<PAGE>
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: April 24, 1996
UNOCAL CORPORATION
------------------
(Exact name of registrant as specified in its charter)
Delaware 1-8483 95-3825062
- -----------------------------------------------------------------------------
(State or other jurisdiction of (Commission (I.R.S. Employer
incorporation or organization) File Number) Identification No.)
2141 Rosecrans Avenue, Suite 4000, El Segundo, California 90245
- -----------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (310) 726-7600
<PAGE>
ITEM 5. OTHER EVENTS
On April 24, 1996, the following news release was issued:
UNOCAL FIRST QUARTER EARNINGS RISE ON HIGHER
GULF OF MEXICO NATURAL GAS PRICES, PRODUCTION
---------------------------------------------
El Segundo, Calif., April 24, 1996 -- Unocal Corporation today reported
first quarter 1996 net earnings of $124 million, or 47 cents per common share,
reflecting increased natural gas prices and higher gas production from its
Louisiana/Gulf of Mexico operations.
The 1996 results compare with $74 million, or 27 cents per common
share, in the first quarter 1995. Unocal's total revenues for the quarter were
$2.28 billion, up from $1.91 billion a year ago.
Earnings from operations for the first quarter, excluding special items
(detailed in the attached tables), were $120 million, or 45 cents per common
share. This compares with adjusted earnings from operations of $54 million, or
19 cents per common share, in the same period a year ago.
"Our improved first quarter earnings reflect significantly stronger
natural gas prices in the Louisiana/Gulf of Mexico region, which accounts for
more than 60 percent of our domestic gas production," said Roger C. Beach,
Unocal chairman and chief executive officer. The company's production from the
Louisiana/Gulf of Mexico region averaged nearly 700 million cubic feet per day
(mmcfd), a three percent increase over the same period a year ago.
"The average natural gas sales price for our Louisiana/Gulf of Mexico
production was $2.81 per thousand cubic feet (mcf) in the quarter, up 87 percent
1
<PAGE>
from a year ago," Beach said. Unocal's overall average domestic natural gas
sales price was $2.35 per mcf, 62 percent above $1.45 per mcf a year ago.
Unocal's foreign natural gas production increased nearly five percent,
due principally to new production in The Netherlands and Canada. The company's
average sales price for foreign natural gas rose 11 percent to $2.13 per mcf.
Production from the company's natural gas operations offshore Thailand
continued to be constrained as construction proceeded on a second Thai-operated
pipeline to shore.
"This new pipeline will allow us to increase our net production in Thailand
to 575 to 600 mmcfd, " Beach said. First quarter 1996 production in Thailand
averaged 438 mmcfd.
Earlier this month, the company sold its California oil and gas
production assets for $492 million. In the first quarter 1996, those properties
contributed about $1 million in net earnings. Net daily production averaged
30,200 barrels of oil and 52 mmcf of gas. The company expects to record a gain
from the sale in the second quarter 1996.
The company's 76 Products Company business unit posted a loss of $7
million for the quarter as a result of low margins for refined products.
"We had higher refinery production of light oil products (gasoline, jet
and diesel fuel) and increased petroleum product sales in the quarter," Beach
said. "However, we were unable to recover all of the increased crude oil costs
and the additional expenses to manufacture the new California reformulated
gasolines."
Beach went on to say, "Late last week, for the first time this year, we
were able to increase the wholesale price of our gasolines to a level where we
are recovering those increased costs. Whether this situation will continue
depends upon future gasoline market conditions and crude oil prices."
2
<PAGE>
NEWS RELEASE
CONDENSED CONSOLIDATED EARNINGS STATEMENT
(UNAUDITED)
For the Three Months
Ended March 31
-----------------------
Dollars in millions except per share amounts 1996 1995
- --------------------------------------------------------------------------------
Total revenues (a) ................................... $2,278 $1,906
Costs and other deductions (a) ....................... 2,064 1,775
------ ------
Earnings before income taxes ......................... 214 131
Income taxes ......................................... 90 57
------ ------
Net earnings ......................................... 124 74
Dividends on preferred stock ......................... 9 9
------ ------
Net earnings applicable to common shares ............. $ 115 $ 65
Earnings per common share: (b) ....................... $ 0.47 $ 0.27
(a) Includes consumer excise taxes of ................ $ 235 $ 210
(b) Based on weighted average common shares .......... 247 245
outstanding (in millions)
- --------------------------------------------------------------------------------
CONDENSED CONSOLIDATED BALANCE SHEET
(UNAUDITED)
