-----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, K0lBEYhfN5dePgE8OUZlxErVOgOu3NoOkKwzPZ97AKiobGo/rJa+doTm1aqRGzkn x7Xti9r6edxvWDSPb4tz7g== 0000716039-98-000047.txt : 19981030 0000716039-98-000047.hdr.sgml : 19981030 ACCESSION NUMBER: 0000716039-98-000047 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19981027 ITEM INFORMATION: FILED AS OF DATE: 19981029 SROS: CSX SROS: NYSE SROS: PCX FILER: COMPANY DATA: COMPANY CONFORMED NAME: UNOCAL CORP CENTRAL INDEX KEY: 0000716039 STANDARD INDUSTRIAL CLASSIFICATION: CRUDE PETROLEUM & NATURAL GAS [1311] IRS NUMBER: 953825062 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-08483 FILM NUMBER: 98733287 BUSINESS ADDRESS: STREET 1: 2141 ROSECRANS AVE STREET 2: STE 4000 CITY: EL SEGUNDO STATE: CA ZIP: 90245 BUSINESS PHONE: 3107267600 8-K 1 UNOCAL'S THIRD QUARTER 1998 EARNINGS SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 8-K Current Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of report (Date of earliest event reported) October 27, 1998 ------------------------ 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. Unocal Corporation announced that lower worldwide oil and gas prices, coupled with increased costs for the company's expanded exploration program, led to lower third quarter earnings of $36 million, or 15 cents per share (basic and diluted). This compares with net earnings of $177 million, or 70 cents per share (diluted) in the third quarter of 1997. Earnings from continuing operations, excluding special items (detailed in attached tables), were $4 million, or 2 cents per share (basic and diluted), compared with $94 million, or 38 cents per share (basic and diluted) in the third quarter 1997. In late October, three Spirit Energy 76 exploration wells were determined to be dry holes. These included the Calypso deepwater well. Accounting rules require that $18 million in costs associated with these wells accrued through Sept. 30, 1998, be recorded in the third quarter. These October dry holes lowered Unocal's earnings by 5 cents per share. Unocal's total oil and gas exploration expenses in the third quarter, including dry hole costs, were $118 million, more than double the level for the comparable period in 1997. This reflects the company's increased focus on growth through the drill bit. The company continues to record significant successes in the deepwater Kutei Basin area offshore Indonesia. To date, Unocal has discovered two important deepwater fields and has a number of additional promising prospects on its 2.1-million acre deepwater holdings there. Unocal's third quarter 1998 net worldwide oil and gas production was off 3 percent from last year's third quarter. The production reflected the effect of storms in the Gulf of Mexico that reduced Spirit Energy 76's average daily production by 2,000 barrels of oil and 25 million cubic feet of gas. Despite these storm curtailments, Spirit Energy's third quarter production was still higher than the second quarter. The lower third quarter 1998 production also reflected the sale of Canadian producing properties earlier this year, and lower oil production from Indonesia. Total revenues for the third quarter were $1.4 billion, about the same as a year ago. Capital expenditures were $482 million, up from $308 million in the same period of 1997, including almost $100 million for the August 1998 Gulf of Mexico lease sale. Nine-months results For the first nine months of 1998, Unocal recorded net earnings of $159 million, or 66 cents per common share (basic and diluted). Year-to-date earnings from continuing operations, excluding special items (detailed in attached tables) were $138 million, or 57 cents per share. Total revenues for the first nine months were $4 billion. Capital expenditures for the year-to-date total $1.25 billion, up from $953 million for the first nine months of 1997. Unocal is a leading global oil and gas exploration and production company with significant pipeline and power plant project developments worldwide. Forward-looking statements and estimates regarding drilling activity, production, and business results set forth above are based on assumptions concerning market, competitive, regulatory, environmental, operational and other considerations. Actual results could differ materially.
