-----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, Iv+8c4wlFUZQRJ8lwPi/k+S12vq04MOX8WxWN3DuwpK6e6M7NkooHzSuwvrZ+ie3 EjVJ3GEytX+KstGXk6Kipg== 0000716039-95-000075.txt : 19951027 0000716039-95-000075.hdr.sgml : 19951027 ACCESSION NUMBER: 0000716039-95-000075 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19951026 ITEM INFORMATION: Other events FILED AS OF DATE: 19951026 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: 95584434 BUSINESS ADDRESS: STREET 1: 1201 W FIFTH ST CITY: LOS ANGELES STATE: CA ZIP: 90017 BUSINESS PHONE: 2139777600 8-K 1 3RD QUARTER 1995 EARNINGS NEWS RELEASE 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: October 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 October 26, 1995, the following news release was issued: UNOCAL REPORTS $59 MILLION EARNINGS FOR THIRD QUARTER Unocal Corporation today reported third-quarter 1995 net earnings of $59 million, or 20 cents per common share, down 16 percent from $70 million, or 25 cents per common share for the third quarter 1994. Total revenues were nearly $2.01 billion, down slightly from $2.02 billion for the same quarter last year. Earnings from operations for the three months ended September 30, 1995, excluding special items (detailed in the attached tables) were $50 million or 17 cents per common share. This compares with $69 million, or 25 cents per common share, for the third quarter 1994. "We've focused on controlling and reducing costs to help counter the effect of lower natural gas prices and crude oil production and very low refined product margins," said Roger C. Beach, Unocal chairman and chief executive officer. Beach added that Unocal's natural gas production from the Gulf of Mexico, one of the company's key operating areas, increased by 5 percent over the level of a year ago in spite of storm related curtailments late in the third quarter. "This increase was offset by lower crude oil production that reflected the sale of various domestic producing properties and the natural production decline of fields in California and the central U.S." Beach noted 76 Products Company had its first positive quarter for the year, helped in part by an increase in product sales volumes and lower operating and selling expenses. "We've nearly completed the refinery modifications needed to manufacture California reformulated gasoline, and our capital costs are going to total less than $400 million, compared with earlier estimates of $450 million," he said. The company's third quarter earnings from agricultural products reflected a seasonal downturn and costs associated with the start up of the Kennewick, Wash., fertilizer manufacturing plant, which will begin operations in the first quarter 1996. "The start-up of this plant will give us additional capacity to meet demand in the Pacific Rim at the beginning of the growing season next year," Beach said. Prices for ammonia and urea products remain high, compared with a year ago. The company's reported earnings for the third quarter included a one-time benefit resulting from a $34 million lawsuit settlement to recover lease bonus and rentals relating to Outer Continental Shelf leases offshore Florida and Alaska. 1 For the nine months ended September 30, 1995, net earnings were $211 million or 75 cents per common share. This compares with a loss of $85 million, or 46 cents per common share, for the same period 1994. Year-to-date revenues were $6.2 billion, up from $5.98 billion last year. Earnings from operations for the nine months, excluding special items (detailed in the attached tables), were $205 million, down 4 percent from $214 million last year. Adjusted earnings per common share for the nine months were 72 cents, down from 77 cents last year. 2 NEWS RELEASE UNOCAL CORPORATION CONDENSED CONSOLIDATED EARNINGS STATEMENT (UNAUDITED)
For the Three Months For the Nine Months Ended September 30 Ended September 30 ---------------------------------------------------- Dollars in millions except per share amounts 1995 1994 (c) 1995 1994 (c) - ------------------------------------------------------------------------------------------------------------------------------------ Total revenues (a) .................................................... $ 2,005 $ 2,020 $ 6,201 $ 5,981 Costs and other deductions (a) ........................................ 1,899 1,883 5,839 5,614 --------------------------------------------------- Earnings before income taxes .......................................... 106 137 362 367 Income taxes .......................................................... 47 67 151 175 -------------------------------------------------- Earnings before cumulative effect of accounting change ................ 59 70 211 192 Cumulative effect of accounting change ................................ -- -- -- (277) --------------------------------------------------- Net earnings (loss) ................................................... $ 59 $ 70 $ 211 $ (85) Dividends on preferred stock .......................................... 9 9 27 27 --------------------------------------------------- Net earnings (loss) applicable to common shares ....................... $ 50 $ 61 $ 184 $ (112) Earnings (loss) per common share: (b) Before cumulative effect of accounting change ................. $ 0.20 $ 0.25 $ 0.75 $ 0.68 Cumulative effect of accounting change ........................ -- -- -- (1.14) --------------------------------------------------- Net earnings (loss) ................................................... $ 0.20 $ 0.25 $ 0.75 $ (0.46) (a) Includes consumer excise taxes of $ 228 $ 229 $ 665 $ 686 (b) Based on weighted average common shares outstanding (in millions) 247 243 246 242 (c) Restated for the effect of the accounting policy change recorded in the fourth quarter of 1994.
