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) January 23, 1997
-------------------
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 January 23, 1997, the following news release was issued:
UNOCAL ADJUSTED FOURTH QUARTER
EARNINGS RISE 63% TO $150 MILLION
---------------------------------
El Segundo, Calif., Jan. 23, 1997 -- Unocal Corporation today reported that
preliminary fourth-quarter 1996 consolidated earnings, excluding special items,
rose 63 percent to $150 million or 60 cents per common share. This compares with
$92 million or 34 cents per common share reported on the same basis for 1995.
Preliminary full-year 1996 earnings, excluding special items, were $628
million, or $2.45 per common share, up 111 percent from $297 million, or $1.06
per common share, in 1995. Earnings from continuing operations, excluding
special items, were $160 million, or 64 cents per share, for the fourth quarter,
and $562 million, or $2.19 per share, for the full-year 1996.
Total revenues from continuing operations for the fourth quarter were $1.38
billion, up from $1.16 billion in the same period of 1995. For the full-year
1996, revenues from continuing operations were $5.33 billion, up from $4.39
billion the year before.
Earnings and revenues from continuing operations for 1996 and 1995 exclude
the results of Unocal's 76 Products Company business unit due to the pending
asset sale.
"This was truly a breakthrough year for Unocal," said Roger C. Beach,
Unocal chairman and chief executive officer. "We recorded our strongest
operating performance in many years from our upstream operations and made
significant
<PAGE>
progress in realigning the company's assets so we can continue to grow for the
future."
Beach noted that during 1996 Unocal completed the sale of its California
oil and gas properties and reached agreements to sell its West Coast refining,
marketing and transportation assets and to restructure its UNO-VEN refining and
marketing partnership in the Midwest.
"The steps we took this year will give us the focus and flexibility we need
to take advantage of our many new growth opportunities in Asia and the U.S. Gulf
Coast region," Beach said. "Once the sale of our 76 Products Company assets is
completed, we expect to initially redeploy the proceeds into reducing our debt
and buying back some of our common stock. Over time, we will focus on investing
in new, higher return opportunities, primarily overseas, but also in the U.S.
Gulf Coast."
Unocal's fourth quarter 1996 operating earnings benefited from higher crude
oil and natural gas prices as well as increased foreign oil and gas production.
These operating gains were offset partially by increased depreciation and
depletion expense.
The company's average worldwide natural gas sales price in the quarter was
$2.49 per thousand cubic feet (mcf), up from $1.89 per mcf in 1995. Average
sales price for crude and condensate was $21.85, up from $15.07 last year.
Beach added that the company's worldwide net natural gas production
increased 7 percent in the fourth quarter to 1,909 million cubic feet per day
(mmcfd), compared with the same period a year ago. "The major increase came in
Thailand, which averaged more than 612 mmcfd (net) during the quarter," Beach
said. He noted that gross production from Unocal's Thailand operations continued
to set new records, reaching 1,070 mmcfd (approximately 700 mmcfd net to Unocal)
in late December and early January. In addition, U. S. Gulf Coast gas production
from Unocal's Spirit Energy 76 unit this month has reached 730 mmcfd (net), up
more than 4 percent from the first quarter last year.
The company's agricultural products business unit continued with record
earnings performance for the second straight year. Full-year earnings for this
unit were $98 million, 40 percent above last year's results, on higher sales
volumes and record production levels.
Unocal's total debt fell to $3,058 million, down $648 million from the end
of 1995.
2
<PAGE>
Cash flow from operations in the fourth quarter, before working capital
changes, was $399 million, up from $373 million last year. For the full year,
cash flow from operations, before working capital changes, was nearly $1.7
billion, up 37 percent from 1995. The improvement reflects increased operating
earnings.
Including special items and discontinued operations, Unocal reported a loss
of $497 million, or $1.98 per share for the fourth quarter 1996. On the same
basis, full-year 1996 earnings were $36 million, or 7 cents per common share.
This compares with reported earnings of $49 million, or 16 cents per share, in
the fourth quarter 1995, and $260 million, or 91 cents per share, for the
full-year 1995.
