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 23, 1996
-------------------
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)
<PAGE>
Item 5. Other Events
On October 23, 1996, the following news release was issued:
UNOCAL REPORTS $171 MILLION EARNINGS FOR THIRD QUARTER
------------------------------------------------------
El Segundo, Calif., Oct. 23, 1996 -- Unocal Corporation today reported
third quarter 1996 net earnings of $171 million, or 69 cents per common share,
reflecting increased worldwide natural gas production, higher crude oil and
natural gas sales prices, and improved margins for the company's West Coast
petroleum refining and marketing unit.
The results compare with net earnings of $59 million, or 20 cents per
common share, in the third quarter a year ago. Unocal's total revenues for the
quarter were $2.6 billion, up from $2.0 billion in the same period of 1995.
Earnings from operations in the third quarter, excluding special items
(detailed in the attached tables), were $153 million, or 61 cents per common
share. This compares with adjusted earnings of $50 million, or 17 cents per
common share, last year.
"The solid third quarter performance reflects the success of our focus
on key strategic areas in the United States and Southeast Asia," said Roger C.
Beach, Unocal chairman and chief executive officer. "We capitalized on higher
natural gas prices with increased gas production levels in our Louisiana/Gulf of
Mexico, Thailand and Indonesia operations."
Sales prices for crude oil and natural gas continued above 1995 levels.
Worldwide natural gas production grew nearly 6 percent from the second quarter
1996 and nearly 11 percent from a year ago (excluding California).
"Our third quarter natural gas production from the Louisiana/Gulf of
Mexico area grew 6 percent from 700 million cubic feet per day (mmcfd) in 1995
to nearly 740 mmcfd this year," Beach said. "Looking forward, we expect to see
further growth in gas production during the fourth quarter when net production
from our Thailand operations should average more than 640 mmcfd."
1
<PAGE>
The improved earnings from oil and gas operations were offset partially
by higher dry hole costs that resulted from increased exploration drilling in
the U.S.
Beach noted that Unocal's 76 Products Company unit also continued to
post higher sales volumes and increased refinery production of light oil
products. "While third quarter 1996 product margins remained above year-ago
levels, they were significantly down from the second quarter," Beach said. "This
decline has continued into the fourth quarter, and we have maintained our focus
on operating efficiency and cost control to help counter the fiercely
competitive conditions that have developed in California, which is our key
market."
Refinery production averaged 258,000 barrels per day (b/d), up from
243,000 b/d last year despite curtailments in coker operations at the San
Francisco Refinery during part of the quarter. Third quarter marketing sales
volumes of light oil products rose 14 percent from last year's levels.
Production and product sales volumes of agricultural products, while
down from the second quarter because of seasonal demand, continued well above
year-ago levels.
Cash flow from operations in the third quarter, before working capital
changes, was $449 million, up from $309 million last year. This improvement
reflects the improved operating earnings.
Total debt fell to $3.07 billion, down $636 million from the end of
1995. Our debt-to-total capitalization ratio was 48 percent at the end of the
third quarter 1996, down from 56 percent at year-end 1995.
For the nine months, Unocal's net earnings were $533 million, or $2.08
per common share. This compares with $211 million, or 75 cents per common share,
for the first nine months of 1995. Nine-months revenues were $7.57 billion, up
from $6.20 billion last year.
Adjusted earnings from operations, excluding special items (detailed in
the attached tables), were $478 million, or $1.85 per common share. This
compares with adjusted earnings of $205 million, or 72 cents per common share,
for the first nine months of 1995.
2
<PAGE>
NEWS RELEASE
<TABLE>
<CAPTION>
CONDENSED CONSOLIDATED EARNINGS STATEMENT UNOCAL CORPORATION
(UNAUDITED)
For the Three Months For the Nine Months
Ended September 30 Ended September 30
---------------------------------------------------------
Dollars in millions except per share amounts 1996 1995 1996 1995
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Total revenues (a) ............................................. $2,611 $2,005 $7,573 $6,201
Costs and other deductions (a) ................................. 2,360 1,899 6,708 5,839
---------------------------------------------------------
Earnings before income taxes ................................... 251 106 865 362
Income taxes ................................................... 80 47 332 151
---------------------------------------------------------
Net earnings ................................................... $ 171 $ 59 $ 533 $ 211
Dividends on preferred stock ................................... -- 9 18 27
---------------------------------------------------------
Net earnings applicable to common shares ....................... $ 171 $ 50 $ 515 $ 184
Earnings per common share assuming no dilution (b).............. $ 0.69 $ 0.20 $ 2.08 $ 0.75
Earnings per common share assuming full dilution (c)............ $ 0.65 $ 0.22 $ 2.03 $ 0.80
(a) Includes consumer excise taxes of......................... $ 279 $ 228 $ 765 $ 665
(b) Based on weighted average common shares
outstanding (in millions)................................ 249 247 248 246
(c) During 1995, the effect of assumed conversion
of preferred stock is antidilutive.
