-----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, PqqaTfrci2mdIKb9r7HEtmTKfMlxrY54J0+BeqVyJemZfQ+GjvvDC2/p2MlZFlX2 OoNl/+R3bpKENK1VY3ycdg== 0000716039-96-000018.txt : 19960425 0000716039-96-000018.hdr.sgml : 19960425 ACCESSION NUMBER: 0000716039-96-000018 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19960424 ITEM INFORMATION: Other events FILED AS OF DATE: 19960424 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: 96550006 BUSINESS ADDRESS: STREET 1: 2141 ROSECRANS AVE STREET 2: SUITE 4000 CITY: EL SEGUNDO STATE: CA ZIP: 90245 BUSINESS PHONE: 3107267718 8-K 1 FIRST QUARTER 1996 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: April 24, 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.) 2141 Rosecrans Avenue, Suite 4000, El Segundo, California 90245 - ----------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (310) 726-7600 ITEM 5. OTHER EVENTS On April 24, 1996, the following news release was issued: UNOCAL FIRST QUARTER EARNINGS RISE ON HIGHER GULF OF MEXICO NATURAL GAS PRICES, PRODUCTION --------------------------------------------- El Segundo, Calif., April 24, 1996 -- Unocal Corporation today reported first quarter 1996 net earnings of $124 million, or 47 cents per common share, reflecting increased natural gas prices and higher gas production from its Louisiana/Gulf of Mexico operations. The 1996 results compare with $74 million, or 27 cents per common share, in the first quarter 1995. Unocal's total revenues for the quarter were $2.28 billion, up from $1.91 billion a year ago. Earnings from operations for the first quarter, excluding special items (detailed in the attached tables), were $120 million, or 45 cents per common share. This compares with adjusted earnings from operations of $54 million, or 19 cents per common share, in the same period a year ago. "Our improved first quarter earnings reflect significantly stronger natural gas prices in the Louisiana/Gulf of Mexico region, which accounts for more than 60 percent of our domestic gas production," said Roger C. Beach, Unocal chairman and chief executive officer. The company's production from the Louisiana/Gulf of Mexico region averaged nearly 700 million cubic feet per day (mmcfd), a three percent increase over the same period a year ago. "The average natural gas sales price for our Louisiana/Gulf of Mexico production was $2.81 per thousand cubic feet (mcf) in the quarter, up 87 percent 1 from a year ago," Beach said. Unocal's overall average domestic natural gas sales price was $2.35 per mcf, 62 percent above $1.45 per mcf a year ago. Unocal's foreign natural gas production increased nearly five percent, due principally to new production in The Netherlands and Canada. The company's average sales price for foreign natural gas rose 11 percent to $2.13 per mcf. Production from the company's natural gas operations offshore Thailand continued to be constrained as construction proceeded on a second Thai-operated pipeline to shore. "This new pipeline will allow us to increase our net production in Thailand to 575 to 600 mmcfd, " Beach said. First quarter 1996 production in Thailand averaged 438 mmcfd. Earlier this month, the company sold its California oil and gas production assets for $492 million. In the first quarter 1996, those properties contributed about $1 million in net earnings. Net daily production averaged 30,200 barrels of oil and 52 mmcf of gas. The company expects to record a gain from the sale in the second quarter 1996. The company's 76 Products Company business unit posted a loss of $7 million for the quarter as a result of low margins for refined products. "We had higher refinery production of light oil products (gasoline, jet and diesel fuel) and increased petroleum product sales in the quarter," Beach said. "However, we were unable to recover all of the increased crude oil costs and the additional expenses to manufacture the new California reformulated gasolines." Beach went on to say, "Late last week, for the first time this year, we were able to increase the wholesale price of our gasolines to a level where we are recovering those increased costs. Whether this situation will continue depends upon future gasoline market conditions and crude oil prices." 2 NEWS RELEASE CONDENSED CONSOLIDATED EARNINGS STATEMENT (UNAUDITED) For the Three Months Ended March 31 ----------------------- Dollars in millions except per share amounts 1996 1995 - -------------------------------------------------------------------------------- Total revenues (a) ................................... $2,278 $1,906 Costs and other deductions (a) ....................... 2,064 1,775 ------ ------ Earnings before income taxes ......................... 