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 and Exchange Act of 1934


Date of Report (Date of earliest event reported):  June 3, 1998
                                                   ------------

                          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 
        ------------

     Consistent with its strategy to focus on growth in its core oil and gas
businesses, ARCO has announced that it has reached agreement with ARCO Chemical
Company to reduce its 82.2 percent ownership of ARCO Chemical Common Stock to 50
percent. On June 3, 1998, ARCO Chemical Company filed with the SEC a
Registration Statement on Form S-3 registering approximately 26 million shares
of ARCO Chemical Common Stock to be sold by ARCO in the public offering.

Item 7. Financial Statements and Exhibits
        ---------------------------------

        27.1  Restated Financial Data Schedule for the quarterly period ended 
              September 30, 1997.

        27.2  Restated Financial Data Schedule for the quarterly period ended 
              June 30, 1997.

        27.3  Restated Financial Data Schedule for the quarterly period ended 
              March 31, 1997.

        27.4  Restated Financial Data Schedule for the fiscal year ended 
              December 31, 1996.

        27.5  Restated Financial Data Schedule for the fiscal year ended 
              December 31, 1995.

        27.6  Restated Financial Data Schedule for the quarterly period ended 
              September 30, 1996.

        27.7  Restated Financial Data Schedule for the quarterly period ended 
              June 30, 1996.

        27.8  Restated Financial Data Schedule for the quarterly period ended 
              March 31, 1996.

        99.1  Press Release dated June 3, 1998.

 
                                   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: June 4, 1998

EX-27.1

 


 
 
<ARTICLE> 5
 
<MULTIPLIER> 1,000,000
       
                             
<PERIOD-TYPE>                   9-MOS
<FISCAL-YEAR-END>                          DEC-31-1997
<PERIOD-START>                             JAN-01-1997
<PERIOD-END>                               SEP-30-1997
<CASH>                                             665
<SECURITIES>                                       230
<RECEIVABLES>                                    1,511
<ALLOWANCES>                                         0
<INVENTORY>                                      1,065
<CURRENT-ASSETS>                                 3,799
<PP&E>                                          36,120
<DEPRECIATION>                                  19,468
<TOTAL-ASSETS>                                  25,223
<CURRENT-LIABILITIES>                            4,917
<BONDS>                                          4,336
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          1
<COMMON>                                           807
<OTHER-SE>                                       7,897
<TOTAL-LIABILITY-AND-EQUITY>                    25,223
<SALES>                                         14,184
<TOTAL-REVENUES>                                14,695
<CGS>                                           11,316
<TOTAL-COSTS>                                   11,645
<OTHER-EXPENSES>                                   175
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                                 307
<INCOME-PRETAX>                                  2,400
<INCOME-TAX>                                       849
<INCOME-CONTINUING>                              1,507
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                    118
<CHANGES>                                            0
<NET-INCOME>                                     1,389
<EPS-PRIMARY>                                     4.32
<EPS-DILUTED>                                     4.24
        

 

EX-27.2

 


 
 
<ARTICLE> 5
 
<MULTIPLIER> 1,000,000
       
                             
<PERIOD-TYPE>                   6-MOS
<FISCAL-YEAR-END>                          DEC-31-1997
<PERIOD-START>                             JAN-01-1997
<PERIOD-END>                               JUN-30-1997
<CASH>                                           1,134
<SECURITIES>                                       473
<RECEIVABLES>                                    1,698
<ALLOWANCES>                                         0
<INVENTORY>                                      1,020
<CURRENT-ASSETS>                                 4,738
<PP&E>                                          35,380
<DEPRECIATION>                                  19,163
<TOTAL-ASSETS>                                  25,747
<CURRENT-LIABILITIES>                            6,076
<BONDS>                                          4,334
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          1
<COMMON>                                           806
<OTHER-SE>                                       7,477
<TOTAL-LIABILITY-AND-EQUITY>                    25,747
<SALES>                                          9,631
<TOTAL-REVENUES>                                 9,993
<CGS>                                            7,571
<TOTAL-COSTS>                                    7,787
<OTHER-EXPENSES>                                     0
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                                 174
<INCOME-PRETAX>                                  1,510
<INCOME-TAX>                                       479
<INCOME-CONTINUING>                                991
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                    118
<CHANGES>                                            0
<NET-INCOME>                                       873
<EPS-PRIMARY>                                     2.71
<EPS-DILUTED>                                     2.67
        

