-----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, E/rZUDM9JgJZQr2YDtA9kZGRnUw4XiCtIQON/YnPl8qotCxVP85cfGYzQyW4t7e7 HxyOhn+vPucBmCqsrbYF+w== 0000910484-97-000006.txt : 19970127 0000910484-97-000006.hdr.sgml : 19970127 ACCESSION NUMBER: 0000910484-97-000006 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 19970124 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 19970124 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: UNION TEXAS PETROLEUM HOLDINGS INC CENTRAL INDEX KEY: 0000774214 STANDARD INDUSTRIAL CLASSIFICATION: CRUDE PETROLEUM & NATURAL GAS [1311] IRS NUMBER: 760040040 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-09019 FILM NUMBER: 97510606 BUSINESS ADDRESS: STREET 1: 1330 POST OAK BLVD CITY: HOUSTON STATE: TX ZIP: 77056 BUSINESS PHONE: 7136236544 MAIL ADDRESS: STREET 1: 1330 POST OAK BLVD CITY: HOUSTON STATE: TX ZIP: 77056 8-K 1 UNION TEXAS PETROLEUM HOLDINGS, INC. 8-K SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 -------------------------------------------- FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 -------------------------------------------- Date of Report (Date of earliest event reported): January 24, 1997 UNION TEXAS PETROLEUM HOLDINGS, INC. (Exact name of Registrant as specified in its charter) Delaware 1-9019 76-0040040 (State or other Commission (I.R.S. Employer jurisdiction File Number) Identification No.) of incorporation) 1330 Post Oak Boulevard, Houston, Texas 77056 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (713) 623-6544 Item 5. OTHER EVENTS. Press Releases. The information set forth in the press releases of the registrant dated October 28, 1996, January 22, 1997 and January 23, 1997, respectively, each of which is filed as an exhibit hereto, is incorporated by reference herein. Director. Mr. Saul A. Fox resigned as a director of the Company effective as of January 13, 1997. The Board of Directors is searching for a replacement to fill his vacancy. The press releases contain forward-looking statements within the meaning of and in reliance upon the "safe harbor" provisions of the Private Securities Litigation Reform Act, as set forth in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that involve risks and uncertainties, including price volatility, exploration, development, operational, implementation and opportunity risks, and other factors described from time to time in the registrant's publicly available SEC reports, which could cause actual results to differ materially. The capital spending budget is subject to revision based upon results of activities, market conditions, acqusition opportunities and other factors. Item 7. FINANCIAL STATEMENT AND EXHIBITS. (c) Exhibits. Exhibit Number Description - ------ ----------- 99.1 Press release dated October 28, 1996 99.2 Press release dated January 22, 1997 99.3 Press release dated January 23, 1997 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. UNION TEXAS PETROLEUM HOLDINGS, INC. By: /s/ Alan R. Crain, Jr. --------------------------------- Alan R. Crain, Jr. Vice President and General Counsel Date: January 24, 1997 INDEX TO EXHIBITS Exhibit Number Description - ------ ----------- 99.1 Press release dated October 28, 1996 99.2 Press release dated January 22, 1997 99.3 Press release dated January 23, 1997 EX-99.1 2 UNION TEXAS PETROLEUM HOLDINGS, INC. EX-99.1 Exhibit 99.1 Contact: Carol L. Cox (713) 968-2714 UNION TEXAS PETROLEUM ANNOUNCES TWO OIL DISCOVERIES IN PAKISTAN COMPANY TO DRILL EXPLORATION WELL IN EASTERN SINDH AREA Houston, October 28, 1996 -- Union Texas Petroleum Holdings, (NYSE: UTH) today reported two oil discoveries in the Sindh province in southeastern Pakistan by its wholly-owned subsidiary, Union Texas Pakistan, Inc. Union Texas Pakistan also reported plans to drill an exploration well in the Eastern Sindh area of Pakistan in 1997. Jagir and Sakhi Oil Discoveries - ------------------------------------ The Jagir oil discovery was made by a joint venture group in which Union Texas Pakistan serves as operator with Occidental Petroleum (Pakistan), Inc., Government Holdings and the Oil and Gas Development Corporation (OGDC). The Jagir No. 1 exploration well flowed at a daily rate of 3,027 barrels of oil per day on a 48/64-inch choke with 410 pounds-per-square-inch flowing tubing pressure from the Lower Goru formation between 7,060 and 7,226 feet. The well is located approximately 125 miles (200 kilometers) northeast of Karachi. The well was placed on production on August 6, producing an average of 2,100 barrels of oil per day. Union Texas Pakistan and Occidental Petroleum (Pakistan) each holds a 25.5% working interest in the Jagir well. The remaining interests are held by Government Holdings with a 25% working interest and OGDC with a 24% working