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
CONDENSED CONSOLIDATED BALANCE SHEET
(UNAUDITED)
<TABLE>
<CAPTION>
Sep. 30 Dec. 31
-----------------------------
Millions of dollars 1996 1995
- ------------------------------------------------------------------------------------------------------------------------------------
ASSETS
<S> <C> <C>
Cash and cash equivalents .......................................................... $ 225 $ 94
Other current assets ............................................................... 1,387 1,482
Investments and long-term receivables .............................................. 1,105 1,101
Properties - net ................................................................... 6,949 7,109
Other assets ....................................................................... 143 105
------------------------------
Total assets .............................................................. $9,809 $9,891
LIABILITIES AND EQUITY
Current portion of long-term debt .................................................. $ 119 $ 8
Other current liabilities .......................................................... 1,337 1,308
Long-term debt and capital lease obligations ....................................... 2,951 3,698
Deferred Income taxes .............................................................. 678 722
Other deferred credits and liabilities ............................................. 1,391 1,225
Convertible preferred securities ................................................... 522 --
Stockholders' equity ............................................................... 2,811 2,930
------------------------------
Total liabilities and equity .............................................. $9,809 $9,891
</TABLE>
Table 1
3
<PAGE>
NEWS RELEASE
<TABLE>
<CAPTION>
CONDENSED CONSOLIDATED CASH FLOWS UNOCAL CORPORATION
(UNAUDITED)
For the Three Months For the Nine Months
Ended September 30 Ended September 30
-------------------------------------------------
Millions of dollars 1996 1995 1996 1995
- ------------------------------------------------------------------------------------------------------------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES
<S> <C> <C> <C> <C>
Cash flow from operations ........................................... $ 449 $ 309 $1,299 $ 862
Working capital and other changes related to operations ............. 57 9 (100) (186)
-------------------------------------------------
Net cash provided by operating activities ..................... 506 318 1,199 676
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures (includes dry hole costs) ..................... (318) (371) (940) (967)
Proceeds from asset sales ........................................... 46 2 585 130
-------------------------------------------------
Net cash (used) in investing activities ....................... (272) (369) (355) (837)
CASH FLOWS FROM FINANCING ACTIVITIES
Net increase/(decrease) in long-term debt
and capital lease obligations ................................. (171) 129 (560) 305
Dividends paid ...................................................... (59) (57) (176) (174)
Other ............................................................... 12 17 23 50
-------------------------------------------------
Net cash provided/used in financing activities ................ (218) 89 (713) 181
Increase in cash and cash equivalents ...................................... 16 38 131 20
Cash and cash equivalents at beginning of period ........................... 209 130 94 148
-------------------------------------------------
Cash and cash equivalents at end of period ................................. $ 225 $ 168 $ 225 $ 168
</TABLE>
CONDENSED CAPITAL EXPENDITURES
(UNAUDITED)
<TABLE>
<CAPTION>
For the Three Months For the Nine Months
Ended September 30 Ended September 30
----------------------------------------------------------
Millions of dollars 1996 1995 1996 1995
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Domestic Exploration & Production .......................... $ 92 $ 139 $ 327 $ 345
Foreign Exploration & Production ........................... 101 79 317 256
76 Products Company ........................................ 68 106 157 261
Geothermal & Power Operations .............................. 39 13 91 34
Diversified Businesses ..................................... 8 26 26 48
Corporate & Unallocated .................................... 10 8 22 23
----------------------------------------------------------
Total ............................................... $318 $ 371 $ 940 $ 967
</TABLE>
Table 2
4
<PAGE>
NEWS RELEASE
<TABLE>
<CAPTION>
RESULTS OF OPERATIONS FOR UNOCAL CORPORATION
EXPLORATION AND PRODUCTION ACTIVITIES
(UNAUDITED)
For the Three Months For the Three Months
Ended September 30, 1996 Ended September 30, 1995
----------------------------------------------------------
United United
Millions of dollars States Foreign Total States Foreign Total
