-----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, DDF6d7N7Kw7Ckiz6wtdgNaHyPOrAM5Tj0ItT0imdmhIFYYM8eBMQnf777jQtBjpu Y4Ln9U9bKIXiu2Yg36OqHA== 0000716039-97-000035.txt : 19970724 0000716039-97-000035.hdr.sgml : 19970724 ACCESSION NUMBER: 0000716039-97-000035 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19970723 ITEM INFORMATION: Other events FILED AS OF DATE: 19970723 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: 97644126 BUSINESS ADDRESS: STREET 1: 2141 ROSECRANS AVE STREET 2: STE 4000 CITY: EL SEGUNDO STATE: CA ZIP: 90245 BUSINESS PHONE: 3107267600 8-K 1 NEWS RELEASE - 2ND 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) July 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 July 23, 1997 the following news release was issued: UNOCAL EARNINGS FROM CONTINUING OPERATIONS DOWN ON LOWER COMMODITY PRICES, HIGHER EXPLORATION COSTS --------------------------------------------------- El Segundo, Calif., July 23, 1997 -- Unocal Corporation today reported second quarter 1997 earnings from continuing operations of $156 million, or 63 cents per common share, compared with earnings from continuing operations of $188 million, or 72 cents per common share, for the same period a year ago. Earnings from continuing operations, excluding special items (detailed in the attached tables), were $97 million, or 39 cents per common share, compared with $157 million, or 60 cents per common share, in the second quarter of 1996. The 1997 second quarter operating results reflected primarily lower worldwide crude oil prices and domestic natural gas prices, and increased international exploration expenses. Second quarter special items included an after-tax gain of $41 million from the sale of Illinois-based Unocal Hydrocarbon Sales to a U.S. affiliate of Petroleos de Venezuela, S.A. (PDVSA), and an after-tax gain of $39 million resulting from the May restructuring of The UNO-VEN Company, a former Midwest refining and marketing partnership with PDVSA. Last year's second quarter special items included an after-tax gain of $68 million from the sale of the company's California oil and gas assets. Second quarter 1997 net earnings, after an extraordinary charge for the early extinguishment of debt, were $118 million, or 48 cents per common share, compared with $238 million, or 92 cents per common share, for the same period a year ago. Second quarter 1996 results, however, included after-tax earnings of $50 million, or 20 cents per common share, from the discontinued operations of 76 Products Company, which was sold in March 1997. "Higher Far East production and reduced interest expense partially offset higher dry hole costs and lower oil and gas prices," said Roger C. Beach, Unocal chairman and chief executive officer. Natural gas production in the Far East was up 26 percent, or 161 million cubic feet (mmcf) per day, over the second quarter 1996. In Thailand, net natural gas production averaged 610 mmcf per day in the second quarter, up 30 percent from a year ago, following the late 1996 start-up of a new pipeline system. In Indonesia, net natural gas production (including host country share) rose 21 mmcf per day to 163 mmcf per day. Unocal also reported a 13 percent increase in crude oil and condensate production from its Thailand and Indonesia operations. Domestic natural gas production averaged 1,001 mmcf per day, down 52 mmcf compared with the second quarter 1996. Crude oil and condensate production decreased to 77,300 barrels per day compared with 88,500 barrels for the second quarter last year. These decreases were attributed to natural production declines and maintenance-related platform shut-ins in the U.S. Gulf of Mexico. Worldwide, Unocal's average sales price for crude and condensate was $17.28 per barrel, compared with $18.71 in the second quarter 1996, while the sales price for natural gas averaged $2.06 per thousand cubic feet, compared with $2.15 for the same period last year. The company recorded an after-tax charge of $11 million relating to dry hole expenses incurred with the Perdana Deep-1 well offshore Brunei. To help earn a 27-percent interest in the petroleum exploration project on Blocks A and C/D, the company underwrote the entire cost of the well. "While we had hoped for more encouraging results from Perdana Deep-1, we remain excited about oil and gas prospects in this historically prolific resource area," said Beach. "We've only just begun to explore Blocks A and C/D. Perdana Deep-1, 2 which was spudded before we farmed in to the project, was only the first well drilled in this 600,000-acre area." He added that, as stipulated in the farm-in agreement, Unocal will assume an active role in the 3-D seismic survey that will be conducted later this year as well as in the design, drilling, testing and evaluation of future wells. The company also recorded a special after-tax charge of $7 million relating to a June blow-out of the Moulavi Bazar No. 1 exploration well in northeast Bangladesh. Unocal has 50-percent equity interest in production-sharing contracts covering 3 million acres in the area, including a partially delineated portion of the Jalalabad field. The Agricultural Products Group's earnings for the quarter decreased by $11 million from the prior year due to lower ammonia and urea prices. Beach also noted that the company has purchased approximately 4.5 million common shares for $172 million -- including more than 2 million shares acquired since June 30 -- under the company's $400 million stock repurchase program. As part of a plan to reduce total debt by $800 million, the company purchased $507 million of outstanding debt securities, pursuant to a May 1997 tender offer, during the quarter. The transaction -- which is expected to result in after-tax interest expense savings of approximately $34 million annually -- resulted in an after-tax extraordinary charge of $38 million, which reflects the premium paid over book value. Since year-end 1996, the company has reduced total debt by $737 million to $2,321 million. Unocal Corporation is the world's leading independent energy resource and project development company, with 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. News releases and other company information are available at Unocal's website, http://www.unocal.com. 3 NEWS RELEASE
