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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
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Date of Report (Date of earliest event reported): July 25, 1995
UNION TEXAS PETROLEUM HOLDINGS, INC.
(Exact name of registrant as specified in its charter)
Delaware 1-9019 76-0040040
(State or other (Commission (I.R.S. Employer
jurisdiction File Number) Identification No.)
of incorporation)
1330 Post Oak Boulevard, Houston, Texas 77056
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (713) 623-6544
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Item 5. Other Events.
The information set forth in the press release of the registrant dated July 25,
1995, which is filed as an exhibit hereto, is incorporated herein by reference.
Item 7. Financial Statements and Exhibits.
(c) Exhibits:
<TABLE>
<CAPTION>
Exhibit
Number Description
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<S> <C>
99.1 Press release dated July 25, 1995
</TABLE>
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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.
UNION TEXAS PETROLEUM
HOLDINGS, INC.
By: /s/ NEWTON W. WILSON, III
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NEWTON W. WILSON, III
General Counsel,
Vice President-Administration
and Secretary
Date: July 25, 1995
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INDEX TO EXHIBITS
<TABLE>
<CAPTION>
Exhibit
Number Description
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<S> <C>
99.1 Press release dated July 25, 1995
</TABLE>
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EXHIBIT 99.1
NEWS RELEASE
===============================================================================
[UNION TEXAS PETROLEUM LOGO] 1330 Post Oak Boulevard
P.O. Box 2120
Houston, Texas 77252-2120
(713) 623-6544
Contact: Carol L. Cox
(713) 968-2714
UNION TEXAS PETROLEUM REPORTS
HIGHER 1995 SECOND QUARTER EARNINGS
Earnings Are More Than Doubled From Year-Ago Levels,
Driven by Improved Sales Prices, Volumes and Ethylene Margins
Houston, July 25, 1995 -- Union Texas Petroleum Holdings, Inc. today
reported 1995 second quarter earnings of 23 cents per share, up from 9 cents
per share in 1994's corresponding period. Net income for 1995's second quarter
was $20 million, versus $8 million in the same period a year ago.
For the first six months of 1995, Union Texas' earnings were 76 cents
per share, compared to 40 cents per share in the first half of 1994. Net
income for 1995's first six months was $67 million, up from $35 million in the
corresponding period in 1994.
SECOND QUARTER RESULTS
"Union Texas' higher earnings for the second quarter of 1995 were
driven by increased sales prices, volumes and ethylene margins," said Chairman
and CEO Clark Johnson. "In the U.K. North Sea, our average sales price for oil
increased to $17.79 per barrel in the second quarter of 1995, up nearly 21%
from $14.74 per barrel a year ago. In Indonesia, we experienced a 19% gain in
LNG prices during the second quarter of 1995, averaging $3.19 per thousand
cubic feet in 1995's second quarter compared to $2.68 for the same
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2.
period in 1994. The company's average worldwide sales price for natural gas
was $2.74 per thousand cubic feet for the second quarter of 1995, versus $2.22
a year ago."
At Union Texas' ethylene operations in the United States, the
company's margins averaged about 16 cents per pound of ethylene for the second
quarter of 1995, up from 3 cents per pound for the same period in 1994. The
company's sales volumes rose to 118 million pounds of ethylene for the second
quarter of 1995, compared to 113 million pounds a year ago.
FIRST HALF EARNINGS
The independent oil and gas company said its increased earnings for
the first half of 1995 also reflected improved ethylene margins and sales
volumes and higher oil and gas sales prices. The company noted that its 1995
second quarter and first half results were affected by higher exploration
expenses, reflecting Union Texas' expanded exploration drilling activities.
Exploration expenses totaled $22 million and $38 million for the second quarter
and first half of 1995, respectively, compared to $11 million and $24 million,
respectively, for the corresponding periods a year ago.
Union Texas' average worldwide sales price for natural gas was $2.74
per thousand cubic feet for the first half of 1995, compared to $2.37 per
thousand cubic feet in 1994's same period. All of the company's oil and gas
producing operations are located overseas, where about 90% of its oil and gas
revenues are indexed to world oil prices.
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3.
Sales and operating revenues for 1995's second quarter totaled $200
million, compared to $146 million for the same period a year ago, due to higher
sales prices and volumes. For the first half of 1995, sales and operating
revenues were $440 million, up from $340 million in 1994's corresponding
period, primarily reflecting increased sales prices.
One of the largest independent producers located in the U.S.,
Houston-based Union Texas Petroleum Holdings, Inc. (NYSE: UTH) explores for and
produces oil and gas overseas primarily in the U.K. North Sea, Indonesia and
other strategic areas. The company has petrochemical operations in Louisiana.
