-----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, M6tU6GGjcAZjxL2p9Tq7PQLeRB5YmYmHl0dUhQONgR+vmIMryNBkOoLVKtddCZTA cZfUi19md9vS36OYeIq1TQ== 0000716039-96-000002.txt : 19960126 0000716039-96-000002.hdr.sgml : 19960126 ACCESSION NUMBER: 0000716039-96-000002 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19960125 ITEM INFORMATION: Other events FILED AS OF DATE: 19960125 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: 96506934 BUSINESS ADDRESS: STREET 1: 2141 ROSECRANS AVE STREET 2: SUITE 4000 CITY: EL SEGUNDO STATE: CA ZIP: 90245 BUSINESS PHONE: 3107267713 8-K 1 4TH QUARTER 1995 EARNINGS 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: January 25, 1996 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.) 2145 Rosecrans Avenue, Suite 4000, El Segundo, California 91245 - ----------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (310) 726-7718 ITEM 5. OTHER EVENTS On January 25, 1996, the following news release was issued: UNOCAL REPORTS $49 MILLION EARNINGS FOR FOURTH QUARTER El Segundo, Calif., Jan. 25 -- Unocal Corporation today reported fourth-quarter 1995 net earnings of $49 million, or 16 cents per common share, compared with a loss of $68 million, or 32 cents per common share, in the same period a year ago. Fourth quarter revenues were $2.22 billion, compared with $1.98 billion a year ago. Earnings from operations for the fourth quarter 1995, excluding special items (detailed in the attached tables), were $92 million, or 34 cents per common share. This compares with operating earnings of $86 million, or 32 cents per common share, for the fourth quarter 1994. "Our fourth quarter earnings benefited from a 5 percent increase in domestic natural gas production, record natural gas production levels in Thailand in late November and early December, and higher refinery production of light oil products," said Roger C. Beach, Unocal's chairman and chief executive officer. "The effect of the increased gas production was magnified by stronger worldwide natural gas prices." The gain in natural gas prices in the quarter had the greatest impact in the U.S. Gulf Coast, a strategic focus area for Unocal. Approximately 40 percent of Unocal's worldwide natural gas production comes from this area. Beach added that the gains in natural gas production were more than offset by continuing declines in U.S. and foreign crude oil production. "In the U.S., the decline in crude oil production reflects the sale of non-strategic domestic properties and natural production declines in California and the Central U.S.," he said. 1 For 1996, the company expects domestic natural gas production to be lower, reflecting the expected sale of its California upstream operations. Increases in Unocal's foreign gas production, principally in Thailand, should more than offset the decline in domestic natural gas production. Unocal's 76 Products Company continued to show improvements in earnings and cash flow in the quarter. The earnings performance was helped in part by higher production of gasoline, jet fuel and diesel at the company's refineries. The company's agricultural products business unit continued its strong performance in the fourth quarter with higher earnings from nitrogen-based fertilizers sales in the U.S. West Coast and Pacific Rim. Higher commodity prices significantly enhanced margins for the company's agricultural products. The company's reported earnings for the fourth quarter included a non-cash, after-tax charge of $53 million (detailed in special adjustments table) for adoption of Statement of Financial Accounting Standards No. 121. This new accounting standard, "Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed of," requires that long-lived assets with book values that cannot be recovered by estimated future undiscounted cash flows be written down to fair value. The impairment provision in the fourth quarter was related principally to 1995 reserve write-downs for oil and gas properties in the U.S., Canada and The Netherlands. The reported fourth quarter earnings also included one-time cash benefits from a bankruptcy settlement with Columbia Gas Transmission Corp. and the sale of oil and gas properties in Wyoming. For the full year 1995, net earnings were $260 million, or 91 cents per common share. This compares with a loss of $153 million, or 78 cents per common share, for 1994. Full-year revenues were $8.43 billion, up from $7.97 billion last year. Earnings from operations for 1995, excluding special items (detailed in the attached tables), were $297 million, or $1.06 per common share. This compares with adjusted earnings of $300 million, or $1.09 per common share, in 1994. 2 UNOCAL CORPORATION NEWS RELEASE CONDENSED CONSOLIDATED EARNINGS STATEMENT (UNAUDITED)
