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: July 25, 1994
UNOCAL CORPORATION
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(Exact name of registrant as specified in its charter)
Delaware 1-8483 95-3825062
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(State or other jurisdiction of (Commission (I.R.S. Employer
incorporation or organization) File Number) Identification No.)
1201 West Fifth Street, Los Angeles, California 90017
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (213) 977-7600
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ITEM 5. OTHER EVENTS
On July 25, 1994, the following news release was issued:
UNOCAL REPORTS $50 MILLION EARNINGS FOR SECOND QUARTER
Los Angeles, July 25 -- Unocal Corporation today reported second
quarter 1994 net earnings of $50 million, or 16 cents per common share,
compared with $88 million, or 33 cents per common share, for the same
period last year. Total revenues were slightly lower -- $2.05 billion
versus $2.1 billion a year ago.
Excluding the effect of special items (detailed in attached table),
Unocal's earnings from operations for the second quarter were $65 million,
or 23 cents per common share. This compares with operating earnings of $88
million, or 33 cents per common share, last year.
For the first six months of 1994, Unocal's reported net earnings were
$104 million, or 35 cents per common share. This compares with $99
million, or 34 cents per common share, for the same period a year ago.
Revenues were $3.96 billion, down from $4.42 billion last year.
Adjusting for special items, earnings from operations for the six
months were $127 million, down from $186 million last year. Adjusted
earnings per common share were 45 cents, down from 70 cents last year.
Roger C. Beach, Unocal chief executive officer, said the company's
worldwide crude oil and natural gas production were both up 7 percent from
last year's second quarter. He noted that domestic gas production, which
has been a major focus of Unocal's accelerated development program, was
1,119 million cubic feet per day, up 22 percent from last year's second
quarter.
"Operating earnings were lower, however, because commodity prices
trailed behind the year-ago levels," Beach said.
He added that crude oil prices have strengthened since the middle of
the second quarter. "Continued improvements in commodity prices, combined
with increasing production levels, would benefit Unocal in the future," he
said.
Beach said that Unocal's worldwide average crude oil sales price was
$13.92 per barrel in the second quarter, compared with $11.32 in the first
quarter and $15.93 a year ago. The company's worldwide average natural gas
sales price was $1.89 per thousand cubic feet (mcf), compared with $2.04
per mcf in the previous quarter and $2.08 per mcf in the second quarter
1993.
Cash flows from operations in the second quarter, before working
capital changes, were $353 million, up from $351 million last year.
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Capital expenditures for the second quarter were $254 million, down
from $297 million in the same period a year ago. Beach said that total
capital expenditures for the year are expected to range from $1.3 billion
to $1.4 billion under current crude oil price situations.
SECOND QUARTER OPERATIONS
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Exploration and production earnings were $79 million, down from $113
million a year ago. The lower earnings were due principally to lower
crude oil and natural gas prices, which remained below year-ago levels.
This was partially offset by higher worldwide crude oil and natural gas
production. Adjusted for special items, earnings from petroleum
exploration and production operations were $92 million, compared with $122
million in the same period a year ago.
Earnings from refining, marketing and transportation were $38 million,
down from $46 million in the second quarter a year ago, when the company
recorded gains from asset sales. Adjusting for special items, operating
earnings from the downstream segment were $37 million, up from $32 million
last year. Despite the improvement in operating earnings, West Coast
product margins continued to lag behind last year.
Chemicals earnings were $13 million, down from $16 million in the
second quarter 1993 due principally to lower petroleum coke earnings.
Geothermal earnings were $9 million, compared with $6 million a year
ago. The improved earnings were due to adjustments in the depreciation
schedule to reflect the longer productive life of The Geysers geothermal
project in Northern California.
Net expense for corporate and other was $89 million in the second
quarter of 1994. This compares with an expense of $93 million in the same
period of 1993. Adjusted for special items, net expense for corporate and
other was $86 million, compared with $88 million last year.