214 131 Income taxes ......................................... 90 57 ------ ------ Net earnings ......................................... 124 74 Dividends on preferred stock ......................... 9 9 ------ ------ Net earnings applicable to common shares ............. $ 115 $ 65 Earnings per common share: (b) ....................... $ 0.47 $ 0.27 (a) Includes consumer excise taxes of ................ $ 235 $ 210 (b) Based on weighted average common shares .......... 247 245 outstanding (in millions) - -------------------------------------------------------------------------------- CONDENSED CONSOLIDATED BALANCE SHEET (UNAUDITED) March 31 Dec. 31 ------------------------- Millions of dollars 1996 1995 - -------------------------------------------------------------------------------- ASSETS Cash and cash equivalents ............................ $ 286 $ 94 Other current assets ................................. 1,529 1,482 Investments and long-term receivables ................ 1,044 1,101 Properties - net ..................................... 7,082 7,109 Other assets ......................................... 150 105 ------- ------- Total assets ....................................... 10,091 9,891 LIABILITIES Current liabilities .................................. $ 1,615 $ 1,316 Long-term debt and capital lease obligations ........................... 3,504 3,698 Deferred income taxes ................................ 711 722 Other deferred credits and liabilities ............... 1,247 1,225 ------- ------- Total liabilities .................................. $ 7,077 $ 6,961 STOCKHOLDERS' EQUITY ................................. 3,014 2,930 ------- ------- Total liabilities and stockholders' equity ......... $10,091 $ 9,891 3 NEWS RELEASE CONDENSED CONSOLIDATED CASH FLOWS (UNAUDITED) For the Three Months Ended March 31 ----------------------- Millions of dollars 1996 1995 - -------------------------------------------------------------------------------- CASH FLOWS FROM OPERATING ACTIVITIES Cash flow from operations .............................. $ 386 $ 236 Working capital and other changes related to operations ................................. (118) (122) ----- ----- Net cash provided by operating activities ............... $ 268 $ 114 CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditures (includes dry hole costs) ......... 222) (267) Proceeds from asset sales .............................. 51 94 ----- ----- Net cash used in investing activities ................... $(171) $(173) CASH FLOWS FROM FINANCING ACTIVITIES Long-term borrowings ................................... 154 266 Reduction of long-term debt and capital lease obligations ....................... (13) (200) Dividends paid ......................................... (59) (58) Other .................................................. 13 16 ----- ----- Net cash provided by (used in) financing activities ..... $ 95 $ 24 Increase (decrease) in cash and cash equivalents ......... 192 (35) Cash and cash equivalents at beginning of year ........... 94 148 ----- ----- Cash and cash equivalents at end of period ............... $ 286 $ 113 - -------------------------------------------------------------------------------- SELECTED FINANCIAL DATA For the Three Months Ended March 31 ----------------------- Millions of dollars 1996 1995 - -------------------------------------------------------------------------------- Exploration expense Oil and gas United States ....................... $ 4 $ 10 Foreign ............................. 17 18 Geothermal .................................. 1 1 ----------------- Total ............................... $ 22 $ 29 Dry hole costs United States ............................... $ 10 $ - Foreign ..................................... 4 4 ----------------- Total ............................... $ 14 $ 4 Depreciation, Depletion & Amortization ............... $244 $228 4 NEWS RELEASE OPERATING HIGHLIGHTS (UNAUDITED) For the Three Months Ended March 31 ---------------------- 1996 1995 - -------------------------------------------------------------------------------- Net daily production (a) Crude oil and condensate (thousand barrels daily): United States (b) ...................... 121.3 131.2 Foreign: Far East .......................... 80.9 87.5 Other ............................. 28.4 31.1 ------------------- Total Foreign .............. 109.3 118.6 ------------------- Worldwide .................................... 230.6 249.8 Natural gas (million cubic feet daily): United States (b) ...................... 1,110 1,120 Foreign: Far East .......................... 597 615 Other ............................. 82 33 ------------------ Total Foreign .............. 679 648 ------------------ Worldwide .................................... 