-----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, WW4K+g1Q3TZ4pbsSBNBCQDWB9ePRgZiBsX1oIY3aSpaWQFaLX+XCKn8Og6vI+akW DfEtqcfoOIqn1fTnM2/otQ== 0000716039-97-000004.txt : 19970124 0000716039-97-000004.hdr.sgml : 19970124 ACCESSION NUMBER: 0000716039-97-000004 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19970123 ITEM INFORMATION: Other events FILED AS OF DATE: 19970123 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: 97509725 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 - 4TH 1996 QUARTER RESULTS 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) January 23, 1997 ------------------- 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 January 23, 1997, the following news release was issued: UNOCAL ADJUSTED FOURTH QUARTER EARNINGS RISE 63% TO $150 MILLION --------------------------------- El Segundo, Calif., Jan. 23, 1997 -- Unocal Corporation today reported that preliminary fourth-quarter 1996 consolidated earnings, excluding special items, rose 63 percent to $150 million or 60 cents per common share. This compares with $92 million or 34 cents per common share reported on the same basis for 1995. Preliminary full-year 1996 earnings, excluding special items, were $628 million, or $2.45 per common share, up 111 percent from $297 million, or $1.06 per common share, in 1995. Earnings from continuing operations, excluding special items, were $160 million, or 64 cents per share, for the fourth quarter, and $562 million, or $2.19 per share, for the full-year 1996. Total revenues from continuing operations for the fourth quarter were $1.38 billion, up from $1.16 billion in the same period of 1995. For the full-year 1996, revenues from continuing operations were $5.33 billion, up from $4.39 billion the year before. Earnings and revenues from continuing operations for 1996 and 1995 exclude the results of Unocal's 76 Products Company business unit due to the pending asset sale. "This was truly a breakthrough year for Unocal," said Roger C. Beach, Unocal chairman and chief executive officer. "We recorded our strongest operating performance in many years from our upstream operations and made significant progress in realigning the company's assets so we can continue to grow for the future." Beach noted that during 1996 Unocal completed the sale of its California oil and gas properties and reached agreements to sell its West Coast refining, marketing and transportation assets and to restructure its UNO-VEN refining and marketing partnership in the Midwest. "The steps we took this year will give us the focus and flexibility we need to take advantage of our many new growth opportunities in Asia and the U.S. Gulf Coast region," Beach said. "Once the sale of our 76 Products Company assets is completed, we expect to initially redeploy the proceeds into reducing our debt and buying back some of our common stock. Over time, we will focus on investing in new, higher return opportunities, primarily overseas, but also in the U.S. Gulf Coast." Unocal's fourth quarter 1996 operating earnings benefited from higher crude oil and natural gas prices as well as increased foreign oil and gas production. These operating gains were offset partially by increased depreciation and depletion expense. The company's average worldwide natural gas sales price in the quarter was $2.49 per thousand cubic feet (mcf), up from $1.89 per mcf in 1995. Average sales price for crude and condensate was $21.85, up from $15.07 last year. Beach added that the company's worldwide net natural gas production increased 7 percent in the fourth quarter to 1,909 million cubic feet per day (mmcfd), compared with the same period a year ago. "The major increase came in Thailand, which averaged more than 612 mmcfd (net) during the quarter," Beach said. He noted that gross production from Unocal's Thailand operations continued to set new records, reaching 1,070 mmcfd (approximately 700 mmcfd net to Unocal) in late December and early January. In addition, U. S. Gulf Coast gas production from Unocal's Spirit Energy 76 unit this month has reached 730 mmcfd (net), up more than 4 percent from the first quarter last year. The company's agricultural products business unit continued with record earnings performance for the second straight year. Full-year earnings for this unit were $98 million, 40 percent above last year's results, on higher sales volumes and record production levels. Unocal's total debt fell to $3,058 million, down $648 million from the end of 1995. 2 Cash flow from operations in the fourth quarter, before working capital changes, was $399 million, up from $373 million last year. For the full year, cash flow from operations, before working capital changes, was nearly $1.7 billion, up 37 percent from 1995. The improvement reflects increased operating earnings. Including special items and discontinued operations, Unocal reported a loss of $497 million, or $1.98 per share for the fourth quarter 1996. On the same basis, full-year 1996 earnings were $36 million, or 7 cents per common share. This compares with reported earnings of $49 million, or 16 cents per share, in the fourth quarter 1995, and $260 million, or 91 cents per share, for the full-year 1995. 3 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) Date: January 23, 1997 By: CHARLES S. MCDOWELL - ----------------------- ------------------------ Charles S. McDowell, Vice President and Comptroller 4