UNOCAL CORPORATION CONDENSED CONSOLIDATED EARNINGS STATEMENT (UNAUDITED) For the Three Months For the Nine Months Ended September 30 Ended September 30 ---------------------- ---------------------- Millions of dollars except per share amounts 1998 1997 1998 1997 - ------------------------------------------------------------------------------------------------------------------------------------ Total revenues ................................................................. $ 1,394 $ 1,397 $ 3,998 $ 4,507 Costs and other deductions ..................................................... 1,319 1,394 3,662 3,918 ------------------------------------------------- Earnings from continuing operations before income taxes ........................ 75 3 336 589 Income taxes / (benefit) ....................................................... 39 (174) 177 68 ------------------------------------------------- Earnings from continuing operations ............................................ 36 177 159 521 Loss from discontinued operations (net of tax) ................................ -- -- -- (44) Extraordinary charge - extinguishment of debt (net of tax) ..................... -- -- -- (38) ------------------------------------------------- Net earnings ................................................................... $ 36 $ 177 $ 159 $ 439 Basic earnings/(loss) per common share (a) Continuing operations .................................................... $ 0.15 $ 0.71 $ 0.66 $ 2.09 Discontinued operations .................................................. -- -- -- (0.18) Extraordinary item - extinguishment of debt (net of tax) ................. -- -- -- (0.15) ------------------------------------------------- Basic net earnings per share ................................................... $ 0.15 $ 0.71 $ 0.66 $ 1.76 Diluted earnings/(loss) per common share (b) (c) Continuing operations .................................................... $ 0.15 $ 0.70 $ 0.66 $ 2.04 Discontinued operations .................................................. -- -- -- (0.17) Extraordinary item - extinguishment of debt (net of tax) ................. -- -- -- (0.14) ------------------------------------------------- Diluted net earnings per share ................................................. $ 0.15 $ 0.70 $ 0.66 $ 1.73 (a) Weighted average shares - basic (millions)................................ 241 247 242 249 (b) Weighted average shares - diluted (millions).............................. 243 261 243 263 (c) Distributions on preferred securities (net of taxes) excluded in numerator. $ -- $ 6 $ -- $ 18 In 1998, the effect of assumed conversion of preferred securities on earnings per share is antidilutive. - ------------------------------------------------------------------------------------------------------------------------------------ CONDENSED CONSOLIDATED BALANCE SHEET (UNAUDITED) Sep. 30 Dec. 31 Millions of dollars 1998 1997 - ------------------------------------------------------------------------------------------------------------------------------------ Assets Cash and cash equivalents ...................................................... $ 183 $ 338 Other current assets ........................................................... 1,029 1,163 Investments and long-term receivables .......................................... 1,171 1,113 Properties - net ............................................................... 5,190 4,816 Other assets ................................................................... 214 100 --------------------- Total assets ........................................................... $ 7,787 $ 7,530 Liabilities and Equity Current liabilities ............................................................ $ 1,212 $ 1,160 Long-term debt ................................................................. 2,423 2,169 Deferred income taxes .......................................................... 154 137 Other deferred credits and liabilities ......................................... 1,189 1,228 Convertible preferred securities ............................................... 522 522 Stockholders' equity ........................................................... 2,287 2,314 --------------------- Total liabilities and equity ........................................... $ 7,787 $ 7,530
Table 1
UNOCAL CORPORATION CONDENSED CONSOLIDATED CASH FLOWS (UNAUDITED) For the Three Months For the Nine Months Ended September 30 Ended September 30 ------------------------------------------------- Millions of dollars 1998 1997(a) 1998 1997(a) - ------------------------------------------------------------------------------------------------------------------------------------ Cash flows from operating activities Net earnings ................................................... $ 36 $ 177 $ 159 $ 439 Adjustments to reconcile net earnings to net cash provided by operating activities Loss on disposal of discontinued operations (before-tax) -- -- -- 71 Depreciation, depletion and amortization ................. 186 300 566 755 Dry hole costs ........................................... 58 8 150 51 Deferred income taxes .................................... (64) (255) (34) (226) (Gain) loss on sales of assets (before-tax) .............. (74) 2 (166) (59) Other .................................................... (9) 75 18 (83) Working capital and other changes related to operations ........ 181 (8) 18 (212) ------------------------------------------------- Net cash provided by operating activities ................ 314 299 711 736 Cash flows from investing activities Capital expenditures (includes dry hole costs) ................ (482) (308) (1,248) (953) Proceeds from sale of discontinued operations .................. -- 3 -- 1,789 Proceeds from asset sales ...................................... 265 7 299 55 ------------------------------------------------- Net cash (used in)/provided by investing activities ...... (217) (298) (949) 891 Cash flows from financing activities Net increase/(decrease) in long-term debt ...................... (56) (241) 285 (959) Dividends paid ................................................. (48) (50) (145) (150) Repurchase of common stock ..................................... -- (81) (48) (173) Other .......................................................... (3) 3 (9) (46) ------------------------------------------------- Net cash (used in)/ provided by financing activities...... (107) (369) 83 (1,328) Increase/(decrease) in cash and cash equivalents ............................... (10) (368) (155) 299 Cash and cash equivalents at beginning of period ............................... 193 884 338 217 ------------------------------------------------- Cash and cash equivalents at end of period ..................................... $ 183 $ 516 $ 183 $ 516 (a) Cash flows related to discontinued operations have not been segregated - ------------------------------------------------------------------------------------------------------------------------------------ CONDENSED CAPITAL EXPENDITURES (UNAUDITED) Millions of dollars - ------------------------------------------------------------------------------------------------------------------------------------ United States Exploration & Production ......................................... $ 237 $ 88 $ 589 $ 200 International Exploration & Production ......................................... 212 171 576 574 Geothermal and Power Operations ................................................ 12 29 22 76 Diversified Business Group ..................................................... 18 18 46 40 New Ventures (Non-E & P) ...................................................... -- 2 1 5 Corporate & Unallocated ........................................................ 3 -- 14 9 Discontinued Operations ........................................................ -- -- -- 49 ------------------------------------------------- Total (b) ...................................................... $ 482 $ 308 $ 1,248 $ 953 (b) Includes capitalized interest of: ......................................... $ 6 $ 10 $ 22 $ 26
Table 2
UNOCAL CORPORATION RESULTS OF OPERATIONS FOR EXPLORATION AND PRODUCTION ACTIVITIES (UNAUDITED) For the Three Months Ended September 30, 1998 ------------------------------------------------------------ Spirit Other Millions of dollars Energy 76 Alaska Far East International Total - ------------------------------------------------------------------------------------------------------------------------------------ Sales (includes intercompany sales) Crude oil and condensate ................................ $ 45 $ 25 $ 86 $ 26 $ 182 Natural gas ............................................. 140 13 156 3 312 Natural gas liquids ..................................... 8 1 3 -- 12 Other ................................................... 1 -- -- -- 1 ------------------------------------------------------------ Total ............................................. 194 39 245 29 507 Other revenue/(loss) ............................................ 2 2 (5) 6 5 Gain on asset sales ............................................. 1 -- -- 73 74 ------------------------------------------------------------ Total revenues .................................... 197 41 240 108 586 Production costs ................................................ 48 18 32 19 117 Exploration expenses ............................................ 21 1 11 18 51 Dry hole costs .................................................. 34 -- 20 13 67 Depreciation, depletion & amortization .......................... 91 15 54 8 168 Other operating expenses ........................................ 17 4 15 12 48 ------------------------------------------------------------ Results of operations before income tax ................. $ (14) $ 3 $ 108 $ 38 $ 135 - ------------------------------------------------------------------------------------------------------------------------------------ For the Three Months Ended September 30, 1997 ------------------------------------------------------------ Spirit Other Energy 76 Alaska Far East International Total ------------------------------------------------------------ Sales (includes intercompany sales) Crude oil and condensate .............................. $ 67 $ 40 $ 112 $ 34 $ 253 Natural gas ........................................... 171 15 168 11 365 Natural gas liquids ................................... 12 -- 4 1 17 Other ................................................. 1 -- -- -- 1 ------------------------------------------------------------ Total ....................................... 251 55 284 46 636 Other revenue ................................................. 1 3 (4) 3 3 Gain/(loss) on asset sales .................................... (2) -- -- -- (2) ------------------------------------------------------------ Total revenues .................................. 250 58 280 49 637 Production costs .............................................. 41 27 30 17 115 Exploration expenses .......................................... 13 -- 22 13 48 Dry hole costs ................................................ 3 -- 4 -- 7 Depreciation, depletion & amortization ........................ 169 13 81 17 280 Other operating expenses ...................................... 18 2 12 21 53 ------------------------------------------------------------ Results of operations before income tax ............... $ 6 $ 16 $ 131 $ (19) $ 134
