-----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, BAsNQIdWd8qWtbRkzR6pJt0s+fxBGamxHxeVBb5zD1NspTnEtBhGU9eXvAxnAaxJ fOdXJVpIAbSBIjcscPoKHA== 0000716039-96-000051.txt : 19961024 0000716039-96-000051.hdr.sgml : 19961024 ACCESSION NUMBER: 0000716039-96-000051 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19961023 ITEM INFORMATION: Other events FILED AS OF DATE: 19961023 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: 96646744 BUSINESS ADDRESS: STREET 1: 2141 ROSECRANS AVE STREET 2: SUITE 4000 CITY: EL SEGUNDO STATE: CA ZIP: 90245 BUSINESS PHONE: 3107267718 8-K 1 NEWS RELEASE-3RD QUARTER EARNINGS SECURITIES AND EXCHANGE COMMISSION Washington, DC. 20549 FORM 8-K Current Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of report (Date of earliest event reported) October 23, 1996 ------------------- UNOCAL CORPORATION - -------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) Delaware - -------------------------------------------------------------------------------- (State or Other Jurisdiction of Incorporation) 1-8483 95-3825062 - -------------------------------------------------------------------------------- (Commission File Number) (I.R.S. Employer Identification No.) 2141 Rosecrans Avenue, Suite 4000, El Segundo, California 90245 - -------------------------------------------------------------------------------- (Address of Principal Executive Offices) (Zip Code) (310) 726-7600 - -------------------------------------------------------------------------------- (Registrant's Telephone Number, Including Area Code) Item 5. Other Events On October 23, 1996, the following news release was issued: UNOCAL REPORTS $171 MILLION EARNINGS FOR THIRD QUARTER ------------------------------------------------------ El Segundo, Calif., Oct. 23, 1996 -- Unocal Corporation today reported third quarter 1996 net earnings of $171 million, or 69 cents per common share, reflecting increased worldwide natural gas production, higher crude oil and natural gas sales prices, and improved margins for the company's West Coast petroleum refining and marketing unit. The results compare with net earnings of $59 million, or 20 cents per common share, in the third quarter a year ago. Unocal's total revenues for the quarter were $2.6 billion, up from $2.0 billion in the same period of 1995. Earnings from operations in the third quarter, excluding special items (detailed in the attached tables), were $153 million, or 61 cents per common share. This compares with adjusted earnings of $50 million, or 17 cents per common share, last year. "The solid third quarter performance reflects the success of our focus on key strategic areas in the United States and Southeast Asia," said Roger C. Beach, Unocal chairman and chief executive officer. "We capitalized on higher natural gas prices with increased gas production levels in our Louisiana/Gulf of Mexico, Thailand and Indonesia operations." Sales prices for crude oil and natural gas continued above 1995 levels. Worldwide natural gas production grew nearly 6 percent from the second quarter 1996 and nearly 11 percent from a year ago (excluding California). "Our third quarter natural gas production from the Louisiana/Gulf of Mexico area grew 6 percent from 700 million cubic feet per day (mmcfd) in 1995 to nearly 740 mmcfd this year," Beach said. "Looking forward, we expect to see further growth in gas production during the fourth quarter when net production from our Thailand operations should average more than 640 mmcfd." 1 The improved earnings from oil and gas operations were offset partially by higher dry hole costs that resulted from increased exploration drilling in the U.S. Beach noted that Unocal's 76 Products Company unit also continued to post higher sales volumes and increased refinery production of light oil products. "While third quarter 1996 product margins remained above year-ago levels, they were significantly down from the second quarter," Beach said. "This decline has continued into the fourth quarter, and we have maintained our focus on operating efficiency and cost control to help counter the fiercely competitive conditions that have developed in California, which is our key market." Refinery production averaged 258,000 barrels per day (b/d), up from 243,000 b/d last year despite curtailments in coker operations at the San Francisco Refinery during part of the quarter. Third quarter marketing sales volumes of light oil products rose 14 percent from last year's levels. Production and product sales volumes of agricultural products, while down from the second quarter because of seasonal demand, continued well above year-ago levels. Cash flow from operations in the third quarter, before working capital changes, was $449 million, up from $309 million last year. This improvement reflects the improved operating earnings. Total debt fell to $3.07 billion, down $636 million from the end of 1995. Our debt-to-total capitalization ratio was 48 percent at the end of the third quarter 1996, down from 56 percent at year-end 1995. For the nine months, Unocal's net earnings were $533 million, or $2.08 per common share. This compares with $211 million, or 75 cents per common share, for the first nine months of 1995. Nine-months revenues were $7.57 billion, up from $6.20 billion last year. Adjusted earnings from operations, excluding special items (detailed in the attached tables), were $478 million, or $1.85 per common share. This compares with adjusted earnings of $205 million, or 72 cents per common share, for the first nine months of 1995. 2 NEWS RELEASE