NEWS RELEASE UNOCAL CORPORATION 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 1996 1995 1996 1995 - ------------------------------------------------------------------------------------------------------------------------------------ Total revenues ....................................................... $ 1,384 $ 1,161 $ 5,328 $ 4,389 Costs and other deductions ........................................... 1,363 1,083 4,570 3,914 ------------------------------------------------------ Earnings from continuing operations before income taxes .............. 21 78 758 475 Income taxes ......................................................... 18 45 302 226 ------------------------------------------------------ Net earnings from continuing operations .............................. 3 33 456 249 Earnings/(loss) from discontinued operation .......................... (9) 16 71 11 Loss on disposal (a) ................................................ (491) -- (491) -- ------------------------------------------------------ Net earnings/(loss) from discontinued operations ..................... (500) 16 (420) 11 ------------------------------------------------------ Net earnings/(loss) .................................................. $ (497) $ 49 $ 36 $ 260 Dividends on preferred stock ......................................... -- 9 18 36 ------------------------------------------------------ Net earnings/(loss) applicable to common shares ...................... $ (497) $ 40 $ 18 $ 224 Earnings/(loss) per common share assuming no dilution (b) (c) Continuing operations.......................................... $ 0.01 $ 0.10 $ 1.76 $ 0.87 Discontinued operations........................................ (1.99) 0.06 (1.69) 0.04 ------------------------------------------------------ Net earnings/(loss) per share $ (1.98) $ 0.16 $ 0.07 $ 0.91 (a) Includes transition loss (net of tax) of: 11/17/96 - 12/31/96............................................ $ (30) $ - $ (30) $ - 1/1/97 - 3/31/97............................................... $ (42) $ - (42) $ - (b) Based on weighted average common shares outstanding (in millions)..................................... 250 247 249 246 (c) The effect of common stock equivalents is antidilutive for all reported periods.
CONDENSED CONSOLIDATED BALANCE SHEET (UNAUDITED) December 31 ------------------------------- Millions of dollars 1996 1995 - ------------------------------------------------------------------------------------------------------------------------------------ ASSETS Cash and cash equivalents .......................................................... $ 217 $ 94 Net assets of discontinued operations (d) ......................................... 1,774 -- Other current assets ............................................................... 1,238 1,482 Investments and long-term receivables .............................................. 1,205 1,101 Properties - net ................................................................... 4,590 7,109 Other assets ....................................................................... 99 105 ------------------------------ Total assets .............................................................. $9,123 $9,891 LIABILITIES AND EQUITY Current portion of long-term debt and capital lease obligations ......................................................... $ 118 $ 8 Other current liabilities .......................................................... 1,504 1,308 Long-term debt and capital lease obligations ....................................... 2,940 3,698 Deferred income taxes .............................................................. 348 722 Other deferred credits and liabilities ............................................. 1,416 1,225 Convertible preferred securities ................................................... 522 -- Stockholders' equity ............................................................... 2,275 2,930 ------------------------------ Total liabilities and equity .............................................. $9,123 $9,891
(d) Excludes retained working capital. Table 1
NEWS RELEASE UNOCAL CORPORATION CONDENSED CONSOLIDATED CASH FLOWS (INCLUDES DISCONTINUED OPERATIONS) (UNAUDITED) For the Three Months For the Twelve Months Ended December 31 Ended December 31 ------------------------------------------------------ Millions of dollars 1996 1995 1996 1995 - ------------------------------------------------------------------------------------------------------------------------------------ CASH FLOWS FROM OPERATING ACTIVITIES Cash flow from operations ......................................... $ 399 $ 373 $ 1,698 $ 1,235 Working capital and other changes related to operations ........... 86 228 (14) 42 -------------------------------------------------- Net cash provided by operating activities ................. 485 601 1,684 1,277 CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditures (includes dry hole costs) ................... (458) (492) (1,398) (1,459) Proceeds from asset sales ......................................... 