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<PAGE>
<TABLE>
<CAPTION>
UNOCAL CORPORATION
1994 EARNINGS PRESS RELEASE SUPPLEMENT
SPECIAL ADJUSTMENTS - CONSOLIDATED
(UNAUDITED)
For the Three Months For the Six Months
Ended June 30 Ended June 30
1994 1993 1994 1993
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Dollars in millions except per share amounts
<S> <C> <C> <C> <C>
Reported Earnings $50 $88 $104 $99
Less: Special items
Cumulative effect of accounting changes
- for postretirement health care costs (SFAS 106) - - - (121)
- for postemployment benefits (SFAS 112) - - - (9)
Write-down of investment and provision for abandonment
and remediation of the Guadalupe oil field (4) - (27) -
Litigation - (8) (17) (9)
MESA settlement - - 24 -
Asset sales (6) 10 2 57
Other (5) (2) (5) (5)
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Total Special Items (15) - (23) (87)
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Adjusted Earnings 65 88 127 186
Less: Dividends on preferred stock 9 9 18 18
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Adjusted Earnings Applicable to Common Shares $56 $79 $109 $168
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Adjusted Earnings per Common Share $0.23 $0.33 $0.45 $0.70
</TABLE>
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<PAGE>
<TABLE>
<CAPTION>
UNOCAL CORPORATION
1994 EARNINGS PRESS RELEASE SUPPLEMENT
SPECIAL ADJUSTMENTS ALLOCATED BY BUSINESS SEGMENTS
(UNAUDITED)
For the Three Months For the Six Months
Ended June 30 Ended June 30
1994 1993 1994 1993
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Dollars in millions except per share amounts
<S> <C> <C> <C> <C>
U.S. PETROLEUM EXPLORATION AND PRODUCTION
Reported Earnings $45 $66 $70 $153
Less special items:
Write-down of investment and provision for abandonment
and remediation of the Guadalupe oil field (4) - (27) -
Asset sales (9) (4) (2) 18
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Adjusted U.S. E&P Earnings $58 $70 $99 $135
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FOREIGN PETROLEUM EXPLORATION AND PRODUCTION
Reported Earnings $34 $47 $80 $102
Less special items:
Asset sales - (5) - (5)
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Adjusted Foreign E&P Earnings $34 $52 $80 $107
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REFINING, MARKETING AND TRANSPORTATION
Reported Earnings $38 $46 $79 $94
Less special items:
Asset sales 1 15 1 15
Litigation - (1) - (1)
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Adjusted R,M&T Earnings $37 $32 $78 $80
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CHEMICALS
Reported Earnings $13 $16 $22 $28
Less special items:
Asset sales - - - (1)
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Adjusted Chemicals Earnings $13 $16 $22 $29
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GEOTHERMAL
Reported Earnings $9 $6 $14 $38
Less special items:
Asset sales - - - 26
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Adjusted Geothermal Earnings $9 $6 $14 $12
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CORPORATE AND OTHER
Reported Earnings ($89) ($93) ($161) ($186)
Less special items:
MESA settlement - - 24 -
Litigation - (8) (17) (8)
Asset sales 2 4 3 4
Other (5) (1) (5) (5)
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Adjusted Corporate and Other ($86) ($88) ($166) ($177)
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Total Adjusted Earnings $65 $88 $127 $186
Less: Dividends on preferred stock 9 9 18 18
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Adjusted Earnings Applicable to Common Shares $56 $79 $109 $168
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Adjusted Earnings per Common Share $0.23 $0.33 $0.45 $0.70
</TABLE>
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<PAGE>
<TABLE>
<CAPTION>
NEWS RELEASE UNOCAL CORPORATION
FINANCIAL DATA
(UNAUDITED)
For the Three Months For the Three Months
Ended June 30 Ended June 30
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Dollars in millions except per share amounts 1994 1993 1994 1993
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<S> <C> <C> <C> <C>
Total revenues (a) $2,045 $2,098 $3,961 $4,416
Costs and other deductions (a) 1,949 1,938 3,760 4,006
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Earnings before income taxes 96 160 201 410
Income taxes 46 72 97 181
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Earnings before cumulative effect of accounting changes 50 88 104 229
Cumulative effect of accounting changes - - - (130)
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Net earnings $50 $88 $104 $99
Dividends on preferred stock 9 9 18 18
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Net earnings applicable to common shares $41 $79 $86 $81
Earnings per common share: (b)
Before cumulative effect of accounting changes $0.16 $0.33 $0.35 $0.88
Cumulative effect of accounting changes - - - (0.54)
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Net earnings $0.16 $0.33 $0.35 $0.34
(a) Includes consumer excise taxes of $234 $177 $457 $414
(b) Based on weighted average common shares outstanding 242 241 242 240
(in millions)
</TABLE>
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<TABLE>
<CAPTION>
NET EARNINGS BY BUSINESS SEGMENT
(UNAUDITED)
For the Three Months For the Three Months
Ended June 30 Ended June 30
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Millions of dollars 1994 1993 1994 1993
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<S> <C> <C> <C> <C>
Petroleum
Exploration and Production
United States $45 $66 $70 $153
Foreign 34 47 80 102
Refining, Marketing and Transportation (a) 38 46 79 94
Chemicals 13 16 22 28
Geothermal 9 6 14 38
Corporate and Other (b) (c) (89) (93) (161) (186)
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Sub-total 50 88 104 229
Cumulative effect of accounting changes - - - (130)
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Total $50 $88 $104 $99
(a) Includes equity in earnings of affiliates (after-tax) of $18 $16 $33 $29
(b) Includes net interest expense (after-tax) of ($44) ($46) ($90) ($98)
(c) Includes minerals and real estate operations.