 

EX-27.3

 


 
 
<ARTICLE> 5

<MULTIPLIER> 1,000,000
       
                             
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                          DEC-31-1997
<PERIOD-START>                             JAN-01-1997
<PERIOD-END>                               MAR-31-1997
<CASH>                                           1,449
<SECURITIES>                                       805
<RECEIVABLES>                                    1,749
<ALLOWANCES>                                         0
<INVENTORY>                                        992
<CURRENT-ASSETS>                                 5,282
<PP&E>                                          34,966
<DEPRECIATION>                                  18,829
<TOTAL-ASSETS>                                  25,646
<CURRENT-LIABILITIES>                            5,077
<BONDS>                                          5,407
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          1
<COMMON>                                           403
<OTHER-SE>                                       7,673
<TOTAL-LIABILITY-AND-EQUITY>                    25,646
<SALES>                                          5,044
<TOTAL-REVENUES>                                 5,183
<CGS>                                            3,900
<TOTAL-COSTS>                                    4,026
<OTHER-EXPENSES>                                     0
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                                 166
<INCOME-PRETAX>                                    740
<INCOME-TAX>                                       236
<INCOME-CONTINUING>                                483
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                       483
<EPS-PRIMARY>                                     1.50
<EPS-DILUTED>                                     1.48
        

 

EX-27.4

 


 
<ARTICLE> 5
 
<MULTIPLIER> 1,000,000
       
                             
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          DEC-31-1996
<PERIOD-START>                             JAN-01-1996
<PERIOD-END>                               DEC-31-1996
<CASH>                                           1,460
<SECURITIES>                                       784
<RECEIVABLES>                                    1,936
<ALLOWANCES>                                         0
<INVENTORY>                                        995
<CURRENT-ASSETS>                                 5,433
<PP&E>                                          34,737
<DEPRECIATION>                                  18,542
<TOTAL-ASSETS>                                  25,715
<CURRENT-LIABILITIES>                            5,303
<BONDS>                                          5,593
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          1
<COMMON>                                           403
<OTHER-SE>                                       7,397
<TOTAL-LIABILITY-AND-EQUITY>                    25,715
<SALES>                                         18,592
<TOTAL-REVENUES>                                19,169
<CGS>                                           14,335
<TOTAL-COSTS>                                   14,748
<OTHER-EXPENSES>                                    26
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                                 668
<INCOME-PRETAX>                                  2,709
<INCOME-TAX>                                       941
<INCOME-CONTINUING>                              1,663
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                     1,663
<EPS-PRIMARY>                                     5.17
<EPS-DILUTED>                                     5.09
        

 

EX-27.5

 


 
 
<ARTICLE> 5
 
<MULTIPLIER> 1,000,000
       
                             
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          DEC-31-1995
<PERIOD-START>                             JAN-01-1995
<PERIOD-END>                               DEC-31-1995
<CASH>                                           1,537
<SECURITIES>                                     1,569
<RECEIVABLES>                                    1,684
<ALLOWANCES>                                         0
<INVENTORY>                                        877
<CURRENT-ASSETS>                                 5,888
<PP&E>                                          32,544
<DEPRECIATION>                                  17,189
<TOTAL-ASSETS>                                  23,999
<CURRENT-LIABILITIES>                            3,963
<BONDS>                                          6,708
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          1
<COMMON>                                           402
<OTHER-SE>                                       6,355
<TOTAL-LIABILITY-AND-EQUITY>                    23,999
<SALES>                                         15,819
<TOTAL-REVENUES>                                16,739
<CGS>                                           12,264
<TOTAL-COSTS>                                   12,787
<OTHER-EXPENSES>                                     0
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                                 750
<INCOME-PRETAX>                                  2,173
<INCOME-TAX>                                       687
<INCOME-CONTINUING>                              1,376
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                     1,376
<EPS-PRIMARY>                                     4.27
<EPS-DILUTED>                                     4.22
        

 

EX-27.6

 