CONDENSED CONSOLIDATED EARNINGS STATEMENT UNOCAL CORPORATION (UNAUDITED) For the Three Months For the Nine Months Ended September 30 Ended September 30 --------------------------------------------------------- Dollars in millions except per share amounts 1996 1995 1996 1995 - ------------------------------------------------------------------------------------------------------------------------------------ Total revenues (a) ............................................. $2,611 $2,005 $7,573 $6,201 Costs and other deductions (a) ................................. 2,360 1,899 6,708 5,839 --------------------------------------------------------- Earnings before income taxes ................................... 251 106 865 362 Income taxes ................................................... 80 47 332 151 --------------------------------------------------------- Net earnings ................................................... $ 171 $ 59 $ 533 $ 211 Dividends on preferred stock ................................... -- 9 18 27 --------------------------------------------------------- Net earnings applicable to common shares ....................... $ 171 $ 50 $ 515 $ 184 Earnings per common share assuming no dilution (b).............. $ 0.69 $ 0.20 $ 2.08 $ 0.75 Earnings per common share assuming full dilution (c)............ $ 0.65 $ 0.22 $ 2.03 $ 0.80 (a) Includes consumer excise taxes of......................... $ 279 $ 228 $ 765 $ 665 (b) Based on weighted average common shares outstanding (in millions)................................ 249 247 248 246 (c) During 1995, the effect of assumed conversion of preferred stock is antidilutive. - ------------------------------------------------------------------------------------------------------------------------------------
CONDENSED CONSOLIDATED BALANCE SHEET (UNAUDITED)
Sep. 30 Dec. 31 ----------------------------- Millions of dollars 1996 1995 - ------------------------------------------------------------------------------------------------------------------------------------ ASSETS Cash and cash equivalents .......................................................... $ 225 $ 94 Other current assets ............................................................... 1,387 1,482 Investments and long-term receivables .............................................. 1,105 1,101 Properties - net ................................................................... 6,949 7,109 Other assets ....................................................................... 143 105 ------------------------------ Total assets .............................................................. $9,809 $9,891 LIABILITIES AND EQUITY Current portion of long-term debt .................................................. $ 119 $ 8 Other current liabilities .......................................................... 1,337 1,308 Long-term debt and capital lease obligations ....................................... 2,951 3,698 Deferred Income taxes .............................................................. 678 722 Other deferred credits and liabilities ............................................. 1,391 1,225 Convertible preferred securities ................................................... 522 -- Stockholders' equity ............................................................... 2,811 2,930 ------------------------------ Total liabilities and equity .............................................. $9,809 $9,891
Table 1 3 NEWS RELEASE
CONDENSED CONSOLIDATED CASH FLOWS UNOCAL CORPORATION (UNAUDITED) For the Three Months For the Nine Months Ended September 30 Ended September 30 ------------------------------------------------- Millions of dollars 1996 1995 1996 1995 - ------------------------------------------------------------------------------------------------------------------------------------ CASH FLOWS FROM OPERATING ACTIVITIES Cash flow from operations ........................................... $ 449 $ 309 $1,299 $ 862 Working capital and other changes related to operations ............. 57 9 (100) (186) ------------------------------------------------- Net cash provided by operating activities ..................... 506 318 1,199 676 CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditures (includes dry hole costs) ..................... (318) (371) (940) (967) Proceeds from asset sales ........................................... 46 2 585 130 ------------------------------------------------- Net cash (used) in investing activities ....................... (272) (369) (355) (837) CASH FLOWS FROM FINANCING ACTIVITIES Net increase/(decrease) in long-term debt and capital lease obligations ................................. (171) 129 (560) 305 Dividends paid ...................................................... (59) (57) (176) (174) Other ............................................................... 12 17 23 50 ------------------------------------------------- Net cash provided/used in financing activities ................ (218) 89 (713) 181 Increase in cash and cash equivalents ...................................... 16 38 131 20 Cash and cash equivalents at beginning of period ........................... 209 130 94 148 ------------------------------------------------- Cash and cash equivalents at end of period ................................. $ 225 $ 168 $ 225 $ 168