March 31 Dec. 31
-------------------------
Millions of dollars 1996 1995
- --------------------------------------------------------------------------------
ASSETS
Cash and cash equivalents ............................ $ 286 $ 94
Other current assets ................................. 1,529 1,482
Investments and long-term receivables ................ 1,044 1,101
Properties - net ..................................... 7,082 7,109
Other assets ......................................... 150 105
------- -------
Total assets ....................................... 10,091 9,891
LIABILITIES
Current liabilities .................................. $ 1,615 $ 1,316
Long-term debt and
capital lease obligations ........................... 3,504 3,698
Deferred income taxes ................................ 711 722
Other deferred credits and liabilities ............... 1,247 1,225
------- -------
Total liabilities .................................. $ 7,077 $ 6,961
STOCKHOLDERS' EQUITY ................................. 3,014 2,930
------- -------
Total liabilities and stockholders' equity ......... $10,091 $ 9,891
3
<PAGE>
NEWS RELEASE
CONDENSED CONSOLIDATED CASH FLOWS
(UNAUDITED)
For the Three Months
Ended March 31
-----------------------
Millions of dollars 1996 1995
- --------------------------------------------------------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES
Cash flow from operations .............................. $ 386 $ 236
Working capital and other changes
related to operations ................................. (118) (122)
----- -----
Net cash provided by operating activities ............... $ 268 $ 114
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures (includes dry hole costs) ......... 222) (267)
Proceeds from asset sales .............................. 51 94
----- -----
Net cash used in investing activities ................... $(171) $(173)
CASH FLOWS FROM FINANCING ACTIVITIES
Long-term borrowings ................................... 154 266
Reduction of long-term debt
and capital lease obligations ....................... (13) (200)
Dividends paid ......................................... (59) (58)
Other .................................................. 13 16
----- -----
Net cash provided by (used in) financing activities ..... $ 95 $ 24
Increase (decrease) in cash and cash equivalents ......... 192 (35)
Cash and cash equivalents at beginning of year ........... 94 148
----- -----
Cash and cash equivalents at end of period ............... $ 286 $ 113
- --------------------------------------------------------------------------------
SELECTED FINANCIAL DATA
For the Three Months
Ended March 31
-----------------------
Millions of dollars 1996 1995
- --------------------------------------------------------------------------------
Exploration expense
Oil and gas
United States ....................... $ 4 $ 10
Foreign ............................. 17 18
Geothermal .................................. 1 1
-----------------
Total ............................... $ 22 $ 29
Dry hole costs
United States ............................... $ 10 $ -
Foreign ..................................... 4 4
-----------------
Total ............................... $ 14 $ 4
Depreciation, Depletion & Amortization ............... $244 $228
4
<PAGE>
NEWS RELEASE
OPERATING HIGHLIGHTS
(UNAUDITED)
For the Three Months
Ended March 31
----------------------
1996 1995
- --------------------------------------------------------------------------------
Net daily production (a)
Crude oil and condensate (thousand barrels daily):
United States (b) ...................... 121.3 131.2
Foreign:
Far East .......................... 80.9 87.5
Other ............................. 28.4 31.1
-------------------
Total Foreign .............. 109.3 118.6
-------------------
Worldwide .................................... 230.6 249.8
Natural gas (million cubic feet daily):
United States (b) ...................... 1,110 1,120
Foreign:
Far East .......................... 597 615
Other ............................. 82 33
------------------
Total Foreign .............. 679 648
------------------
Worldwide .................................... 1,789 1,768
Natural gas liquids (thousand barrels daily) ..... 19.7 22.0
Geothermal (million kilowatt-hours daily) ........ 13.8 15.6
Average sales prices
Crude oil and condensate (per barrel):
United States .......................... $16.55 $14.74
Foreign:
Far East .......................... $17.86 $16.19
Other ............................. $16.93 $15.62
Total Foreign .............. $17.52 $15.98
--------------------
Worldwide .................................... $16.93 $15.22
Natural gas (per mcf):
United States .......................... $2.35 $1.45
Foreign:
Far East .......................... $2.18 $1.96
Other ............................. $1.76 $1.22
Total Foreign .............. $2.13 $1.92
---------------------
Worldwide .................................... $2.27 $1.62
(a) Includes production sharing agreements on a gross basis.
(b) Includes California production.