- ------------------------------------------------------------------------------- CONDENSED CONSOLIDATED BALANCE SHEET (UNAUDITED)
Sep. 30 Dec. 31 -------------------------------- Millions of dollars 1995 (a) 1994 - ------------------------------------------------------------------------------------------------------------------------------------ Assets Cash and cash equivalents .............................................................. $ 168 $ 148 Other current assets ................................................................... 1,373 1,380 Investments and long-term receivables .................................................. 1,083 895 Properties - net ....................................................................... 6,967 6,823 Other assets ........................................................................... 142 91 ---------------------------- Total assets ................................................................ $9,733 $9,337 Liabilities Current Liabilities .................................................................... $1,129 $1,257 Long-term debt and capital lease obligations ........................................... 3,895 3,461 Deferred Income taxes .................................................................. 586 643 Other deferred credits and liabilities ................................................. 1,190 1,161 ---------------------------- Total liabilities ........................................................... 6,800 6,522 Stockholders' Equity ................................................................... 2,933 2,815 ---------------------------- Total liabilities and stockholders' equity .................................. $9,733 $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 NEWS RELEASE UNOCAL CORPORATION CONDENSED CONSOLIDATED CASH FLOWS (UNAUDITED)
For the Three Months For the Nine Months Ended September 30 Ended September 30 ---------------------------------------------------------- Millions of dollars 1995 1994 1995 1994 - ------------------------------------------------------------------------------------------------------------------------------------ Cash flows from operating activities Cash flow from operations ......................................... $ 309 $ 331 $ 862 $ 1,034 Working capital and other changes related to operations ........... 9 (4) (186) (179) ------------------------------------------------- Net cash provided by operating activities ................. 318 327 676 855 Cash flows from investing activities Capital expenditures (includes dry hole costs) ................... (371) (321) (967) (839) Proceeds from asset sales ......................................... 2 81 130 136 ------------------------------------------------- Net cash used in investing activities ..................... (369) (240) (837) (703) Cash flows from financing activities Net increase (decrease) in long-term debt and capital lease obligations .................................... 129 -- 305 (23) Dividends paid .................................................... (57) (57) (174) (172) Other ............................................................. 17 13 50 31 ------------------------------------------------- Net cash provided by (used in) financing activities ....... 89 (44) 181 (164) Increase (decrease) in cash and cash equivalents ........................... 38 43 20 (12) Cash and cash equivalents at beginning of period ........................... 130 150 148 205 ------------------------------------------------- Cash and cash equivalents at end of period ................................. $ 168 $ 193 $ 168 $ 193
- -------------------------------------------------------------------------------- SELECTED FINANCIAL DATA
For the Three Months For the Nine Months Ended September 30 Ended September 30 ---------------------------------------------------------- 1995 1994 1995 1994 ---------------------------------------------------------- Exploration expense Oil & Gas United States ................................. $ 6 $ 6 $ 26 $ 15 Foreign ....................................... 24 18 57 62 Geothermal ............................................ 0 1 2 2 ------------------------------------------------------ Total ......................................... $ 30 $ 25 $ 85 $ 79 Dry hole costs Oil & Gas United States ................................. $ 23 $ 16 $ 27 $ 37 Foreign ....................................... 6 11 19 24 Geothermal ............................................ 2 3 4 3 ------------------------------------------------------- Total ......................................... $ 31 $ 30 $ 50 $ 64 Depreciation, Depletion & Amortization ......................... $237 $220 $704 $729
4 NEWS RELEASE UNOCAL CORPORATION OPERATING HIGHLIGHTS (UNAUDITED)