CONDENSED CAPITAL EXPENDITURES (UNAUDITED)
For the Three Months For the Nine Months Ended September 30 Ended September 30 ---------------------------------------------------------- Millions of dollars 1996 1995 1996 1995 - ------------------------------------------------------------------------------------------------------------------------------------ Domestic Exploration & Production .......................... $ 92 $ 139 $ 327 $ 345 Foreign Exploration & Production ........................... 101 79 317 256 76 Products Company ........................................ 68 106 157 261 Geothermal & Power Operations .............................. 39 13 91 34 Diversified Businesses ..................................... 8 26 26 48 Corporate & Unallocated .................................... 10 8 22 23 ---------------------------------------------------------- Total ............................................... $318 $ 371 $ 940 $ 967
Table 2 4 NEWS RELEASE
RESULTS OF OPERATIONS FOR UNOCAL CORPORATION EXPLORATION AND PRODUCTION ACTIVITIES (UNAUDITED) For the Three Months For the Three Months Ended September 30, 1996 Ended September 30, 1995 ---------------------------------------------------------- United United Millions of dollars States Foreign Total States Foreign Total - ------------------------------------------------------------------------------------------------------------------------------------ Sales (includes intercompany sales) Crude oil and condensate ........................... $ 161 $ 142 $ 303 $ 167 $111 $ 278 Natural gas ........................................ 196 142 338 135 111 246 Natural gas liquids ................................ 18 4 22 16 3 19 Other .............................................. 1 0 1 0 0 0 ---------------------------------------------------------- Total ...................................... 376 288 664 318 225 543 Other Revenue .............................................. 5 8 13 39 4 43 Gain(loss) on assets sales ................................. 3 18 21 (5) 4 (1) ---------------------------------------------------------- Total revenues ............................. 384 314 698 352 233 585 Production costs ........................................... 65 66 131 93 43 136 Exploration expenses ....................................... 8 22 30 6 24 30 Dry hole costs ............................................. 38 12 50 22 6 28 Depreciation, depletion & amortization ..................... 112 61 173 117 49 166 Other operating expenses ................................... 38 9 47 36 21 57 ---------------------------------------------------------- Results of operations before income tax ............ $ 123 $144 $ 267 $ 78 $ 90 $ 168
For the Nine Months For the Nine Months Ended September 30, 1996 Ended September 30, 1995 -------------------------------------------------------------- United United States Foreign Total States Foreign Total -------------------------------------------------------------- Sales (includes intercompany sales) Crude oil and condensate ............................. $ 496 $415 $ 911 $ 523 $363 $ 886 Natural gas .......................................... 623 397 1,020 429 320 749 Natural gas liquids .................................. 51 15 66 51 13 64 Other ................................................ 3 0 3 2 0 2 ------------------------------------------------------------- Total ........................................ 1,173 827 2,000 1,005 696 1,701 Other Revenue ................................................ 10 21 31 51 21 72 Gain loss on asset sales...................................... 118 24 142 4 11 15 ------------------------------------------------------------- Total revenues ............................... 1,301 872 2,173 1,060 728 1,788 Production costs ............................................. 230 169 399 302 129 431 Exploration expenses ......................................... 19 59 78 26 57 83 Dry hole costs ............................................... 49 18 67 27 19 46 Depreciation, depletion & amortization ....................... 342 207 549 374 172 546 Other operating expenses ..................................... 113 40 153 98 50 148 ------------------------------------------------------------- Results of operations before income tax .............. $ 548 $379 $ 927 $ 233 $301 $ 534
Table 3 5 NEWS RELEASE