CONDENSED CONSOLIDATED EARNINGS STATEMENT UNOCAL CORPORATION (UNAUDITED) For the Three Months For the Six Months Ended June 30 Ended June 30 ------------------ ------------------ Dollars in millions except per share amounts 1997 1996 1997 1996 - ----------------------------------------------------------------------------------------------------------------------------------- Total revenues .......................................................................... $ 1,654 $ 1,405 $ 3,110 $ 2,606 Costs and other deductions .............................................................. 1,405 1,085 2,524 2,061 --------------------------------------- EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES ................................. 249 320 586 545 Income taxes ............................................................................ 93 132 242 226 --------------------------------------- EARNINGS FROM CONTINUING OPERATIONS ..................................................... 156 188 344 319 Earnings from discontinued operations (net of tax) ..................................... -- 50 -- 43 Loss on disposal (net of tax) .......................................................... -- -- (44) -- Extraordinary charge - extinguishment of debt (net of tax) .............................. (38) -- (38) -- --------------------------------------- NET EARNINGS ............................................................................ $ 118 $ 238 $ 262 $ 362 Dividends on preferred stock ............................................................ -- 9 -- 18 --------------------------------------- NET EARNINGS APPLICABLE TO COMMON SHARES ................................................ $ 118 $ 229 $ 262 $ 344 Earnings/(loss) per common share assuming no dilution (a) Continuing operations ............................................................. $ 0.63 $ 0.72 $ 1.38 $ 1.22 Discontinued operations ........................................................... -- 0.20 (0.18) 0.17 Extraordinary charge - extinguishment of debt (net of tax) ........................ (0.15) -- (0.15) -- --------------------------------------- NET EARNINGS PER SHARE .................................................................. $ 0.48 $ 0.92 $1.05 $1.39 (a) Based on weighted average common shares outstanding (in millions) .................. 250 248 250 248
CONDENSED CONSOLIDATED BALANCE SHEET (UNAUDITED) June 30 Dec. 31 Millions of dollars 1997 1996 - ------------------------------------------------------------------------------------------------------------------------------------ ASSETS Cash and cash equivalents .................................................................. $ 884 $ 217 Net assets of discontinued operations (b) ................................................. -- 1,774 Other current assets ....................................................................... 1,054 1,237 Investments and long-term receivables ...................................................... 1,060 1,206 Properties - net ........................................................................... 4,712 4,590 Other assets ............................................................................... 111 99 --------------------------- Total assets ....................................................................... $7,821 $9,123 LIABILITIES AND EQUITY Current portion of long-term debt and capital lease obligations ............................ $ 1 $ 118 Other current liabilities .................................................................. 979 1,504 Long-term debt and capital lease obligations ............................................... 2,320 2,940 Deferred income taxes ...................................................................... 305 348 Other deferred credits and liabilities ..................................................... 1,340 1,416 Convertible preferred securities ........................................................... 522 522 Stockholders' equity ....................................................................... 2,354 2,275 --------------------------- Total liabilities and equity ....................................................... $7,821 $9,123 (b) Excludes retained working capital
Table 1
