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) April 25, 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)
<PAGE>
Item 5. Other Events.
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First Quarter 2000 Earnings
Unocal Corporation's net earnings were $133 million, or 55 cents per
share diluted, for the first quarter of 2000, with $124 million from continuing
operations and $9 million from discontinued operations. This compared to $7
million, or 3 cents per share diluted, for the first quarter of 1999, with $4
million from continuing operations and $3 million from discontinued operations.
Discontinued operations include the results of the company's Agricultural
Products business segment, whose sale is pending. The sale is subject to
clearance by the U.S. Federal Trade Commission.
The first quarter 2000 results benefited principally from higher oil
and gas prices. The company's worldwide average crude oil price increased by
$13.99 per barrel, or 135 percent, to $24.39 per barrel from the same period a
year ago. The company's worldwide average natural gas price increased by $0.42
per thousand cubic feet, or 23 percent, to $2.25 per mcf from the same period a
year ago. The first quarter of 2000 included an after-tax restructuring charge
of $11 million while the first quarter of 1999 included an after-tax loss of $10
million from the sale of the company's interest in a geothermal steam production
operation at The Geysers in Northern California.
Total revenues from continuing operations for the first quarter of 2000
were $1.9 billion, compared with $1.2 billion for the first quarter of 1999.
Capital spending for the first quarter of 2000 was $295 million,
compared with $225 million for the first quarter of 1999.
Total debt at the end of the first quarter of 2000 was $2.688 billion,
compared with $2.853 billion at the end of 1999.
Outlook and Other Matters
The company expects adjusted after-tax earnings per share to exceed
$0.50 for the second quarter of 2000, assuming an average West Texas
Intermediate (WTI) crude oil price of $25.60 per barrel and a Henry Hub natural
gas price of $2.95 per mmbtu. The company also expects adjusted after-tax
earnings per share of $2.20 to $2.50 for the full year 2000, assuming an average
WTI crude oil price of $25.70 per barrel and a Henry Hub natural gas price of
$2.90 per mmbtu. The second quarter and full year forecasts are also dependent
on the company's deepwater drilling success.
The company has engaged a financial advisor to assist in the possible
sale of Poco Graphite, Inc., a Texas-based subsidiary which produces specialty
graphite products, and certain other assets located in Illinois that manufacture
petroleum coke products. This proposed sale is part of the company's continuing
transformation into a global energy resource and project development company.
Forward-looking statements and estimates regarding exploration and production
activities, production levels, oil and gas prices and their related earnings
effects, proposed asset sales, costs and capital expenditures in this filing are
based on assumptions about operational, market, competitive, regulatory,
environmental, political and other considerations. 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: May 1, 2000 By: /s/ JOE D. CECIL
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Joe D. Cecil
Vice President and Comptroller
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<TABLE>
<CAPTION>
CONSOLIDATED RESULTS
(UNAUDITED)
For the Three Months
Ended March 31
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Millions of dollars except per share amounts 2000 1999
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<S> ...................................................................................... <C> <C>
Earnings from continuing operations ...................................................... $ 124 $ 4
Earnings from discontinued operations .................................................... 9 3
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Net earnings ......................................................................... $ 133 $ 7
Special items ............................................................................ (6) (13)
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Adjusted after-tax earnings ......................................................... $ 139 $ 20
Diluted net earnings per share:
Continuing operations................................................................ $ 0.51 $ 0.02
Discontinued operations.............................................................. $ 0.04 $ 0.01
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Diluted net earnings per share ........................................................... $ 0.55 $ 0.03
Diluted adjusted after-tax earnings per share ............................................ $ 0.57 $ 0.08
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Tota revenues from continuing operations.................................................. $ 1,881 $ 1,168
</TABLE>
<TABLE>
<CAPTION>
ADJUSTED AFTER-TAX EARNINGS BY BUSINESS SEGMENT
(UNAUDITED)
For the Three Months
Ended March 31
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Millions of dollars 2000 1999
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Exploration & Production
North America
<S> ...................................................................................... <C> <C>
Lower 48 (a) ................................................................... 63 1
Alaska ......................................................................... 24 2
Canada (a) ..................................................................... 4 4
International
Far East ....................................................................... 82 48
Other .......................................................................... (2) (19)
Global Trade ............................................................................. (2) 2
Pipelines ................................................................................ 15 17
Geothermal and Power Operations .......................................................... 9 10