</TABLE>
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<PAGE>
<TABLE>
<CAPTION>
NEWS RELEASE UNOCAL CORPORATION
OPERATING HIGHLIGHTS
(UNAUDITED)
For the Three Months For the Six Months
Ended June 30 Ended June 30
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1994 1993 1994 1993
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<S> <C> <C> <C> <C>
Net daily production (a)
Crude oil and condensate (thousand barrels):
United States 139.8 148.2 140.9 150.4
Foreign:
Far East 86.3 68.3 81.9 68.6
Other 37.6 28.9 37.7 30.2
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Total Foreign 123.9 97.2 119.6 98.8
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Worldwide 263.7 245.4 260.5 249.2
Natural gas (million cubic feet):
United States 1,119 916 1,118 918
Foreign:
Far East 573 645 581 643
Other 34 47 66 57
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Total Foreign 607 692 647 700
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Worldwide 1,726 1,608 1,765 1,618
Natural gas liquids (thousand barrels) 21.9 19.6 20.6 19.6
Geothermal (million kilowatt-hours) 20.7 19.5 20.1 20.8
Average sales prices
Crude oil and condensate (per barrel):
United States $13.59 $15.47 $12.03 $14.92
Foreign:
Far East $14.39 $16.31 $13.83 $13.47
Other $14.41 $17.82 $13.28 $17.46
Total Foreign $14.40 $16.82 $13.61 $16.42
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Worldwide $13.92 $15.93 $12.64 $15.41
Natural gas (per mcf):
United States $1.84 $2.07 $1.96 $1.94
Foreign:
Far East $1.99 $2.10 $2.00 $2.10
Other $1.84 $1.77 $1.79 $1.50
Total Foreign $1.99 $2.09 $1.98 $2.03
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Worldwide $1.89 $2.08 $1.97 $1.98
(a) Includes net profits type agreements on a gross basis.
</TABLE>
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<PAGE>
<TABLE>
<CAPTION>
NEWS RELEASE UNOCAL CORPORATION
OPERATING HIGHLIGHTS
(UNAUDITED)
For the Three Months For the Six Months
Ended June 30 Ended June 30
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1994 1993 1994 1993
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<S> <C> <C> <C> <C>
Input to crude oil processing units (thousand barrels daily) (a) 305 292 300 286
Sales of petroleum products (thousand barrels daily) (a) 309 331 308 355
Capital expenditures (millions of dollars) 254 297 518 489
Exploration expense (millions of dollars) 29 28 54 55
Dry hole costs (millions of dollars)
United States 6 11 21 16
Foreign 4 (1) 13 2
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Total 10 10 34 18
Depreciation, Depletion & Amortization 267 238 539 472
Cash flows from operating activities (millions of dollars)
Excluding working capital changes 353 351 703 714
Including working capital changes 240 188 528 493
Pretax proceeds from asset sales (millions of dollars) 17 226 55 546
(a) Includes the company's 50% equity portion of The UNO-VEN Company.
</TABLE>
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SIGNATURE
Pursuant to the requirement 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
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(Registrant)
Dated: July 25, 1994 By: /s/CHARLES S. MCDOWELL
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(Charles S. McDowell,
Vice President and Comptroller)
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