-----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, BIVV+d6IFlVFzap34vqpMwR9xSpOMWsVQzexUvfiHkUOMp+pBcmUfznVU0d/WFnZ Wj25djuPPdnYjkwQXRMK9g== 0000716039-97-000015.txt : 19970425 0000716039-97-000015.hdr.sgml : 19970425 ACCESSION NUMBER: 0000716039-97-000015 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19970424 ITEM INFORMATION: Other events FILED AS OF DATE: 19970424 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: 97586454 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 - 1ST QUARTER 1997 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) April 24, 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 April 24, 1997 the following news release was issued: UNOCAL EARNINGS RISE 16% ON HIGHER GAS PRODUCTION, IMPROVED OIL AND GAS PRICES El Segundo, Calif., April 24, 1997 -- Unocal Corporation today reported first quarter 1997 net earnings of $144 million, or 57 cents per common share, up 16 percent from $124 million, or 47 cents per common share, in the same period a year ago. Earnings from operations, excluding special items (detailed in the attached tables), were $190 million, or 76 cents per common share, up 58 percent from $120 million, or 45 cents per common share, in the first quarter 1996. "We continued to show increased natural gas production in the first quarter, reflecting the success of our focus on key strategic projects in Southeast Asia," said Roger C. Beach, Unocal chairman and chief executive officer. Natural gas production in the Far East was up 35 percent, or 208 million cubic feet (mmcf) per day, over the first quarter 1996. In Thailand, net natural gas production averaged 623 mmcf per day in the first quarter, up 42 percent from a year ago, following the start-up of a new pipeline system. In Indonesia, net natural gas production (including host country share) rose 22 mmcf per day to 182 mmcf per day, primarily because of increases from the Santan and Sepinggan fields. 1 Unocal also reported a 15 percent increase in crude oil and condensate production from its Thailand and Indonesia operations. Beach noted that the first quarter operating results reflect significantly higher average sales prices for crude oil and natural gas. Worldwide, Unocal's average sales price for crude and condensate was $20.81 per barrel, compared with $16.93 in 1996, while the sales price for natural gas averaged $2.51 per thousand cubic feet, compared with $2.27 for the same period last year. "We completed the sale of our West Coast downstream operations at the end of the first quarter," Beach said. "This sale transformed Unocal into the world's largest publicly traded independent energy resource company -- first in production and reserves -- with a strong focus on international project development." Unocal's balance sheet at the end of the first quarter 1997 showed cash and cash equivalents of more than $1.7 billion, including the proceeds received from the sale of its West Coast downstream assets. Earlier this month, Duff & Phelps Credit Rating Co. raised the company's senior unsecured debt rating to "A-" (Single-A-Minus), and the commercial paper rating to "D-1-" (D-One-Minus), reflecting Unocal's strong financial condition. Beach also noted that the company was moving ahead with its announced $400 million common stock buyback program. By the end of the first quarter, Unocal had repurchased approximately 1.2 million shares for $46 million. Unocal Corporation is the world's largest independent exploration and production company with hydrocarbon reserves of more than 9.8 trillion cubic feet of natural-gas-equivalent (1.6 billion barrels-of-oil-equivalent) and major oil and gas production activities in Asia and the U.S. Gulf of Mexico. 2 NEWS RELEASE UNOCAL CORPORATION CONDENSED CONSOLIDATED EARNINGS STATEMENT (UNAUDITED) For the Three Months Ended March 31 ---------------------- Dollars in millions except per share amounts 1997 1996 - -------------------------------------------------------------------------------- Total revenues ....................................... $ 1,456 $ 1,201 Costs and other deductions ........................... 1,119 976 --------------------- Earnings from continuing operations before income taxes ............................... 337 225 Income taxes ......................................... 149 94 --------------------- Earnings from continuing operations .................. 188 131 Loss from discontinued operations .................. -- (7) Loss on disposal ..................................... (44) -- --------------------- Loss from discontinued operations .................... $ (44) $ (7) Net earnings ........ .......................... $ 144 $ 124 Dividends on preferred stock ......................... -- 9 --------------------- Net earnings applicable to common shares ............. $ 144 $ 115 Earnings/(loss) per common share assuming no dilution (a) Continuing operations ......................... $ 0.75 $ 0.50 Discontinued operations ....................... (0.18) (0.03) --------------------- Net earnings/(loss) per share ........................ $ 0.57 $ 0.47 (a) Based on weighted average common shares outstanding (in millions) 251 247 - -------------------------------------------------------------------------------- CONDENSED CONSOLIDATED BALANCE SHEET (UNAUDITED) March 31 Dec. 31 Millions of dollars 1997 1996 - -------------------------------------------------------------------------------- Assets Cash and cash equivalents ............................ $1,749 $ 217 Net assets of discontinued operations (c) ........... -- 1,774 Other current assets ................................. 1,747 1,237 Investments and long-term receivables ................ 1,232 1,206 Properties - net ..................................... 4,577 4,590 Other assets ......................................... 125 99 ------------------- Total assets ............................... $9,430 $9,123 Liabilities and Equity Current portion of long-term debt and capital lease obligations ..................... $ 406 $ 118 Other current liabilities ............................ 1,607 1,504 Long-term debt and capital lease obligations ......... 2,814 2,940 Deferred income taxes ................................ 286 348 Other deferred credits and liabilities ............... 1,465 1,416 Convertible preferred securities ..................... 522 522 Stockholders' equity ................................. 2,330 2,275 ------------------- Total liabilities and equity ............... $9,430 $9,123 (c) Excludes retained working capital. Table 1 3 NEWS RELEASE UNOCAL CORPORATION CONDENSED CONSOLIDATED CASH FLOWS (INCLUDES DISCONTINUED OPERATIONS) (UNAUDITED) For the Three Months Ended March 31 ----------------------- Millions of dollars 1997 1996 - -------------------------------------------------------------------------------- Cash flows from operating activities Cash flow from operations ........................... $ 394 $ 386 Working capital and other changes related to operations ............................. (60) (128) ------------------- Net cash provided by operating activities ....... 334 258 Cash flows from investing activities Capital expenditures (includes dry hole costs) ..... (286) (222) Proceeds from sale of discontinued operations ....... 1,390 -- Proceeds from asset sales ........................... 16 51 ----------------- Net cash provided by/(used in) investing activities ........................... 1,120 (171) Cash flows from financing activities Net increase in long-term debt and capital lease obligations ......... 175 152 Dividends paid ...................................... (50) (59) Repurchase of common stock .......................... (46) -- Other ............................................... (1) 12 ----------------- Net cash provided by financing activities ....... 78 105 Increase in cash and cash equivalents .................. 1,532 192 Cash and cash equivalents at beginning of period ....... 217 94 ------------------- Cash and cash equivalents at end of period ............. $ 1,749 $ 286 - -------------------------------------------------------------------------------- CONDENSED CAPITAL EXPENDITURES (UNAUDITED) Millions of dollars - -------------------------------------------------------------------------------- United States Exploration & Production ............... $ 33 $ 68 International Exploration & Production ............... 163 86 Geothermal Operations ................................ 20 14 Diversified Business Group ........................... 9 6 New Ventures ......................................... 5 11 Corporate & Unallocated .............................. 7 5 Discontinued Operations .............................. 49 32 ----------------- Total ....................................... $286 $222 - -------------------------------------------------------------------------------- DEPRECIATION, DEPLETION & AMORTIZATION (UNAUDITED) Millions of dollars - -------------------------------------------------------------------------------- Depreciation, Depletion & Amortization Continuing operations ....................... $211 $212 Table 2 4 NEWS RELEASE UNOCAL CORPORATION RESULTS OF OPERATIONS FOR EXPLORATION AND PRODUCTION ACTIVITIES (UNAUDITED) For the Three Months Ended March 31, 1997 -------------------------------- Spirit Other Millions of dollars Energy Other Far Interna- 76 U.S. East tional Total - -------------------------------------------------------------------------------- Sales (includes intercompany sales) Crude oil and condensate .............. $ 98 $56 $117 $45 $316 Natural gas ........................... 228 18 165 14 425 Natural gas liquids ................... 16 1 9 1 27 Other ................................. -- -- -- -- -- ------------------------------ Total .......................... 342 75 291 60 768 Other revenue ................................. 