3
<PAGE>
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)
Date: January 23, 1997 By: CHARLES S. MCDOWELL
- ----------------------- ------------------------
Charles S. McDowell,
Vice President and Comptroller
4
<PAGE>
<TABLE>
<CAPTION>
NEWS RELEASE UNOCAL CORPORATION
CONDENSED CONSOLIDATED EARNINGS STATEMENT
(UNAUDITED)
For the Three Months For the Twelve Months
Ended December 31 Ended December 31
---------------------------------------------------------
Dollars in millions except per share amounts 1996 1995 1996 1995
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Total revenues ....................................................... $ 1,384 $ 1,161 $ 5,328 $ 4,389
Costs and other deductions ........................................... 1,363 1,083 4,570 3,914
------------------------------------------------------
Earnings from continuing operations before income taxes .............. 21 78 758 475
Income taxes ......................................................... 18 45 302 226
------------------------------------------------------
Net earnings from continuing operations .............................. 3 33 456 249
Earnings/(loss) from discontinued operation .......................... (9) 16 71 11
Loss on disposal (a) ................................................ (491) -- (491) --
------------------------------------------------------
Net earnings/(loss) from discontinued operations ..................... (500) 16 (420) 11
------------------------------------------------------
Net earnings/(loss) .................................................. $ (497) $ 49 $ 36 $ 260
Dividends on preferred stock ......................................... -- 9 18 36
------------------------------------------------------
Net earnings/(loss) applicable to common shares ...................... $ (497) $ 40 $ 18 $ 224
Earnings/(loss) per common share assuming no dilution (b) (c)
Continuing operations.......................................... $ 0.01 $ 0.10 $ 1.76 $ 0.87
Discontinued operations........................................ (1.99) 0.06 (1.69) 0.04
------------------------------------------------------
Net earnings/(loss) per share $ (1.98) $ 0.16 $ 0.07 $ 0.91
(a) Includes transition loss (net of tax) of:
11/17/96 - 12/31/96............................................ $ (30) $ - $ (30) $ -
1/1/97 - 3/31/97............................................... $ (42) $ - (42) $ -
(b) Based on weighted average common shares
outstanding (in millions)..................................... 250 247 249 246
(c) The effect of common stock equivalents is antidilutive
for all reported periods.
</TABLE>
<TABLE>
<CAPTION>
CONDENSED CONSOLIDATED BALANCE SHEET
(UNAUDITED)
December 31
-------------------------------
Millions of dollars 1996 1995
- ------------------------------------------------------------------------------------------------------------------------------------
ASSETS
<S> <C> <C>
Cash and cash equivalents .......................................................... $ 217 $ 94
Net assets of discontinued operations (d) ......................................... 1,774 --
Other current assets ............................................................... 1,238 1,482
Investments and long-term receivables .............................................. 1,205 1,101
Properties - net ................................................................... 4,590 7,109
Other assets ....................................................................... 99 105
------------------------------
Total assets .............................................................. $9,123 $9,891
LIABILITIES AND EQUITY
Current portion of long-term debt and
capital lease obligations ......................................................... $ 118 $ 8
Other current liabilities .......................................................... 1,504 1,308
Long-term debt and capital lease obligations ....................................... 2,940 3,698
Deferred income taxes .............................................................. 348 722
Other deferred credits and liabilities ............................................. 1,416 1,225
Convertible preferred securities ................................................... 522 --
Stockholders' equity ............................................................... 2,275 2,930
------------------------------
Total liabilities and equity .............................................. $9,123 $9,891
</TABLE>
(d) Excludes retained working capital.