interest. - more - -2- The Sakhi oil discovery was made by a joint venture group in which Union Texas Pakistan serves as operator with Occidental Petroleum (Pakistan) and OGDC. The Sakhi No. 1 exploration well tested at a daily rate of 2,106 barrels of oil per day on a 32/64-inch choke with 1,032 pounds-per-square-inch flowing tubing pressure from the Lower Goru formation between 6,596 and 6,646 feet. The Sakhi well is located about 125 miles (200 kilometers) northeast from Karachi. The well was placed on production on August 14, producing an average of 800 barrels of oil per day. Union Texas Pakistan and Occidental Petroleum (Pakistan) each holds a 30% working interest in the Sakhi well and OGDC holds the remaining 40% working interest. The Jagir and Sakhi wells represent the Union Texas Pakistan venture's 100th and 101st exploration wells and its 44th and 45th discoveries, respectively, on the Badin block. In addition to 101 exploration wells, the venture also has drilled 73 appraisal and development wells, of which 66 were successful. The venture currently produces an average of 25,000 gross barrels of oil and 160 million cubic feet of gas per day from 66 producing wells on the Badin block, which comprises nearly 2 million acres. The Union Texas Pakistan group currently accounts for about 40% of Pakistan's domestic oil production and about 9% of its domestic gas production. From 1977 to the end of 1995, the venture had discovered a cumulative total of approximately 233 million gross barrels of oil equivalent, of which approximately 38% is oil and 62% natural gas. Exploration Drilling in Eastern Sindh Area of Pakistan - ---------------------------------------------------------------------- Union Texas Pakistan also serves as operator for the Eastern Sindh block, located east of the Badin area in the Sindh province. Union Texas Pakistan said it - more - -3- plans to begin drilling its initial exploration well on the Eastern Sindh block in the second quarter of 1997. "The Eastern Sindh block represents a new exploration area in Pakistan, with very little previous exploration drilling," said Union Texas Chairman and CEO John Whitmire. "The objectives which our initial well on the Eastern Sindh block will be testing have much larger potential, but also much higher risk, than the prospects that we have drilled in the Badin area. We are excited to begin exploration drilling in the Eastern Sindh area." The Eastern Sindh license, which was granted to Union Texas Pakistan and its co-venturers in late 1994, covers an area of approximately 1.7 million acres. Union Texas Pakistan, as operator, has a 70% working interest in the license. The remaining interests are held by Edison International S.p.A. with a 25% working interest and Government Holdings with a 5% working interest. One of the largest independent producers located in the U.S., Houston-based Union Texas Petroleum Holdings, Inc. explores for and produces oil and gas overseas primarily in the U.K. North Sea, Indonesia and other strategic areas. The company has petrochemical operations in Louisiana. Union Texas celebrated its 100th anniversary in January 1996. This news release contains forward-looking statements within the meaning of the Securities Litigation Reform Act that involve risks and uncertainties, including price volatility, development, operational and implementation risks, and other factors described from time to time in the company's publicly available SEC reports, which could cause actual results to differ materially. # # # For additional information, contact: Carol Cox, media 713-968-2714 John Zimmerman, analysts and investors 713-968-2740 EX-99.2 3 UNION TEXAS PETROLEUM HOLDINGS, INC. EX-99.2 News Release [GRAPHIC OMITTED] 1330 Post Oak Boulevard P.O. Box 2120 Houston, Texas 77252-2120 (713) 623-6544 Union Texas Petroleum Contact: Carol Cox 713-968-2714 UNION TEXAS PETROLEUM ANNOUNCES $229 MILLION CAPITAL BUDGET FOR 1997 Houston, January 22, 1997 -- The Board of Directors of Union Texas Petroleum Holdings, Inc. (NYSE: UTH) has approved a 1997 capital spending budget of approximately $229 million, up 23% from $186 million spent in 1996. The higher spending in 1997 includes increased capital programs in Union Texas' worldwide exploration activities and its petrochemical business in Louisiana. "Union Texas' higher capital spending in 1997 is evidence of our strong commitment to grow the company and create value for our shareholders," said Chairman and CEO John Whitmire. "Our 1997 budget is centered on an expanded and diversified exploration program, development projects to add production,and programs to enhance our profitable petrochemical business. We see many exciting growth opportunities in 1997 for Union Texas and we are working hard to capitalize on these opportunities." 