- ------------------------------------------------------------------------------------------------------------------------------------
Sales (includes intercompany sales)
<S> <C> <C> <C> <C> <C> <C>
Crude oil and condensate ........................... $ 161 $ 142 $ 303 $ 167 $111 $ 278
Natural gas ........................................ 196 142 338 135 111 246
Natural gas liquids ................................ 18 4 22 16 3 19
Other .............................................. 1 0 1 0 0 0
----------------------------------------------------------
Total ...................................... 376 288 664 318 225 543
Other Revenue .............................................. 5 8 13 39 4 43
Gain(loss) on assets sales ................................. 3 18 21 (5) 4 (1)
----------------------------------------------------------
Total revenues ............................. 384 314 698 352 233 585
Production costs ........................................... 65 66 131 93 43 136
Exploration expenses ....................................... 8 22 30 6 24 30
Dry hole costs ............................................. 38 12 50 22 6 28
Depreciation, depletion & amortization ..................... 112 61 173 117 49 166
Other operating expenses ................................... 38 9 47 36 21 57
----------------------------------------------------------
Results of operations before income tax ............ $ 123 $144 $ 267 $ 78 $ 90 $ 168
</TABLE>
<TABLE>
<CAPTION>
For the Nine Months For the Nine Months
Ended September 30, 1996 Ended September 30, 1995
--------------------------------------------------------------
United United
States Foreign Total States Foreign Total
--------------------------------------------------------------
Sales (includes intercompany sales)
<S> <C> <C> <C> <C> <C> <C>
Crude oil and condensate ............................. $ 496 $415 $ 911 $ 523 $363 $ 886
Natural gas .......................................... 623 397 1,020 429 320 749
Natural gas liquids .................................. 51 15 66 51 13 64
Other ................................................ 3 0 3 2 0 2
-------------------------------------------------------------
Total ........................................ 1,173 827 2,000 1,005 696 1,701
Other Revenue ................................................ 10 21 31 51 21 72
Gain loss on asset sales...................................... 118 24 142 4 11 15
-------------------------------------------------------------
Total revenues ............................... 1,301 872 2,173 1,060 728 1,788
Production costs ............................................. 230 169 399 302 129 431
Exploration expenses ......................................... 19 59 78 26 57 83
Dry hole costs ............................................... 49 18 67 27 19 46
Depreciation, depletion & amortization ....................... 342 207 549 374 172 546
Other operating expenses ..................................... 113 40 153 98 50 148
-------------------------------------------------------------
Results of operations before income tax .............. $ 548 $379 $ 927 $ 233 $301 $ 534
</TABLE>
Table 3
5
<PAGE>
NEWS RELEASE
<TABLE>
<CAPTION>
RESULTS OF OPERATIONS FOR UNOCAL CORPORATION
EXPLORATION AND PRODUCTION ACTIVITIES
(UNAUDITED)
For the Three Months For the Three Months
Ended June 30, 1996 Ended June 30, 1995
-----------------------------------------------------------
United United
Millions of dollars States Foreign Total States Foreign Total
- ------------------------------------------------------------------------------------------------------------------------------------
Sales (includes intercompany sales)
<S> <C> <C> <C> <C> <C> <C>
Crude oil and condensate ........................... $ 154 $ 150 $ 304 $ 182 $ 126 $ 308
Natural gas ........................................ 201 128 329 154 102 256
Natural gas liquids ................................ 18 5 23 17 5 22
Other .............................................. 1 0 1 1 0 1
---------------------------------------------------------
Total ...................................... 374 283 657 354 233 587
Other Revenue .............................................. 2 5 7 5 9 14
Gain(loss) on asset sales ................................. 111 0 111 (3) 1 (2)
---------------------------------------------------------
Total revenues ............................. 487 288 775 356 243 599
Production costs ........................................... 72 49 121 103 46 149
Exploration expenses ....................................... 7 20 27 10 15 25
Dry hole costs ............................................. 1 3 4 5 11 16
Depreciation, depletion & amortization ..................... 103 84 187 139 48 187
Other operating expenses ................................... 34 20 54 33 15 48
---------------------------------------------------------
Results of operations before income tax ............ $ 270 $ 112 $ 382 $ 66 $ 108 $ 174
</TABLE>
<TABLE>