For the Three Months For the Twelve Months Ended December 31 Ended December 31 ----------------------------------------------------------- Dollars in millions except per share amounts 1995 1994 1995 1994 - --------------------------------------------------------------------------------------------------------------------------- Total revenues (a) $ 2,224 $ 1,984 $ 8,425 $ 7,965 Costs and other deductions (a) 2,123 2,057 7,962 7,671 ------------------------------------------------------------ Earnings before income taxes 101 (73) 463 294 Income taxes 52 (5) 203 170 ------------------------------------------------------------ Earnings (loss) before cumulative effect of accounting change 49 (68) 260 124 Cumulative effect of accounting change - - - (277) ------------------------------------------------------------ Net earnings (loss) $ 49 $ (68) $ 260 $ (153) Dividends on preferred stock 9 9 36 36 ----------------------------------------------------------- Net earnings (loss) applicable to common shares $ 40 $ (77) $ 224 $ (189) Earnings (loss) per common share: (b) Before cumulative effect of accounting change $ 0.16 $ (0.32) $ 0.91 $ 0.36 Cumulative effect of accounting change - - - (1.14) ------------------------------------------------------------- Net earnings (loss) $ 0.16 $ (0.32) $ 0.91 $ (0.78) (a) Includes consumer excise taxes of $ 233 $ 207 $ 898 $ 893 (b) Based on weighted average common shares outstanding (in millions) 247 244 246 243
CONDENSED CONSOLIDATED BALANCE SHEET (UNAUDITED) Dec. 31 Dec. 31 --------------------------- Millions of dollars 1995 (a) 1994 - ----------------------------------------------------------------------------------------------------------------------------------- ASSETS Cash and cash equivalents $ 94 $ 148 Other current assets 1,482 1,380 Investments and long-term receivables 1,101 895 Properties - net 7,109 6,823 Other assets 105 91 --------------------------- Total assets $ 9,891 $ 9,337 LIABILITIES Current Liabilities $ 1,316 $ 1,257 Long-term debt and capital lease obligations 3,698 3,461 Deferred Income taxes 722 643 Other deferred credits and liabilities 1,225 1,161 --------------------------- Total liabilities 6,961 6,522 STOCKHOLDERS' EQUITY 2,930 2,815 --------------------------- Total liabilities and stockholders' equity $ 9,891 $ 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 UNOCAL CORPORATION NEWS RELEASE CONDENSED CONSOLIDATED CASH FLOWS (UNAUDITED)
For the Three Months For the Twelve Months Ended December 31 Ended December 31 ------------------------------------------------------------- Millions of dollars 1995 1994 1995 1994 - ------------------------------------------------------------------------------------------------------------------------------------ CASH FLOWS FROM OPERATING ACTIVITIES Cash flow from operations ......................................... $ 373 $ 222 $ 1,235 $ 1,256 Working capital and other changes related to operations ........... 228 222 42 43 -------------------------------------------------- Net cash provided by operating activities ................. 601 444 1,277 1,299 CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditures (includes dry hole costs) ................... (492) (433) (1,459) (1,272) Proceeds from asset sales ......................................... 74 20 204 156 -------------------------------------------------- Net cash used in investing activities ..................... (418) (413) (1,255) (1,116) CASH FLOWS FROM FINANCING ACTIVITIES Net increase (decrease) in long-term debt and capital lease obligations .................................. (194) (33) 111 (56) Dividends paid .................................................... (58) (57) (232) (229) Other ............................................................. (5) 14 45 45 -------------------------------------------------- Net cash used in financing activities ..................... (257) (76) (76) (240) Decrease in cash and cash equivalents ...................................... (74) (45) (54) (57) Cash and cash equivalents at beginning of period ........................... 168 193 148 205 -------------------------------------------------- Cash and cash equivalents at end of period ................................. $ 94 $ 148 $ 94 $ 148
SELECTED FINANCIAL DATA
For the Three Months For the Twelve Months Ended December 31 Ended December 31 ------------------------------------------------------------ 1995 1994 1995 1994 ------------------------------------------------------------ Exploration expense Oil & Gas United States ................................. $ 13 $ 9 $ 39 $ 24 Foreign ....................................... 39 27 96 89 Geothermal ............................................ 2 1 4 3 --------------------------------------------------------- Total ......................................... $ 54 $ 37 $ 139 $ 116 Dry hole costs Oil & Gas United States ................................. $ 8 $ 8 $ 36 $ 45 Foreign ....................................... 2 10 21 34 Geothermal ............................................ 0 2 4 5 --------------------------------------------------------- Total ......................................... $ 10 $ 20 $ 61 $ 84 Depreciation, Depletion & Amortization ......................... $ 318 $ 218 $1,022 $ 947
4 UNOCAL CORPORATION NEWS RELEASE OPERATING HIGHLIGHTS (UNAUDITED)