 
<ARTICLE> 5

<MULTIPLIER> 1,000,000
       
                             
<PERIOD-TYPE>                   9-MOS
<FISCAL-YEAR-END>                          DEC-31-1996
<PERIOD-START>                             JAN-01-1996
<PERIOD-END>                               SEP-30-1996
<CASH>                                           1,375
<SECURITIES>                                     1,419
<RECEIVABLES>                                    1,711
<ALLOWANCES>                                         0
<INVENTORY>                                        865
<CURRENT-ASSETS>                                 5,689
<PP&E>                                          33,669
<DEPRECIATION>                                  18,082
<TOTAL-ASSETS>                                  24,517
<CURRENT-LIABILITIES>                            4,569
<BONDS>                                          5,663
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          1
<COMMON>                                           402
<OTHER-SE>                                       7,041
<TOTAL-LIABILITY-AND-EQUITY>                    24,517
<SALES>                                         14,643
<TOTAL-REVENUES>                                15,113
<CGS>                                           10,821
<TOTAL-COSTS>                                   11,129
<OTHER-EXPENSES>                                    26
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                                 500
<INCOME-PRETAX>                                  2,131
<INCOME-TAX>                                       768
<INCOME-CONTINUING>                              1,283
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                     1,283
<EPS-PRIMARY>                                     3.99
<EPS-DILUTED>                                     3.93
        

 

EX-27.7

 


 
<ARTICLE> 5

<MULTIPLIER> 1,000,000
       
                             
<PERIOD-TYPE>                   6-MOS
<FISCAL-YEAR-END>                          DEC-31-1996
<PERIOD-START>                             JAN-01-1996
<PERIOD-END>                               JUN-30-1996
<CASH>                                           1,633
<SECURITIES>                                     1,476
<RECEIVABLES>                                    1,554
<ALLOWANCES>                                         0
<INVENTORY>                                        975
<CURRENT-ASSETS>                                 6,021
<PP&E>                                          33,367
<DEPRECIATION>                                  17,824
<TOTAL-ASSETS>                                  24,580
<CURRENT-LIABILITIES>                            4,152
<BONDS>                                          6,619
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          1
<COMMON>                                           402
<OTHER-SE>                                       6,674
<TOTAL-LIABILITY-AND-EQUITY>                    24,580
<SALES>                                          9,494
<TOTAL-REVENUES>                                 9,834
<CGS>                                            7,027
<TOTAL-COSTS>                                    7,234
<OTHER-EXPENSES>                                    26
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                                 340
<INCOME-PRETAX>                                  1,340
<INCOME-TAX>                                       481
<INCOME-CONTINUING>                                804
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                       804
<EPS-PRIMARY>                                     2.50
<EPS-DILUTED>                                     2.46
        

 

EX-27.8

 


 
<ARTICLE> 5
   
<MULTIPLIER> 1,000,000
       
                             
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                          DEC-31-1996
<PERIOD-START>                             JAN-01-1996
<PERIOD-END>                               MAR-31-1996
<CASH>                                           1,624
<SECURITIES>                                     1,779
<RECEIVABLES>                                    1,670
<ALLOWANCES>                                         0
<INVENTORY>                                        935
<CURRENT-ASSETS>                                 6,302
<PP&E>                                          32,995
<DEPRECIATION>                                  17,533
<TOTAL-ASSETS>                                  24,508
<CURRENT-LIABILITIES>                            4,331
<BONDS>                                          6,668
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          1
<COMMON>                                           402
<OTHER-SE>                                       6,484
<TOTAL-LIABILITY-AND-EQUITY>                    25,508
<SALES>                                          4,534
<TOTAL-REVENUES>                                 4,760
<CGS>                                            3,426
<TOTAL-COSTS>                                    3,526
<OTHER-EXPENSES>                                    26
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                                 173
<INCOME-PRETAX>                                    620
<INCOME-TAX>                                       220
<INCOME-CONTINUING>                                370
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                       370
<EPS-PRIMARY>                                     1.15
<EPS-DILUTED>                                     1.13
        

 

EX-99.1

 
[LOGO OF ARCO]                                   NEWS

================================================================================
FOR IMMEDIATE RELEASE                                              June 03, 1998


ARCO CONTINUES FOCUS ON OIL AND GAS OPERATIONS;
- -----------------------------------------------
REDUCES HOLDINGS IN ARCO CHEMICAL COMPANY TO 50 PERCENT;
- ---------------------------------------------------------
MOVE LOWERS OUTSTANDING DEBT
- ----------------------------

LOS ANGELES - Consistent with its strategy to focus on growth in its core oil 
and gas businesses, ARCO (NYSE:ARC) announced today that it has reached 
agreement with ARCO Chemical Company (NYSE: RCM) to reduce its 82.2 percent 
ownership of ARCO Chemical common stock to 50 percent.