Table 1
<TABLE>
<CAPTION>
NEWS RELEASE UNOCAL CORPORATION
CONDENSED CONSOLIDATED CASH FLOWS
(INCLUDES DISCONTINUED OPERATIONS)
(UNAUDITED) For the Three Months For the Twelve Months
Ended December 31 Ended December 31
------------------------------------------------------
Millions of dollars 1996 1995 1996 1995
- ------------------------------------------------------------------------------------------------------------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES
<S> <C> <C> <C> <C>
Cash flow from operations ......................................... $ 399 $ 373 $ 1,698 $ 1,235
Working capital and other changes related to operations ........... 86 228 (14) 42
--------------------------------------------------
Net cash provided by operating activities ................. 485 601 1,684 1,277
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures (includes dry hole costs) ................... (458) (492) (1,398) (1,459)
Proceeds from asset sales ......................................... 24 74 609 204
--------------------------------------------------
Net cash used in investing activities ..................... (434) (418) (789) (1,255)
CASH FLOWS FROM FINANCING ACTIVITIES
Net increase/(decrease) in long-term debt
and capital lease obligations ............................. (8) (194) (568) 111
Dividends paid .................................................... (50) (58) (226) (232)
Other ............................................................. (1) (5) 22 45
--------------------------------------------------
Net cash used in financing activities ..................... (59) (257) (772) (76)
Increase/(decrease) in cash and cash equivalents (a) ...................... (8) (74) 123 (54)
Cash and cash equivalents at beginning of period ........................... 225 168 94 148
--------------------------------------------------
Cash and cash equivalents at end of period ................................. $ 217 $ 94 $ 217 $ 94
(a) Includes increase/(decrease) in cash and cash equivalents
for discontinued operations of ....................................... $ (12) $ 53 $ (9) $ (154)
</TABLE>
<TABLE>
<CAPTION>
CONDENSED CAPITAL EXPENDITURES
(UNAUDITED)
Millions of dollars
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Domestic Exploration & Production .......................... $ 91 $ 152 $ 418 $ 497
Foreign Exploration & Production ........................... 194 97 509 353
Geothermal & Power Operations .............................. 23 17 114 51
Diversified Businesses ..................................... 60 40 82 78
New Ventures ............................................... 3 0 5 0
Corporate & Unallocated .................................... 20 38 46 58
Discontinued Operations .................................... 67 148 224 422
------------------------------------------------------------
Total ............................................. $ 458 $ 492 $1,398 $1,459
</TABLE>
<TABLE>
<CAPTION>
DEPRECIATION, DEPLETION & AMORTIZATION
(UNAUDITED)
Millions of dollars
- ------------------------------------------------------------------------------------------------------------------------------------
Depreciation, Depletion & Amortization
<S> <C> <C> <C> <C>
Continuing operations .................................. $297 $287 $914 $911
Discontinued operations ................................ $ 38 $ 31 $147 $111
</TABLE>
Table 2
<TABLE>
<CAPTION>
NEWS RELEASE UNOCAL CORPORATION
RESULTS OF OPERATIONS FOR
EXPLORATION AND PRODUCTION ACTIVITIES
(UNAUDITED)
For the Three Months For the Three Months
Ended December 31, 1996 Ended December 31, 1995
-----------------------------------------------------------------
Millions of dollars Domestic Foreign Total Domestic Foreign Total
- ------------------------------------------------------------------------------------------------------------------------------------
Sales (includes intercompany sales)
<S> <C> <C> <C> <C> <C> <C>
Crude oil and condensate .............................. $ 176 $ 162 $ 338 $ 161 $ 123 $ 284
Natural gas ........................................... 235 180 415 169 133 302
Natural gas liquids ................................... 25 8 33 15 6 21
Other ................................................. 1 0 1 1 0 1
---------------------------------------------------------------
Total .......................................... 437 350 787 346 262 608
Other revenue ................................................. 16 11 27 62 5 67
Gain/(loss) on asset sales .................................... (11) 0 (11) 48 (4) 44
---------------------------------------------------------------
Total revenues ................................. 442 361 803 456 263 719
Production costs .............................................. 70 57 127 92 52 144
Exploration expenses .......................................... 7 26 33 13 40 53
Dry hole costs ................................................ 18 46 64 9 2 11
Depreciation, depletion & amortization ........................ 184 70 254 163 118 281
Other operating expenses ...................................... 42 15 57 26 22 48
---------------------------------------------------------------
Results of operations before income tax ............... $ 121 $ 147 $ 268 $ 153 $ 29 $ 182
</TABLE>
<TABLE>
<CAPTION>
For the Twelve Months For the Twelve Months
Ended December 31, 1996 Ended December 31, 1995