Carbon & Minerals (a) .................................................................... 8 9
Corporate and Unallocated
Administrative & General ....................................................... (22) (21)
Interest Expense - Net (a) ..................................................... (36) (31)
Environmental & Litigation ..................................................... (3) (2)
Other .......................................................................... (1) (3)
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Adjusted after-tax earnings from continuing operations ................................... 139 17
Adjusted after-tax earnings from discontinued operations ................................. -- 3
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Adjusted after-tax earnings .............................................................. $ 139 $ 20
====================================================================================================================================
<FN>
(a) Includes minority interests of:
Lower 48 ....................................................................... (5) 1
Canada ......................................................................... 8 --
Carbon & Minerals .............................................................. -- (1)
Corporate and Unallocated ...................................................... 1 --
</FN>
</TABLE>
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<PAGE>
<TABLE>
<CAPTION>
OPERATING HIGHLIGHTS
(UNAUDITED)
For the Three Months
Ended March 31
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2000 1999
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North America Net Daily Production
Crude oil (thousand barrels)
<S> ...................................................................................... <C> <C>
Lower 48 (a) ........................................................................ 45 39
Alaska .............................................................................. 27 27
Canada (b) .......................................................................... 16 8
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Total North America crude oil .................................................. 88 74
Natural gas - wet basis (million cubic feet)
Lower 48 (a) ........................................................................ 737 775
Alaska .............................................................................. 154 153
Canada (b) .......................................................................... 101 3
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Total North America natural gas ................................................ 992 931
North America Average Prices (c)
Crude oil (per barrel)
Lower 48 ............................................................................ $ 27.52 $ 11.26
Alaska .............................................................................. $ 23.15 $ 8.05
Canada .............................................................................. $ 19.24 $ 9.65
Average North America crude oil prices ......................................... $ 24.60 $ 9.85
Natural gas (per mcf)
Lower 48 ............................................................................ $ 2.50 $ 1.92
Alaska .............................................................................. $ 1.20 $ 1.20
Canada .............................................................................. $ 1.50 $ 1.84
Average North America natural gas prices ....................................... $ 2.18 $ 1.80
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International Net Daily Production (d)
Crude oil (thousand barrels)
Far East ............................................................................ 71 70
Other ............................................................................... 19 23
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Total International crude oil .................................................. 90 93
Natural gas - wet basis (million cubic feet)
Far East ............................................................................ 911 842
Other ............................................................................... 62 36
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Total International natural gas ................................................ 973 878
International Average Prices (c)
Crude oil (per barrel)
Far East ............................................................................ $ 23.63 $ 10.85
Other ............................................................................... $ 25.53 $ 11.17
Average International crude oil prices ......................................... $ 24.05 $ 10.93
Natural gas (per mcf)
Far East ............................................................................ $ 2.29 $ 1.88
Other ............................................................................... $ 2.73 $ 1.75
Average International natural gas prices ....................................... $ 2.33 $ 1.87
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Worldwide Net Daily Production (a) (b) (d)
Crude oil (thousand barrels) ........................................................... 178 167
Natural gas (million cubic feet) ....................................................... 1,965 1,809
Barrels oil equivalent (thousands) ..................................................... 506 469
Worldwide Average Prices (c)
Crude oil (per barrel) ................................................................. $ 24.39 $ 10.40
Natural gas (per mcf) .................................................................. $ 2.25 $ 1.83
<FN>
(a) production includes proportionate shares of equity affiliates .......................
(b) production includes 100% of Northrock Resources Ltd: Crude oil .................... 9 --
Natural gas .................. 99 --
(c) average prices include hedging gains and losses, but exclude other
Global Trade margins
(d) production includes certain host countries' shares of: Crude:oil .................... 29 12
Natural gas .................. 110 84
</FN>
</TABLE>
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