1,789 1,768 Natural gas liquids (thousand barrels daily) ..... 19.7 22.0 Geothermal (million kilowatt-hours daily) ........ 13.8 15.6 Average sales prices Crude oil and condensate (per barrel): United States .......................... $16.55 $14.74 Foreign: Far East .......................... $17.86 $16.19 Other ............................. $16.93 $15.62 Total Foreign .............. $17.52 $15.98 -------------------- Worldwide .................................... $16.93 $15.22 Natural gas (per mcf): United States .......................... $2.35 $1.45 Foreign: Far East .......................... $2.18 $1.96 Other ............................. $1.76 $1.22 Total Foreign .............. $2.13 $1.92 --------------------- Worldwide .................................... $2.27 $1.62 (a) Includes production sharing agreements on a gross basis. (b) Includes California production. 5 OPERATING HIGHLIGHTS (continued) (UNAUDITED) For the Three Months Ended March 31 -------------------- 1996 1995 - ------------------------------------------------------------------------------- Input to crude oil processing units (thousand barrels daily) ..................................... 239 190 Refinery production (thousand barrels daily) Gasoline ................................................. 116 84 Jet fuel, kerosene and heating oil ....................... 43 19 Diesel fuel .............................................. 42 30 Other products (lubricants, gas oils, etc.) .............. 61 70 ----------- Total .............................................. 262 204 Petroleum product sales (thousand barrels daily) Marketing (a) Gasoline ........................................... 127 113 Diesel ............................................. 25 25 Other (includes lube oil, kerosene and fuel oil) ........................... 8 5 ----------- Total ......................................... 160 143 Product supply and refinery (b) Gasoline ........................................... 19 13 Jet fuel ........................................... 50 29 Diesel ............................................. 31 11 Other products (includes petroluem coke, gas oil, etc.) ............................ 34 56 ----------- Total ......................................... 134 109 ----------- Total petroleum product sales .............. 294 252 Agricultural products production volumes (thousand tons) Ammonia .................................................. 351 351 Urea ..................................................... 293 295 Other products ........................................... 163 197 Agricultural products sales volumes (thousand tons) Ammonia .................................................. 94 128 Urea ..................................................... 245 228 Other products ........................................... 231 272 (a) Primarily sold through retail channels (b) Primarily sold through wholesale or commercial channels 6 NEWS RELEASE UNOCAL CORPORATION EARNINGS BY BUSINESS SEGMENT (Unaudited)
For the First Three Months For the First Three Months Ended March 31, 1996 Ended March 31, 1995 ---------------------------------------------------------- Millions of dollars Before-tax After-tax Before-tax After-tax - ------------------------------------------------------------------------------------------------------------------------------------ PETROLEUM Exploration and Production United States ............................................ $ 155 $ 96 $ 89 $ 55 Foreign .................................................. 123 68 103 52 Refining, Marketing and Transportation 76 Products Company ...................................... (11) (7) (35) (18) GEOTHERMAL AND POWER OPERATIONS ................................ 9 5 9 4 DIVERSIFIED BUSINESSES Agricultural Products .................................... 25 16 26 16 Carbon and Minerals ...................................... 26 18 24 17 Pipelines ................................................ 30 23 22 18 Other .................................................... (1) -- 2 1 CORPORATE AND UNALLOCATED Administrative and General expense ....................... (29) (18) (29) (18) Net interest expense ..................................... (72) (50) (64) (43) Environmental and Litigation expense ..................... (23) (14) (28) (17) Other .................................................... (18) (13) 12 7 --------------------------------------------------------- Total .............................................. $ 214 $ 124 $ 131 $ 74 =========================================================