Table 3
UNOCAL CORPORATION RESULTS OF OPERATIONS FOR EXPLORATION AND PRODUCTION ACTIVITIES (UNAUDITED) For the Nine Months Ended September 30, 1998 ------------------------------------------------------------ Spirit Other Millions of dollars Energy 76 Alaska Far East International Total - ------------------------------------------------------------------------------------------------------------------------------------ Sales (includes intercompany sales) Crude oil and condensate ............................ $ 151 $ 77 $ 262 $ 79 $ 569 Natural gas ......................................... 431 47 446 19 943 Natural gas liquids ................................. 33 2 9 1 45 Other ............................................... 3 -- -- -- 3 ------------------------------------------------------------ Total ......................................... 618 126 717 99 1,560 Other revenue/(loss) ........................................ 6 6 (17) 14 9 Gain on asset sales ......................................... 1 -- 3 160 164 ------------------------------------------------------------ Total revenues ................................ 625 132 703 273 1,733 Production costs ............................................ 131 60 88 55 334 Exploration expenses ........................................ 47 2 45 38 132 Dry hole costs .............................................. 100 -- 35 21 156 Depreciation, depletion & amortization ...................... 267 36 167 43 513 Other operating expenses .................................... 54 10 42 38 144 ------------------------------------------------------------ Results of operations before income tax ............. $ 26 $ 24 $ 326 $ 78 $ 454 - ------------------------------------------------------------------------------------------------------------------------------------ For the Nine Months Ended September 30, 1997 ------------------------------------------------------------ Spirit Other Energy 76 Alaska Far East International Total ------------------------------------------------------------ Sales (includes intercompany sales) Crude oil and condensate ........................... $ 233 $ 136 $ 342 $ 119 $ 830 Natural gas ........................................ 541 47 485 35 1,108 Natural gas liquids ................................ 41 3 18 3 65 Other .............................................. 2 -- -- -- 2 ------------------------------------------------------------ Total ........................................ 817 186 845 157 2,005 Other revenue .............................................. 7 4 -- 16 27 Gain/(loss) on asset sales ................................. 2 -- -- (16) (14) ------------------------------------------------------------ Total revenues ............................... 826 190 845 157 2,018 Production costs ........................................... 139 73 93 53 358 Exploration expenses ....................................... 37 -- 40 31 108 Dry hole costs ............................................. 10 -- 39 1 50 Depreciation, depletion & amortization ..................... 374 42 235 53 704 Other operating expenses ................................... 56 8 34 45 143 ------------------------------------------------------------ Results of operations before income tax ............ $ 210 $ 67 $ 404 $ (26) $ 655
Table 4
UNOCAL CORPORATION OPERATING HIGHLIGHTS (UNAUDITED) For the Three Months For the Nine Months Ended September 30 Ended September 30 ------------------------------------------------- 1998 1997 1998 1997 - ------------------------------------------------------------------------------------------------------------------------------------ Net daily production Crude oil and condensate (thousand barrels daily): United States Spirit Energy 76 ........................................... 44 41 44 45 Alaska ..................................................... 27 30 29 32 ------------------------------------------------- Total United States .................................. 71 71 73 77 International Far East (a) .............................................. 81 96 83 95 Other ...................................................... 31 25 31 26 ------------------------------------------------- Total International .................................. 112 121 114 121 - ------------------------------------------------------------------------------------------------------------------------------------ Total Worldwide ...................................... 183 192 187 197 Natural gas (million cubic feet daily): United States Spirit Energy 76 ........................................... 808 845 795 876 Alaska ..................................................... 118 110 126 131 ------------------------------------------------- Total United States .................................. 926 954 921 1,007 International Far East (a) .............................................. 794 790 816 790 Other ...................................................... 37 55 53 62 ------------------------------------------------- Total International .................................. 831 845 869 851 - ------------------------------------------------------------------------------------------------------------------------------------ Total Worldwide ...................................... 1,757 1,799 1,790 1,858 Natural gas liquids (thousand barrels daily) .............................. 19 18 19 19 Geothermal (million kilowatt-hours daily) ................................. 22 19 21 17 Average sales prices (b) Crude oil and condensate (per barrel): United States Spirit Energy 76 ........................................... $ 12.20 $ 17.13 $ 12.80 $ 18.61 Alaska ..................................................... 