RESULTS OF OPERATIONS FOR UNOCAL CORPORATION EXPLORATION AND PRODUCTION ACTIVITIES (UNAUDITED) For the Three Months For the Three Months Ended June 30, 1996 Ended June 30, 1995 ----------------------------------------------------------- United United Millions of dollars States Foreign Total States Foreign Total - ------------------------------------------------------------------------------------------------------------------------------------ Sales (includes intercompany sales) Crude oil and condensate ........................... $ 154 $ 150 $ 304 $ 182 $ 126 $ 308 Natural gas ........................................ 201 128 329 154 102 256 Natural gas liquids ................................ 18 5 23 17 5 22 Other .............................................. 1 0 1 1 0 1 --------------------------------------------------------- Total ...................................... 374 283 657 354 233 587 Other Revenue .............................................. 2 5 7 5 9 14 Gain(loss) on asset sales ................................. 111 0 111 (3) 1 (2) --------------------------------------------------------- Total revenues ............................. 487 288 775 356 243 599 Production costs ........................................... 72 49 121 103 46 149 Exploration expenses ....................................... 7 20 27 10 15 25 Dry hole costs ............................................. 1 3 4 5 11 16 Depreciation, depletion & amortization ..................... 103 84 187 139 48 187 Other operating expenses ................................... 34 20 54 33 15 48 --------------------------------------------------------- Results of operations before income tax ............ $ 270 $ 112 $ 382 $ 66 $ 108 $ 174
For the Three Months For the Three Months Ended March 31, 1996 Ended March 31, 1995 ---------------------------------------------------------------- United United Millions of dollars States Foreign Total States Foreign Total - ------------------------------------------------------------------------------------------------------------------------------------ Sales (includes intercompany sales) Crude oil and condensate ........................... $181 $123 $304 $174 $126 $300 Natural gas ........................................ 226 127 353 140 107 247 Natural gas liquids ................................ 15 6 21 18 5 23 Other .............................................. 1 0 1 1 0 1 --------------------------------------------------------------- Total ...................................... 423 256 679 333 238 571 Other Revenue .............................................. 3 8 11 7 8 15 Gain on asset sales ................................. 4 6 10 12 6 18 --------------------------------------------------------------- Total revenues ............................. 430 270 700 352 252 604 Production costs ........................................... 93 54 147 106 40 146 Exploration expenses ....................................... 4 17 21 10 18 28 Dry hole costs ............................................. 10 3 13 0 2 2 Depreciation, depletion & amortization ..................... 127 62 189 118 75 193 Other operating expenses ................................... 41 11 52 29 14 43 --------------------------------------------------------------- Results of operations before income tax ............ $155 $123 $278 $ 89 $103 $192 Table 4
6 NEWS RELEASE
RESULTS OF OPERATIONS FOR UNOCAL CORPORATION REFINING, MARKETING AND TRANSPORTATION ACTIVITIES 76 PRODUCTS COMPANY (UNAUDITED) For the Three Months For the Nine Months Ended September 30 Ended September 30 ------------------------------------------------------- Millions of dollars 1996 1995 1996 1995 - ------------------------------------------------------------------------------------------------------------------------------------ Sales (includes intercompany sales) Gasoline ................................................. $ 510 $ 404 $ 1,473 $ 1,168 Jet ...................................................... 102 69 294 184 Diesel ................................................... 174 122 454 293 Other products ........................................... 207 154 580 589 Excise tax ............................................... 250 228 735 665 ------------------------------------------------------- Total ........................................... 1,243 977 3,536 2,899 Other Revenue ..................................................... 31 26 93 74 ------------------------------------------------------- Total revenues .................................. 1,274 1,003 3,629 2,973 Raw materials ..................................................... 514 406 1,485 1,235 Product purchases ................................................. 216 140 559 434 Manufacturing & operating expense ................................. 117 113 355 355 Selling, administrative & general ................................. 75 68 237 208 Depreciation & amortization ....................................... 36 28 107 80 Excise tax ........................................................ 250 228 735 665 Other expense ..................................................... 7 10 23 31 ------------------------------------------------------- Total expenses .................................. $ 1,215 $ 993 $ 3,501 $ 3,008 Results of operations before income tax .................. $ 59 $ 10 $ 128 $ (35)