3 -- 3 10 16 Gain/(loss) on asset sales .................... 3 -- -- 1 4 ------------------------------ Total revenues ........................... 348 75 294 71 788 Production costs .............................. 48 24 30 19 121 Exploration expenses .......................... 10 -- 8 9 27 Dry hole costs ................................ 6 -- 9 1 16 Depreciation, depletion & amortization ........ 102 15 61 17 195 Other operating expenses ...................... 21 2 11 8 42 ------------------------------ Results of operations before income tax ... $161 $34 $175 $17 $387 - -------------------------------------------------------------------------------- For the Three Months Ended March 31, 1996 ------------------------------- Spirit Other Energy Other Far Interna- 76 U.S. East tional Total Sales (includes intercompany sales) Crude oil and condensate ................ $ 87 $ 94 $ 79 $ 44 $304 Natural gas ............................. 200 26 113 14 353 Natural gas liquids ..................... 13 2 5 1 21 Other ................................... 1 -- -- -- 1 -------------------------------- Total .................................. 301 122 197 59 679 Other revenue ............................... 2 1 -- 6 9 Gain on asset sales ......................... 4 -- -- 6 10 -------------------------------- Total revenues ......................... 307 123 197 71 698 Production costs ............................ 45 48 30 21 144 Exploration expenses ........................ 4 -- 6 11 21 Dry hole costs .............................. 10 -- -- 3 13 Depreciation, depletion & amortization ...... 90 37 47 15 189 Other operating expenses .................... 36 5 7 1 49 -------------------------------- Results of operations before income tax $122 $ 33 $107 $ 20 $282 Table 3 5 NEWS RELEASE UNOCAL CORPORATION RESULTS OF OPERATIONS FOR EXPLORATION AND PRODUCTION ACTIVITIES (UNAUDITED) For the Three Months Ended June 30, 1996 ------------------------------------- Spirit Other Energy Other Far Interna- Millions of dollars 76 U.S. East tional Total - -------------------------------------------------------------------------------- Sales (includes intercompany sales) Crude oil and condensate ........... $ 96 $ 58 $ 104 $ 46 $ 304 Natural gas ........................ 184 17 117 11 329 Natural gas liquids ................ 17 1 4 1 23 Other .............................. 1 -- -- -- 1 ------------------------------------- Total ............................ 298 76 225 58 657 Other revenue ......................... 1 1 (1) 5 6 Gain/(loss) on asset sales ............ 1 110 -- -- 111 ------------------------------------- Total revenues ................... 300 187 224 63 774 Production costs ...................... 43 29 33 16 121 Exploration expenses .................. 7 -- 11 9 27 Dry hole costs ........................ 1 -- 2 1 4 Depreciation, depletion & amortization 84 19 69 15 187 Other operating expenses .............. 30 4 10 3 47 -------------------------------------- Results of operations before income tax ............... $ 135 $ 135 $ 99 $ 19 $ 388 - -------------------------------------------------------------------------------- For the Three Months Ended September 30, 1996 ----------------------------------- Spirit Other Energy Other Far Interna- 76 U.S. East tional Total ----------------------------------- Sales (includes intercompany sales) Crude oil and condensate ................. $104 $ 57 $ 95 $ 47 $303 Natural gas .............................. 178 18 132 10 338 Natural gas liquids ...................... 17 1 3 1 22 Other .................................... 1 -- -- -- 1 ------------------------------- Total .................................. 300 76 230 58 664 Other revenue ............................... 5 -- 1 6 12 Gain on asset sales ......................... 3 -- 1 17 21 ------------------------------- Total revenues ......................... 308 76 232 81 697 Production costs ............................ 46 19 31 20 116 Exploration expenses ........................ 8 -- 14 8 30 Dry hole costs .............................. 38 -- 11 1 50 Depreciation, depletion & amortization ...... 94 18 47 14 173 Other operating expenses .................... 34 4 13 -- 51 -------------------------------- Results of operations before income tax .................... $ 88 $ 35 $116 $ 38 $277 Table 4 6 NEWS RELEASE UNOCAL CORPORATION RESULTS OF OPERATIONS FOR EXPLORATION AND PRODUCTION ACTIVITIES (UNAUDITED) For the Three Months Ended December 31, 1996 ------------------------------------------ Spirit Other Energy Other Far Interna- 76 U.S. East tional Total Millions of dollars ------------------------------------------ Sales (includes intercompany sales) Crude oil and condensate ........ $ 113 $ 63 $ 117 $ 45 $ 338 Natural gas ..................... 212 23 167 13 415 Natural gas liquids ............. 23 2 7 1 33 Other ........................... 1 -- -- -- 1 ------------------------------------------ Total ......................... 