9.35 13.37 9.69 15.39 Total United States .................................. $ 11.11 $ 15.50 $ 11.56 $ 17.28 International Far East ................................................... $ 12.28 $ 17.45 $ 13.02 $ 18.72 Other ...................................................... 10.58 16.58 11.07 17.58 Total International .................................. $ 11.82 $ 17.23 $ 12.48 $ 18.41 Total Worldwide ...................................... $ 11.54 $ 16.44 $ 12.09 $ 17.89 Natural gas (per mcf): United States Spirit Energy 76 ........................................... $ 1.97 $ 2.38 $ 2.08 $ 2.39 Alaska ..................................................... 1.20 1.47 1.38 1.39 Total United States .................................. $ 1.87 $ 2.28 $ 1.98 $ 2.26 International Far East ................................................... $ 2.23 $ 2.39 $ 2.10 $ 2.35 Other ...................................................... 2.38 2.40 2.26 2.23 Total International .................................. $ 2.23 $ 2.39 $ 2.10 $ 2.34 Total Worldwide ...................................... $ 2.04 $ 2.33 $ 2.04 $ 2.29 - ------------------------------------------------------------------------------------------------------------------------------------ (a) Includes host country share of: Crude oil and condensate ................................................ 6 28 11 29 Natural gas ............................................................. 27 22 27 27 (b) Excludes Global Trade margins and Canada equity affiliate sales
Table 5
UNOCAL CORPORATION OPERATING HIGHLIGHTS (continued) (UNAUDITED) For the Three Months For the Nine Months Ended September 30 Ended September 30 ------------------------------------------------- 1998 1997 1998 1997 - ------------------------------------------------------------------------------------------------------------------------------------ Agricultural products production volumes (thousand tons) Ammonia ............................................................... 365 314 1,129 1,072 Urea .................................................................. 234 188 739 696 Agricultural products sales volumes (thousand tons) Ammonia ............................................................... 186 187 649 590 Urea .................................................................. 259 191 854 690
Table 6
UNOCAL CORPORATION EARNINGS BY BUSINESS SEGMENT (Unaudited) 3rd Quarter of 1998 3rd Quarter of 1997 ----------------------------------------------------- Millions of dollars Before-tax After-tax Before-tax After-tax - -------------------------------------------------------------------------------------------------------------------------- Exploration and Production United States Spirit Energy 76 ........................................ $ (14) $ (8) $ 6 $ 4 Alaska .................................................. 3 2 16 10 International Far East ................................................ 108 44 131 147 Other ................................................... 38 23 (19) (19) Global Trade ................................................... 5 3 3 2 Geothermal and Power Operations ................................ 22 16 7 6 Diversified Business Group Agricultural Products .................................... 9 12 5 4 Carbon and Minerals ...................................... (1) -- 13 10 Pipelines ................................................ 16 14 19 16 Other .................................................... -- -- (1) -- Corporate and Unallocated Administrative and general expense ....................... (30) (20) (20) (13) Net interest expense ..................................... (40) (33) (26) (19) Environmental and litigation expense ..................... (19) (12) (104) (65) New Ventures (non E&P) ................................... (7) (4) (3) (1) Other .................................................... (15) (1) (24) 95 - -------------------------------------------------------------------------------------------------------------------------- Total .............................................. $ 75 $ 36 $ 3 $ 177 ==========================================================================================================================
Exploration and Production - involves the exploration for, and the production of crude oil and natural gas. Global Trade - handles the company's worldwide crude oil, condensate and natural gas trading and marketing activities. Global Trade also purchases crude oil, condensate and natural gas from the company's joint venture partners, royalty owners and other unaffiliated oil and gas producers for resale. Geothermal and Power Operations - involves the exploration for, and the production and sale of geothermal resources, and the construction and operation of electrical power plants. Diversified Business Group: Agricultural Products - involves the manufacture, transportation and marketing of nitrogen-based products for agricultural and industrial use. Carbon and Minerals - involves the production and marketing of petroleum coke, graphites and specialty minerals. Pipelines - principally includes the company's equity interests in affiliated pipeline companies. Other - principally included the company's equity interest in The UNO-VEN Company, prior to its restructuring in May 1997. Table 7