NEWS RELEASE UNOCAL CORPORATION CONDENSED CONSOLIDATED CASH FLOWS (INCLUDES DISCONTINUED OPERATIONS) (UNAUDITED) For the Three Months For the Six Months Ended June 30 Ended June 30 ------------------------------------------- Millions of dollars 1997 1996 1997 1996 - ------------------------------------------------------------------------------------------------------------------------------------ CASH FLOWS FROM OPERATING ACTIVITIES Cash flow from operations ............................................. $ 226 $ 464 $ 641 $ 850 Working capital and other changes related to operations ............... (123) (29) (204) (157) ------------------------------------------- Net cash provided by operating activities ....................... 103 435 437 693 CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditures (includes dry hole costs) ....................... (359) (400) (645) (622) Proceeds from sale of discontinued operations ......................... 396 -- 1,786 -- Proceeds from asset sales ............................................. 32 488 48 539 ------------------------------------------- Net cash provided by/(used in) investing activities ............. 69 88 1,189 (83) CASH FLOWS FROM FINANCING ACTIVITIES Net decrease in long-term debt and capital lease obligations ................................... (893) (541) (718) (389) Dividends paid ........................................................ (50) (58) (100) (117) Repurchase of common stock ............................................ (46) -- (92) -- Other ................................................................. (48) (1) (49) 11 ------------------------------------------- Net cash used in financing activities ........................... (1,037) (600) (959) (495) Increase/(decrease) in cash and cash equivalents ............................... (865) (77) 667 115 Cash and cash equivalents at beginning of period ............................... 1,749 286 217 94 ------------------------------------------- Cash and cash equivalents at end of period ..................................... $ 884 $ 209 $ 884 $ 209
CONDENSED CAPITAL EXPENDITURES (UNAUDITED) Millions of dollars - ------------------------------------------------------------------------------------------------------------------------------------ United States Exploration & Production ......................................... $ 79 $ 156 $ 112 $ 235 International Exploration & Production ......................................... 240 130 403 216 Geothermal Operations .......................................................... 27 38 47 52 Diversified Business Group ..................................................... 13 8 22 14 New Ventures (Non E & P) ...................................................... (2) -- 3 -- Corporate & Unallocated ........................................................ 2 11 9 16 Discontinued Operations ........................................................ -- 57 49 89 ------------------------------------------- Total ................................................................. $ 359 $ 400 $ 645 $ 622
DEPRECIATION, DEPLETION & AMORTIZATION (UNAUDITED) Millions of dollars - ------------------------------------------------------------------------------------------------------------------------------------ Depreciation, depletion & amortization from continuing operations .............. $ 244 $ 214 $ 455 $ 425
Table 2 NEWS RELEASE RESULTS OF OPERATIONS FOR EXPLORATION AND PRODUCTION ACTIVITIES (UNAUDITED)
UNOCAL CORPORATION For the Six Months Ended June 30, 1997 -------------------------------------------------------------------- Spirit Other Other Millions of dollars Energy 76 U.S. Far East International Total - --------------------------------------------------------------------------------------------------------------------- Sales (includes intercompany sales) ...(a) Crude oil and condensate ................. $ 178 $ 96 $ 230 $ 85 $ 589 Natural gas .............................. 375 32 317 24 748 Natural gas liquids ...................... 29 3 14 2 48 Other .................................... 1 -- -- -- 1 ----------------------------------------------------------------- Total ............................. 583 131 561 111 1,386 Other revenue ................................... 6 1 6 13 26 Gain/(loss) on asset sales ...................... 4 -- -- (16) (12) ----------------------------------------------------------------- Total revenues .................... 593 132 567 108 1,400 Production costs ................................ 98 46 63 36 243 Exploration expenses ............................ 24 -- 18 18 60 Dry hole costs .................................. 7 -- 35 1 43 Depreciation, depletion & amortization .......... 205 29 154 36 424 Other operating expenses ........................ 38 6 22 24 90 ----------------------------------------------------------------- Results of operations before income tax .. $ 221 $ 51 $ 275 $ (7) $ 540 For the Six Months Ended June 30, 1996 ------------------------------------------------------------------ Spirit Other Other Energy 76 U.S. Far East International Total ------------------------------------------------------------------ Sales (includes intercompany sales) ... (a) Crude oil and condensate ................. $ 183 $ 152 $ 183 $ 90 $ 608 Natural gas .............................. 384 43 230 25 682 Natural gas liquids ...................... 30 3 9 2 44 Other .................................... 2 -- -- -- 2 ---------------------------------------------------------------- Total ............................. 599 198 422 117 1,336 Other revenue ................................... 3 2 (1) 11 15 Gain on asset sales ............................. 5 110 -- 6 121 ---------------------------------------------------------------- Total revenues .................... 607 310 421 134 1,472 Production costs ................................ 88 77 63 37 265 Exploration expenses ............................ 11 -- 17 20 48 Dry hole costs .................................. 11 -- 2 4 17 Depreciation, depletion & amortization .......... 174 56 116 30 376 Other operating expenses ........................ 66 9 17 4 96 ---------------------------------------------------------------- Results of operations before income tax .. $ 257 $ 168 $ 206 $ 39 $ 670 (a) Sales revenues are net of royalty payments, net profits interests and marketing related purchases.