5
<PAGE>
OPERATING HIGHLIGHTS (continued)
(UNAUDITED)
For the Three Months
Ended March 31
--------------------
1996 1995
- -------------------------------------------------------------------------------
Input to crude oil processing units
(thousand barrels daily) ..................................... 239 190
Refinery production (thousand barrels daily)
Gasoline ................................................. 116 84
Jet fuel, kerosene and heating oil ....................... 43 19
Diesel fuel .............................................. 42 30
Other products (lubricants, gas oils, etc.) .............. 61 70
-----------
Total .............................................. 262 204
Petroleum product sales (thousand barrels daily)
Marketing (a)
Gasoline ........................................... 127 113
Diesel ............................................. 25 25
Other (includes lube oil,
kerosene and fuel oil) ........................... 8 5
-----------
Total ......................................... 160 143
Product supply and refinery (b)
Gasoline ........................................... 19 13
Jet fuel ........................................... 50 29
Diesel ............................................. 31 11
Other products (includes petroluem
coke, gas oil, etc.) ............................ 34 56
-----------
Total ......................................... 134 109
-----------
Total petroleum product sales .............. 294 252
Agricultural products production volumes (thousand tons)
Ammonia .................................................. 351 351
Urea ..................................................... 293 295
Other products ........................................... 163 197
Agricultural products sales volumes (thousand tons)
Ammonia .................................................. 94 128
Urea ..................................................... 245 228
Other products ........................................... 231 272
(a) Primarily sold through retail channels
(b) Primarily sold through wholesale or commercial channels
6
<PAGE>
NEWS RELEASE UNOCAL CORPORATION
EARNINGS BY BUSINESS SEGMENT
(Unaudited)
<TABLE>
<CAPTION>
For the First Three Months For the First Three Months
Ended March 31, 1996 Ended March 31, 1995
----------------------------------------------------------
Millions of dollars Before-tax After-tax Before-tax After-tax
- ------------------------------------------------------------------------------------------------------------------------------------
PETROLEUM
Exploration and Production
<S> <C> <C> <C> <C>
United States ............................................ $ 155 $ 96 $ 89 $ 55
Foreign .................................................. 123 68 103 52
Refining, Marketing and Transportation
76 Products Company ...................................... (11) (7) (35) (18)
GEOTHERMAL AND POWER OPERATIONS ................................ 9 5 9 4
DIVERSIFIED BUSINESSES
Agricultural Products .................................... 25 16 26 16
Carbon and Minerals ...................................... 26 18 24 17
Pipelines ................................................ 30 23 22 18
Other .................................................... (1) -- 2 1
CORPORATE AND UNALLOCATED
Administrative and General expense ....................... (29) (18) (29) (18)
Net interest expense ..................................... (72) (50) (64) (43)
Environmental and Litigation expense ..................... (23) (14) (28) (17)
Other .................................................... (18) (13) 12 7
---------------------------------------------------------
Total .............................................. $ 214 $ 124 $ 131 $ 74
=========================================================
</TABLE>
EXPLORATION & 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 & POWER OPERATIONS - 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.
7
<PAGE>
NEWS RELEASE UNOCAL CORPORATION
SPECIAL ADJUSTMENTS
(Unaudited)
<TABLE>
<CAPTION>
For the First Three Months For the First Three Months
Ended March 31, 1996 Ended March 31, 1995
----------------------------------------------------------------
Dollars in millions except per share amounts Before-tax After-tax Before-tax After-tax
--------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Reported earnings .................................................. $ 214 $ 124 $ 131 $ 74
Less: Special items
EXPLORATION AND PRODUCTION
UNITED STATES
Asset Sales ............................................ 4 2 13 8
FOREIGN
Asset Sales ............................................ 6 4 4 3
DIVERSIFIED BUSINESSES
PIPELINES
Asset Sales ............................................ 12 7 - -
CORPORATE AND UNALLOCATED
Asset Sales ............................................ 1 1 29 18
Environmental provision ................................ (10) (6) (7) (4)
Litigation provision ................................... (6) (4) (6) (4)
Asset write-downs ...................................... - - (2) (1)
------------------------------------------------------
Total special items ........................................... 7 4 31 20
------------------------------------------------------
ADJUSTED EARNINGS .................................................. $ 207 $ 120 $ 100 $ 54
Less: Dividends on preferred stock ................................. 9 9
------------------------------------------------------
ADJUSTED NET EARNINGS APPLICABLE TO COMMON SHARES .................. 111 45
------------------------------------------------------
ADJUSTED NET EARNINGS PER COMMON SHARE ............................. $0.45 $0.19
</TABLE>
8
<PAGE>
NEWS RELEASE UNOCAL CORPORATION
EARNINGS BY BUSINESS SEGMENT
EXCLUDING SPECIAL ADJUSTMENTS
(Unaudited)
<TABLE>
<CAPTION>
For the First Three Months For the First Three Months
Ended March 31, 1996 Ended March 31, 1995
------------------------------------------------------------------
Millions of dollars Before-tax After-tax Before-tax After-tax
- -----------------------------------------------------------------------------------------------------------------------------------
Petroleum
EXPLORATION AND PRODUCTION
<S> <C> <C> <C> <C>
United States ............................................ $ 151 $ 94 $ 76 $ 47
Foreign .................................................. 117 64 99 49
Refining, Marketing and Transportation
76 Products Company ...................................... (11) (7) (35) (18)
GEOTHERMAL AND POWER OPERATIONS ................................ 9 5 9 4
Diversified Businesses
Agricultural Products .................................... 25 16 26 16
Carbon and Minerals ...................................... 26 18 24 17
Pipelines ................................................ 18 16 22 18
Other .................................................... (1) - 2 1
CORPORATE AND UNALLOCATED
Administrative and General expense ....................... (29) (18) (29) (18)
Net interest expense ..................................... (72) (50) (64) (43)
Environmental and Litigation expense ..................... (7) (4) (15) (9)
Other .................................................... (19) (14) (15) (10)
---------------------------------------------------------
Total .............................................. $ 207 $ 120 $ 100 $ 54
=========================================================
</TABLE>
9
<PAGE>
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
------------------
(Registrant)
Dated: April 24, 1996 By: /s/ STANLEY Y. HANAOKA
- ------------------------ ------------------------------
Stanley Y. Hanaoka
Assistant Comptroller
10