The transaction is expected to be priced and close in mid to late July.

"While ARCO Chemical will continue to be an important part of the worldwide 
chemical industry and a proven leader in its markets, the decision to reduce our
holdings puts us in a far better position to invest in and strengthen our 
worldwide oil and gas operations, as well as continue to grow our West Coast 
refining and marketing business," said ARCO Chairman and Chief Executive Officer
Mike R. Bowlin.

Under the agreement, ARCO will first sell in a secondary offering the amount of 
stock that, when combined with a repurchase by ARCO Chemical, will result in a 
reduction of ARCO's holdings of ARCO Chemical stock to 50 percent.  At 
yesterday's closing price of $56.31 per share, this would total about 24 million
shares worth $1.3 billion, assuming no exercise of the underwriters' 
over-allotment option.

ARCO Chemical Company will then purchase up to $850 million of its common stock 
from ARCO.  If the offer were assumed to be completed at yesterday's closing 
price, the purchase would total about 15 million shares.  ARCO owns about 80 
million of the 97 million currently outstanding shares of ARCO Chemical stock.

If the 10 percent over-allotment option is exercised, the amount of the stock 
that ARCO Chemical will buy from ARCO will be reduced to approximately $600 
million, assuming yesterday's closing price.  Shares sold to ARCO Chemical will 
be sold at the same price they are offered to the public in the secondary 
offering.

The transaction will result in ARCO deconsolidating its interest in ARCO 
Chemical, which removes about $1 billion of ARCO Chemical debt from ARCO's 
financial statements.  In addition, again assuming yesterday's closing price, 
the after-tax proceeds of approximately $1.4 billion from the ARCO Chemical 
transaction will be used to repay short-term borrowings to be incurred in 
conjunction with ARCO's $2.6 billion cash tender offer for Union Texas Petroleum
common stock, as previously announced.

ARCO Chemical, headquartered in Newtown Square, Pa., was a wholly owned 
subsidiary of Los Angeles-based ARCO until it went public in a 1987 offering.  
ARCO Chemical is a leading worldwide manufacturer and marketer of propylene 
oxide and derivatives and other intermediate chemicals.

                                    # # # 

A registration statement relating to these securities will be filed with the 
Securities and Exchange Commission.  These securities may not be sold nor may 
offers to buy be accepted prior to the time the registration statement becomes 
effective.

1 of 2

 
This press release shall not constitute an offer to sell or the solicitation of 
an offer to buy, nor shall there be any sale of these securities in any state 
in which such offer, solicitation, or sale would be unlawful prior to 
registration or qualification under the securities laws of any such state.

Except for historical facts, the matters discussed in this press release 
concerning the consummation of the public offering and stock repurchase and the 
availability and use of after-tax proceeds from the public offering and stock 
repurchase to repay short-term borrowing to be incurred in conjunction with 
ARCO's cash tender offer for Union Texas Petroleum constitute forward-looking 
statements.

Except for the historical information contained herein, the matters discussed in
this news release are forward-looking statements that involve risks and 
uncertainties.  Actual results could differ materially based on numerous 
factors, including the volatility and level of crude oil and natural gas prices,
the volumes and margins realized by the company for its refined products and 
petrochemicals, the effects of political and regulatory instability on the 
company's operations, changes in capital market conditions, interest rates, and 
financial markets, and other risks detailed from time to time in the company's 
SEC reports, including the report on Form 10-Q for the quarter ended March 31, 
1998.

For information contact: Al Greenstein, (213) 486-3384,
                e-mail to: arconews@arco.com
                           -----------------

================================================================================


                                [LOGO OF ARCO]
     Copyright (c) 1998 - Atlantic Richfield Company - All Rights Reserved
    ARCO 515 South Flower Street, Los Angeles, CA 90071-2256 (213)486-3511