24 74 609 204 -------------------------------------------------- Net cash used in investing activities ..................... (434) (418) (789) (1,255) CASH FLOWS FROM FINANCING ACTIVITIES Net increase/(decrease) in long-term debt and capital lease obligations ............................. (8) (194) (568) 111 Dividends paid .................................................... (50) (58) (226) (232) Other ............................................................. (1) (5) 22 45 -------------------------------------------------- Net cash used in financing activities ..................... (59) (257) (772) (76) Increase/(decrease) in cash and cash equivalents (a) ...................... (8) (74) 123 (54) Cash and cash equivalents at beginning of period ........................... 225 168 94 148 -------------------------------------------------- Cash and cash equivalents at end of period ................................. $ 217 $ 94 $ 217 $ 94 (a) Includes increase/(decrease) in cash and cash equivalents for discontinued operations of ....................................... $ (12) $ 53 $ (9) $ (154)
CONDENSED CAPITAL EXPENDITURES (UNAUDITED) Millions of dollars - ------------------------------------------------------------------------------------------------------------------------------------ Domestic Exploration & Production .......................... $ 91 $ 152 $ 418 $ 497 Foreign Exploration & Production ........................... 194 97 509 353 Geothermal & Power Operations .............................. 23 17 114 51 Diversified Businesses ..................................... 60 40 82 78 New Ventures ............................................... 3 0 5 0 Corporate & Unallocated .................................... 20 38 46 58 Discontinued Operations .................................... 67 148 224 422 ------------------------------------------------------------ Total ............................................. $ 458 $ 492 $1,398 $1,459
DEPRECIATION, DEPLETION & AMORTIZATION (UNAUDITED) Millions of dollars - ------------------------------------------------------------------------------------------------------------------------------------ Depreciation, Depletion & Amortization Continuing operations .................................. $297 $287 $914 $911 Discontinued operations ................................ $ 38 $ 31 $147 $111
Table 2
NEWS RELEASE UNOCAL CORPORATION RESULTS OF OPERATIONS FOR EXPLORATION AND PRODUCTION ACTIVITIES (UNAUDITED) For the Three Months For the Three Months Ended December 31, 1996 Ended December 31, 1995 ----------------------------------------------------------------- Millions of dollars Domestic Foreign Total Domestic Foreign Total - ------------------------------------------------------------------------------------------------------------------------------------ Sales (includes intercompany sales) Crude oil and condensate .............................. $ 176 $ 162 $ 338 $ 161 $ 123 $ 284 Natural gas ........................................... 235 180 415 169 133 302 Natural gas liquids ................................... 25 8 33 15 6 21 Other ................................................. 1 0 1 1 0 1 --------------------------------------------------------------- Total .......................................... 437 350 787 346 262 608 Other revenue ................................................. 16 11 27 62 5 67 Gain/(loss) on asset sales .................................... (11) 0 (11) 48 (4) 44 --------------------------------------------------------------- Total revenues ................................. 442 361 803 456 263 719 Production costs .............................................. 70 57 127 92 52 144 Exploration expenses .......................................... 7 26 33 13 40 53 Dry hole costs ................................................ 18 46 64 9 2 11 Depreciation, depletion & amortization ........................ 184 70 254 163 118 281 Other operating expenses ...................................... 42 15 57 26 22 48 --------------------------------------------------------------- Results of operations before income tax ............... $ 121 $ 147 $ 268 $ 153 $ 29 $ 182
For the Twelve Months For the Twelve Months Ended December 31, 1996 Ended December 31, 1995 ----------------------------------------------------------------------- Domestic Foreign Total Domestic Foreign Total ----------------------------------------------------------------------- Sales (includes intercompany sales) Crude oil and condensate ........................... $ 672 $ 577 $1,249 $ 684 $ 486 $1,170 Natural gas ........................................ 858 577 1,435 598 453 1,051 Natural gas liquids ................................ 76 23 99 66 19 85 Other .............................................. 4 0 4 3 0 3 ------------------------------------------------------------------ Total ....................................... 1,610 1,177 2,787 1,351 958 2,309 Other revenue .............................................. 26 28 54 113 26 139 Gain on asset sales ........................................ 107 24 131 52 7 59 ------------------------------------------------------------------ Total revenues .............................. 1,743 1,229 2,972 1,516 991 2,507 Production costs ........................................... 300 208 508 394 181 575 Exploration expenses ....................................... 26 85 111 39 97 136 Dry hole costs ............................................. 67 64 131 36 21 57 Depreciation, depletion & amortization ..................... 526 277 803 537 290 827 Other operating expenses ................................... 155 49 204 124 72 196 ------------------------------------------------------------------ Results of operations before income tax ............ $ 669 $ 546 $1,215 $ 386 $ 330 $ 716