For the Three Months For the Nine Months Ended September 30 Ended September 30 --------------------------------------------------- 1995 1994 1995 1994 - ------------------------------------------------------------------------------------------------------------------------------------ Net daily production (a) Crude oil and condensate (thousand barrels): United States ............................................. 123.6 135.8 126.4 139.1 Foreign: Far East ............................................. 81.9 92.2 84.6 85.3 Other ................................................ 29.6 33.8 30.3 36.4 --------------------------------------------------- Total Foreign 111.5 126.0 114.9 121.7 --------------------------------------------------- Worldwide ....................................................... 235.0 261.8 241.3 260.8 Natural gas (million cubic feet): United States ............................................. 1,077 1,115 1,109 1,117 Foreign: Far East ............................................. 577 653 597 605 Other ................................................ 55 35 48 55 --------------------------------------------------- Total Foreign 632 688 645 660 --------------------------------------------------- Worldwide ....................................................... 1,709 1,803 1,754 1,777 Natural gas liquids (thousand barrels) .............................. 20.2 23.0 21.4 21.4 Geothermal (million kilowatt-hours) ................................. 17.7 21.6 16.0 20.6 Input to crude oil processing units (thousand barrels daily) (b) ............... 220 235 207 230 Sales of petroleum products (thousand barrels daily) (b) ....................... 269 247 251 243
Average sales prices Crude oil and condensate (per barrel): United States .................................................... $ 14.83 $ 14.48 $ 15.17 $ 12.83 Foreign: Far East .................................................... $ 15.26 $ 15.61 $ 16.11 $ 14.46 Other ....................................................... $ 15.12 $ 15.73 $ 15.84 $ 14.05 Total Foreign $ 15.21 $ 15.66 $ 16.01 $ 14.30 --------------------------------------------------- Worldwide .............................................................. $ 14.98 $ 14.95 $ 15.51 $ 13.41 Natural gas (per mcf): United States .................................................... $ 1.43 $ 1.64 $ 1.49 $ 1.85 Foreign: Far East .................................................... $ 2.05 $ 1.97 $ 2.00 $ 1.99 Other ....................................................... $ 1.21 $ 1.65 $ 1.14 $ 1.77 Total Foreign $ 1.97 $ 1.96 $ 1.94 $ 1.97 -------------------------------------------------- Worldwide .............................................................. $ 1.64 $ 1.76 $ 1.66 $ 1.89
(a) Includes production sharing agreements on a gross basis. (b) Restated 1994 to exclude 50% of the volumes of The UNO-VEN Company. 5 UNOCAL CORPORATION NEWS RELEASE EARNINGS BY BUSINESS SEGMENT (Unaudited)
3rd Quarter of 1995 3rd Quarter of 1994 --------------------------------------------------- Millions of dollars Before-tax After-tax Before-tax After-tax - ----------------------------------------------------------------------------------------------------------------------------------- Petroleum Exploration & Production: United States .................................................... $ 85 $ 52 $ 76 $ 48 Foreign .......................................................... 88 46 139 74 Refining & Marketing: 76 Products Company .............................................. 11 6 10 6 Other ............................................................ -- -- 2 1 Geothermal & Power Operations .......................................... 13 7 18 11 Diversified Businesses: Agricultural Products ............................................ 5 4 10 6 Carbon & Minerals ................................................ 14 12 20 14 Pipelines ........................................................ 19 14 14 12 Other ............................................................ 3 2 (2) (1) Corporate & Unallocated Administrative & General ......................................... (33) (21) (45) (28) Interest expense - net ........................................... (68) (47) (59) (40) Environmental & Litigation expense ............................... (15) (10) (22) (15) Other ............................................................ (16) (6) (25) (18) -------------------------------------------------- Earnings before cumulative effect of accounting change ................. 106 59 136 70 Cumulative effect of accounting change ................................. -- -- -- -- -------------------------------------------------- Total ...................................................... $ 106 $ 59 $ 136 $ 70
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 and petroleum coke. 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 interests in affiliated pipeline companies outside California. Other- includes the development and sale of real estate assets and an equity interest in refining and marketing joint venture. 6 UNOCAL CORPORATION NEWS RELEASE EARNINGS BY BUSINESS SEGMENT (Unaudited)
