-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, XTR3GseTfBg5hiGUzJPjAFslFIWWOhdQonomdlZ3Eg1T9Bwzf5CBLuY7FHWsyCG3 uiW6yJXPPTTOtXKbZKJUtQ== 0000775483-94-000005.txt : 19940801 0000775483-94-000005.hdr.sgml : 19940801 ACCESSION NUMBER: 0000775483-94-000005 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19940725 ITEM INFORMATION: Other events FILED AS OF DATE: 19940725 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ATLANTIC RICHFIELD CO /DE CENTRAL INDEX KEY: 0000775483 STANDARD INDUSTRIAL CLASSIFICATION: 2911 IRS NUMBER: 230371610 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-01196 FILM NUMBER: 94539939 BUSINESS ADDRESS: STREET 1: 515 S FLOWER ST CITY: LOS ANGELES STATE: CA ZIP: 90071 BUSINESS PHONE: 2134863511 8-K 1 CURRENT REPORT ON FORM 8-K FOR 7/25/94 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): July 25, 1994 ----------------- ATLANTIC RICHFIELD COMPANY - - ------------------------------------------------------------------- (Exact name of registrant as specified in its charter) Delaware - - ------------------------------------------------------------------- State or other jurisdiction of incorporation 1-1196 23-0371610 - - ------------------------------------------------------------------- (Commission File Number) (IRS Employer Identification No.) 515 South Flower Street, Los Angeles, California 90071 - - ------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (213) 486-3511 ---------------- Not Applicable - - ------------------------------------------------------------------- (Former name or former address, if changed since last report) Item 5. Other Events. ------------ Press Release, dated July 25, 1994, announcing the earnings results for the second quarter and six months ended June 1994. - 2 - 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 hereunto duly authorized. ATLANTIC RICHFIELD COMPANY /s/ ALLAN L. COMSTOCK _______________________________ Allan L. Comstock Vice President and Controller Dated: July 25, 1994 - 3 - EX-99 2 EXHIBIT FOR FORM 8-K DATED 7/25/94 ARCO [logo] Media Relations N E W S 515 South Flower Street Los Angeles, California 90071-2201 Telephone 213 486-3385 Facsimile 213 486-0169 FOR IMMEDIATE RELEASE July 25, 1994 ARCO REPORTS EARNINGS FOR 1994 SECOND QUARTER, FIRST HALF LOS ANGELES -- ARCO (NYSE: ARC) today reported 1994 second quarter earnings of $24 million, or $0.14 per share. The 1994 second quarter results included net charges of $154 million primarily related to the recently announced restructure and personnel reduction. In the 1993 second quarter, ARCO had net income of $271 million, or $1.67 per share, which included a net benefit of approximately $48 million after tax. Mike R. Bowlin, ARCO President and Chief Executive Officer, said: "While worldwide crude oil prices have rebounded significantly in recent weeks, the depressed levels of early 1994 continued to have a negative impact in the second quarter. "The charges we are taking in the second quarter follow a complete review of our operations to develop new approaches to doing business. As a result, operating efficiencies will be realized and annual costs are expected to be reduced by approximately $400 million after tax. "We have already begun to realize operating cost benefits from the 1993 restructure of our Lower 48 operations, and Page 2 substantially all of the annual cost savings from the companywide downsizings should be realized by 1996." After-tax earnings for ARCO's worldwide oil and gas exploration and production operations in the 1994 second quarter were $81 million, down from $233 million in the 1993 second quarter. Included in the segment results for the 1994 second quarter was a net charge of $38 million related primarily to personnel reductions in Alaska, partially offset by a tax benefit association with international operations. The 1993 second quarter included after-tax gains of $73 million from Lower 48 property sales. ARCO's average price for domestic crude oil in the 1994 second quarter was $10.30 per barrel, down from $13.43 per barrel in the 1993 second quarter. Average domestic natural gas prices were $1.73 per thousand cubic feet, down from $2.07 per thousand cubic feet in the same period of 1993. Worldwide exploration expenses totaled $91 million in the 1994 second quarter, down from $148 million in the 1993 second quarter. The decrease primarily reflected lower dryhole costs internationally and in Alaska. ARCO's worldwide production of crude oil and natural gas liquids averaged 655,500 barrels per day in the 1994 second quarter, compared with 667,100 barrels per day in the 1993 Page 3 second quarter. Production increases internationally and in Alaska were offset by a decline in Lower 48 production which resulted from both the impact of producing property sales in 1993 and natural field declines. Domestic natural gas production was 969 million cubic feet per day, up from 952 million cubic feet per day in the 1993 second quarter. New production from the Mustang Island field in the Gulf of Mexico and improved field performance offset the impact of producing property sales and natural field declines. The Mustang Island field is operated by Vastar Resources, Inc. (NYSE: VRI), in which ARCO holds an 82.3 percent interest. ARCO's foreign natural gas production was 527 million cubic feet per day in the 1994 second quarter, a 100 percent increase over the 263 million cubic feet per day produced in the 1993 second quarter. The increase reflected new production from gas fields in Indonesia and the United Kingdom North Sea. ARCO's coal