1997 Exploration Budget Up Nearly 90% from 1996 - ----------------------------------------------- Union Texas' 1997 capital plans call for approximately $68 million for exploration activities, an increase of nearly 90% from $36 million spent in 1996. The 1997 exploration program is focused on drilling and seismic activities in Italy, Tunisia and Alaska and other areas in Latin - more - 2 America, Africa, the Middle East and Central Asia where the company is actively pursuing a number of new exploration ventures. Union Texas also plans to participate in exploration programs in the United Kingdom, Indonesia and Pakistan where the company currently has producing operations. Highlights of Union Texas' 1997 exploration program include: o In Italy's Southern Apennines area, drilling will be completed on the Monte Foi prospect, the first exploration well in which Union Texas is participating in this area. In addition, extensive seismic programs will be conducted on several other blocks in the Southern Apennines area o Two to three wells in Tunisia, including one or two wells on the offshore Ramla block and one well on the onshore Jeffara block o Eleven exploration wells in Pakistan, including the first exploration well on the Eastern Sindh block o Up to four exploration wells in the United Kingdom, of which two wells are planned in St. George's Channel o Up to four exploration wells and continuation of a phased three-year 3-D seismic survey on the Sanga-Sanga block in Indonesia o A seismic program and possibly an exploration well in late 1997 on the Kenai Peninsula in Alaska o Drilling on several other exploration blocks which will be announced pending receipt of necessary approvals. Union Texas said its 1997 exploration program places a greater emphasis on proven - more - 3 hydrocarbon basins and less emphasis on frontier plays which had been pursued during the past several years. $127 Million Earmarked for Development Projects in 1997 - ------------------------------------------------------- Union Texas has allocated about $127 million in 1997 for oil and gas development projects, down from $150 million spent in 1996. A major component of Union Texas' 1997 development plans is the company's participation in the U.K. North Sea's Britannia gas development project, in which Union Texas has a 9.42% unit interest. The company has earmarked about $43 million for additional development drilling, platform fabrication and facilities work for Britannia in 1997, compared to $56 million spent in 1996. The largest undeveloped gas field in the United Kingdom, Britannia is anticipated to commence production in mid to late 1998. The field's platform is being designed to handle gross production of up to 740 million cubic feet of gas and up to 70,000 barrels of condensate and natural gas liquids per day. Of the remaining $26 million allocated for development projects in the United Kingdom for 1997, approximately $10 million is earmarked for development work at the producing Alba oil field, including additional extended-reach wells to the field's southern portion. Development activity at Alba during 1996 boosted the oil field's production capacity from 75,000 gross barrels a day to 100,000 gross barrels by the end of 1996. Union Texas has a 15.5% working interest in Alba. Union Texas' 1997 development plans include $8 million for the initial development of the Alpine oil field in the Western Colville area on Alaska's North Slope. Union Texas has a 22% working interest in Alpine, a large new field being developed by Union Texas and its co-venturers ARCO Alaska, Inc. (operator) and Anadarko Petroleum Corp. Alpine is anticipated to start producing - more - 4 at an initial rate of 30,000 gross barrels of oil per day in early 2000, increasing to 60,000 gross barrels in 2001. Union Texas also has budgeted about $36 million on development projects at its interests in Indonesia and about $14 million on development activities at its operations in Pakistan. The company also said it is evaluating several downstream projects in Pakistan and elsewhere around the world. Petrochemicals Capital Spending Rises to $32 Million in 1997 - ------------------------------------------------------------ At its petrochemical operations in Louisiana, Union Texas plans to spend about $32 million on capital projects, four times the $8 million spent in 1996. Union Texas' activities at its petrochemical operations during 1997 will include the construction and installation of an additional furnace at its jointly-owned ethylene plant in Geismar, Louisiana. The new furnace is scheduled to commence start-up operations in the fourth quarter of 1997. The company will also undertake projects to enhance its feedstock supply system to take advantage