For the Three Months For the Three Months Ended June 30 Ended March 31 ------------------------------------------------------- Millions of dollars 1996 1995 1996 1995 - ------------------------------------------------------------------------------------------------------------------------------------ Sales (includes intercompany sales) Gasoline ............................................... $ 558 $ 410 $ 405 $ 354 Jet .................................................... 81 55 111 60 Diesel ................................................. 150 96 130 75 Other products ......................................... 202 226 171 209 Excise tax ............................................. 250 228 235 209 ---------------------------------------------------------- Total ......................................... 1,241 1,015 1,052 907 Other Revenue ................................................... 37 25 25 23 --------------------------------------------------------- Total revenues ................................ 1,278 1,040 1,077 930 Raw materials ................................................... 504 470 467 359 Product purchases ............................................... 187 128 156 166 Manufacturing & operating expense ............................... 123 114 115 128 Selling, administrative & general ............................... 87 72 75 68 Depreciation & amortization ..................................... 39 26 32 26 Excise tax ...................................................... 250 228 235 209 Other expense ................................................... 8 12 8 9 ---------------------------------------------------------- Total expenses ................................ $ 1,198 $ 1,050 $ 1,088 $ 965 Results of operations before income tax ................ $ 80 $ (10) $ (11) $ (35)
Table 5 7 NEWS RELEASE
UNOCAL CORPORATION OPERATING HIGHLIGHTS (UNAUDITED) For the Three Months For the Nine Months Ended September 30 Ended September 30 ------------------------------------------------------ 1996 1995 1996 1995 - ------------------------------------------------------------------------------------------------------------------------------------ Net daily production Crude oil and condensate (thousand barrels daily): United States (a) ....................................... 86.1 123.6 98.9 126.4 Foreign: Far East (b) ....................................... 82.2 81.9 82.4 84.6 Other ............................................... 27.2 29.6 27.6 30.3 ----------------------------------------------------- Total Foreign ................................ 109.4 111.5 110.0 114.9 ----------------------------------------------------- Worldwide ...................................................... 195.5 235.1 208.9 241.3 Natural gas (million cubic feet daily): United States (a) ....................................... 1,099 1,077 1,091 1,109 Foreign: Far East (b) ....................................... 667 577 626 597 Other ............................................... 63 55 71 48 ----------------------------------------------------- Total Foreign ................................ 730 632 697 645 ----------------------------------------------------- Worldwide ...................................................... 1,829 1,709 1,788 1,754 Natural gas liquids (thousand barrels daily) (a) .................. 19.3 20.2 19.6 21.4 Geothermal (million kilowatt-hours daily) .......................... 21.0 17.7 17.3 16.0
Average sales prices Crude oil and condensate (per barrel): United States .................................... $ 20.01 $ 14.83 $ 18.31 $ 15.17 Foreign: Far East .................................... $ 18.89 $ 15.26 $ 18.32 $ 16.11 Other ....................................... $ 19.89 $ 15.12 $ 18.53 $ 15.84 Total Foreign ........................ $ 19.21 $ 15.21 $ 18.39 $ 16.01 --------------------------------------------------------------- Worldwide .............................................. $ 19.62 $ 14.98 $ 18.34 $ 15.51 Natural gas (per mcf): United States .................................... $ 2.09 $ 1.43 $ 2.20 $ 1.49 Foreign: Far East .................................... $ 2.27 $ 2.05 $ 2.23 $ 2.00 Other ....................................... $ 2.05 $ 1.21 $ 1.82 $ 1.14 Total Foreign ........................ $ 2.25 $ 1.97 $ 2.18 $ 1.94 --------------------------------------------------------------- Worldwide .............................................. $ 2.15 $ 1.64 $ 2.20 $ 1.66 (a) Includes production from California upstream properties of: Crude oil and condensate 1.0 28.7 10.9 29.4 Natural gas 0 58 17 64 Natural gas liquids 0.0 0.7 0.2 1.1 (b) Includes host country share in Indonesia of: Crude oil and condensate 26.4 33.0 26.8 31.7 Natural gas 29 20 26 23
Table 6 8 NEWS RELEASE