Table 3
NEWS RELEASE UNOCAL CORPORATION RESULTS OF OPERATIONS FOR EXPLORATION AND PRODUCTION ACTIVITIES (UNAUDITED) For the Three Months Ended June 30, 1997 ------------------------------------------------------------- Spirit Other Other Millions of dollars Energy 76 U.S. Far East International Total - ----------------------------------------------------------------------------------------------------------------- Sales (includes intercompany sales) ...(a) Crude oil and condensate ................. $ 80 $ 40 $ 113 $ 40 $ 273 Natural gas .............................. 147 14 152 10 323 Natural gas liquids ...................... 13 2 5 1 21 Other .................................... 1 -- -- -- 1 ------------------------------------------------------------- Total ............................. 241 56 270 51 618 Other revenue ................................... 3 1 3 3 10 Gain/(loss) on asset sales ...................... 1 -- -- (17) (16) ------------------------------------------------------------- Total revenues .................... 245 57 273 37 612 Production costs ................................ 50 22 33 17 122 Exploration expenses ............................ 14 -- 10 9 33 Dry hole costs .................................. 1 -- 26 -- 27 Depreciation, depletion & amortization .......... 103 14 93 19 229 Other operating expenses ........................ 17 4 11 16 48 ------------------------------------------------------------- Results of operations before income tax .. $ 60 $ 17 $ 100 $ (24) $ 153 - ----------------------------------------------------------------------------------------------------------------- For the Three Months Ended June 30, 1996 ------------------------------------------------------------- Spirit Other Other Energy 76 U.S. Far East International Total ------------------------------------------------------------- Sales (includes intercompany sales) ...(a) 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 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 (a) Sales revenues are net of royalty payments, net profits interests and marketing related purchases. Table 4
NEWS RELEASE UNOCAL CORPORATION OPERATING HIGHLIGHTS (UNAUDITED) For the Three Months For the Six Months Ended June 30 Ended June 30 --------------------------------------- 1997 1996 1997 1996 - ------------------------------------------------------------------------------------------------------------------------------------ NET DAILY PRODUCTION Crude oil and condensate (thousand barrels daily): United States Spirit Energy 76 ........................................... 46.1 51.4 47.2 51.8 Other (a) ................................................. 31.2 37.1 32.4 53.4 ------------------------------------- Total United States .................................. 77.3 88.5 79.6 105.2 International Far East (b) .............................................. 95.1 84.1 94.2 82.4 Other ...................................................... 26.2 27.9 26.4 28.2 ------------------------------------- Total International .................................. 121.3 112.0 120.6 110.6 ------------------------------------- Worldwide ............................................................. 198.6 200.5 200.2 215.8 Natural gas (million cubic feet daily): United States Spirit Energy 76 ........................................... 873.7 918.6 891.6 911.3 Other (a) ................................................. 127.4 134.5 141.6 173.8 -------------------------------------- Total United States .................................. 1,001.1 1,053.1 1,033.2 1,085.1 International Far East (b) .............................................. 773.6 612.5 789.3 605.6 Other ...................................................... 63.0 63.2 65.3 75.3 ------------------------------------- Total International .................................. 836.6 675.7 854.6 680.9 -------------------------------------- Worldwide ............................................................. 1,837.7 1,728.8 1,887.8 1,766.0 Natural gas liquids (thousand barrels daily) (a) ......................... 19.0 18.8 19.3 19.6 Geothermal (million kilowatt-hours daily) ................................. 17.1 16.8 16.5 15.4
AVERAGE SALES PRICES Crude oil and condensate (per barrel): United States Spirit Energy 76 ........................................... $ 18.97 $ 20.59 $ 20.77 $ 19.59 Other ...................................................... 14.23 16.85 16.45 15.95 Total United States .................................. 17.08 19.03 19.02 17.60 International Far East ................................................... $ 17.97 $ 18.17 $ 19.41 $ 18.03 Other ...................................................... 16.11 18.93 18.01 17.90 Total International .................................. 17.44 18.40 19.01 17.99 Worldwide ............................................................. $ 17.28 $ 18.71 $ 19.02 $ 17.77 Natural gas (per mcf): United States Spirit Energy 76 ........................................... $ 1.99 $ 2.25 $ 2.42 $ 2.40 Other ...................................................... 1.35 1.44 1.35 1.43 Total United States .................................. 1.91 2.14 2.28 2.25 International Far East ................................................... $ 2.25 $ 2.21 $ 2.33 $ 2.20 Other ...................................................... 2.08 1.70 2.16 1.73 Total International .................................. 2.24 2.16 2.31 2.14 Worldwide ............................................................. $ 2.06 $ 2.15 $ 2.29 $ 2.21 (a) Includes production from California upstream properties of: Crude oil and condensate ................................................ -- 1.0 -- 16.0 Natural gas ............................................................. -- -- -- 25.5 Natural gas liquids ..................................................... -- -- -- 0.3 (b) Includes host country share in Indonesia of: Crude oil and condensate ................................................ 29.8 24.0 29.8 26.9 Natural gas ............................................................. 25.3 23.8 28.9 24.8