First Nine Months of 1995 First Nine Months of 1994 ------------------------------------------------------- Millions of dollars Before-tax After-tax Before-tax After-tax - ----------------------------------------------------------------------------------------------------------------------------------- Petroleum Exploration & Production: United States .................................................... $ 249 $ 154 $ 222 $ 138 Foreign .......................................................... 305 158 304 154 Refining & Marketing: 76 Products Company .............................................. (27) (17) 44 27 Other ............................................................ 1 1 11 9 Geothermal & Power Operations .......................................... 40 22 44 25 Diversified Businesses: Agricultural Products ............................................ 90 57 30 19 Carbon & Minerals ................................................ 55 40 50 34 Pipelines ........................................................ 63 50 56 45 Other ............................................................ 14 9 9 6 Corporate & Unallocated Administrative & General ......................................... (111) (69) (129) (80) Interest expense - net ........................................... (199) (134) (194) (130) Environmental & Litigation expense ............................... (91) (57) (76) (50) Other ............................................................ (27) (3) (5) (5) -------------------------------------------------- Earnings before cumulative effect of accounting change ................. 362 211 366 192 Cumulative effect of accounting change ................................. -- -- (447) (277) -------------------------------------------------- Total ...................................................... $ 362 $ 211 $ (81) $ (85) ==================================================
7 UNOCAL CORPORATION 1995 EARNINGS NEWS RELEASE SUPPLEMENT SPECIAL ADJUSTMENTS (UNAUDITED)
3rd Quarter of 1995 3rd Quarter of 1994 -------------------------------------------------------- Dollars in millions except per share amounts Before-tax After-tax Before-tax After-tax ------------------------------------------------------------------------------------------------------------------------------- Reported earnings (loss) ................................................... $ 106 $ 59 $ 136 $ 70 Less: Special items Exploration & Production United States Asset Sales ............................................... (1) (1) (11) (6) Write-down of investment and provision for abandonment and remediation of the Guadalupe oil field .................................... -- -- (7) (4) Write-down of assets ...................................... -- -- -- -- Florida and Alaska OCS settlement ......................... 29 18 -- -- Foreign Asset Sales ............................................... 1 -- 23 16 76 Products Asset Sales ............................................... -- -- -- -- Litigation ................................................ -- -- -- -- Environmental ............................................. -- -- (4) (2) Write-down of assets ...................................... -- -- (3) (2) Geothermal Asset Sales ............................................... 2 2 -- -- Diversified Businesses Agricultural Products Asset Sales ............................................... -- -- 3 2 Other Asset Sales ............................................... -- -- -- -- Corporate & Unallocated Asset Sales ............................................... -- -- (2) (1) Environmental provision ................................... (2) (1) (3) (2) Litigation provision ...................................... (7) (5) (1) -- UOC lease termination ..................................... -- -- -- -- Restructuring ............................................. -- -- -- -- Asset write-downs ......................................... -- -- -- -- Other ..................................................... -- (4) -- -- Mesa settlement ........................................... -- -- -- -- Cumulative effect of accounting change .......................... -- -- -- -- ----------------------------------------------- Total special items ................................................... 22 9 (5) 1 ----------------------------------------------- Adjusted earnings .......................................................... $ 84 $ 50 $ 141 $ 69 Less: Dividends on preferred stock ......................................... 9 9 ----------------------------------------------- Adjusted net earnings applicable to common shares .......................... 41 60 =============================================== Adjusted net earnings per common share ..................................... $0.17 $0.25
8 UNOCAL CORPORATION 1995 EARNINGS NEWS RELEASE SUPPLEMENT SPECIAL ADJUSTMENTS (UNAUDITED)
First Nine Months of 1995 First Nine Months of 1994 ------------------------------------------------------ Dollars in millions except per share amounts Before-tax After-tax Before-tax After-tax ---------------------------------------------------------------------------------------------------------------------------------- Reported earnings (loss) ................................................... $ 362 $ 211 $ (81) $ (85) Less: Special items Exploration & Production United States Asset Sales ............................................... 8 5 (13) (8) Write-down of investment and provision for abandonment and remediation of the Guadalupe oil field .................................... -- -- (50) (31) Write-down of assets ...................................... (13) (8) -- -- Florida and Alaska OCS settlement ......................... 29 18 -- -- Foreign Asset Sales ............................................... 6 3 23 16 76 Products Asset Sales ............................................... -- -- 1 1 Litigation ................................................ -- -- -- -- Environmental ............................................. -- -- (4) (2) Write-down of assets ...................................... -- -- (9) (6) Geothermal Asset Sales ............................................... 9 7 -- -- Diversified Businesses Agricultural Products Asset Sales ............................................... 6 4 3 2 Other Asset Sales ............................................... 2 1 -- -- Corporate & Unallocated Asset Sales ............................................... 29 18 3 2 Environmental provision ................................... (31) (19) (4) (3) Litigation provision ...................................... (27) (17) (27) (17) UOC lease termination ..................................... -- -- -- -- Restructuring ............................................. -- -- -- -- Asset write-downs ......................................... (3) (2) -- -- Other ..................................................... -- (4) -- -- Mesa settlement ........................................... -- -- 38 24 Cumulative effect of accounting change .......................... -- -- (447) (277) ----------------------------------------------- Total special items ................................................... 15 6 (486) (299) ----------------------------------------------- Adjusted earnings .......................................................... $ 347 $ 205 $ 405 $ 214 Less: Dividends on preferred stock ......................................... 27 27 ----------------------------------------------- Adjusted net earnings applicable to common shares .......................... 178 187 =============================================== Adjusted net earnings per common share ..................................... $0.72 $0.77
9 UNOCAL CORPORATION NEWS RELEASE EARNINGS BY BUSINESS SEGMENT EXCLUDING SPECIAL ADJUSTMENTS (UNAUDITED)
3rd Quarter of 1995 3rd Quarter of 1994 -------------------------------------------------------------- Millions of dollars Before-tax After-tax Before-tax After-tax - ----------------------------------------------------------------------------------------------------------------------------------- Petroleum Exploration & Production: United States ............................................ $ 57 $ 35 $ 94 $ 58 Foreign .................................................. 87 46 116 58 Refining & Marketing: 76 Products Company ...................................... 11 6 17 10 Other .................................................... -- -- 2 1 Geothermal & Power Operations .................................. 11 5 18 11 Diversified Businesses: Agricultural Products .................................... 5 4 7 4 Carbon & Minerals ........................................ 14 12 20 14 Pipelines ................................................ 19 14 14 12 Other .................................................... 3 2 (2) (1) Corporate & Unallocated Administrative & General ................................. (33) (21) (45) (28) Interest expense - net ................................... (68) (47) (59) (40) Environmental & Litigation expense ....................... (6) (4) (18) (13) Other .................................................... (16) (2) (23) (17) --------------------------------------------------------- Total .............................................. $ 84 $ 50 $ 141 $ 69 =========================================================
10 UNOCAL CORPORATION NEWS RELEASE EARNINGS BY BUSINESS SEGMENT EXCLUDING SPECIAL ADJUSTMENTS (UNAUDITED)
First Nine Months of 1995 First Nine Months of 1994 ---------------------------------------------------------- Millions of dollars Before-tax After-tax Before-tax After-tax - ----------------------------------------------------------------------------------------------------------------------------------- Petroleum Exploration & Production: United States ............................................ $ 225 $ 139 $ 285 $ 177 Foreign .................................................. 299 155 281 138 Refining & Marketing: 76 Products Company ...................................... (27) (17) 56 34 Other .................................................... 1 1 11 9 Geothermal & Power Operations .................................. 31 15 44 25 Diversified Businesses: Agricultural Products .................................... 84 53 27 17 Carbon & Minerals ........................................ 55 40 50 34 Pipelines ................................................ 63 50 56 45 Other .................................................... 12 8 9 6 Corporate & Unallocated Administrative & General ................................. (111) (69) (129) (80) Interest expense - net ................................... (199) (134) (194) (130) Environmental & Litigation expense ....................... (33) (21) (45) (30) Other .................................................... (53) (15) (46) (31) -------------------------------------------------------- Total .............................................. $ 347 $ 205 $ 405 $ 214 ========================================================
11 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: October 26, 1995 By: /s/ CHARLES S. MCDOWELL - ------------------------ ------------------------------ Charles S. McDowell, Vice President and Comptroller 12 -----END PRIVACY-ENHANCED MESSAGE-----