<CAPTION>
For the Three Months For the Three Months
Ended March 31, 1996 Ended March 31, 1995
----------------------------------------------------------------
United United
Millions of dollars States Foreign Total States Foreign Total
- ------------------------------------------------------------------------------------------------------------------------------------
Sales (includes intercompany sales)
<S> <C> <C> <C> <C> <C> <C>
Crude oil and condensate ........................... $181 $123 $304 $174 $126 $300
Natural gas ........................................ 226 127 353 140 107 247
Natural gas liquids ................................ 15 6 21 18 5 23
Other .............................................. 1 0 1 1 0 1
---------------------------------------------------------------
Total ...................................... 423 256 679 333 238 571
Other Revenue .............................................. 3 8 11 7 8 15
Gain on asset sales ................................. 4 6 10 12 6 18
---------------------------------------------------------------
Total revenues ............................. 430 270 700 352 252 604
Production costs ........................................... 93 54 147 106 40 146
Exploration expenses ....................................... 4 17 21 10 18 28
Dry hole costs ............................................. 10 3 13 0 2 2
Depreciation, depletion & amortization ..................... 127 62 189 118 75 193
Other operating expenses ................................... 41 11 52 29 14 43
---------------------------------------------------------------
Results of operations before income tax ............ $155 $123 $278 $ 89 $103 $192
Table 4
</TABLE>
6
<PAGE>
NEWS RELEASE
<TABLE>
<CAPTION>
RESULTS OF OPERATIONS FOR UNOCAL CORPORATION
REFINING, MARKETING AND TRANSPORTATION ACTIVITIES
76 PRODUCTS COMPANY
(UNAUDITED)
For the Three Months For the Nine Months
Ended September 30 Ended September 30
-------------------------------------------------------
Millions of dollars 1996 1995 1996 1995
- ------------------------------------------------------------------------------------------------------------------------------------
Sales (includes intercompany sales)
<S> <C> <C> <C> <C>
Gasoline ................................................. $ 510 $ 404 $ 1,473 $ 1,168
Jet ...................................................... 102 69 294 184
Diesel ................................................... 174 122 454 293
Other products ........................................... 207 154 580 589
Excise tax ............................................... 250 228 735 665
-------------------------------------------------------
Total ........................................... 1,243 977 3,536 2,899
Other Revenue ..................................................... 31 26 93 74
-------------------------------------------------------
Total revenues .................................. 1,274 1,003 3,629 2,973
Raw materials ..................................................... 514 406 1,485 1,235
Product purchases ................................................. 216 140 559 434
Manufacturing & operating expense ................................. 117 113 355 355
Selling, administrative & general ................................. 75 68 237 208
Depreciation & amortization ....................................... 36 28 107 80
Excise tax ........................................................ 250 228 735 665
Other expense ..................................................... 7 10 23 31
-------------------------------------------------------
Total expenses .................................. $ 1,215 $ 993 $ 3,501 $ 3,008
Results of operations before income tax .................. $ 59 $ 10 $ 128 $ (35)
</TABLE>
<TABLE>
<CAPTION>
For the Three Months For the Three Months
Ended June 30 Ended March 31
-------------------------------------------------------
Millions of dollars 1996 1995 1996 1995
- ------------------------------------------------------------------------------------------------------------------------------------
Sales (includes intercompany sales)
<S> <C> <C> <C> <C>
Gasoline ............................................... $ 558 $ 410 $ 405 $ 354
Jet .................................................... 81 55 111 60
Diesel ................................................. 150 96 130 75
Other products ......................................... 202 226 171 209
Excise tax ............................................. 250 228 235 209
----------------------------------------------------------
Total ......................................... 1,241 1,015 1,052 907
Other Revenue ................................................... 37 25 25 23
---------------------------------------------------------
Total revenues ................................ 1,278 1,040 1,077 930
Raw materials ................................................... 504 470 467 359
Product purchases ............................................... 187 128 156 166