Table 3
NEWS RELEASE UNOCAL CORPORATION RESULTS OF OPERATIONS FOR EXPLORATION AND PRODUCTION ACTIVITIES (RESTATED TO EXCLUDE MIDSTREAM NEW VENTURES EXPENSES) (UNAUDITED) For the Three Months For the Three Months Ended September 30, 1996 Ended June 30, 1996 ---------------------------------------------------------------------- Millions of dollars Domestic Foreign Total Domestic Foreign Total - ------------------------------------------------------------------------------------------------------------------------------------ Sales (includes intercompany sales) Crude oil and condensate ........................... $161 $142 $303 $154 $150 $304 Natural gas ........................................ 196 142 338 201 128 329 Natural gas liquids ................................ 18 4 22 18 5 23 Other .............................................. 1 0 1 1 0 1 ---- ---- Total ....................................... 376 288 664 374 283 657 Other revenue .............................................. 5 7 12 2 4 6 Gain on asset sales ........................................ 3 18 21 111 0 111 ---- ---- Total revenues .............................. 384 313 697 487 287 774 Production costs ........................................... 65 51 116 72 49 121 Exploration expenses ....................................... 8 22 30 7 20 27 Dry hole costs ............................................. 38 12 50 1 3 4 Depreciation, depletion & amortization ..................... 112 61 173 103 84 187 Other operating expenses ................................... 38 13 51 34 13 47 ---- ---- Results of operations before income tax ............ $123 $154 $277 $270 $118 $388
For the Three Months Ended March 31, 1996 -------------------------------------------- Millions of dollars Domestic Foreign Total - ------------------------------------------------------------------------------------------------------------------------------------ Sales (includes intercompany sales) Crude oil and condensate .......................................... $181 $123 $304 Natural gas ....................................................... 226 127 353 Natural gas liquids ............................................... 15 6 21 Other ............................................................. 1 0 1 ------------------------------------------ Total ...................................................... 423 256 679 Other revenue ............................................................. 3 6 9 Gain on asset sales ....................................................... 4 6 10 ------------------------------------------ Total revenues ............................................. 430 268 698 Production costs .......................................................... 93 51 144 Exploration expenses ...................................................... 4 17 21 Dry hole costs ............................................................ 10 3 13 Depreciation, depletion & amortization .................................... 127 62 189 Other operating expenses .................................................. 41 8 49 ------------------------------------------ Results of operations before income tax ........................... $155 $127 $282
Table 4
NEWS RELEASE UNOCAL CORPORATION OPERATING HIGHLIGHTS (UNAUDITED) For the Three Months For the Twelve Months Ended December 31 Ended December 31 ---------------------------------------------------------- 1996 1995 1996 1995 - ------------------------------------------------------------------------------------------------------------------------------------ Net daily production Crude oil and condensate (thousand barrels daily): Domestic (a) .................................... 86.7 121.0 95.8 125.1 Foreign: Far East (b) ............................... 87.6 86.4 83.7 85.1 Other ....................................... 25.3 28.2 27.1 30.2 ---------------------------------------------------------- Total Foreign ......................... 112.9 114.6 110.8 115.3 ---------------------------------------------------------- Worldwide .............................................. 199.6 235.6 206.6 240.4 Natural gas (million cubic feet daily): Domestic (a) .................................... 1,053 1,078 1,075 1,103 Foreign: Far East (b) ............................... 797 643 669 609 Other ....................................... 59 67 68 53 ---------------------------------------------------------- Total Foreign ......................... 856 710 737 662 --------------------------------------------------------- Worldwide .............................................. 1,909 1,788 1,812 1,765 Natural gas liquids (thousand barrels daily) (a) 20.2 20.4 19.5 21.0 Geothermal (million kilowatt-hours daily) 19.9 16.7 18.0 16.1 Average sales prices Crude oil and condensate (per barrel): Domestic ..................................... $22.10 $14.59 $19.21 $15.03 Foreign: Far East ................................ $21.62 $16.02 $19.17 $16.09 Other ................................... $21.48 $15.23 $19.20 $15.69 Total Foreign ..................... $21.58 $15.75 $19.18 $15.95 ---------------------------------------------------------- Worldwide .......................................... $21.85 $15.07 $19.20 $15.40 Natural gas (per mcf): Domestic $ 2.59 $ 1.75 $ 2.30 $ 1.56 Foreign: Far East $ 2.39 $ 2.13 $ 2.28 $ 2.04 Other $ 1.95 $ 1.82 $ 1.85 $ 1.39 Total Foreign $ 2.36 $ 2.10 $ 2.23 $ 1.98 ------------------------------------------------------------------------------------------------------------------------------ Worldwide $ 2.49 $ 1.89 $ 2.27 $ 1.72 (a) Includes production from California upstream properties of: Crude oil and condensate ........................................ 0.9 28.1 7.4 27.9 Natural gas ..................................................... 0 54 13 61 Natural gas liquids ............................................. 0.0 0.6 0.1 0.7 (b) Includes host country share in Indonesia of: Crude oil and condensate ........................................ 29.9 25.8 27.6 30.3 Natural gas ..................................................... 28 20 27 22
Table 5
NEWS RELEASE UNOCAL CORPORATION OPERATING HIGHLIGHTS (continued) (UNAUDITED) For the Three Months For the Twelve Months Ended December 31 Ended December 31 --------------------------------------------------------- 1996 1995 1996 1995 - ------------------------------------------------------------------------------------------------------------------------------------ Agricultural products production volumes (thousand tons) Ammonia ....................................................... 379 319 1,468 1,307 Urea .......................................................... 286 276 1,131 1,082 Other products ................................................ 164 292 658 775 Agricultural products sales volumes (thousand tons) Ammonia ....................................................... 134 154 708 654 Urea .......................................................... 343 224 1,122 997 Other products ................................................ 269 215 1,240 1,177
Table 6
NEWS RELEASE UNOCAL CORPORATION EARNINGS BY BUSINESS SEGMENT (Unaudited) 4th Quarter of 1996 4th Quarter of 1995 ----------------------------------------------------------- Millions of dollars Before-tax After-tax Before-tax After-tax - ------------------------------------------------------------------------------------------------------------------------------------ PETROLEUM Exploration and Production United States ............................................ $ 121 $ 71 $ 153 $ 95 Foreign .................................................. 147 71 29 18 GEOTHERMAL AND POWER OPERATIONS ................................ (109) (70) 8 5 DIVERSIFIED BUSINESSES Agricultural Products .................................... 39 25 25 19 Carbon and Minerals ...................................... 7 7 17 12 Pipelines ................................................ 22 18 19 16 Other .................................................... 7 5 1 -- NEW VENTURES ................................................... (16) (10) -- -- CORPORATE AND UNALLOCATED Administrative and general expense ....................... (39) (24) (36) (27) Net interest expense ..................................... (59) (40) (58) (38) Environmental and litigation expense ..................... (94) (59) (56) (35) Other .................................................... (5) 9 (24) (32) --------------------------------------------------------- Earnings from continuing operations ............................ 21 3 78 33 Earnings (loss) from discontinued operations ................... (805) (500) 23 16 --------------------------------------------------------- Total .............................................. $(784) $(497) $ 101 $ 49 =========================================================
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. 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 - principally includes the company's equity interest in The UNO-VEN Company, a refining and marketing partnership in the midwestern United States. NEW VENTURES - this segment pursues foreign midstream business development projects. Table 7
NEWS RELEASE UNOCAL CORPORATION SPECIAL ADJUSTMENTS (Unaudited) 4th Quarter of 1996 4th Quarter of 1995 ----------------------------------------------------------- Dollars in millions except per share amounts Before-tax After-tax Before-tax After-tax - ------------------------------------------------------------------------------------------------------------------------------------ Reported earnings (loss) ........................................... $ (784) $ (497) $ 101 $ 49 Less: Special items ExPLORATION & PRODUCTION UNITED STATES Asset Sales ............................................. (6) (4) 44 27 Sale of California oil and gas properties ............... (5) (3) -- -- Settlement of Federal leases ............................ 12 7 -- -- FAS 121 Impairment ...................................... (52) (32) (44) (27) Resturcturing provision ................................. (7) (4) Columbia Gas Settlement ................................. -- -- 55 34 FOREIGN FAS 121 Impairment ...................................... -- -- (43) (26) GEOTHERMAL AND POWER OPERATIONS Asset Sales ............................................. (92) (57) -- -- FAS 121 Impairment ...................................... (23) (14) -- -- Other ................................................... 