For the Three Months For the Twelve Months Ended December 31 Ended December 31 ------------------------------------------------------------------------- 1995 1994 1995 1994 - ------------------------------------------------------------------------------------------------------------------------------------ Net daily production(a) Crude oil and condensate (thousand barrels daily): United States ............................................ 121.0 131.6 125.1 137.3 Foreign: Far East ............................................ 86.4 92.5 85.1 87.1 Other ............................................... 28.2 32.6 30.2 35.4 -------------------------------------------------------------- Total Foreign ............................... 114.6 125.1 115.3 122.5 -------------------------------------------------------------- Worldwide ...................................................... 235.6 256.7 240.4 259.8 Natural gas (million cubic feet daily): United States ............................................ 1,078 1,029 1,103 1,095 Foreign: Far East ............................................ 643 675 609 623 Other ............................................... 67 29 53 48 -------------------------------------------------------------- Total Foreign ............................... 710 704 662 671 -------------------------------------------------------------- Worldwide ...................................................... 1,788 1,733 1,765 1,766 Natural gas liquids (thousand barrels daily) ...................... 20.4 23.2 21.0 21.9 Geothermal (million kilowatt-hours daily) ......................... 16.7 19.2 16.1 20.5 Input to crude oil processing units (thousand barrels daily)(b) 233 233 213 231 Sales of Petroleum products (thousand barrels daily)(b) 287 247 259 238 Average sales prices Crude oil and condensate (per barrel): United States ............................................ $ 14.59 $ 13.80 $ 15.03 $ 13.06 Foreign: Far East ............................................ $ 16.02 $ 14.78 $ 16.09 $ 14.55 Other ............................................... $ 15.23 $ 15.35 $ 15.69 $ 14.36 Total Foreign ............................... $ 15.75 $ 14.97 $ 15.95 $ 14.48 -------------------------------------------------------------- Worldwide ...................................................... $ 15.07 $ 14.32 $ 15.40 $ 13.63 Natural gas (per mcf): United States ............................................ $ 1.75 $ 1.57 $ 1.56 $ 1.78 Foreign: Far East ............................................ $ 2.13 $ 1.94 $ 2.04 $ 2.01 Other ............................................... $ 1.82 $ 1.72 $ 1.39 $ 1.76 Total Foreign ............................... $ 2.10 $ 1.93 $ 1.98 $ 1.99 -------------------------------------------------------------- Worldwide ...................................................... $ 1.89 $ 1.71 $ 1.72 $ 1.86
(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)
4th Quarter of 1995 4th Quarter of 1994 -------------------------------------------------------- Millions of dollars Before-tax After -tax Before-tax After -tax - ------------------------------------------------------------------------------------------------------------------------------------ PETROLEUM Exploration & Production: United States .................................................... $ 153 $ 95 $ 84 $ 52 Foreign .......................................................... 29 18 112 51 Refining & Marketing: 76 Products Company .............................................. 23 16 (8) (5) GEOTHERMAL & POWER OPERATIONS .......................................... 8 5 14 8 DIVERSIFIED BUSINESSES: Agricultural Products ............................................ 25 19 16 12 Carbon & Minerals ................................................ 17 12 14 9 Pipelines ........................................................ 19 16 15 12 Other ............................................................ (2) (2) 9 6 CORPORATE & UNALLOCATED Administrative & General ......................................... (36) (27) (53) (33) Interest expense - net ........................................... (58) (38) (60) (44) Environmental & Litigation expense ............................... (56) (35) (218) (137) Other ............................................................ (21) (30) 2 1 --------------------------------------------------- Earnings before cumulative effect of accounting change ................. 101 49 (73) (68) Cumulative effect of accounting change ................................. - - - - -------------------------------------------------- Total ...................................................... $ 101 $ 49 $ (73) $ (68) ===================================================
The Exploration & Production segment is engaged in the exploration for, the production and marketing of crude oil, condensate, natural gas liquids and 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. 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. * Effective in the fourth quarter 1995, certain expenses previously reported under Corporate and Unallocated have been allocated to the operating segments. Prior Year segment earnings were restated to conform to the 1995 allocation. 6 1995 EARNINGS NEWS RELEASE SUPPLEMENT SPECIAL ADJUSTMENTS (UNAUDITED)