Manufacturing & operating expense ............................... 123 114 115 128
Selling, administrative & general ............................... 87 72 75 68
Depreciation & amortization ..................................... 39 26 32 26
Excise tax ...................................................... 250 228 235 209
Other expense ................................................... 8 12 8 9
----------------------------------------------------------
Total expenses ................................ $ 1,198 $ 1,050 $ 1,088 $ 965
Results of operations before income tax ................ $ 80 $ (10) $ (11) $ (35)
</TABLE>
Table 5
7
<PAGE>
NEWS RELEASE
<TABLE>
<CAPTION>
UNOCAL CORPORATION
OPERATING HIGHLIGHTS
(UNAUDITED)
For the Three Months For the Nine Months
Ended September 30 Ended September 30
------------------------------------------------------
1996 1995 1996 1995
- ------------------------------------------------------------------------------------------------------------------------------------
Net daily production
Crude oil and condensate (thousand barrels daily):
<S> <C> <C> <C> <C>
United States (a) ....................................... 86.1 123.6 98.9 126.4
Foreign:
Far East (b) ....................................... 82.2 81.9 82.4 84.6
Other ............................................... 27.2 29.6 27.6 30.3
-----------------------------------------------------
Total Foreign ................................ 109.4 111.5 110.0 114.9
-----------------------------------------------------
Worldwide ...................................................... 195.5 235.1 208.9 241.3
Natural gas (million cubic feet daily):
United States (a) ....................................... 1,099 1,077 1,091 1,109
Foreign:
Far East (b) ....................................... 667 577 626 597
Other ............................................... 63 55 71 48
-----------------------------------------------------
Total Foreign ................................ 730 632 697 645
-----------------------------------------------------
Worldwide ...................................................... 1,829 1,709 1,788 1,754
Natural gas liquids (thousand barrels daily) (a) .................. 19.3 20.2 19.6 21.4
Geothermal (million kilowatt-hours daily) .......................... 21.0 17.7 17.3 16.0
</TABLE>
<TABLE>
Average sales prices
Crude oil and condensate (per barrel):
<S> <C> <C> <C> <C>
United States .................................... $ 20.01 $ 14.83 $ 18.31 $ 15.17
Foreign:
Far East .................................... $ 18.89 $ 15.26 $ 18.32 $ 16.11
Other ....................................... $ 19.89 $ 15.12 $ 18.53 $ 15.84
Total Foreign ........................ $ 19.21 $ 15.21 $ 18.39 $ 16.01
---------------------------------------------------------------
Worldwide .............................................. $ 19.62 $ 14.98 $ 18.34 $ 15.51
Natural gas (per mcf):
United States .................................... $ 2.09 $ 1.43 $ 2.20 $ 1.49
Foreign:
Far East .................................... $ 2.27 $ 2.05 $ 2.23 $ 2.00
Other ....................................... $ 2.05 $ 1.21 $ 1.82 $ 1.14
Total Foreign ........................ $ 2.25 $ 1.97 $ 2.18 $ 1.94
---------------------------------------------------------------
Worldwide .............................................. $ 2.15 $ 1.64 $ 2.20 $ 1.66
(a) Includes production from California upstream properties of:
Crude oil and condensate 1.0 28.7 10.9 29.4
Natural gas 0 58 17 64
Natural gas liquids 0.0 0.7 0.2 1.1
(b) Includes host country share in Indonesia of:
Crude oil and condensate 26.4 33.0 26.8 31.7
Natural gas 29 20 26 23
</TABLE>
Table 6
8
<PAGE>
NEWS RELEASE
<TABLE>
<CAPTION>
OPERATING HIGHLIGHTS (continued UNOCAL CORPORATION
(UNAUDITED)
For the Three Months For the Nine Months
Ended September 30 Ended September 30
----------------------------------------------------
1996 1995 1996 1995
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Input to crude oil processing units (thousand barrels daily) ................... 229 220 231 207
Refinery production (thousand barrels daily)
EPA gasoline ......................................................... 31 120 52 107
CARB gasoline ....................................................... 90 0 64 0
Jet fuel, kerosene and heating oil ................................... 33 29 36 21
Diesel fuel .......................................................... 19 14 21 12
CARB Diesel fuel .................................................... 27 27 24 24
Other products (lubricants, gas oils, etc.) ......................... 58 53 61 62
----------------------------------------------
Total ...................................................... 258 243 258 226
Petroleum product sales (thousand barrels daily)
Marketing (a)
EPA gasoline ......................................................... 27 116 67 116
CARB gasoline ....................................................... 103 0 64 0