3 2 -- -- DIVERSIFIED BUSINESSES Asset Sales Pipeline ............................................. 3 2 -- -- Litigation provision - Carbon and Minerals .............. (2) (1) -- -- CORPORATE & UNALLOCATED Asset Sales ............................................. 3 2 9 5 Environmental provision ................................. (41) (26) (10) (7) Litigation provision .................................... (42) (26) (33) (20) Asset write-downs ....................................... -- -- (3) (2) Other ................................................... (4) (3) (14) (28) DISCONTINUED OPERATIONS Asset Sales ............................................. -- -- 1 1 Litigation provision .................................... 1 1 -- -- Loss on disposal ........................................ (792) (491) -- -- -------------------------------------------------------- Total special items ........................................... (1,044) (647) (38) (43) -------------------------------------------------------- ADJUSTED EARNINGS .................................................. $ 260 $ 150 $ 139 $ 92 Less: Dividends on preferred stock ................................. -- 9 -------------------------------------------------------- ADJUSTED NET EARNINGS APPLICABLE TO COMMON SHARES .................. 150 83 -------------------------------------------------------- ADJUSTED NET EARNINGS PER COMMON SHARE ............................. $ 0.60 $ 0.34
Table 8
NEWS RELEASE UNOCAL CORPORATION EARNINGS BY BUSINESS SEGMENT EXCLUDING SPECIAL ADJUSTMENTS (Unaudited) 4th Quarter of 1996 4th Quarter of 1995 ---------------------------------------------------------------- Millions of dollars Before-tax After-tax Before-tax After-tax - ------------------------------------------------------------------------------------------------------------------------------------ PETROLEUM Exploration and Production United States ............................................ $ 179 $ 107 $ 98 $ 61 Foreign .................................................. 147 71 72 44 GEOTHERMAL AND POWER OPERATIONS ................................ 3 (1) 8 5 DIVERSIFIED BUSINESSES Agricultural Products .................................... 39 25 25 19 Carbon and Minerals ...................................... 9 8 17 12 Pipelines ................................................ 19 16 19 16 Other .................................................... 7 5 1 -- NEW VENTURES ................................................... (16) (10) -- -- CORPORATE AND UNALLOCATED Administrative and general expense ....................... (39) (24) (36) (27) Net interest expense ..................................... (59) (40) (58) (38) Environmental and litigation expense ..................... (11) (7) (13) (8) Other .................................................... (4) 10 (16) (7) ---------------------------------------------------------- Earnings from continuing operations ............................ 274 160 117 77 Earnings (loss) from discontinued operations ................... (14) (10) 22 15 ---------------------------------------------------------- Total .............................................. $ 260 $ 150 $ 139 $ 92 ==========================================================
Table 9
NEWS RELEASE UNOCAL CORPORATION EARNINGS BY BUSINESS SEGMENT (Unaudited) For Twelve Months For Twelve Months Ended December 31, 1996 Ended December 31, 1995 ------------------------------------------------------------------- Millions of dollars Before-tax After-tax Before-tax After-tax - ------------------------------------------------------------------------------------------------------------------------------------ PETROLEUM Exploration and Production United States ............................................ $ 669 $ 412 $ 386 $ 240 Foreign .................................................. 546 316 330 181 GEOTHERMAL AND POWER OPERATIONS ................................ (76) (55) 47 26 DIVERSIFIED BUSINESSES Agricultural Products .................................... 152 98 113 74 Carbon and Minerals ...................................... 59 47 72 52 Pipelines ................................................ 86 69 82 66 Other .................................................... 22 14 15 9 NEW VENTURES ................................................... (36) (23) -- -- CORPORATE AND UNALLOCATED Administrative and general expense ....................... (126) (79) (127) (84) Net interest expense ..................................... (256) (175) (257) (178) Environmental and litigation expense ..................... (230) (143) (148) (92) Other .................................................... (52) (25) (38) (45) --------------------------------------------------------- Earnings from continuing operations ............................ 758 456 475 249 Earnings (loss) from discontinued operations ................... (677) (420) (12) 11 --------------------------------------------------------- Total .............................................. $ 81 $ 36 $ 463 $ 260 =========================================================
Table 10