-----------------------------------------------------------------------
Domestic Foreign Total Domestic Foreign Total
-----------------------------------------------------------------------
Sales (includes intercompany sales)
<S> <C> <C> <C> <C> <C> <C>
Crude oil and condensate ........................... $ 672 $ 577 $1,249 $ 684 $ 486 $1,170
Natural gas ........................................ 858 577 1,435 598 453 1,051
Natural gas liquids ................................ 76 23 99 66 19 85
Other .............................................. 4 0 4 3 0 3
------------------------------------------------------------------
Total ....................................... 1,610 1,177 2,787 1,351 958 2,309
Other revenue .............................................. 26 28 54 113 26 139
Gain on asset sales ........................................ 107 24 131 52 7 59
------------------------------------------------------------------
Total revenues .............................. 1,743 1,229 2,972 1,516 991 2,507
Production costs ........................................... 300 208 508 394 181 575
Exploration expenses ....................................... 26 85 111 39 97 136
Dry hole costs ............................................. 67 64 131 36 21 57
Depreciation, depletion & amortization ..................... 526 277 803 537 290 827
Other operating expenses ................................... 155 49 204 124 72 196
------------------------------------------------------------------
Results of operations before income tax ............ $ 669 $ 546 $1,215 $ 386 $ 330 $ 716
</TABLE>
Table 3
<TABLE>
<CAPTION>
NEWS RELEASE UNOCAL CORPORATION
RESULTS OF OPERATIONS FOR
EXPLORATION AND PRODUCTION ACTIVITIES
(RESTATED TO EXCLUDE MIDSTREAM NEW VENTURES EXPENSES)
(UNAUDITED)
For the Three Months For the Three Months
Ended September 30, 1996 Ended June 30, 1996
----------------------------------------------------------------------
Millions of dollars Domestic Foreign Total Domestic Foreign Total
- ------------------------------------------------------------------------------------------------------------------------------------
Sales (includes intercompany sales)
<S> <C> <C> <C> <C> <C> <C>
Crude oil and condensate ........................... $161 $142 $303 $154 $150 $304
Natural gas ........................................ 196 142 338 201 128 329
Natural gas liquids ................................ 18 4 22 18 5 23
Other .............................................. 1 0 1 1 0 1
---- ----
Total ....................................... 376 288 664 374 283 657
Other revenue .............................................. 5 7 12 2 4 6
Gain on asset sales ........................................ 3 18 21 111 0 111
---- ----
Total revenues .............................. 384 313 697 487 287 774
Production costs ........................................... 65 51 116 72 49 121
Exploration expenses ....................................... 8 22 30 7 20 27
Dry hole costs ............................................. 38 12 50 1 3 4
Depreciation, depletion & amortization ..................... 112 61 173 103 84 187
Other operating expenses ................................... 38 13 51 34 13 47
---- ----
Results of operations before income tax ............ $123 $154 $277 $270 $118 $388
</TABLE>
<TABLE>
<CAPTION>
For the Three Months
Ended March 31, 1996
--------------------------------------------
Millions of dollars Domestic Foreign Total
- ------------------------------------------------------------------------------------------------------------------------------------
Sales (includes intercompany sales)
<S> <C> <C> <C>
Crude oil and condensate .......................................... $181 $123 $304
Natural gas ....................................................... 226 127 353
Natural gas liquids ............................................... 15 6 21
Other ............................................................. 1 0 1
------------------------------------------
Total ...................................................... 423 256 679
Other revenue ............................................................. 3 6 9
Gain on asset sales ....................................................... 4 6 10
------------------------------------------
Total revenues ............................................. 430 268 698
Production costs .......................................................... 93 51 144
Exploration expenses ...................................................... 4 17 21
Dry hole costs ............................................................ 10 3 13
Depreciation, depletion & amortization .................................... 127 62 189
Other operating expenses .................................................. 41 8 49
------------------------------------------
Results of operations before income tax ........................... $155 $127 $282
</TABLE>
Table 4
<TABLE>
<CAPTION>
NEWS RELEASE UNOCAL CORPORATION
OPERATING HIGHLIGHTS
(UNAUDITED)
For the Three Months For the Twelve Months
Ended December 31 Ended December 31
----------------------------------------------------------
1996 1995 1996 1995
- ------------------------------------------------------------------------------------------------------------------------------------
Net daily production
Crude oil and condensate (thousand barrels daily):
<S> <C> <C> <C> <C>