Diesel fuel .......................................................... 15 12 14 12
CARB Diesel fuel .................................................... 20 17 16 15
Other (includes lube oil, kerosene and fuel oil) .................... 7 7 7 7
----------------------------------------------
Total ...................................................... 172 152 168 150
Product supply and refinery (b)
EPA gasoline ......................................................... 4 31 9 23
CARB gasoline ....................................................... 21 0 12 0
Jet fuel ............................................................. 38 32 40 29
Diesel fuel .......................................................... 14 14 14 10
CARB Diesel fuel .................................................... 15 11 12 6
Other products (includes petroleum coke, gas oil, etc.) .............. 34 35 36 42
----------------------------------------------
Total ...................................................... 126 123 123 110
----------------------------------------------
Total petroleum product sales .............. 298 275 291 260
Agricultural products production volumes (thousand tons)
Ammonia .............................................................. 360 296 1,089 988
Urea ................................................................. 275 242 845 806
Other products ....................................................... 149 169 494 583
Agricultural products sales volumes (thousand tons)
Ammonia .............................................................. 206 106 574 500
Urea ................................................................. 198 247 779 773
Other products ....................................................... 302 255 971 962
(a) Primarily sold through retail channels
(b) Primarily sold through wholesale or commercial channels
</TABLE>
Table 7
9
<PAGE>
NEWS RELEASE
<TABLE>
<CAPTION>
EARNINGS BY BUSINESS SEGMENT UNOCAL CORPORATION
(Unaudited)
3rd Quarter of 1996 3rd Quarter of 1995
----------------------------------------------
Millions of dollars Before-tax After-tax Before-tax After-tax
- ------------------------------------------------------------------------------------------------------------------------------------
PETROLEUM
Exploration and Production
<S> <C> <C> <C> <C>
United States .................................................................... $ 123 $ 77 $ 78 $ 49
Foreign .......................................................................... 144 100 90 50
Refining, Marketing and Transportation
76 Products ...................................................................... 59 37 10 12
GEOTHERMAL AND POWER OPERATIONS ........................................................ 15 6 13 6
DIVERSIFIED BUSINESSES
Agricultural Products ............................................................ 31 20 5 3
Carbon and Minerals .............................................................. 15 13 15 13
Pipelines ........................................................................ 17 14 19 15
Other ............................................................................ 16 10 3 2
CORPORATE AND UNALLOCATED
Administrative and general expense ............................................... (33) (21) (34) (22)
Net interest expense ............................................................. (62) (37) (68) (50)
Environmental and litigation expense ............................................. (60) (37) (16) (10)
Other ............................................................................ (14) (11) (9) (9)
---------------------------------------
Total ...................................................................... $ 251 $ 171 $ 106 $ 59
=======================================
EXPLORATION AND PRODUCTION - this segment is engaged in the exploration for, and
the production and marketing of, crude oil, condensate, natural gas and
natural gas liquids.
REFINING, MARKETING AND TRANSPORTATION
76 PRODUCTS COMPANY - this segment is principally responsible for the
company's West Coast petroleum refining operations, marketing and
transportation of refined petroleum products and the manufacturing and
marketing of petroleum coke.
GEOTHERMAL AND POWER - this segment is involved in the exploration for, and the
production and sale of geothermal resources for the generation of
electricity.
DIVERSIFIED BUSINESSES:
AGRICULTURAL PRODUCTS - manufactures and markets nitrogen-based fertilizers
for wholesale markets to the western United States and to the Pacific Rim.
CARBON AND MINERALS - produces and markets petroleum coke (other than on the
West Coast), graphites, solvents and specialty minerals.
PIPELINES - principally includes the company's equity interests in affiliated
pipeline companies.
OTHER- includes the development and sale of real estate assets and the
company's equity interest in The UNO-VEN Company, a refining and
marketing partnership in the midwestern United States.