UNOCAL CORPORATION SPECIAL ADJUSTMENTS (Unaudited) 3rd Quarter of 1998 3rd Quarter of 1997 ----------------------------------------------------- Millions of dollars Before-tax After-tax Before-tax After-tax - -------------------------------------------------------------------------------------------------------------------------- Reported earnings .................................................. $ 75 $ 36 $ 3 $ 177 Less: Special items Exploration and Production United States Spirit Energy Asset sales .......................................... -- -- (1) -- Impairment ........................................... -- -- (62) (39) International Asset sales - Other .................................. 73 49 (1) (1) Deferred tax adjustment - Far East ................... -- (7) -- 68 Geothermal and Power Operations Deferred tax adjustment - Sarulla .................... -- -- -- 3 Diversified Business Group Carbon and Minerals Environmental ........................................ (2) (2) -- -- Corporate and Unallocated Asset sales - Other .................................. -- -- -- (1) Environmental and litigation ......................... (12) (8) (97) (61) Deferred tax adjustment - Other ...................... -- -- -- 114 - -------------------------------------------------------------------------------------------------------------------------- Total special items ........................................... 59 32 (161) 83 - -------------------------------------------------------------------------------------------------------------------------- Adjusted earnings ......................................... $ 16 $ 4 $ 164 $ 94 ==========================================================================================================================
Table 8
UNOCAL CORPORATION EARNINGS BY BUSINESS SEGMENT EXCLUDING SPECIAL ADJUSTMENTS (Unaudited) 3rd Quarter of 1998 3rd Quarter of 1997 ---------------------------------------------------- Millions of dollars except share amounts Before-tax After-tax Before-tax After-tax - -------------------------------------------------------------------------------------------------------------------------- Exploration and Production United States Spirit Energy 76 .......................................... $ (14) $ (8) $ 69 $ 43 Alaska .................................................... 3 2 16 10 International Far East .................................................. 108 51 131 79 Other ..................................................... (35) (26) (18) (18) Global Trade ..................................................... 5 3 3 2 Geothermal and Power Operations .................................. 22 16 7 3 Diversified Business Group Agricultural Products ...................................... 9 12 5 4 Carbon and Minerals ........................................ 1 2 13 10 Pipelines .................................................. 16 14 19 16 Other ...................................................... -- -- (1) -- Corporate and Unallocated Administrative and general expense ......................... (30) (20) (20) (13) Net interest expense ....................................... (40) (33) (26) (19) Environmental and litigation expense ....................... (7) (4) (7) (4) New Ventures (non E&P) ..................................... (7) (4) (3) (1) Other ...................................................... (15) (1) (24) (18) - -------------------------------------------------------------------------------------------------------------------------- Earnings from continuing operations .............................. $ 16 $ 4 $ 164 $ 94 ========================================================================================================================== Basic earnings from continuing operations per share of common stock ..................................... $ 0.02 $ 0.38 Diluted earnings from continuing operations per share of common stock (a) ................................. $ 0.02 $ 0.38 Distributions on preferred securities (net of tax) excluded in numerator for diluted earnings per share (a) ............... $ -- $ 6 Basic weighted average shares .................................... 241 247 Diluted weighted average shares .................................. 243 261 (a) In 1998, the effect of assumed conversion of preferred securities on earnings per share is antidilutive.
Table 9
UNOCAL CORPORATION EARNINGS BY BUSINESS SEGMENT (Unaudited) Nine Months Ended Nine Months Ended September 30, 1998 September 30, 1997 ----------------------------------------------------- Millions of dollars Before-tax After-tax Before-tax After-tax - -------------------------------------------------------------------------------------------------------------------------- Exploration and Production United States Spirit Energy 76 .......................................... $ 26 $ 17 $ 210 $ 132 Alaska .................................................... 24 15 67 42 International Far East .................................................. 326 130 404 290 Other ..................................................... 78 53 (26) (32) Global Trade ..................................................... 21 13 22 13 Geothermal and Power Operations .................................. 66 44 28 25 Diversified Business Group Agricultural Products ...................................... 40 33 75 50 Carbon and Minerals ........................................ 26 24 110 76 Pipelines .................................................. 53 44 54 46 Other ...................................................... -- -- 43 37 Corporate and Unallocated Administrative and general expense ......................... (62) (43) (62) (40) Net interest expense ....................................... (106) (83) (109) (84) Environmental and litigation expense ....................... (119) (75) (138) (86) New Ventures (non E&P) ..................................... (26) (16) (34) (23) Other ...................................................... (11) 3 (55) 75 - -------------------------------------------------------------------------------------------------------------------------- Earnings from continuing operations before discontinued operations and extraordinary item ........................................ 336 159 589 521 Loss from discontinued operations ................................ -- -- (71) (44) Extraordinary item ............................................... -- -- (52) (38) - -------------------------------------------------------------------------------------------------------------------------- Total ................................................ $ 336 $ 159 $ 466 $ 439 ==========================================================================================================================