of new offshore gas production and related natural gas liquids from the Gulf of Mexico. One of the largest independent producers located in the U.S., Houston-based Union Texas explores for and produces oil and gas overseas primarily in the U.K. North Sea, Indonesia and other strategic international areas. The company has petrochemical interests in the U.S. Union Texas celebrated its 100th anniversary in January 1996. This news release contains forward-looking statements within the meaning of the Securities Litigation Reform Act that involve risks and uncertainties, including price volatility, exploration, development, operational and implementation risks, and other factors described from time to time in the company's publicly available SEC reports, which could cause actual results to differ materially. This capital spending budget is subject to revision based upon results of activities, market conditions, acquisition opportunities and other factors. - more - 5 UNION TEXAS PETROLEUM HOLDINGS, INC. CAPITAL SPENDING 1 (DOLLARS IN MILLIONS)
Planned 1996 ------- ---- 1997 ---- United Kingdom Exploration $ 7 $ 3 Britannia Development $ 43 $ 56 Other Development $ 26 $ 38 Indonesia Exploration $ 8 $ 4 Development $ 36 $ 31 Pakistan Exploration $ 15 $ 8 Development $ 14 $ 12 Alaska Exploration $ 7 $ 10 Development $ 8 $ 3 Other International Exploration 2 $ 31 $ 11 ------- ------- Total Exploration & Development $ 195 $ 176 Petrochemicals $ 32 $ 8 Corporate $ 2 $ 2 ------- ------- Total Capital Spending $ 229 $ 186
1 Includes the company's equity interests in the Unimar partnership and excludes capitalized interest. 2 Includes Italy, Tunisia and other new areas. For additional information, contact: Carol Cox, media 713-968-2714 John Zimmerman, analysts and investors 713-968-2740 # # # EX-99.3 4 UNION TEXAS PETROLEUM HOLDINGS, INC. EX-99.3 News Release [GRAPHIC OMITTED] 1330 Post Oak Boulevard P.O. Box 2120 Houston, Texas 77252-2120 Union Texas Petroleum Contact: Carol Cox 713-968-2714 UNION TEXAS PETROLEUM'S 1996 EARNINGS RISE NEARLY 50% ABOVE 1995 Union Texas Replaces 117% of Its 1996 Worldwide Production Houston, January 23, 1997 -- Union Texas Petroleum Holdings, Inc. (NYSE: UTH) today reported 1996 earnings of $1.75 per share, nearly 50% above $1.17 per share earned in 1995. Net income for 1996 was $152 million, versus $102 million in 1995. Sales and operating revenues for 1996 climbed to $1 billion, compared to $852 million in 1995. "During 1996, Union Texas benefited from substantial worldwide price increases for crude oil and Iiquefied natural gas (LNG) and from an all-time high production level at our international oil and gas operations," said Chairman and CEO John Whitmire. "A major achievement for the company in 1996 was the decision by Union Texas and our co-venturers ARCO Alaska, Inc. (operator) and Anadarko Petroleum Corp. to develop the Alpine oil field in Alaska. Alpine, which is scheduled to begin production in early 2000, contributed 32 million barrels in proved oil reserves net to Union Texas in 1996. "Union Texas' assets generated considerable free cash flow in excess of our capital spending projects during 1996 that we used to repurchase $32 million of Union Texas common stock (1,624,200 shares) and pay down $154 million of debt, which further enhances our ability to finance future growth. Union Texas ended the year 1996 with $517 million of net debt," said Whitmire. - more - 2 "During 1996, we also reorganized Union Texas to place much greater emphasis on growing our business in a number of new areas. I am very impressed with the attractive investment opportunities that our growth teams are aggressively pursuing and look forward to announcing several new investments in 1997. Our goals are to grow Union Texas' production base and reserves in the near-term and create further value for our shareholders," Whitmire noted. 1996 Fourth Quarter Earnings - ---------------------------- Union Texas also reported significantly higher results for 1996's fourth quarter compared to a year ago, with net income of $40 million or 47 cents per share for 1996's fourth quarter versus net income of $24 million or 27 cents per share for the same period in 1995. The company's 1996 fourth quarter performance was favorably affected by higher oil and LNG prices and increased U.K. gas, Pakistan oil and Indonesian LNG volumes, partially offset by decreased ethylene margins at the company's petrochemical operations in the United States. Sales and operating revenues for 1996's fourth quarter totaled $300 million, compared to $214 million in 1995's corresponding period. 