</TABLE>
Table 8
10
<PAGE>
NEWS RELEASE
<TABLE>
<CAPTION>
SPECIAL ADJUSTMENTS UNOCAL CORPORATION
(Unaudited)
3rd Quarter of 1996 3rd Quarter of 1995
--------------------------------------------------------------
Dollars in millions except per share amounts Before-tax After-tax Before-tax After-tax
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Reported earnings .................................................. $ 251 $ 171 $ 106 $ 59
Less: Special items
EXPLORATION & PRODUCTION
UNITED STATES
Asset Sales ......................................... 4 3 (1) (1)
Florida and Alaska OCS settlement ................... -- -- 29 18
FOREIGN
Asset Sales ......................................... 18 37 1 --
76 PRODUCTS
Asset Sales ......................................... 1 1 -- --
Litigation provision ................................ (2) (2) -- --
Other ............................................... 4 3 -- --
GEOTHERMAL AND POWER OPERATIONS
Asset Sales ......................................... -- -- 2 2
DIVERSIFIED BUSINESSES
OTHER
Asset sales ....................................... 13 8 -- --
CORPORATE & UNALLOCATED
Asset Sales ......................................... 1 -- -- --
Environmental provision ............................. (20) (12) (2) (1)
Litigation provision ................................ (31) (20) (7) (5)
Other ............................................... -- -- -- (4)
------------------------------------------------------
Total special items ........................................... (12) 18 22 9
------------------------------------------------------
ADJUSTED EARNINGS .................................................. $ 263 $ 153 $ 84 $ 50
Less: Dividends on preferred stock ................................. -- 9
------------------------------------------------------
ADJUSTED NET EARNINGS APPLICABLE TO COMMON SHARES .................. 153 41
------------------------------------------------------
ADJUSTED NET EARNINGS PER COMMON SHARE ............................. $0.61 $0.17
</TABLE>
Table 9
11
<PAGE>
NEWS RELEASE
<TABLE>
<CAPTION>
EARNINGS BY BUSINESS SEGMENT UNOCAL CORPORATION
EXCLUDING SPECIAL ADJUSTMENTS
(Unaudited)
3rd Quarter of 1996 3rd Quarter of 1995
----------------------------------------------------------------
Millions of dollars Before-tax After-tax Before-tax After-tax
- ------------------------------------------------------------------------------------------------------------------------------------
PETROLEUM
Exploration and Production
<S> <C> <C> <C> <C>
United States ............................................ $ 119 $ 74 $ 50 $ 32
Foreign .................................................. 126 63 89 50
Refining, Marketing and Transportation
76 Products .............................................. 56 35 10 12
GEOTHERMAL AND POWER OPERATIONS ................................ 15 6 11 4
DIVERSIFIED BUSINESSES
Agricultural Products .................................... 31 20 5 3
Carbon and Minerals ...................................... 15 13 15 13
Pipelines ................................................ 17 14 19 15
Other .................................................... 3 2 3 2
CORPORATE AND UNALLOCATED
Administrative and general expense ....................... (33) (21) (34) (22)
Net interest expense ..................................... (62) (37) (68) (50)
Environmental and litigation expense ..................... (9) (5) (7) (4)
Other .................................................... (15) (11) (9) (5)
---------------------------------------------------------
Total .............................................. $ 263 $ 153 $ 84 $ 50
=========================================================
</TABLE>
Table 10
12
<PAGE>
NEWS RELEASE
<TABLE>
<CAPTION>
EARNINGS BY BUSINESS SEGMENT UNOCAL CORPORATION
(Unaudited)
First Nine Months of 1996 First Nine Months of 1995
---------------------------------------------------------------
Millions of dollars Before-tax After-tax Before-tax After-tax
- ------------------------------------------------------------------------------------------------------------------------------------
Petroleum
EXPLORATION AND PRODUCTION
<S> <C> <C> <C> <C>
United States ............................................ $ 548 $ 341 $ 233 $ 145
Foreign .................................................. 379 232 301 163
Refining, Marketing and Transportation
76 Products .............................................. 128 80 (35) (5)
GEOTHERMAL AND POWER OPERATIONS ................................ 33 15 39 21
DIVERSIFIED BUSINESSES
Agricultural Products .................................... 113 73 88 55
Carbon and Minerals ...................................... 52 40 55 40
Pipelines ................................................ 64 51 63 50
Other .................................................... 21 13 14 9
CORPORATE AND UNALLOCATED
Administrative and general expense ....................... (87) (55) (91) (57)
Net interest expense ..................................... (197) (135) (199) (140)
Environmental and litigation expense ..................... (136) (84) (92) (57)