Table 5
NEWS RELEASE UNOCAL CORPORATION OPERATING HIGHLIGHTS (continued) (UNAUDITED) For the Three Months For the Six Months Ended June 30 Ended June 30 ------------------------------------------------ 1997 1996 1997 1996 - ------------------------------------------------------------------------------------------------------------------------------------ Agricultural products production volumes (thousand tons) Ammonia ....................................................................... 367 378 758 729 Urea ................................................................... 233 277 508 570 Other products ......................................................... 171 182 348 345 ------------------------------------------------ Total ...................................................... 771 837 1,614 1,644 Agricultural products sales volumes (thousand tons) Ammonia ................................................................ 247 274 403 368 Urea ................................................................... 289 336 499 581 Other products ......................................................... 455 438 707 669 ------------------------------------------------ Total ...................................................... 991 1,048 1,609 1,618
Table 6
NEWS RELEASE UNOCAL CORPORATION EARNINGS BY BUSINESS SEGMENT (Unaudited) 2nd Quarter of 1997 2nd Quarter of 1996 --------------------------------------------------------- Millions of dollars Before-tax After-tax Before-tax After-tax - ------------------------------------------------------------------------------------------------------------------------------------ EXPLORATION AND PRODUCTION UNITED STATES Spirit Energy 76 ........................................ $ 60 $ 38 $ 135 $ 84 Other ................................................... 17 11 135 84 INTERNATIONAL .............................................. 76 28 118 68 GEOTHERMAL OPERATIONS .......................................... 11 13 9 4 DIVERSIFIED BUSINESS GROUP Agricultural Products .................................... 40 26 57 37 Carbon and Minerals ...................................... 85 56 11 9 Pipelines ................................................ 18 16 17 14 Other .................................................... 42 36 9 5 CORPORATE AND UNALLOCATED Administrative and general expense ....................... (22) (14) (25) (16) Net interest expense ..................................... (29) (23) (63) (48) Environmental and litigation expense ..................... (16) (10) (53) (33) New Ventures ............................................. (20) (15) (6) (4) Other .................................................... (13) (6) (24) (16) - ------------------------------------------------------------------------------------------------------------------------------------ Earnings from continuing operations before discontinued operations and extraordinary item ...................................... 249 156 320 188 Earnings from discontinued operations .......................... -- -- 80 50 Extraordinary item ............................................. (52) (38) -- -- - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL .............................................. $ 197 $ 118 $ 400 $ 238 ==================================================================================================================================== 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 7
NEWS RELEASE UNOCAL CORPORATION SPECIAL ADJUSTMENTS (Unaudited) 2nd Quarter of 1997 2nd Quarter of 1996 ------------------------------------------------------ Dollars in millions except per share amounts Before-tax After-tax Before-tax After-tax - ------------------------------------------------------------------------------------------------------------------------------------ Reported earnings .................................................. $ 197 $ 118 $ 400 $ 238 Less: Special items Exploration and Production United States Spirit Energy 76 Other Asset sales ....................................... -- -- 110 68 International Asset sales ....................................... (17) (17) -- -- Bangladesh well blowout ........................... (10) (7) -- -- Geothermal Operations Deferred tax adjustment - Sarulla ................. -- 7 -- -- Diversified Business Group Carbon and Minerals Asset Sales ....................................... 67 41 -- -- Other UNO-VEN restructuring ............................. 46 39 -- -- Corporate and Unallocated Asset sales ....................................... 1 1 -- -- Environmental provision ........................... (1) -- (32) (20) Litigation provision .............................. (8) (5) (14) (8) Other ............................................. -- -- (11) (9) Discontinued Operations Asset sales ....................................... -- -- 4 2 Extraordinary item ......................................... (52) (38) - ----------------------------------------------------------------------------------------------------------------------------------- Total special items ........................................... 26 21 57 33 - ------------------------------------------------------------------------------------------------------------------------------------ Adjusted earnings ......................................... $ 171 $ 97 $ 343 $ 205 ====================================================================================================================================
