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) December 12, 2000
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UNOCAL CORPORATION
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(Exact name of registrant as specified in its charter)
Delaware
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(State or Other Jurisdiction of Incorporation)
1-8483 95-3825062
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(Commission File Number) (I.R.S. Employer Identification No.)
2141 Rosecrans Avenue, Suite 4000, El Segundo, California 90245
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(Address of Principal Executive Offices) (Zip Code)
(310) 726-7600
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(Registrant's Telephone Number, Including Area Code)
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Item 5. Other Events.
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Projected 2001 Capital Spending
The Company expects capital spending for 2001 to approximate $1.5 to $1.6
billion, up slightly from the estimated $1.4 billion for the year 2000. The
capital spending estimates do not include significant acquisition expenditures.
The spending will add production in Southeast Asia, on the Gulf of Mexico shelf
and in the U.S. Permian Basin through the Company's 65-percent-owned Pure
Resources, Inc. (Pure) subsidiary. The spending forecast also includes higher
exploration drilling on the Company's Gulf of Mexico and East Kalimantan,
Indonesia, deepwater prospects, as well the Company's first deepwater wells
offshore Brazil and Gabon.
The Company expects to generate excess operating cash flow over the proposed
capital spending and expected common stock dividends for 2001, based on current
NYMEX commodity prices. The capital spending plan, particularly in North
America, is flexible enough that the Company can adjust it if commodity prices
significantly change. If prices hold up at current levels, the Company will
allocate most of the excess cash flow to debt reduction.
The company expects to spend about $425 million next year on projects in
Thailand and Indonesia. This includes development of the Pailin gas field and
Yala oil field in the Gulf of Thailand and the West Seno oil field in the
Makassar Strait offshore East Kalimantan. Yala is the company's first oil field
development in Thailand. About $70 million is earmarked for exploration drilling
in the two countries.
The company expects to spend about $50 million for exploration drilling on
deepwater prospects offshore Brazil and Gabon (West Africa).
The Company expects that capital expenditures for North America will total about
$930 million. This will include about $130 million for the Gulf of Mexico
deepwater exploration drilling, which is more than double the 2000 spending
level.
The Company plans to spend $530 million for exploration and development projects
on the Gulf of Mexico shelf and in the Permian Basin through its Pure
subsidiary. These projects are expected to generate additional natural gas
production volumes to take advantage of high commodity prices. The current NYMEX
average price for 2001 is well over $5 per thousand cubic feet (mcf), compared
with about $4 per mcf in 2000.
The current year capital expenditure forecast of $1.4 billion excludes $155
million to acquire the interests of Exxon Mobil affiliates in the Makassar
Strait and Rapak production-sharing contract areas in Indonesia and $161 million
to purchase the remaining publicly held common stock of Northrock Resources,
Inc., in Canada.
This filing contains certain forward-looking statements about capital
expenditures, development activities, and commodity prices. These statements are
not guarantees of future performance. The statements are based upon the
Company's current expectations and beliefs and are subject to a number of known
and unknown risks and uncertainties that could cause actual results to differ
materially from those described in the forward looking statements. Actual
results could differ materially as a result of factors discussed in Unocal 's
1999 Annual Report on Form 10-K.
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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: December 13, 2000 By: /s/ JOE D. CECIL
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Joe D. Cecil
Vice President and Comptroller
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