Other .................................................... (53) (38) (14) (13)
---------------------------------------------------------
Total .............................................. $ 865 $ 533 $ 362 $ 211
=========================================================
</TABLE>
Table 11
13
<PAGE>
NEWS RELEASE
<TABLE>
<CAPTION>
SPECIAL ADJUSTMENTS UNOCAL CORPORATION
(Unaudited)
First Nine Months of 1996 First Nine Months of 1995
---------------------------------------------------------
Dollars in millions except per share amounts Before-tax After-tax Before-tax After-tax
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Reported earnings ...................................................... $ 865 $ 533 $ 362 $ 211
Less: Special items
EXPLORATION AND PRODUCTION
UNITED STATES
Asset Sales ............................................... 8 5 8 5
Sale of California oil and gas properties* ............... 110 68 -- --
Asset write-downs ......................................... -- -- (13) (8)
Florida and Alaska OCS settlement ......................... -- -- 29 18
FOREIGN
Asset Sales ............................................... 24 41 6 3
76 PRODUCTS
Asset Sales ............................................... 1 1 -- --
Sale of California oil and gas properties ............... 4 2 -- --
Litigation ................................................ (3) (2) -- --
Environmental ............................................. -- -- -- --
Asset write-downs ......................................... (6) (4) -- --
Other ..................................................... 11 7 -- --
GEOTHERMAL AND POWER OPERATIONS
Asset Sales ............................................... -- -- 9 7
DIVERSIFIED BUSINESSES
ASSET SALES
Pipeline ................................................ 12 7 -- --
Agricultural Products ................................... -- -- 6 4
Other ................................................... 13 8 2 1
CORPORATE AND UNALLOCATED
Asset Sales ............................................... 2 1 29 18
Environmental provision ................................... (62) (38) (31) (19)
Litigation provision ...................................... (51) (32) (27) (17)
Asset write-downs ......................................... -- -- (3) (2)
Other ..................................................... (11) (9) -- (4)
---------------------------------------------------
Total special items ............................................... 52 55 15 6
ADJUSTED EARNINGS ...................................................... $ 813 $ 478 $ 347 $ 205
Less: Dividends on preferred stock ..................................... 18 27
--------------------------------------------------
ADJUSTED NET EARNINGS APPLICABLE TO COMMON SHARES ...................... 460 178
---------------------------------------------------
ADJUSTED NET EARNINGS PER COMMON SHARE ................................. $1.85 $0.72
* Net of provision for environmental remediation of $17 million before-tax and $10 milion after-tax.
</TABLE>
Table 12
14
<PAGE>
NEWS RELEASE
<TABLE>
<CAPTION>
EARNINGS BY BUSINESS SEGMENT UNOCAL CORPORATION
EXCLUDING SPECIAL ADJUSTMENTS
(Unaudited)
First Nine Months of 1996 First Nine Months of 1995
-------------------------------------------------------------
Millions of dollars Before-tax After-tax Before-tax After-tax
- ------------------------------------------------------------------------------------------------------------------------------------
Petroleum
EXPLORATION AND PRODUCTION
<S> <C> <C> <C> <C>
United States ............................................ $ 430 $ 268 209 $ 130
Foreign .................................................. 355 191 295 160
Refining, Marketing and Transportation
76 Products .............................................. 121 76 (35) (5)
GEOTHERMAL AND POWER OPERATIONS ................................ 33 15 30 14
DIVERSIFIED BUSINESSES
Agricultural Products .................................... 113 73 82 51
Carbon and Minerals ...................................... 52 40 55 40
Pipelines ................................................ 52 44 63 50
Other .................................................... 8 5 12 8
CORPORATE AND UNALLOCATED
Administrative and general expense ....................... (87) (55) (91) (57)
Net interest expense ..................................... (197) (135) (199) (140)
Environmental and litigation expense ..................... (23) (14) (34) (21)
Other .................................................... (44) (30) (40) (25)
---------------------------------------------------------
Total .............................................. $ 813 $ 478 $ 347 $ 205
=========================================================
</TABLE>
Table 13
15
<PAGE>
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.
UNOCAL CORPORATION
(Registrant)
Dated: October 23, 1996 By: /s/ CHARLES S. MCDOWELL
-----------------------
Charles S. McDowell
Vice President and Comptroller
(Duly Authorized Officer and
Principal Accounting Officer)
16
<PAGE>