Table 8
NEWS RELEASE UNOCAL CORPORATION EARNINGS BY BUSINESS SEGMENT EXCLUDING SPECIAL ADJUSTMENTS (Unaudited) 2nd Quarter of 1997 2nd Quarter of 1996 ---------------------------------------------------------- Millions of dollars Before-tax After-tax Before-tax After-tax - ------------------------------------------------------------------------------------------------------------------------------------ Exploration and Production United States Spirit Energy 76 ........................................ $ 60 $ 38 $ 135 $ 84 Other ................................................... 17 11 25 16 International .............................................. 103 52 118 68 Geothermal Operations .......................................... 11 6 9 4 Diversified Business Group Agricultural Products .................................... 40 26 57 37 Carbon and Minerals ...................................... 18 15 11 9 Pipelines ................................................ 18 16 17 14 Other .................................................... (4) (3) 9 5 Corporate and Unallocated Administrative and general expense ....................... (22) (14) (25) (16) Net interest expense ..................................... (29) (23) (63) (48) Environmental and litigation expense ..................... (7) (5) (7) (5) New Ventures ............................................. (20) (15) (6) (4) Other .................................................... (14) (7) (13) (7) - ------------------------------------------------------------------------------------------------------------------------------------ Earnings from continuing operations ............................ 171 97 267 157 Earnings from discontinued operations .......................... -- -- 76 48 - ------------------------------------------------------------------------------------------------------------------------------------ Total .............................................. $ 171 $ 97 $ 343 $ 205 Less: Dividends on preferred stock ............................. -- 9 - ------------------------------------------------------------------------------------------------------------------------------------ Adjusted net earnings applicable to common shares ............................................ $ 97 $ 196 - ------------------------------------------------------------------------------------------------------------------------------------ Adjusted net earnings per common share ............................................ $0.39 $0.79 - ------------------------------------------------------------------------------------------------------------------------------------ Adjusted net earnings from continuing operations per common share ................................. $0.39 $0.60 - ------------------------------------------------------------------------------------------------------------------------------------
Table 9
NEWS RELEASE UNOCAL CORPORATION EARNINGS BY BUSINESS SEGMENT (Unaudited) First Six Months of 1997 First Six Months of 1996 ------------------------------------------------------------ Millions of dollars Before-tax After-tax Before After-tax - ------------------------------------------------------------------------------------------------------------------------------------ Exploration and Production United States Spirit Energy 76 ........................................ $ 221 $ 138 $ 257 $ 160 Other ................................................... 51 32 168 104 International .............................................. 268 131 245 138 Geothermal Operations .......................................... 21 19 18 9 Diversified Business Group Agricultural Products .................................... 70 46 82 53 Carbon and Minerals ...................................... 97 66 37 27 Pipelines ................................................ 35 30 47 37 Other .................................................... 44 37 10 6 Corporate and Unallocated Administrative and general expense ....................... (42) (27) (54) (34) Net interest expense ..................................... (83) (65) (135) (98) Environmental and litigation expense ..................... (34) (21) (76) (47) New Ventures ............................................. (31) (22) (10) (6) Other .................................................... (31) (20) (44) (30) - ------------------------------------------------------------------------------------------------------------------------------------ Earnings from continuing operations before discontinued operations and extraordinary item ...................................... 586 344 545 319 Earnings (loss) from discontinued operations ................... (71) (44) 69 43 Extraordinary item ............................................. (52) (38) -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Total .............................................. $ 463 $ 262 $ 614 $ 362 ====================================================================================================================================