OPERATING HIGHLIGHTS (continued UNOCAL CORPORATION (UNAUDITED) For the Three Months For the Nine Months Ended September 30 Ended September 30 ---------------------------------------------------- 1996 1995 1996 1995 - ------------------------------------------------------------------------------------------------------------------------------------ Input to crude oil processing units (thousand barrels daily) ................... 229 220 231 207 Refinery production (thousand barrels daily) EPA gasoline ......................................................... 31 120 52 107 CARB gasoline ....................................................... 90 0 64 0 Jet fuel, kerosene and heating oil ................................... 33 29 36 21 Diesel fuel .......................................................... 19 14 21 12 CARB Diesel fuel .................................................... 27 27 24 24 Other products (lubricants, gas oils, etc.) ......................... 58 53 61 62 ---------------------------------------------- Total ...................................................... 258 243 258 226 Petroleum product sales (thousand barrels daily) Marketing (a) EPA gasoline ......................................................... 27 116 67 116 CARB gasoline ....................................................... 103 0 64 0 Diesel fuel .......................................................... 15 12 14 12 CARB Diesel fuel .................................................... 20 17 16 15 Other (includes lube oil, kerosene and fuel oil) .................... 7 7 7 7 ---------------------------------------------- Total ...................................................... 172 152 168 150 Product supply and refinery (b) EPA gasoline ......................................................... 4 31 9 23 CARB gasoline ....................................................... 21 0 12 0 Jet fuel ............................................................. 38 32 40 29 Diesel fuel .......................................................... 14 14 14 10 CARB Diesel fuel .................................................... 15 11 12 6 Other products (includes petroleum coke, gas oil, etc.) .............. 34 35 36 42 ---------------------------------------------- Total ...................................................... 126 123 123 110 ---------------------------------------------- Total petroleum product sales .............. 298 275 291 260 Agricultural products production volumes (thousand tons) Ammonia .............................................................. 360 296 1,089 988 Urea ................................................................. 275 242 845 806 Other products ....................................................... 149 169 494 583 Agricultural products sales volumes (thousand tons) Ammonia .............................................................. 206 106 574 500 Urea ................................................................. 198 247 779 773 Other products ....................................................... 302 255 971 962 (a) Primarily sold through retail channels (b) Primarily sold through wholesale or commercial channels
Table 7 9 NEWS RELEASE
EARNINGS BY BUSINESS SEGMENT UNOCAL CORPORATION (Unaudited) 3rd Quarter of 1996 3rd Quarter of 1995 ---------------------------------------------- Millions of dollars Before-tax After-tax Before-tax After-tax - ------------------------------------------------------------------------------------------------------------------------------------ PETROLEUM Exploration and Production United States .................................................................... $ 123 $ 77 $ 78 $ 49 Foreign .......................................................................... 144 100 90 50 Refining, Marketing and Transportation 76 Products ...................................................................... 59 37 10 12 GEOTHERMAL AND POWER OPERATIONS ........................................................ 15 6 13 6 DIVERSIFIED BUSINESSES Agricultural Products ............................................................ 31 20 5 3 Carbon and Minerals .............................................................. 15 13 15 13 Pipelines ........................................................................ 17 14 19 15 Other ............................................................................ 16 10 3 2 CORPORATE AND UNALLOCATED Administrative and general expense ............................................... (33) (21) (34) (22) Net interest expense ............................................................. (62) (37) (68) (50) Environmental and litigation expense ............................................. (60) (37) (16) (10) Other ............................................................................ (14) (11) (9) (9) --------------------------------------- Total ...................................................................... $ 251 $ 171 $ 106 $ 59 ======================================= EXPLORATION AND 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 AND POWER - 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.