4th Quarter of 1995 4th Quarter of 1994 -------------------------------------------------------- Dollars in millions except per share amounts Before -tax After-tax Before -tax After-tax ------------------------------------------------------------------------------------------------------------------------------- Reported earnings (loss) ........................................... $ 101 $ 49 $ (73) $ (68) Less: Special items EXPLORATION & PRODUCTION UNITED STATES Asset Sales .............................................. 44 27 (7) (5) FAS 121 Impairment ....................................... (44) (27) - - Columbia Gas Settlement .................................. 55 34 - - FOREIGN FAS 121 Impairment ....................................... (43) (26) - - 76 PRODUCTS Asset Sales .............................................. 1 1 - - Litigation ............................................... - - (2) (2) Write-down of assets ..................................... - - (23) (14) DIVERSIFIED BUSINESSES Other Asset Sales .............................................. 4 2 - - Write-down of assets ..................................... (3) (2) - - CORPORATE & UNALLOCATED Asset Sales .............................................. 5 3 - - Environmental provision .................................. (10) (6) (152) (94) Litigation provision ..................................... (33) (21) (38) (24) Write-down of assets ..................................... - - (14) (9) Deferred tax adjustment .................................. - - - - Mesa settlement .......................................... - - - - Other .................................................... (14) (28) (10) (6) ---------------------------------------------------- Total special items ........................................... (38) (43) (246) (154) ---------------------------------------------------- ADJUSTED EARNINGS .................................................. $ 139 $ 92 $ 173 $ 86 Less: Dividends on preferred stock ................................. 9 9 ---------------------------------------------------- ADJUSTED NET EARNINGS APPLICABLE TO COMMON SHARES .................. 83 77 ADJUSTED NET EARNINGS PER COMMON SHARE ............................. $0.34 $0.32
7 UNOCAL CORPORATION NEWS RELEASE EARNINGS BY BUSINESS SEGMENT EXCLUDING SPECIAL ADJUSTMENTS (UNAUDITED)
4th Quarter of 1995 4th Quarter of 1994 ---------------------------------------------------------------- Millions of dollars Before-tax After -tax Before-tax After -tax - ------------------------------------------------------------------------------------------------------------------------------------ PETROLEUM Exploration & Production: United States ............................................ $ 98 $ 61 $ 91 $ 57 Foreign .................................................. 72 44 112 51 Refining & Marketing: 76 Products Company ...................................... 22 15 17 11 GEOTHERMAL & POWER OPERATIONS .................................. 8 5 14 8 DIVERSIFIED BUSINESSES: Agricultural Products .................................... 25 19 16 12 Carbon & Minerals ........................................ 17 12 14 9 Pipelines ................................................ 19 16 15 12 Other .................................................... (3) (2) 9 6 CORPORATE & UNALLOCATED Administrative & General ................................. (36) (27) (28) (18) Interest expense - net ................................... (58) (38) (60) (44) Environmental & Litigation expense ....................... (13) (8) (28) (19) Other .................................................... (12) (5) 1 1 --------------------------------------------------------- Total .............................................. $ 139 $ 92 $ 173 $ 86 =========================================================
8 UNOCAL CORPORATION NEWS RELEASE EARNINGS BY BUSINESS SEGMENT (Unaudited)
For Twelve Months For Twelve Months Ended December 31, 1995 Ended December 31, 1994 ----------------------------------------------------------- Millions of dollars Before-tax After -tax Before-tax After -tax - ------------------------------------------------------------------------------------------------------------------------------------ PETROLEUM Exploration & Production: United States .................................................... $ 386 $ 240 $ 289 $ 180 Foreign .......................................................... 330 181 407 198 Refining & Marketing: 76 Products Company .............................................. (12) 11 23 14 GEOTHERMAL & POWER OPERATIONS .......................................... 47 26 57 32 DIVERSIFIED BUSINESSES: Agricultural Products ............................................ 113 74 42 29 Carbon & Minerals ................................................ 72 52 62 42 Pipelines ........................................................ 82 66 70 56 Other ............................................................ 12 7 22 14 CORPORATE & UNALLOCATED Administrative & General ......................................... (127) (84) (137) (85) Interest expense - net ........................................... (257) (178) (255) (174) Environmental & Litigation expense ............................... (148) (92) (293) (186) Other ............................................................ (35) (43) 6 4 --------------------------------------------------- Earnings before cumulative effect of accounting change ................. 463 260 293 124 Cumulative effect of accounting change ................................. - - (447) (277) --------------------------------------------------- Total ...................................................... $ 463 $ 260 $(154) $(153) ===================================================