NEWS RELEASE UNOCAL CORPORATION SPECIAL ADJUSTMENTS (Unaudited) For the Twelve Months For the Twelve Months Ended December 31, 1996 Ended December 31, 1995 ----------------------------------------------------------------- Dollars in millions except per share amounts Before-tax After-tax Before-tax After-tax - ------------------------------------------------------------------------------------------------------------------------------------ Reported earnings ...................................................... $ 81 $ 36 $ 463 $ 260 Less: Special items EXPLORATION & PRODUCTION UNITED STATES Asset Sales ................................................ 2 1 52 32 Sale of California oil and gas properties ................ 105 65 -- -- Asset write-downs .......................................... -- -- (13) (8) Settlement of Federal leases ............................... 12 7 29 18 FAS 121 Impairment ......................................... (52) (32) (44) (27) Restructuring provision .................................... (7) (4) -- -- Columbia Gas Settlement .................................... -- -- 55 34 FOREIGN Asset Sales ................................................ 24 41 6 3 FAS 121 Impairment ......................................... -- -- (43) (26) GEOTHERMAL AND POWER OPERATIONS Asset Sales ................................................ (92) (57) 9 7 FAS 121 Impairment ......................................... (23) (14) -- -- Other ...................................................... 3 2 -- -- DIVERSIFIED BUSINESSES Asset Sales Pipeline ................................................ 15 9 -- -- Agricultural Products ................................... -- -- 6 4 Litigation provision - Carbon and Minerals ................. (2) (1) -- -- CORPORATE & UNALLOCATED Asset Sales ................................................ 18 11 40 24 Environmental provision .................................... (103) (64) (41) (26) Litigation provision ....................................... (93) (58) (60) (37) Asset write-downs .......................................... -- -- (6) (4) Other ...................................................... (15) (12) (14) (32) DISCONTINUED OPERATIONS Asset Sales ................................................ 1 1 1 1 Sale of California oil and gas properties ................ 4 2 -- -- Litigation ................................................. (2) (1) -- -- Asset write-downs .......................................... (6) (4) -- -- Other ...................................................... 11 7 -- -- Loss on disposal ........................................... (792) (491) -- -- ----------------------------------------------------- Total special items ............................................... (992) (592) (23) (37) ----------------------------------------------------- ADJUSTED EARNINGS ...................................................... $ 1,073 $ 628 $ 486 $ 297 Less: Dividends on preferred stock ..................................... 18 36 ----------------------------------------------------- ADJUSTED NET EARNINGS APPLICABLE TO COMMON SHARES ...................... 610 261 ----------------------------------------------------- ADJUSTED NET EARNINGS PER COMMON SHARE ................................. $ 2.45 $ 1.06
* Net of provision for environmental remediation of $17 million before-tax and $10 milion after-tax. Table 11
NEWS RELEASE UNOCAL CORPORATION EARNINGS BY BUSINESS SEGMENT EXCLUDING SPECIAL ADJUSTMENTS (Unaudited) For Twelve Months For Twelve Months Ended December 31, 1996 Ended December 31, 1995 -------------------------------------------------------------------- Millions of dollars Before-tax After-tax Before-tax After-tax - ------------------------------------------------------------------------------------------------------------------------------------ PETROLEUM Exploration and Production United States ............................................ $ 609 $ 375 $ 307 $ 191 Foreign .................................................. 522 275 367 204 GEOTHERMAL AND POWER OPERATIONS ................................ 36 14 38 19 DIVERSIFIED BUSINESSES Agricultural Products .................................... 152 98 107 70 Carbon and Minerals ...................................... 61 48 72 52 Pipelines ................................................ 71 60 82 66 Other .................................................... 22 14 15 9 NEW VENTURES ................................................... (36) (23) -- -- CORPORATE AND UNALLOCATED Administrative and general expense ....................... (126) (79) (127) (84) Net interest expense ..................................... (256) (175) (257) (178) Environmental and litigation expense ..................... (34) (21) (47) (29) Other .................................................... (55) (24) (58) (33) ----------------------------------------------------------- Earnings from continuing operations ............................ 966 562 499 287 Earnings (loss) from discontinued operations ................... 107 66 (13) 10 ----------------------------------------------------------- Total .............................................. $ 1,073 $ 628 $ 486 $ 297 ===========================================================
Table 12