Domestic (a) .................................... 86.7 121.0 95.8 125.1
Foreign:
Far East (b) ............................... 87.6 86.4 83.7 85.1
Other ....................................... 25.3 28.2 27.1 30.2
----------------------------------------------------------
Total Foreign ......................... 112.9 114.6 110.8 115.3
----------------------------------------------------------
Worldwide .............................................. 199.6 235.6 206.6 240.4
Natural gas (million cubic feet daily):
Domestic (a) .................................... 1,053 1,078 1,075 1,103
Foreign:
Far East (b) ............................... 797 643 669 609
Other ....................................... 59 67 68 53
----------------------------------------------------------
Total Foreign ......................... 856 710 737 662
---------------------------------------------------------
Worldwide .............................................. 1,909 1,788 1,812 1,765
Natural gas liquids (thousand barrels daily) (a) 20.2 20.4 19.5 21.0
Geothermal (million kilowatt-hours daily) 19.9 16.7 18.0 16.1
Average sales prices
Crude oil and condensate (per barrel):
Domestic ..................................... $22.10 $14.59 $19.21 $15.03
Foreign:
Far East ................................ $21.62 $16.02 $19.17 $16.09
Other ................................... $21.48 $15.23 $19.20 $15.69
Total Foreign ..................... $21.58 $15.75 $19.18 $15.95
----------------------------------------------------------
Worldwide .......................................... $21.85 $15.07 $19.20 $15.40
Natural gas (per mcf):
Domestic $ 2.59 $ 1.75 $ 2.30 $ 1.56
Foreign:
Far East $ 2.39 $ 2.13 $ 2.28 $ 2.04
Other $ 1.95 $ 1.82 $ 1.85 $ 1.39
Total Foreign $ 2.36 $ 2.10 $ 2.23 $ 1.98
------------------------------------------------------------------------------------------------------------------------------
Worldwide $ 2.49 $ 1.89 $ 2.27 $ 1.72
(a) Includes production from California upstream properties of:
Crude oil and condensate ........................................ 0.9 28.1 7.4 27.9
Natural gas ..................................................... 0 54 13 61
Natural gas liquids ............................................. 0.0 0.6 0.1 0.7
(b) Includes host country share in Indonesia of:
Crude oil and condensate ........................................ 29.9 25.8 27.6 30.3
Natural gas ..................................................... 28 20 27 22
</TABLE>
Table 5
<TABLE>
<CAPTION>
NEWS RELEASE UNOCAL CORPORATION
OPERATING HIGHLIGHTS (continued)
(UNAUDITED)
For the Three Months For the Twelve Months
Ended December 31 Ended December 31
---------------------------------------------------------
1996 1995 1996 1995
- ------------------------------------------------------------------------------------------------------------------------------------
Agricultural products production volumes (thousand tons)
<S> <C> <C> <C> <C>
Ammonia ....................................................... 379 319 1,468 1,307
Urea .......................................................... 286 276 1,131 1,082
Other products ................................................ 164 292 658 775
Agricultural products sales volumes (thousand tons)
Ammonia ....................................................... 134 154 708 654
Urea .......................................................... 343 224 1,122 997
Other products ................................................ 269 215 1,240 1,177
</TABLE>
Table 6
<TABLE>
<CAPTION>
NEWS RELEASE UNOCAL CORPORATION
EARNINGS BY BUSINESS SEGMENT
(Unaudited)
4th Quarter of 1996 4th 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 ............................................ $ 121 $ 71 $ 153 $ 95
Foreign .................................................. 147 71 29 18
GEOTHERMAL AND POWER OPERATIONS ................................ (109) (70) 8 5
DIVERSIFIED BUSINESSES
Agricultural Products .................................... 39 25 25 19
Carbon and Minerals ...................................... 7 7 17 12
Pipelines ................................................ 22 18 19 16
Other .................................................... 7 5 1 --
NEW VENTURES ................................................... (16) (10) -- --
CORPORATE AND UNALLOCATED
Administrative and general expense ....................... (39) (24) (36) (27)
Net interest expense ..................................... (59) (40) (58) (38)
Environmental and litigation expense ..................... (94) (59) (56) (35)
Other .................................................... (5) 9 (24) (32)
---------------------------------------------------------
Earnings from continuing operations ............................ 21 3 78 33
Earnings (loss) from discontinued operations ................... (805) (500) 23 16
---------------------------------------------------------
Total .............................................. $(784) $(497) $ 101 $ 49
=========================================================
</TABLE>
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.
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 - principally includes the company's equity interest in The UNO-VEN
Company, a refining and marketing partnership in the midwestern United
States.
NEW VENTURES - this segment pursues foreign midstream business development
projects.