Comparative financial highlights follow (amounts in millions, except per share
data):
<TABLE>
<CAPTION>
THREE MONTHS ENDED JUNE 30,
1995 1994
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<S> <C> <C>
Earnings per share.................... $0.23 $0.09
Net income ........................... $ 20 $ 8
Sales and operating revenues.......... $ 200 $ 146
Average common shares outstanding..... 87.7 87.7
</TABLE>
<TABLE>
<CAPTION>
SIX MONTHS ENDED JUNE 30,
1995 1994
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<S> <C> <C>
Earnings per share.................... $0.76 $0.40
Net income............................ $ 67 $ 35
Sales and operating revenues.......... $ 440 $ 340
Average common shares outstanding..... 87.7 87.7
</TABLE>
Additional financial and operating information appears on the attached pages.
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4.
UNION TEXAS PETROLEUM
FINANCIAL SUMMARY
(amount in millions, except per share data)
<TABLE>
<CAPTION>
SECOND QUARTER FIRST HALF
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1995 1994 1995 1994
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<S> <C> <C> <C> <C>
Sales and operating revenues $ 200 $ 146 $ 440 $ 340
Net income $ 20 $ 8 $ 67 $ 35
Major operations (a)
Indonesia $ 26 $ 16 $ 54 $ 45
U.K. North Sea $ 5 $ 4 $ 23 $ 19
Pakistan $ 4 $ 3 $ 8 $ 6
Petrochemicals $ 12 $ 2 $ 24 2
Earnings per share of
common stock $0.23 $0.09 $0.76 $ 0.40
Discretionary cash flow (b) $ 84 $ 54 $ 196 $ 144
Major operations (a)
Indonesia $ 41 $ 29 $ 85 $ 76
U.K. North Sea $ 29 $ 23 $ 81 $ 69
Pakistan $ 7 $ 6 $ 15 $ 13
Petrochemicals $ 20 $ 4 $ 39 $ 6
Average common shares 87.7 87.7 87.7 87.7
</TABLE>
See footnotes on page 6.
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5.
UNION TEXAS PETROLEUM
DISCRETIONARY CASH FLOW SUMMARY (b)
(amounts in millions)
<TABLE>
<CAPTION>
SECOND QUARTER FIRST HALF
--------------- ---------------
1995 1994 1995 1994
---- ---- ---- ----
<S> <C> <C> <C> <C>
Net income $ 20 $ 8 $ 67 $ 35
Less: Equity partnership
income $ (5) $ 3 $ (11) $ 10
Add: DD&A $ 38 $ 28 $ 85 $ 75
Deferred taxes $ (1) $ 2 $ (4) $ 1
Exploration expenses $ 22 $ 12 $ 38 $ 24
Unimar equity DCF (c) $ 10 $ 7 $ 21 $ 19
Discretionary cash flow $ 84 $ 54 $ 196 $ 144
</TABLE>
See footnotes on page 6.
OPERATING SUMMARY (d)
<TABLE>
<CAPTION>
SECOND QUARTER FIRST HALF
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1995 1994 1995 1994
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<S> <C> <C> <C> <C>
Net crude oil sales (MBBLS/D)
U.K. North Sea 29 26 33 30
Indonesia 6 6 6 7
Pakistan 6 5 6 4
Average crude oil prices (per BBL)
U.K. North Sea $17.79 $14.74 $16.98 $13.83
Indonesia $17.85 $15.33 $17.56 $15.01
Pakistan $14.90 $13.41 $14.77 $13.10
Net natural gas sales (MMCF/D)
Indonesian LNG 202 170 222 225
U.K. North Sea 24 7 34 23
Pakistan 45 47 44 46
Average natural gas prices (per MCF)
Indonesian LNG $ 3.19 $ 2.68 $ 3.13 $ 2.70
U.K. North Sea (e) $ 2.85 $ 1.65 $ 2.96 $ 2.71
Pakistan $ 1.30 $ 1.10 $ 1.30 $ 1.10
Ethylene (per LB)
Sales price $ .28 $ .17 $ .28 $ .16
Margins $ .16 $ .03 $ .16 $ .02
Sales volumes (MLBS/D)(f) 1,298 1,247 1,318 1,077
</TABLE>
See footnotes on page 6.
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6.
FOOTNOTES
(a) Excludes corporate items and other worldwide exploration ventures.
(b) Discretionary cash flow (DCF) is net income (less equity partnership
income) excluding depreciation, deferred taxes, and exploration expenses,
plus the company's estimated share of discretionary cash flow from its
equity interest in its Unimar partnership's Indonesian operations.
(c) Unimar equity DCF reflects the company's estimated share of discretionary
cash flow from its equity interest in its Unimar partnership's Indonesian
operations.
(d) Excludes the Unimar equity partnership.
(e) Excludes capacity charge of $6 million and $5 million in the second
quarter of 1995 and 1994, respectively, and $23 million and $21 million
in the first half of 1995 and 1994, respectively, from the North and
South Sean gas fields in the U.K. North Sea.
(f) Represents Union Texas' 41.67% net interest in the jointly-owned Geismar
ethylene plant in Louisiana.
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