9 1995 EARNINGS NEWS RELEASE SUPPLEMENT SPECIAL ADJUSTMENTS (UNAUDITED)
For the Twelve Months For the Twelve Months Ended December 31, 1995 Ended December 31, 1994 ----------------------------------------------------- Dollars in millions except per share amounts Before -tax After-tax Before -tax After-tax -------------------------------------------------------------------------------------------------------------------------------- Reported earnings (loss) ............................................... $ 463 $ 260 $(154) $(153) Less: Special items EXPLORATION & PRODUCTION UNITED STATES Asset Sales .................................................. 52 32 (20) (13) Provision for abandonment and remediation of the Guadalupe oil field ....................................... - - (26) (16) Write-down of assets ......................................... (13) (8) (24) (15) FAS 121 Impairment ........................................... (44) (27) Florida and Alaska OCS settlement ............................ 29 18 - - Columbia Gas settlement ...................................... 55 34 - - FOREIGN Asset Sales .................................................. 6 3 23 16 FAS 121 Impairment ........................................... (43) (26) 76 PRODUCTS Asset Sales .................................................. 1 1 1 1 Litigation ................................................... - - (2) (2) Environmental ................................................ - - (4) (2) Write-down of assets ......................................... - - (32) (20) GEOTHERMAL Asset Sales .................................................. 9 7 - - DIVERSIFIED BUSINESSES AGRICULTURAL PRODUCTS Asset Sales .................................................. 6 4 3 2 OTHER Asset Sales .................................................. 6 3 - - Write-down of assets ......................................... (3) (2) - - CORPORATE & UNALLOCATED Asset Sales .................................................. 34 21 3 2 Environmental provision ...................................... (41) (26) (156) (97) Litigation provision ......................................... (60) (37) (65) (41) Write-down of assets ......................................... (3) (2) (14) (9) Mesa settlement .............................................. - - 38 24 Other ........................................................ (14) (32) (10) (6) CUMULATIVE EFFECT OF ACCOUNTING CHANGE ............................. - - (447) (277) ---------------------------------------------------- Total special items ............................................... (23) (37) (732) (453) ---------------------------------------------------- ADJUSTED EARNINGS ...................................................... $ 486 $ 297 $ 578 $ 300 Less: Dividends on preferred stock ..................................... 36 36 ---------------------------------------------------- ADJUSTED NET EARNINGS APPLICABLE TO COMMON SHARES ...................... 261 264 ---------------------------------------------------- ADJUSTED NET EARNINGS PER COMMON SHARE ................................. $1.06 $1.09
10 UNOCAL CORPORATION NEWS RELEASE EARNINGS BY BUSINESS SEGMENT EXCLUDING SPECIAL ADJUSTMENTS (UNAUDITED)
For Twelve Months For Twelve Months Ended December 31, 1995 Ended December 31, 1994 -------------------------------------------------------------------- Millions of dollars Before-tax After -tax Before-tax After -tax - ------------------------------------------------------------------------------------------------------------------------------------ PETROLEUM Exploration & Production: United States ............................................ $ 307 $ 191 $ 359 $ 224 Foreign .................................................. 367 204 384 182 Refining & Marketing: 76 Products Company ...................................... (13) 10 60 37 GEOTHERMAL & POWER OPERATIONS .................................. 38 19 57 32 DIVERSIFIED BUSINESSES: Agricultural Products .................................... 107 70 39 27 Carbon & Minerals ........................................ 72 52 62 42 Pipelines ................................................ 82 66 70 56 Other .................................................... 9 6 22 14 CORPORATE & UNALLOCATED Administrative & General ................................. (127) (84) (112) (70) Interest expense - net ................................... (257) (178) (255) (174) Environmental & Litigation expense ....................... (47) (29) (72) (48) Other .................................................... (52) (30) (36) (22) -------------------------------------------------------- Total .............................................. $486 $297 $578 $300 ======================================================== 11
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