Table 7
<TABLE>
<CAPTION>
NEWS RELEASE UNOCAL CORPORATION
SPECIAL ADJUSTMENTS
(Unaudited)
4th Quarter of 1996 4th 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 (loss) ........................................... $ (784) $ (497) $ 101 $ 49
Less: Special items
ExPLORATION & PRODUCTION
UNITED STATES
Asset Sales ............................................. (6) (4) 44 27
Sale of California oil and gas properties ............... (5) (3) -- --
Settlement of Federal leases ............................ 12 7 -- --
FAS 121 Impairment ...................................... (52) (32) (44) (27)
Resturcturing provision ................................. (7) (4)
Columbia Gas Settlement ................................. -- -- 55 34
FOREIGN
FAS 121 Impairment ...................................... -- -- (43) (26)
GEOTHERMAL AND POWER OPERATIONS
Asset Sales ............................................. (92) (57) -- --
FAS 121 Impairment ...................................... (23) (14) -- --
Other ................................................... 3 2 -- --
DIVERSIFIED BUSINESSES
Asset Sales
Pipeline ............................................. 3 2 -- --
Litigation provision - Carbon and Minerals .............. (2) (1) -- --
CORPORATE & UNALLOCATED
Asset Sales ............................................. 3 2 9 5
Environmental provision ................................. (41) (26) (10) (7)
Litigation provision .................................... (42) (26) (33) (20)
Asset write-downs ....................................... -- -- (3) (2)
Other ................................................... (4) (3) (14) (28)
DISCONTINUED OPERATIONS
Asset Sales ............................................. -- -- 1 1
Litigation provision .................................... 1 1 -- --
Loss on disposal ........................................ (792) (491) -- --
--------------------------------------------------------
Total special items ........................................... (1,044) (647) (38) (43)
--------------------------------------------------------
ADJUSTED EARNINGS .................................................. $ 260 $ 150 $ 139 $ 92
Less: Dividends on preferred stock ................................. -- 9
--------------------------------------------------------
ADJUSTED NET EARNINGS APPLICABLE TO COMMON SHARES .................. 150 83
--------------------------------------------------------
ADJUSTED NET EARNINGS PER COMMON SHARE ............................. $ 0.60 $ 0.34
</TABLE>
Table 8
<TABLE>
<CAPTION>
NEWS RELEASE UNOCAL CORPORATION
EARNINGS BY BUSINESS SEGMENT
EXCLUDING SPECIAL ADJUSTMENTS
(Unaudited)
4th Quarter of 1996 4th 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 ............................................ $ 179 $ 107 $ 98 $ 61
Foreign .................................................. 147 71 72 44
GEOTHERMAL AND POWER OPERATIONS ................................ 3 (1) 8 5
DIVERSIFIED BUSINESSES
Agricultural Products .................................... 39 25 25 19
Carbon and Minerals ...................................... 9 8 17 12
Pipelines ................................................ 19 16 19 16
Other .................................................... 7 5 1 --
NEW VENTURES ................................................... (16) (10) -- --
CORPORATE AND UNALLOCATED
Administrative and general expense ....................... (39) (24) (36) (27)
Net interest expense ..................................... (59) (40) (58) (38)
Environmental and litigation expense ..................... (11) (7) (13) (8)
Other .................................................... (4) 10 (16) (7)
----------------------------------------------------------
Earnings from continuing operations ............................ 274 160 117 77
Earnings (loss) from discontinued operations ................... (14) (10) 22 15
----------------------------------------------------------
Total .............................................. $ 260 $ 150 $ 139 $ 92
==========================================================
</TABLE>
Table 9
<TABLE>
<CAPTION>
NEWS RELEASE UNOCAL CORPORATION
EARNINGS BY BUSINESS SEGMENT
(Unaudited)
For Twelve Months For Twelve Months
Ended December 31, 1996 Ended December 31, 1995
-------------------------------------------------------------------
Millions of dollars Before-tax After-tax Before-tax After-tax
- ------------------------------------------------------------------------------------------------------------------------------------
PETROLEUM
Exploration and Production
<S> <C> <C> <C> <C>
United States ............................................ $ 669 $ 412 $ 386 $ 240
Foreign .................................................. 546 316 330 181
GEOTHERMAL AND POWER OPERATIONS ................................ (76) (55) 47 26
DIVERSIFIED BUSINESSES
Agricultural Products .................................... 152 98 113 74
Carbon and Minerals ...................................... 59 47 72 52
Pipelines ................................................ 86 69 82 66
Other .................................................... 22 14 15 9
NEW VENTURES ................................................... (36) (23) -- --
CORPORATE AND UNALLOCATED
Administrative and general expense ....................... (126) (79) (127) (84)
Net interest expense ..................................... (256) (175) (257) (178)
Environmental and litigation expense ..................... (230) (143) (148) (92)
Other .................................................... (52) (25) (38) (45)
---------------------------------------------------------