Table 10
UNOCAL CORPORATION SPECIAL ADJUSTMENTS (Unaudited) Nine Months Ended Nine Months Ended September 30, 1998 September 30, 1997 ----------------------------------------------------- Millions of dollars Before-tax After-tax Before-tax After-tax - -------------------------------------------------------------------------------------------------------------------------- Reported earnings ................................................. $ 336 $ 159 $ 466 $ 439 Less: Special items Exploration and Production United States Spirit Energy Asset sales ......................................... -- -- 2 2 Impairment .......................................... -- -- (62) (39) International Asset sales - Other ................................. 158 102 (17) (17) Bangladesh well blowout - Other ..................... -- -- (10) (7) Deferred tax adjustment - Far East .................. -- (21) -- 68 Geothermal and Power Operations Deferred tax adjustment - Sarulla ................... -- -- -- 10 Diversified Business Group Carbon and Minerals Asset sales ......................................... -- -- 67 41 Environmental and litigation ........................ (6) (4) -- -- Other UNO-VEN restructuring ............................... -- -- 46 39 Corporate and Unallocated Asset sales - Other ................................. -- -- 7 4 Environmental and litigation ........................ (106) (67) (120) (75) Insurance settlement - Other ....................... 17 11 -- -- Deferred tax adjustment - Other ..................... -- -- -- 114 Discontinued Operations Net loss on disposal ................................ -- -- (71) (44) Extraordinary item Extinguishment of debt .............................. -- -- (52) (38) - -------------------------------------------------------------------------------------------------------------------------- Total special items .......................................... 63 21 (210) 58 - -------------------------------------------------------------------------------------------------------------------------- Adjusted earnings ........................................ $ 273 $ 138 $ 676 $ 381 ==========================================================================================================================
Table 11
UNOCAL CORPORATION EARNINGS BY BUSINESS SEGMENT EXCLUDING SPECIAL ADJUSTMENTS (Unaudited) Nine Months Ended Nine Months Ended September 30, 1998 September 30, 1997 ----------------------------------------------------- Millions of dollars except share amounts Before-tax After-tax Before-tax After-tax - -------------------------------------------------------------------------------------------------------------------------- Exploration and Production United States Spirit Energy 76 ........................................... $ 26 $ 17 $ 270 $ 169 Alaska ..................................................... 24 15 67 42 International Far East ................................................... 326 151 404 222 Other ...................................................... (80) (49) 1 (8) Global Trade ...................................................... 21 13 22 13 Geothermal and Power Operations ................................... 66 44 28 15 Diversified Business Group Agricultural Products ....................................... 40 33 75 50 Carbon and Minerals ......................................... 32 28 43 35 Pipelines ................................................... 53 44 54 46 Other ....................................................... -- -- (3) (2) Corporate and Unallocated Administrative and general expense .......................... (62) (43) (62) (40) Net interest expense ........................................ (106) (83) (109) (84) Environmental and litigation expense ........................ (13) (8) (18) (11) New Ventures (non E&P) ...................................... (26) (16) (34) (23) Other ....................................................... (28) (8) (62) (43) - -------------------------------------------------------------------------------------------------------------------------- Earnings from continuing operations ............................... $ 273 $ 138 $ 676 $ 381 ========================================================================================================================== Basic earnings from continuing operations per share of common stock ...................................... $ 0.57 $ 1.53 Diluted earnings from continuing operations per share of common stock (a) .................................. $ 0.57 $ 1.52 Distributions on preferred securities (net of tax) excluded in numerator for diluted earnings per share (a) ................ $ -- $ 18 Basic weighted average shares ..................................... 242 249 Diluted weighted average shares ................................... 243 263 (a) In 1998, the effect of assumed conversion of preferred securities on earnings per share is antidilutive.
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: October 29, 1998 By: /s/ JOE D. CECIL - ----------------------- ------------------------------------ Joe D. Cecil Vice President and Comptroller -----END PRIVACY-ENHANCED MESSAGE-----