Table 8 10 NEWS RELEASE
SPECIAL ADJUSTMENTS UNOCAL CORPORATION (Unaudited) 3rd Quarter of 1996 3rd Quarter of 1995 -------------------------------------------------------------- Dollars in millions except per share amounts Before-tax After-tax Before-tax After-tax - ------------------------------------------------------------------------------------------------------------------------------------ Reported earnings .................................................. $ 251 $ 171 $ 106 $ 59 Less: Special items EXPLORATION & PRODUCTION UNITED STATES Asset Sales ......................................... 4 3 (1) (1) Florida and Alaska OCS settlement ................... -- -- 29 18 FOREIGN Asset Sales ......................................... 18 37 1 -- 76 PRODUCTS Asset Sales ......................................... 1 1 -- -- Litigation provision ................................ (2) (2) -- -- Other ............................................... 4 3 -- -- GEOTHERMAL AND POWER OPERATIONS Asset Sales ......................................... -- -- 2 2 DIVERSIFIED BUSINESSES OTHER Asset sales ....................................... 13 8 -- -- CORPORATE & UNALLOCATED Asset Sales ......................................... 1 -- -- -- Environmental provision ............................. (20) (12) (2) (1) Litigation provision ................................ (31) (20) (7) (5) Other ............................................... -- -- -- (4) ------------------------------------------------------ Total special items ........................................... (12) 18 22 9 ------------------------------------------------------ ADJUSTED EARNINGS .................................................. $ 263 $ 153 $ 84 $ 50 Less: Dividends on preferred stock ................................. -- 9 ------------------------------------------------------ ADJUSTED NET EARNINGS APPLICABLE TO COMMON SHARES .................. 153 41 ------------------------------------------------------ ADJUSTED NET EARNINGS PER COMMON SHARE ............................. $0.61 $0.17
Table 9 11 NEWS RELEASE
EARNINGS BY BUSINESS SEGMENT UNOCAL CORPORATION EXCLUDING SPECIAL ADJUSTMENTS (Unaudited) 3rd Quarter of 1996 3rd Quarter of 1995 ---------------------------------------------------------------- Millions of dollars Before-tax After-tax Before-tax After-tax - ------------------------------------------------------------------------------------------------------------------------------------ PETROLEUM Exploration and Production United States ............................................ $ 119 $ 74 $ 50 $ 32 Foreign .................................................. 126 63 89 50 Refining, Marketing and Transportation 76 Products .............................................. 56 35 10 12 GEOTHERMAL AND POWER OPERATIONS ................................ 15 6 11 4 DIVERSIFIED BUSINESSES Agricultural Products .................................... 31 20 5 3 Carbon and Minerals ...................................... 15 13 15 13 Pipelines ................................................ 17 14 19 15 Other .................................................... 3 2 3 2 CORPORATE AND UNALLOCATED Administrative and general expense ....................... (33) (21) (34) (22) Net interest expense ..................................... (62) (37) (68) (50) Environmental and litigation expense ..................... (9) (5) (7) (4) Other .................................................... (15) (11) (9) (5) --------------------------------------------------------- Total .............................................. $ 263 $ 153 $ 84 $ 50 =========================================================
Table 10 12 NEWS RELEASE
EARNINGS BY BUSINESS SEGMENT UNOCAL CORPORATION (Unaudited) First Nine Months of 1996 First Nine Months of 1995 --------------------------------------------------------------- Millions of dollars Before-tax After-tax Before-tax After-tax - ------------------------------------------------------------------------------------------------------------------------------------ Petroleum EXPLORATION AND PRODUCTION United States ............................................ $ 548 $ 341 $ 233 $ 145 Foreign .................................................. 379 232 301 163 Refining, Marketing and Transportation 76 Products .............................................. 128 80 (35) (5) GEOTHERMAL AND POWER OPERATIONS ................................ 33 15 39 21 DIVERSIFIED BUSINESSES Agricultural Products .................................... 113 73 88 55 Carbon and Minerals ...................................... 52 40 55 40 Pipelines ................................................ 64 51 63 50 Other .................................................... 21 13 14 9 CORPORATE AND UNALLOCATED Administrative and general expense ....................... (87) (55) (91) (57) Net interest expense ..................................... (197) (135) (199) (140) Environmental and litigation expense ..................... (136) (84) (92) (57) Other .................................................... (53) (38) (14) (13) --------------------------------------------------------- Total .............................................. $ 865 $ 533 $ 362 $ 211 =========================================================