NEWS RELEASE UNOCAL CORPORATION RESTATED EARNINGS BY BUSINESS SEGMENT (Unaudited) 1st Quarter of 1996 1st Quarter of 1996 Excluding Special Items --------------------------------------------------------- Millions of dollars Before-tax After-tax Before-tax After-tax - ------------------------------------------------------------------------------------------------------------------------------------ PETROLEUM Exploration and Production United States ............................................ $ 155 $ 96 $ 151 $ 94 Foreign .................................................. 127 70 121 66 GEOTHERMAL AND POWER OPERATIONS ................................ 9 5 9 5 DIVERSIFIED BUSINESSES Agricultural Products .................................... 25 16 25 16 Carbon and Minerals ...................................... 26 18 26 18 Pipelines ................................................ 30 23 18 16 Other .................................................... 1 1 1 1 NEW VENTURES ................................................... (4) (2) (4) (2) CORPORATE AND UNALLOCATED Administrative and general expense ....................... (29) (18) (29) (18) Net interest expense ..................................... (72) (50) (72) (50) Environmental and litigation expense ..................... (23) (14) (7) (4) Other .................................................... (20) (14) (21) (15) --------------------------------------------------------- Earnings from continuing operations ............................ 225 131 218 127 Earnings (loss) from discontinued operations ................... (11) (7) (11) (7) --------------------------------------------------------- Total .............................................. $ 214 $ 124 $ 207 $ 120 =========================================================
Table 13
NEWS RELEASE UNOCAL CORPORATION RESTATED EARNINGS BY BUSINESS SEGMENT (Unaudited) 2nd Quarter of 1996 2nd Quarter of 1996 Excluding Special Items --------------------------------------------------------- Millions of dollars Before-tax After-tax Before-tax After-tax - ------------------------------------------------------------------------------------------------------------------------------------ PETROLEUM Exploration and Production United States ............................................ $ 270 $ 168 $ 160 $ 100 Foreign .................................................. 118 68 118 68 GEOTHERMAL AND POWER OPERATIONS ................................ 9 4 9 4 DIVERSIFIED BUSINESSES Agricultural Products .................................... 57 37 57 37 Carbon and Minerals ...................................... 11 9 11 9 Pipelines ................................................ 17 14 17 14 Other .................................................... 9 5 9 5 NEW VENTURES ................................................... (6) (4) (6) (4) CORPORATE AND UNALLOCATED Administrative and general expense ....................... (25) (16) (25) (16) Net interest expense ..................................... (63) (48) (63) (48) Environmental and litigation expense ..................... (53) (33) (7) (5) Other .................................................... (24) (16) (13) (7) --------------------------------------------------------- Earnings from continuing operations ............................ 320 188 267 157 Earnings from discontinued operations .......................... 80 50 76 48 --------------------------------------------------------- Total .............................................. $ 400 $ 238 $ 343 $ 205 =========================================================
Table 14
NEWS RELEASE UNOCAL CORPORATION RESTATED EARNINGS BY BUSINESS SEGMENT (Unaudited) 3rd Quarter of 1996 3rd Quarter of 1996 Excluding Special Items ----------------------------------------------------------- Millions of dollars Before-tax After-tax Before-tax After-tax - ----------------------------------------------------------------------------------------------------------------------------------- PETROLEUM Exploration and Production United States ............................................ $ 123 $ 77 $ 119 $ 74 Foreign .................................................. 154 107 136 70 GEOTHERMAL AND POWER OPERATIONS ................................ 15 6 15 6 DIVERSIFIED BUSINESSES Agricultural Products .................................... 31 20 31 20 Carbon and Minerals ...................................... 15 13 15 13 Pipelines ................................................ 17 14 17 14 Other .................................................... 5 3 5 3 NEW VENTURES ................................................... (10) (7) (10) (7) CORPORATE AND UNALLOCATED Administrative and general expense ....................... (33) (21) (33) (21) Net interest expense ..................................... (62) (37) (62) (37) Environmental and litigation expense ..................... (60) (37) (9) (5) Other .................................................... (3) (4) (17) (12) --------------------------------------------------------- Earnings from continuing operations ............................ 192 134 207 118 Earnings from discontinued operations .......................... 59 37 56 35 --------------------------------------------------------- Total .............................................. $ 251 $ 171 $ 263 $ 153 =========================================================
Table 15 -----END PRIVACY-ENHANCED MESSAGE-----