1996 Full-Year Results - ---------------------- For the full-year 1996, Union Texas said its higher earnings were fueled by increased oil and LNG prices, higher U.K. oil and Indonesian LNG volumes and decreased exploration expenses, somewhat offset by lower ethylene margins and approximately $9 million in costs associated with a special, one-time voluntary retirement program. In 1996, Union Texas' worldwide oil sales price averaged $19.37 per barrel, compared to $16.05 per barrel in 1995. The company's Indonesian LNG sales price - more - 3 averaged $3.52 per thousand cubic feet in 1996, up from $3.03 per thousand cubic feet in 1995. All-Time High Production Rate - ----------------------------- The company achieved an all-time high oil and gas production rate for its international operations in 1996, producing 48.8 million barrels of oil equivalent compared to 46.4 million barrels in 1995. The increased production in 1996 was attributed to higher oil volumes in the U.K. North Sea and increased LNG volumes in Indonesia. 1996 was the peak production year for Union Texas' interests in Indonesia. Union Texas' proved worldwide reserves at year-end 1996 grew to 443 million barrels of oil equivalent, up from 435 million barrels at the end of 1995. Union Texas replaced approximately 117% of its 1996 worldwide production. Over the three-year period 1994-96, the company replaced about 144% of its worldwide production at a cost of $5.22 per barrel of oil equivalent. Union Texas' oil and gas production costs per barrel of oil equivalent averaged $3.61 per barrel in 1996, a 34% reduction over the last four years. Petrochemicals - -------------- At Union Texas' petrochemical operations, lower ethylene margins in 1996 versus year-ago levels were somewhat offset by higher ethylene sales volumes. Union Texas' ethylene margins averaged 6 cents per pound of ethylene in 1996, compared to 13 cents in 1995. Ethylene sales volumes rose to 510 million pounds in 1996, up from 462 million pounds in 1995. One of the largest independent producers located in the U.S., Houston-based Union - more - 4 Texas explores for and produces oil and gas overseas primarily in the U.K. North Sea, Indonesia and other strategic international areas. The company has petrochemical interests in the U.S. Union Texas celebrated its 100th anniversary in January 1996. This news release contains forward-looking statements within the meaning of the Securities Litigation Reform Act that involve risks and uncertainties, including price volatility, development, operational, implementation and opportunity risks, and other factors described from time to time in the company's publicly available SEC reports, which could cause actual results to differ materially. - more - 5 Comparative financial highlights follow (amounts in millions, except per share data):
Three Months ------------ Ended ----- December 31 ----------- 1996 1995 ---- ---- Net income..................................................... $ 40 $ 24 Earnings per share............................................. $ .47 $ .27 Sales and operating revenues................................... $ 300 $ 214 Average common shares outstanding.............................. 86.5 87.6
Full Year Ended --------------- December 31 ----------- 1996 1995 ---- ---- Net income..................................................... $ 152 $ 102 Earnings per share............................................. $ 1.75 $ 1.17 Sales and operating revenues................................... $ 1,008 $ 852 Average common shares outstanding.............................. 87.2 87.7
Additional financial and operating information appears on the attached pages. - more - 6 UNION TEXAS PETROLEUM FINANCIAL SUMMARY (amounts in millions, except per share data)
FOURTH QUARTER FULL YEAR -------------- --------- 1996 1995 1996 1995 ---- ---- ---- ---- Sales and operating revenues $ 300 $ 214 $ 1,008 $ 852 Net income $ 40 $ 24 $ 152 $ 102 Major operations(a) Indonesia $ 22 $ 21 $ 121 $ 95 U.K. North Sea $ 34 $ 19 $ 85 $ 46 Pakistan $ 7 $ 2 $ 27 $ 14 Petrochemicals $ 2 $ 4 $ 15 $ 38 Earnings per share of common $ .47 $ .27 $ 1.75 $ 1.17 stock Discretionary cash flow(b) $ 115 $ 87 $ 401 $ 367 Major operations(a) Indonesia $ 38 $ 29 $ 177 $ 147 U.K. North Sea $ 78 $ 62 $ 224 $ 183 Pakistan $ 10 $ 5 $ 39 $ 26 Petrochemicals $ 5 $ 7 $ 29 $ 63 Average common shares 86.5 87.6 87.2 87.7 outstanding
See footnotes on page 9. - more - 7 UNION TEXAS PETROLEUM DISCRETIONARY CASH FLOW SUMMARY(b) (amounts in millions)
FOURTH QUARTER FULL YEAR -------------- --------- 1996 1995 1996 1995 ---- ---- ---- ---- Net income $ 40 $ 24 $ 152 $ 102 Less: Equity partnership income $ (4) $ (4) $ (26) $ (21) Add: DD&A $ 60 $ 55 $ 212 $ 192 Deferred taxes $ (10) $ (12) $ (33) $ (19) Exploration expenses $ 19 $ 17 $ 52 $ 77 Unimar equity DCF(c) $ 10 $ 7 $ 44 $ 36 Discretionary cash flow $ 115 $ 87 $ 401 $ 367
See footnotes on page 9.