Table 10
NEWS RELEASE UNOCAL CORPORATION SPECIAL ADJUSTMENTS (Unaudited) First Six Months of 1997 First Six Months of 1996 ------------------------------------------------------ Dollars in millions except per share amounts Before-tax After-tax Before-tax After-tax - ------------------------------------------------------------------------------------------------------------------------------------ Reported earnings .................................................. $ 463 $ 262 $ 614 $ 362 Less: Special items Exploration and Production United States Spirit Energy Asset sales ......................................... 3 2 4 2 Other Asset Sales ......................................... -- -- 110 68 International Asset sales ......................................... (16) (16) 6 4 Bangladesh well blowout ............................. (10) (7) -- -- Geothermal Operations Deferred tax adjustment - Sarulla ................... -- 7 -- -- Diversified Business Group Carbon and Minerals Asset sales ......................................... 67 41 -- -- Pipeline Asset sales ......................................... -- -- 12 7 Other UNO-VEN restructuring ............................... 46 39 -- -- Corporate and Unallocated Asset sales ......................................... 7 5 1 1 Environmental provision ............................. (15) (9) (42) (26) Litigation provision ................................ (8) (5) (20) (12) Other ............................................... -- -- (11) (9) Discontinued Operations Asset sales ......................................... -- -- 4 2 Net loss on disposal ................................ (71) (44) -- -- Extraordinary item ........................................... (52) (38) -- -- ------------------------------------------------------------------------------------------------------------------------------ Total special items ........................................... (49) (25) 64 37 ------------------------------------------------------------------------------------------------------------------------------- Adjusted earnings ......................................... $ 512 $ 287 $ 550 $ 325 ===============================================================================================================================
Table 11
NEWS RELEASE UNOCAL CORPORATION EARNINGS BY BUSINESS SEGMENT EXCLUDING SPECIAL ADJUSTMENTS (Unaudited) First Six Months of 1997 First Six Months of 1996 ------------------------------------------------------------ Millions of dollars Before-tax After-tax Before After-tax - ------------------------------------------------------------------------------------------------------------------------------------ Exploration and Production United States Spirit Energy 76 ........................................ $ 218 $ 136 $ 253 $ 158 Other ................................................... 51 32 58 36 International .............................................. 294 154 239 134 Geothermal Operations .......................................... 21 12 18 9 Diversified Business Group Agricultural Products .................................... 70 46 82 53 Carbon and Minerals ...................................... 30 25 37 27 Pipelines ................................................ 35 30 35 30 Other .................................................... (2) (2) 10 6 Corporate and Unallocated Administrative and general expense ....................... (42) (27) (54) (34) Net interest expense ..................................... (83) (65) (135) (98) Environmental and litigation expense ..................... (11) (7) (14) (9) New Ventures ............................................. (31) (22) (10) (6) Other .................................................... (38) (25) (34) (22) - ------------------------------------------------------------------------------------------------------------------------------------ Earnings from continuing operations ............................ 512 287 485 284 Earnings from discontinued operations .......................... -- -- 65 41 - ----------------------------------------------------------------------------------------------------------------------------------- Total .............................................. $ 512 $ 287 $ 550 $ 325 Less: Dividends on preferred stock ............................. -- 18 - ----------------------------------------------------------------------------------------------------------------------------------- Adjusted net earnings applicable to common shares ............................................ $ 287 $ 307 - ----------------------------------------------------------------------------------------------------------------------------------- Adjusted net earnings per common share ............................................ $1.15 $1.24 - ----------------------------------------------------------------------------------------------------------------------------------- Adjusted net earnings from continuing operations per common share ................................. $1.00 $1.07 - -----------------------------------------------------------------------------------------------------------------------------------
Table 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: July 23, 1997 By /s/ JOSEPH A. HOUSEHOLDER ----------------------------- Joseph A. Householder Vice President, Tax and Comptroller -----END PRIVACY-ENHANCED MESSAGE-----