Table 11 13 NEWS RELEASE
SPECIAL ADJUSTMENTS UNOCAL CORPORATION (Unaudited) First Nine Months of 1996 First Nine Months of 1995 --------------------------------------------------------- Dollars in millions except per share amounts Before-tax After-tax Before-tax After-tax - ------------------------------------------------------------------------------------------------------------------------------------ Reported earnings ...................................................... $ 865 $ 533 $ 362 $ 211 Less: Special items EXPLORATION AND PRODUCTION UNITED STATES Asset Sales ............................................... 8 5 8 5 Sale of California oil and gas properties* ............... 110 68 -- -- Asset write-downs ......................................... -- -- (13) (8) Florida and Alaska OCS settlement ......................... -- -- 29 18 FOREIGN Asset Sales ............................................... 24 41 6 3 76 PRODUCTS Asset Sales ............................................... 1 1 -- -- Sale of California oil and gas properties ............... 4 2 -- -- Litigation ................................................ (3) (2) -- -- Environmental ............................................. -- -- -- -- Asset write-downs ......................................... (6) (4) -- -- Other ..................................................... 11 7 -- -- GEOTHERMAL AND POWER OPERATIONS Asset Sales ............................................... -- -- 9 7 DIVERSIFIED BUSINESSES ASSET SALES Pipeline ................................................ 12 7 -- -- Agricultural Products ................................... -- -- 6 4 Other ................................................... 13 8 2 1 CORPORATE AND UNALLOCATED Asset Sales ............................................... 2 1 29 18 Environmental provision ................................... (62) (38) (31) (19) Litigation provision ...................................... (51) (32) (27) (17) Asset write-downs ......................................... -- -- (3) (2) Other ..................................................... (11) (9) -- (4) --------------------------------------------------- Total special items ............................................... 52 55 15 6 ADJUSTED EARNINGS ...................................................... $ 813 $ 478 $ 347 $ 205 Less: Dividends on preferred stock ..................................... 18 27 -------------------------------------------------- ADJUSTED NET EARNINGS APPLICABLE TO COMMON SHARES ...................... 460 178 --------------------------------------------------- ADJUSTED NET EARNINGS PER COMMON SHARE ................................. $1.85 $0.72 * Net of provision for environmental remediation of $17 million before-tax and $10 milion after-tax.
Table 12 14 NEWS RELEASE
EARNINGS BY BUSINESS SEGMENT UNOCAL CORPORATION EXCLUDING SPECIAL ADJUSTMENTS (Unaudited) First Nine Months of 1996 First Nine Months of 1995 ------------------------------------------------------------- Millions of dollars Before-tax After-tax Before-tax After-tax - ------------------------------------------------------------------------------------------------------------------------------------ Petroleum EXPLORATION AND PRODUCTION United States ............................................ $ 430 $ 268 209 $ 130 Foreign .................................................. 355 191 295 160 Refining, Marketing and Transportation 76 Products .............................................. 121 76 (35) (5) GEOTHERMAL AND POWER OPERATIONS ................................ 33 15 30 14 DIVERSIFIED BUSINESSES Agricultural Products .................................... 113 73 82 51 Carbon and Minerals ...................................... 52 40 55 40 Pipelines ................................................ 52 44 63 50 Other .................................................... 8 5 12 8 CORPORATE AND UNALLOCATED Administrative and general expense ....................... (87) (55) (91) (57) Net interest expense ..................................... (197) (135) (199) (140) Environmental and litigation expense ..................... (23) (14) (34) (21) Other .................................................... (44) (30) (40) (25) --------------------------------------------------------- Total .............................................. $ 813 $ 478 $ 347 $ 205 =========================================================
Table 13 15 SIGNATURE Pursuant to the requirements 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 23, 1996 By: /s/ CHARLES S. MCDOWELL ----------------------- Charles S. McDowell Vice President and Comptroller (Duly Authorized Officer and Principal Accounting Officer) 16 -----END PRIVACY-ENHANCED MESSAGE-----