OPERATING SUMMARY(d) FOURTH QUARTER FULL YEAR -------------- --------- 1996 1995 1996 1995 ---- ---- ---- ---- Net crude oil sales (MBBLS/D) U.K. North Sea 47 47 43 40 Indonesia 5 6 6 6 Pakistan 9 5 6 6 Average crude oil prices (per BBL) U.K. North Sea $ 21.82 $ 15.97 $ 19.60 $ 16.14 Indonesia $ 22.60 $ 16.98 $ 19.49 $ 17.14 Pakistan $ 20.07 $ 13.70 $ 17.75 $ 14.24 Net natural gas sales (MMCF/D) Indonesian LNG 197 183 218 205 U.K. North Sea 85 51 46 34 Pakistan 39 46 41 45 Average natural gas prices (per MCF) Indonesian LNG $ 3.97 $ 2.92 $ 3.52 $ 3.03 U.K. North Sea(e) $ 3.33 $ 2.57 $ 2.83 $ 2.78 Pakistan $ 1.53 $ 1.31 $ 1.61 $ 1.32 Ethylene (per LB) Sales price $ .24 $ .18 $ .22 $ .25 Margins $ .05 $ .06 $ .06 $ .13 Sales volumes (MLBS/D)(f) 1,427 1,253 1,392 1,267
See footnotes on page 9. - more - 8 UNION TEXAS PETROLEUM CONSOLIDATED STATEMENT OF OPERATIONS (amounts in millions, except per share amounts) (unaudited)
FOURTH QUARTER FULL YEAR -------------- --------- 1996 1995 1996 1995 ---- ---- ---- ---- Revenues: Sales and operating $ 300 $ 214 $ 1,008 $ 852 revenues Interest income and other -- 3 2 3 revenue Net earnings of equity 4 3 26 21 ------- ------- ------- ------- investee Total revenues 304 220 1,036 876 Costs and other deductions: Product costs and 99 74 341 299 operating expenses Exploration expenses 19 17 52 77 Depreciation, depletion 60 54 212 192 and amortization Selling, general and 8 9 27 26 administrative expenses Interest expense(g) 5 10 25 29 -------- -------- ------- -------- Income before taxes 113 56 379 253 Income taxes 73 32 227 151 ------- -------- -------- ------- Net income $ 40 $ 24 $ 152 $ 102 ======= ======= ====== ====== Earnings per share of common $ .47 $ .27 $ 1.75 $ 1.17 ======= ======= ====== ====== stock Dividends per share of common $ .05 $ .05 $ .20 $ .20 ======= ======= ======== ======= stock Weighted average number of 86.5 87.6 87.2 87.7 ====== ======= ======= ====== shares outstanding
See footnotes on page 9. SELECTED BALANCE SHEET DATA (amounts in millions) December 31, 1996 December 31, 1995 Total assets $ 1,942 $ 1,837 Long-term debt $ 558 $ 712 Shareholders' equity $ 586 $ 424 - more - 9 FOOTNOTES (a) Excludes corporate items and other worldwide exploration ventures. (b) Discretionary cash flow (DCF) is net income (less Unimar equity partnership income) excluding depreciation, deferred taxes, and exploration expenses, plus the company's estimated share of discretionary cash flow from its equity interest in its Unimar partnership. (c) Unimar equity DCF reflects the company's estimated share of discretionary cash flow from its equity interest in its Unimar partnership. (d) Excludes the Unimar equity partnership. (e) Excludes capacity charge of $36 million and $35 million in 1996 and 1995, respectively, from the North and South gas fields in the U.K. North Sea. (f) Represents Union Texas' 41.67% net interest in the jointly-owned Geismar ethylene plant in Louisiana. (g) Interest expense is net of amounts capitalized of $7 million and $6 million in the fourth quarter of 1996 and 1995, respectively, and $26 million and $23 million for the full year 1996 and 1995, respectively. # # # For additional information, contact: Carol Cox, media 713-968-2714 John Zimmerman, analysts and investors 713-968-2740 -----END PRIVACY-ENHANCED MESSAGE-----