349 88 291 59 787 Other revenue ..................... 15 1 1 10 27 Gain/(loss) on asset sales ........ (7) (4) (1) 1 (11) ------------------------------------------ Total revenues ................ 357 85 291 70 803 Production costs .................. 44 26 33 24 127 Exploration expenses .............. 7 -- 10 16 33 Dry hole costs .................... 13 5 37 9 64 Depreciation, depletion & amortization .................... 130 54 45 25 254 Other operating expenses .......... 37 5 16 (1) 57 ------------------------------------------ Results of operations before income tax ........... $ 126 $ (5) $ 150 $ (3) $ 268 Table 5 7 NEWS RELEASE UNOCAL CORPORATION OPERATING HIGHLIGHTS (UNAUDITED) For the Three Months Ended March 31 ----------------------- 1997 1996 - -------------------------------------------------------------------------------- Net daily production Crude oil and condensate (thousand barrels daily): United States Spirit Energy 76 .............................. 48.3 52.2 Other (a) .................................... 33.7 69.1 ---------------- Total United States ..................... 82.0 121.3 International Far East (b) ................................. 93.2 80.9 Other ......................................... 26.7 28.4 ----------------- Total International ..................... 119.9 109.3 ----------------- Total Worldwide ...................... 201.9 230.6 Natural gas (million cubic feet daily): United States Spirit Energy 76 ............................ 909.7 903.9 Other (a) .................................. 155.9 205.9 ----------------- Total United States ................... 1,065.6 1,109.8 International Far East (b) ............................... 805.1 597.6 Other ....................................... 67.6 81.9 ----------------- Total International ...................... 872.7 679.5 ----------------- Total Worldwide .......................... 1,938.3 1,789.3 Natural gas liquids (thousand barrels daily) (a) 19.4 19.7 Geothermal (million kilowatt-hours daily) ........ 15.9 13.8 Average sales prices Crude oil and condensate (per barrel): United States Spirit Energy 76 ............................ $ 22.52 $ 18.59 Other ....................................... 18.51 15.08 Total United States ................... 20.88 16.55 International Far East .................................... $ 21.03 $ 17.86 Other ....................................... 20.07 16.93 Total International ................... 20.75 17.52 Total Worldwide .................... $ 20.81$ 16.93 Natural gas (per mcf): United States Spirit Energy 76 ............................ $ 2.83 $ 2.56 Other ....................................... 1.35 1.78 Total United States ................... 2.61 2.35 International Far East .................................... $ 2.40 $ 2.18 Other ....................................... 2.22 1.76 Total International ................... 2.38 2.13 Total Worldwide .......................... $ 2.51 $ 2.27 - -------------------------------------------------------------------------------- (a) Includes production from California upstream properties of: Crude oil and condensate ..................... -- 30.2 Natural gas .................................. -- 51.7 Natural gas liquids .......................... -- 0.5 (b) Includes host country share in Indonesia of: Crude oil and condensate ..................... 30.0 29.8 Natural gas .................................. 32.6 25.6 Table 6 8 NEWS RELEASE UNOCAL CORPORATION OPERATING HIGHLIGHTS (continued) (UNAUDITED) For the Three Months Ended March 31 ----------------------- 1997 1996 - -------------------------------------------------------------------------------- Agricultural products production volumes (thousand tons) Ammonia ............................................. 391 351 Urea ................................................ 275 293 Other products ...................................... 177 163 ------------ Total ................................... 843 807 Agricultural products sales volumes (thousand tons) Ammonia ............................................. 156 94 Urea ................................................ 210 245 Other products ...................................... 252 231 ------------ Total ................................... 618 570 Table 7 9 NEWS RELEASE UNOCAL CORPORATION EARNINGS BY BUSINESS SEGMENT (Unaudited) 1st Quarter 1st Quarter of 1997 of 1996 ------------------------------------- Before- After- Before- After- Millions of dollars tax tax tax tax - -------------------------------------------------------------------------------- Exploration and Production United States Spirit Energy 76 .................... $ 161 $ 100 $ 122 $ 76 Other ............................... 34 21 33 20 International .......................... 192 103 127 70 Geothermal Operations ...................... 10 6 9 5 Diversified Business Group Agricultural Products ................ 30 20 25 16 Carbon and Minerals .................. 