 --------------------------------------------------- Millions of dollars Before-tax After -tax Before-tax After -tax ------------------------------------------------------------------------------------------------------- PETROLEUM Exploration & Production: United States $164 $102 $146 $90 Foreign 217 112 165 80 Refining & Marketing: 76 Products Company (38) (23) 34 21 Other 1 1 9 8 GEOTHERMAL & POWER OPERATIONS 27 15 26 14 DIVERSIFIED BUSINESSES: Agricultural Products 85 53 20 13 Carbon & Minerals 41 28 30 20 Pipelines 44 36 42 33 Other 11 7 11 7 CORPORATE & UNALLOCATED Administrative & General (78) (48) (84) (52) Interest expense - net (131) (87) (135) (90) Environmental & Litigation expense (76) (47) (54) (35) Other (11) 3 20 13 ------------------------------------------------------------------------------------------------ Earnings before cumulative effect of accounting change 256 152 230 122 Cumulative effect of accounting change 0 0 (447) (277) ------------------------------------------------------------------------------------------------ Total $256 $152 ($217) ($155) ================================================================================================= -7-
8 UNOCAL CORPORATION NEWS RELEASE SUPPLEMENT (Unaudited) SPECIAL ITEMS
2nd Quarter of 1995 2nd Quarter of 1994 ------------------------------------------ Dollars in millions except per share amounts Before-tax After-tax Before -After-tax ------------------------------------------------------------------------------------------ Reported earnings (loss) $125 $78 $111 $59 Less: Special items EXPLORATION & PRODUCTION UNITED STATES Asset Sales (4) (2) (14) (9) Write-down of investment and provision for abandonment and remediation of the Guadalupe oil field 0 0 (6) (4) Write-down of assets (13) (8) 0 0 FOREIGN Asset Sales 1 0 0 0 GEOTHERMAL Asset Sales 7 5 0 0 76 PRODUCTS Asset Sales 0 0 1 1 Write-down of assets 0 0 (6) (4) DIVERSIFIED BUSINESSES Agricultural Products Asset Sales 6 4 0 0 Other Asset Sales 2 1 0 0 CORPORATE & UNALLOCATED Asset Sales 0 0 3 2 Environmental provision (22) (14) (1) (1) Litigation provision (14) (8) 0 0 Write-down of Assets (1) (1) 0 0 -------------------------------------------------------------------------------------- Total special items (38) (23) (23) (15) -------------------------------------------------------------------------------------- ADJUSTED EARNINGS $163 $101 $134 $74 Less: Dividends on preferred stock 9 9 -------------------------------------------------------------------------------------- ADJUSTED NET EARNINGS APPLICABLE TO COMMON SHARES 92 65 -------------------------------------------------------------------------------------- ADJUSTED NET EARNINGS PER COMMON SHARE $0.37 $0.27
-8- 9 UNOCAL CORPORATION NEWS RELEASE SUPPLEMENT (Unaudited) SPECIAL ITEMS
First Six Months of 1995 First Six Months of 1994 ------------------------------------------------------ Dollars in millions except per share amounts Before-tax After-tax Before -tax After-tax ----------------------------------------------------------------------------------------------------------------------- Reported earnings (loss) $256 $152 ($217) ($155) Less: Special items EXPLORATION & PRODUCTION UNITED STATES Asset Sales 9 6 (2) (2) Write-down of investment and provision for abandonment and remediation of the Guadalupe oil field 0 0 (43) (27) Write-down of assets (13) (8) 0 0 FOREIGN Asset Sales 5 3 0 0 GEOTHERMAL Asset Sales 7 5 0 0 76 PRODUCTS Asset Sales 0 0 1 1 Write-down of assets 0 0 (6) (4) DIVERSIFIED BUSINESSES Agricultural Products Asset Sales 6 4 0 0 Other Asset Sales 2 1 0 0 CORPORATE & UNALLOCATED Asset Sales 29 18 5 3 Environmental provision (29) (18) (1) (1) Litigation provision (20) (12) (26) (17) Write-down of assets (3) (2) 0 0 Mesa settlement 0 0 38 24 Cumulative effect of accounting change 0 0 (447) (277) -------------------------------------------------------------------------------------------------------------------- Total special items (7) (3) (481) (300) -------------------------------------------------------------------------------------------------------------------- ADJUSTED EARNINGS $263 $155 $264 $145 Less: Dividends on preferred stock 18 18 -------------------------------------------------------------------------------------------------------------------- ADJUSTED NET EARNINGS APPLICABLE TO COMMON SHARES 137 127 -------------------------------------------------------------------------------------------------------------------- ADJUSTED NET EARNINGS PER COMMON SHARE $0.56 $0.52
-9- 10 UNOCAL CORPORATION NEWS RELEASE (Unaudited) EARNINGS BY BUSINESS SEGMENT EXCLUDING SPECIAL ITEMS
2nd Quarter of 1995 2nd Quarter of 1994 -------------------------------------------- Millions of dollars Before-tax After-tax Before-tax After-tax ------------------------------------------------------------------------------------------------ PETROLEUM Exploration & Production: United States $87 $54 $109 $68 Foreign 110 61 72 34 Refining & Marketing: 76 Products Company (7) (4) 13 8 Other 0 0 6 5 GEOTHERMAL & POWER OPERATIONS 11 6 16 9 DIVERSIFIED BUSINESSES: Agricultural Products 52 32 15 10 Carbon & Minerals 17 10 10 6 Pipelines 21 18 23 18 Other 6 4 8 5 CORPORATE & UNALLOCATED Administrative & General (38) (23) (45) (28) Interest expense - net (67) (45) (67) (44) Environmental & Litigation expense (12) (8) (19) (13) Other (17) (4) (7) (4) - --------------------------------------------------------------------------------------------------- Total $163 $101 $134 $74 ===================================================================================================
-10- 11 UNOCAL CORPORATION NEWS RELEASE (UNAUDITED) EARNINGS BY BUSINESS SEGMENT EXCLUDING SPECIAL ITEMS
First Six Months of 1995 First Six Months of 1994 --------------------------------------------------------- Millions of dollars Before-tax After-tax Before-tax After -tax - -------------------------------------------------------------------------------------------------------------- PETROLEUM Exploration & Production: United States $168 $104 $191 $119 Foreign 212 109 165 80 Refining & Marketing: 76 Products Company (38) (23) 39 24 Other 1 1 9 8 GEOTHERMAL & POWER OPERATIONS 20 10 26 14 DIVERSIFIED BUSINESSES: Agricultural Products 79 49 20 13 Carbon & Minerals 41 28 30 20 Pipelines 44 36 42 33 Other 9 6 11 7 CORPORATE & UNALLOCATED Administrative & General (78) (48) (84) (52) Interest expense - net (131) (87) (135) (90) Environmental & Litigation expense (27) (17) (27) (17) Other (37) (13) (23) (14) ----------------------------------------------------------------------------------------------------- Total $263 $155 $264 $145 =====================================================================================================
-11- 12 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. 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: July 24, 1995 By: /s/ CHARLES S. MCDOWELL - ------------------------ ------------------------------ Charles S. McDowell, Vice President and Comptroller -12- -----END PRIVACY-ENHANCED MESSAGE-----