EXPLORATION & PRODUCTION - this segment is engaged in the exploration for, and the production and marketing of, crude oil, condensate, natural gas and natural gas liquids. REFINING, MARKETING AND TRANSPORTATION 76 PRODUCTS COMPANY - this segment is principally responsible for the company's West Coast petroleum refining operations, marketing and transportation of refined petroleum products and the manufacturing and marketing of petroleum coke. GEOTHERMAL & POWER OPERATIONS - this segment is involved in the exploration for, and the production and sale of geothermal resources for the generation of electricity. DIVERSIFIED BUSINESSES: AGRICULTURAL PRODUCTS - manufactures and markets nitrogen-based fertilizers for wholesale markets to the western United States and to the Pacific Rim. CARBON AND MINERALS - produces and markets petroleum coke (other than on the West Coast), graphites, solvents and specialty minerals. PIPELINES - principally includes the company's equity interests in affiliated pipeline companies. OTHER - includes the development and sale of real estate assets and the company's equity interest in The UNO-VEN Company, a refining and marketing partnership in the midwestern United States. 7 NEWS RELEASE UNOCAL CORPORATION SPECIAL ADJUSTMENTS (Unaudited)
For the First Three Months For the First Three Months Ended March 31, 1996 Ended March 31, 1995 ---------------------------------------------------------------- Dollars in millions except per share amounts Before-tax After-tax Before-tax After-tax -------------------------------------------------------------------------------------------------------------------------------- Reported earnings .................................................. $ 214 $ 124 $ 131 $ 74 Less: Special items EXPLORATION AND PRODUCTION UNITED STATES Asset Sales ............................................ 4 2 13 8 FOREIGN Asset Sales ............................................ 6 4 4 3 DIVERSIFIED BUSINESSES PIPELINES Asset Sales ............................................ 12 7 - - CORPORATE AND UNALLOCATED Asset Sales ............................................ 1 1 29 18 Environmental provision ................................ (10) (6) (7) (4) Litigation provision ................................... (6) (4) (6) (4) Asset write-downs ...................................... - - (2) (1) ------------------------------------------------------ Total special items ........................................... 7 4 31 20 ------------------------------------------------------ ADJUSTED EARNINGS .................................................. $ 207 $ 120 $ 100 $ 54 Less: Dividends on preferred stock ................................. 9 9 ------------------------------------------------------ ADJUSTED NET EARNINGS APPLICABLE TO COMMON SHARES .................. 111 45 ------------------------------------------------------ ADJUSTED NET EARNINGS PER COMMON SHARE ............................. $0.45 $0.19
8 NEWS RELEASE UNOCAL CORPORATION EARNINGS BY BUSINESS SEGMENT EXCLUDING SPECIAL ADJUSTMENTS (Unaudited)
For the First Three Months For the First Three Months Ended March 31, 1996 Ended March 31, 1995 ------------------------------------------------------------------ Millions of dollars Before-tax After-tax Before-tax After-tax - ----------------------------------------------------------------------------------------------------------------------------------- Petroleum EXPLORATION AND PRODUCTION United States ............................................ $ 151 $ 94 $ 76 $ 47 Foreign .................................................. 117 64 99 49 Refining, Marketing and Transportation 76 Products Company ...................................... (11) (7) (35) (18) GEOTHERMAL AND POWER OPERATIONS ................................ 9 5 9 4 Diversified Businesses Agricultural Products .................................... 25 16 26 16 Carbon and Minerals ...................................... 26 18 24 17 Pipelines ................................................ 18 16 22 18 Other .................................................... (1) - 2 1 CORPORATE AND UNALLOCATED Administrative and General expense ....................... (29) (18) (29) (18) Net interest expense ..................................... (72) (50) (64) (43) Environmental and Litigation expense ..................... (7) (4) (15) (9) Other .................................................... (19) (14) (15) (10) --------------------------------------------------------- Total .............................................. $ 207 $ 120 $ 100 $ 54 =========================================================
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 24, 1996 By: /s/ STANLEY Y. HANAOKA - ------------------------ ------------------------------ Stanley Y. Hanaoka Assistant Comptroller 10 -----END PRIVACY-ENHANCED MESSAGE-----