Earnings from continuing operations ............................ 758 456 475 249
Earnings (loss) from discontinued operations ................... (677) (420) (12) 11
---------------------------------------------------------
Total .............................................. $ 81 $ 36 $ 463 $ 260
=========================================================
</TABLE>
Table 10
<TABLE>
<CAPTION>
NEWS RELEASE UNOCAL CORPORATION
SPECIAL ADJUSTMENTS
(Unaudited)
For the Twelve Months For the Twelve Months
Ended December 31, 1996 Ended December 31, 1995
-----------------------------------------------------------------
Dollars in millions except per share amounts Before-tax After-tax Before-tax After-tax
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Reported earnings ...................................................... $ 81 $ 36 $ 463 $ 260
Less: Special items
EXPLORATION & PRODUCTION
UNITED STATES
Asset Sales ................................................ 2 1 52 32
Sale of California oil and gas properties ................ 105 65 -- --
Asset write-downs .......................................... -- -- (13) (8)
Settlement of Federal leases ............................... 12 7 29 18
FAS 121 Impairment ......................................... (52) (32) (44) (27)
Restructuring provision .................................... (7) (4) -- --
Columbia Gas Settlement .................................... -- -- 55 34
FOREIGN
Asset Sales ................................................ 24 41 6 3
FAS 121 Impairment ......................................... -- -- (43) (26)
GEOTHERMAL AND POWER OPERATIONS
Asset Sales ................................................ (92) (57) 9 7
FAS 121 Impairment ......................................... (23) (14) -- --
Other ...................................................... 3 2 -- --
DIVERSIFIED BUSINESSES
Asset Sales
Pipeline ................................................ 15 9 -- --
Agricultural Products ................................... -- -- 6 4
Litigation provision - Carbon and Minerals ................. (2) (1) -- --
CORPORATE & UNALLOCATED
Asset Sales ................................................ 18 11 40 24
Environmental provision .................................... (103) (64) (41) (26)
Litigation provision ....................................... (93) (58) (60) (37)
Asset write-downs .......................................... -- -- (6) (4)
Other ...................................................... (15) (12) (14) (32)
DISCONTINUED OPERATIONS
Asset Sales ................................................ 1 1 1 1
Sale of California oil and gas properties ................ 4 2 -- --
Litigation ................................................. (2) (1) -- --
Asset write-downs .......................................... (6) (4) -- --
Other ...................................................... 11 7 -- --
Loss on disposal ........................................... (792) (491) -- --
-----------------------------------------------------
Total special items ............................................... (992) (592) (23) (37)
-----------------------------------------------------
ADJUSTED EARNINGS ...................................................... $ 1,073 $ 628 $ 486 $ 297
Less: Dividends on preferred stock ..................................... 18 36
-----------------------------------------------------
ADJUSTED NET EARNINGS APPLICABLE TO COMMON SHARES ...................... 610 261
-----------------------------------------------------
ADJUSTED NET EARNINGS PER COMMON SHARE ................................. $ 2.45 $ 1.06
</TABLE>
* Net of provision for environmental remediation of $17 million before-tax and
$10 milion after-tax.
Table 11
<TABLE>
<CAPTION>
NEWS RELEASE UNOCAL CORPORATION
EARNINGS BY BUSINESS SEGMENT
EXCLUDING SPECIAL ADJUSTMENTS
(Unaudited)
For Twelve Months For Twelve Months
Ended December 31, 1996 Ended December 31, 1995
--------------------------------------------------------------------
Millions of dollars Before-tax After-tax Before-tax After-tax
- ------------------------------------------------------------------------------------------------------------------------------------
PETROLEUM
Exploration and Production
<S> <C> <C> <C> <C>
United States ............................................ $ 609 $ 375 $ 307 $ 191
Foreign .................................................. 522 275 367 204
GEOTHERMAL AND POWER OPERATIONS ................................ 36 14 38 19
DIVERSIFIED BUSINESSES
Agricultural Products .................................... 152 98 107 70
Carbon and Minerals ...................................... 61 48 72 52
Pipelines ................................................ 71 60 82 66
Other .................................................... 22 14 15 9
NEW VENTURES ................................................... (36) (23) -- --
CORPORATE AND UNALLOCATED
Administrative and general expense ....................... (126) (79) (127) (84)
Net interest expense ..................................... (256) (175) (257) (178)
Environmental and litigation expense ..................... (34) (21) (47) (29)
Other .................................................... (55) (24) (58) (33)
-----------------------------------------------------------
Earnings from continuing operations ............................ 966 562 499 287
Earnings (loss) from discontinued operations ................... 107 66 (13) 10
-----------------------------------------------------------
Total .............................................. $ 1,073 $ 628 $ 486 $ 297