operations earned $12 million after tax, compared with $26 million after tax for the 1993 second quarter. The decrease was caused by the expiration of higher priced contracts in the U.S., lower export prices from Australia and an unfavorable foreign exchange rate. A Page 4 favorable legal settlement related to a customer sales contract was partially offset by a charge of $3 million for U.S. staff reductions. Refining and marketing after-tax earnings were $16 million, including a $28 million charge related to the restructuring, compared with $79 million for the 1993 second quarter. The segment's results were impacted by lower West Coast margins for all major products including gasoline, jet fuel and diesel. Earnings for ARCO's transportation operations totaled $25 million after tax, compared with $50 million after tax for the same quarter in 1993. The transportation results included $26 million for restructuring charges. The intermediate chemicals and specialty products segment, which reflects ARCO's 83.3 percent interest in ARCO Chemical Company, had after-tax earnings of $68 million, compared with $55 million in the 1993 second quarter. The improved earnings resulted primarily from higher propylene oxide and styrene monomer volumes and margins, which reflected a stronger U.S. economy and increased export sales. ARCO earned $16 million from its 49.9 percent equity interest in Lyondell Petrochemical Company in the 1994 second Page 5 quarter. This compared to a loss of $5 million in the 1993 second quarter. Lyondell's petrochemical business results improved substantially in the 1994 second quarter as a result of higher margins for all of its major products. Its 1993 second quarter results were negatively impacted by approximately $4 million in charges net to ARCO, primarily for cancellation of a capital project. The $154 million in net charges in the 1994 second quarter also included $32 million for corporate headquarters personnel reductions, $14 million to reimburse money market losses in certain employee benefit plans and $13 million for future environmental remediation costs. The 1993 second quarter earnings included a $25 million after-tax charge for future environmental remediation costs. ARCO's sales and other operating revenues totaled $4.2 billion in the 1994 second quarter, down from $4.7 billion in the 1993 second quarter. 1994 Six Month Earnings: For the first six months of 1994, ARCO's net income totaled $173 million, or $1.06 per share, compared with $531 million, or $3.27 per share, in the first half of 1993. Page 6 For the first six months of 1994, ARCO's sales and other operating revenues totaled $8.0 billion, compared with $9.2 billion in the same 1993 period. # # # For information, contact: Albert Greenstein (213) 486-3384
ATLANTIC RICHFIELD COMPANY CONSOLIDATED STATEMENT OF INCOME (UNAUDITED) (Millions of dollars except per share amounts) Three Months Ended Six Months Ended June 30 June 30 ------------------ ---------------- 1994 1993 1994 1993 ---- ---- ---- ---- REVENUES Sales and other operating revenues (including excise taxes) $4,174 $4,670 $7,974 $9,177 Income from equity investments 24 - 41 15 Interest 56 37 101 79 Other revenues 83 193 146 297 ----- ----- ----- ----- 4,337 4,900 8,262 9,568 ----- ----- ----- ----- EXPENSES Trade purchases 1,558 1,808 2,825 3,552 Costs and other operating expenses 823 822 1,578 1,569 Exploration expenses (including undeveloped lease amortization) 91 148 195 284 Selling, general and administrative expenses 429 461 824 885 Taxes other than excise and income taxes 184 301 368 607 Excise taxes 382 336 742 626 Depreciation, depletion and amortization 414 387 835 786 Interest(a) 187 176 371 356 Unusual items 249 - 249 - ----- ----- ----- ----- 4,317 4,439 7,987 8,665 ----- ----- ----- ----- Income before income taxes and minority interest 20 461 275 903 Provision (benefit) for taxes on income (17) 182 80 355 Minority interest in earnings of subsidiaries 13 8 22 17 ----- ----- ----- ----- Net income $ 24 $ 271 $ 173 $ 531 ===== ===== ===== ===== Earned per share(b) $ 0.14 $ 1.67 $ 1.06 $ 3.27 ===== ===== ===== ===== Dividends per common share $1.375 $1.375 $ 2.75 $ 2.75 ===== ===== ===== ===== (a) Excludes capitalized interest of $10 million and $16 million for the three-month periods and $17 million and $37 million for the six-month periods ended June 30, 1994 and 1993, respectively. (b) The average number of common shares, including equivalents, were 163,143,758 shares and 162,364,752 shares for the three-month periods and 163,038,659 shares and 162,265,985 shares for the six-month periods ended June 30, 1994 and 1993, respectively. (c) The common shares, including equivalents, outstanding at June 30, 1994 and 1993 were 163,287,070 shares and 162,494,225 shares, respectively.
ATLANTIC RICHFIELD COMPANY FINANCIAL AND STATISTICAL DATA (UNAUDITED) (Millions of dollars) Three Months Ended Six Months Ended June 30, June 30, ------------------ ---------------- 1994 1993 1994 1993 ---- ---- ---- ---- After-tax segment earnings - - -------------------------- Resources: Oil and gas $ 81 $ 233 $ 163 $ 410 Coal 12 26 31 51 Products: Refining and marketing 16 79 111 172 Transportation 25 50 70 103 Intermediate chemicals & specialty products (ARCO Chemical Company) 68 55 116 114 Equity in earnings (loss) from Lyondell Petrochemical Company 16 (5) 27 2 Unallocated expenses and other (67) (44) (92) (72) Interest (127) (123) (253) (249) ---- ---- ---- ---- Net income $ 24 $ 271 $ 173 $ 531 ==== ==== ==== ====
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