12 10 26 18 Pipelines ............................ 17 14 30 23 Other ................................ 2 1 1 1 Corporate and Unallocated Administrative and general expense ... (20) (13) (29) (18) Net interest expense ................. (54) (42) (72) (50) Environmental and litigation expense . (18) (11) (23) (14) New Ventures ......................... (11) (7) (4) (2) Other ................................ (18) (14) (20) (14) --------------------------------- Earnings from continuing operations ........ 337 188 225 131 Loss from discontinued Operations .......... (71) (44) (11) (7) --------------------------------- Total .......................... $ 266 $ 144 $ 214 $ 124 ================================= EXPLORATION AND PRODUCTION - this segment explores for, produces and markets crude oil, condensate, natural gas and natural gas liquids. GEOTHERMAL OPERATIONS - this segment explores for, produces and sells geothermal resources used to generate electricity. DIVERSIFIED BUSINESS GROUP: AGRICULTURAL PRODUCTS - this business unit manufactures and markets nitrogen-based products for wholesale agricultural and industrial markets supplying the western United States and the Pacific Rim. CARBON AND MINERALS - this business unit produces and markets petroleum coke, graphites, solvents and specialty minerals. PIPELINES - this business unit principally includes the company's equity interests in affiliated pipeline companies. OTHER - principally includes the company's equity interest in The UNO-VEN Company. Table 8 10 NEWS RELEASE UNOCAL CORPORATION SPECIAL ADJUSTMENTS (Unaudited) 1st Quarter 1st Quarter of 1997 of 1996 ---------------------------------- Before- After- Before- After- Dollars in millions except per share amounts tax tax tax tax - -------------------------------------------------------------------------------- Reported earnings .......................... $ 266 $ 144 $ 214 $ 124 Less: Special items Exploration and Production United States Spirit Energy Asset Sales .................. 3 2 4 2 International Asset Sales .................. 1 1 6 4 Diversified Business Group Pipelines Asset Sales .................. -- -- 12 7 Corporate and Unallocated Asset Sales .................. 6 4 1 1 Environmental provision ...... (14) (9) (10) (6) Litigation provision ......... -- -- (6) (4) Discontinued Operations Net loss on disposal ......... (71) (44) -- -- - -------------------------------------------------------------------------------- Total special items ................... (75) (46) 7 4 - -------------------------------------------------------------------------------- Adjusted earnings .......................... $ 341 $ 190 $ 207 $ 120 Less: Dividends on preferred stock ......... -- 9 - -------------------------------------------------------------------------------- Adjusted net earnings applicable to common shares ........................ $ 190 $ 111 - -------------------------------------------------------------------------------- Adjusted net earnings per common share ........................ $0.76 $0.45 - -------------------------------------------------------------------------------- Table 9 11 NEWS RELEASE UNOCAL CORPORATION EARNINGS BY BUSINESS SEGMENT EXCLUDING SPECIAL ADJUSTMENTS (Unaudited) 1st Quarter 1st Quarter of 1997 of 1996 ----------------------------------- Before- After- Before- After- Millions of dollars tax tax tax tax - -------------------------------------------------------------------------------- Exploration and Production United States Spirit Energy 76 .................... $ 158 $ 98 $ 118 $ 74 Other ............................... 34 21 33 20 International .......................... 191 102 121 66 Geothermal Operations ...................... 10 6 9 5 Diversified Business Group Agricultural Products ................ 30 20 25 16 Carbon and Minerals .................. 12 10 26 18 Pipelines ............................ 17 14 18 16 Other ................................ 2 1 1 1 Corporate and Unallocated Administrative and general expense ... (20) (13) (29) (18) Net interest expense ................. (54) (42) (72) (50) Environmental and litigation expense . (4) (2) (7) (4) New Ventures ......................... (11) (7) (4) (2) Other ................................ (24) (18) (21) (15) - -------------------------------------------------------------------------------- Earnings from continuing operations ........ 341 190 218 127 Loss from discontinued Operations .......... -- -- (11) (7) - -------------------------------------------------------------------------------- Total .......................... $ 341 $ 190 $ 207 $ 120 ================================================================================ Table 10 12 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: April 24, 1997 By /s/ CHARLES S. MCDOWELL ----------------------------- Charles S. McDowell Vice President and Comptroller 13 -----END PRIVACY-ENHANCED MESSAGE-----