===========================================================
</TABLE>
Table 12
<TABLE>
<CAPTION>
NEWS RELEASE UNOCAL CORPORATION
RESTATED EARNINGS BY BUSINESS SEGMENT
(Unaudited)
1st Quarter of 1996
1st Quarter of 1996 Excluding Special Items
---------------------------------------------------------
Millions of dollars Before-tax After-tax Before-tax After-tax
- ------------------------------------------------------------------------------------------------------------------------------------
PETROLEUM
Exploration and Production
<S> <C> <C> <C> <C>
United States ............................................ $ 155 $ 96 $ 151 $ 94
Foreign .................................................. 127 70 121 66
GEOTHERMAL AND POWER OPERATIONS ................................ 9 5 9 5
DIVERSIFIED BUSINESSES
Agricultural Products .................................... 25 16 25 16
Carbon and Minerals ...................................... 26 18 26 18
Pipelines ................................................ 30 23 18 16
Other .................................................... 1 1 1 1
NEW VENTURES ................................................... (4) (2) (4) (2)
CORPORATE AND UNALLOCATED
Administrative and general expense ....................... (29) (18) (29) (18)
Net interest expense ..................................... (72) (50) (72) (50)
Environmental and litigation expense ..................... (23) (14) (7) (4)
Other .................................................... (20) (14) (21) (15)
---------------------------------------------------------
Earnings from continuing operations ............................ 225 131 218 127
Earnings (loss) from discontinued operations ................... (11) (7) (11) (7)
---------------------------------------------------------
Total .............................................. $ 214 $ 124 $ 207 $ 120
=========================================================
</TABLE>
Table 13
<TABLE>
<CAPTION>
NEWS RELEASE UNOCAL CORPORATION
RESTATED EARNINGS BY BUSINESS SEGMENT
(Unaudited)
2nd Quarter of 1996
2nd Quarter of 1996 Excluding Special Items
---------------------------------------------------------
Millions of dollars Before-tax After-tax Before-tax After-tax
- ------------------------------------------------------------------------------------------------------------------------------------
PETROLEUM
Exploration and Production
<S> <C> <C> <C> <C>
United States ............................................ $ 270 $ 168 $ 160 $ 100
Foreign .................................................. 118 68 118 68
GEOTHERMAL AND POWER OPERATIONS ................................ 9 4 9 4
DIVERSIFIED BUSINESSES
Agricultural Products .................................... 57 37 57 37
Carbon and Minerals ...................................... 11 9 11 9
Pipelines ................................................ 17 14 17 14
Other .................................................... 9 5 9 5
NEW VENTURES ................................................... (6) (4) (6) (4)
CORPORATE AND UNALLOCATED
Administrative and general expense ....................... (25) (16) (25) (16)
Net interest expense ..................................... (63) (48) (63) (48)
Environmental and litigation expense ..................... (53) (33) (7) (5)
Other .................................................... (24) (16) (13) (7)
---------------------------------------------------------
Earnings from continuing operations ............................ 320 188 267 157
Earnings from discontinued operations .......................... 80 50 76 48
---------------------------------------------------------
Total .............................................. $ 400 $ 238 $ 343 $ 205
=========================================================
</TABLE>
Table 14
<TABLE>
<CAPTION>
NEWS RELEASE UNOCAL CORPORATION
RESTATED EARNINGS BY BUSINESS SEGMENT
(Unaudited)
3rd Quarter of 1996
3rd Quarter of 1996 Excluding Special Items
-----------------------------------------------------------
Millions of dollars Before-tax After-tax Before-tax After-tax
- -----------------------------------------------------------------------------------------------------------------------------------
PETROLEUM
Exploration and Production
<S> <C> <C> <C> <C>
United States ............................................ $ 123 $ 77 $ 119 $ 74
Foreign .................................................. 154 107 136 70
GEOTHERMAL AND POWER OPERATIONS ................................ 15 6 15 6
DIVERSIFIED BUSINESSES
Agricultural Products .................................... 31 20 31 20
Carbon and Minerals ...................................... 15 13 15 13
Pipelines ................................................ 17 14 17 14
Other .................................................... 5 3 5 3
NEW VENTURES ................................................... (10) (7) (10) (7)
CORPORATE AND UNALLOCATED
Administrative and general expense ....................... (33) (21) (33) (21)
Net interest expense ..................................... (62) (37) (62) (37)
Environmental and litigation expense ..................... (60) (37) (9) (5)
Other .................................................... (3) (4) (17) (12)
---------------------------------------------------------
Earnings from continuing operations ............................ 192 134 207 118
Earnings from discontinued operations .......................... 59 37 56 35
---------------------------------------------------------
Total .............................................. $ 251 $ 171 $ 263 $ 153
=========================================================
</TABLE>
Table 15
