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 25, 2001
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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)
Item 5. Other Events.
--------------------------
Fourth Quarter 2000 Preliminary Earnings
-----------------------------------------
Unocal Corporation's preliminary net earnings were $173 million, or 70 cents per
share (diluted), for the fourth quarter of 2000, with all $173 million coming
from continuing operations. This compared to $97 million, or 40 cents per share
(diluted), for the fourth quarter of 1999, with $71 million from continuing
operations and $26 million from discontinued operations.
Earnings from continuing operations were $173 million, or 70 cents per share
(diluted), in the fourth quarter of 2000 compared to $71 million, or 29 cents
per share (diluted), for the same period a year ago. The increase was primarily
due to higher crude oil and natural gas prices. The Company's worldwide average
crude oil price was $28.30 per barrel in the fourth quarter of 2000, which was
an increase of $7.96 per barrel, or 39 percent, from the same period a year ago.
The Company's worldwide average natural gas price was $3.76 per thousand cubic
feet (mcf) in the fourth quarter of 2000, which was an increase of $1.54 per
mcf, or 69 percent, from the same period a year ago.
The fourth quarter of 2000 included $28 million in after-tax provisions for
litigation and environmental matters, a $33 million after-tax charge to
write-down the Company's investment in the Questa, New Mexico, molybdenum mining
operation, and $26 million in charges covering deferred income tax adjustments
and a provision for prior years income tax matters. The fourth quarter of 1999
included a charge of $12 million after-tax in oil and gas asset write-downs and
a charge of $5 million after-tax in environmental and litigation provisions,
which were offset by a $16 million after-tax benefit from an insurance recovery
related to various environmental matters.
There were no earnings from discontinued operations in the fourth quarter of
2000, while the earnings from discontinued operations in the fourth quarter of
1999 were $26 million, or 11 cents per share (diluted). The fourth quarter of
1999 included a $32 million after-tax benefit from a settlement with Tosco
Corporation to resolve certain contingent payment issues related to gasoline
margins in the Company's former Refining, Marketing and Transportation business
segment. This benefit was partially offset by an $11 million after-tax charge
related to the Company's disposal of the Refining, Marketing and Transportation
business segment.
For the full year 2000, the Company's preliminary net earnings were $760
million, or $3.08 per share (diluted), with $723 million from continuing
operations and $37 million from discontinued operations. This compared to $137
million, or 56 cents per share (diluted), for the full year 1999, with $113
million coming from continuing operations and $24 million from discontinued
operations.
Earnings from continuing operations were $723 million, or $2.93 per share
(diluted), for the full year of 2000 compared to $113 million, or 46 cents per
share (diluted), for the full year 1999. Higher crude oil and natural gas prices
were major factors for this increase. The Company's worldwide average crude oil
price was $26.60 per barrel for the full year of 2000, which was an increase of
$11.22 per barrel, or 73 percent, from the average price of a year ago. The
Company's worldwide average natural gas price was $2.96 per mcf for the full
year of 2000, which was an increase of 92 cents per mcf, or 45 percent, from the
average price of a year ago.
-1-
The full year of 2000 included a $55 million after-tax benefit from payments
received for infringement of one of the Company's five reformulated gasoline
patents during a five-month period in 1996, a $42 million after-tax gain from
the Pure Resources, Inc. transaction, $21 million after-tax related to an
insurance recovery and an after-tax gain of $7 million from the sale of the
Company's specialty graphite business. These positive factors were offset by $99
million in after-tax provisions for litigation and environmental matters, $48
million in after-tax losses related to commodity derivative positions of the
Company's Canadian Northrock Resources, Ltd. (Northrock) subsidiary that were
not accounted for as hedges and the $33 million after-tax charge to write-down
the Company's investment in the Questa, New Mexico molybdenum mining operation.
The full year of 1999 included after-tax charges of $19 million for
environmental and litigation provisions net of related settlement proceeds, the
$12 million for Lower 48 oil and gas asset write-downs, $11 million in
restructuring costs and $10 million related to a loss on the sale of The
Geysers, California, geothermal assets, which were partially offset by the $16
million after-tax benefit from the insurance recovery related to various
environmental matters.
Earnings from discontinued operations were $37 million, or 15 cents per share
(diluted), for the full year 2000 compared to $24 million, or 10 cents per share
(diluted), for the full year 1999.
Total revenues from continuing operations for the fourth quarter of 2000 were
$2.8 billion, compared with $1.9 billion for the fourth quarter of 1999. Total
revenues from continuing operations for the full year of 2000 were $9.2 billion,
compared with $6.0 billion for the full year of 1999. Reported revenues from
continuing operations exclude equity in earnings of affiliated companies
totaling $33 million and $23 million for the fourth quarter and $134 million and
$95 million for the full years, respectively for 2000 and 1999.
Capital spending for the fourth quarter of 2000 was $430 million, compared with
$410 million for the fourth quarter of 1999. The fourth quarter of 2000 capital
spending amount excluded $157 million to acquire additional interests in the
Makassar Strait and Rapak production-sharing contract areas in Indonesia.
Capital spending for the full year of 2000 was $1,302 million, compared with
$1,171 million for full year of 1999. Capital spending of $1,302 million for the
full year of 2000 excluded the aforementioned $157 million and $161 million for
the acquisition of the remaining Northrock common shares. The capital spending
of $1,171 million for the full year of 1999 excluded $205 million for the
initial acquisition of Northrock shares.
The Company's total debt, including current maturities, at the end of 2000 was
$2.51 billion, compared with $2.85 billion at the end of 1999.
Outlook
--------
The Company projects adjusted after-tax earnings to be $1.25 to $1.35 per share
(diluted) for the first quarter of 2001, assuming an average benchmark West
Texas Intermediate (WTI) crude oil price of $28 per barrel and a benchmark Henry
Hub natural gas price of $7.50 per million British thermal units (MMBtu). The
Company also projects adjusted after-tax earnings to be $2.90 to $3.15 per share
(diluted) for the full year 2001. The full year 2001 earnings projection assumes
an average benchmark WTI crude oil price of $25 per barrel and a benchmark Henry
Hub natural gas price of $4.75 per MMBtu.
The Company's projected adjusted after-tax earnings for the full year 2001 are
estimated to change 13 cents per share for every $1 change in its average
worldwide realized price of oil and 7 cents per share for every 10 cent change
in the Company's average Lower 48 realized natural gas price.
The Company's projected 2001 adjusted after-tax earnings assumes dry hole costs
of $200 to $280 million (63% to 48% success rate) for the full year and $60 to
$65 million for the first quarter. The Company's projected adjusted after-tax
earnings are estimated to change 13 cents per share for every 10-percent change
in the overall success rate of its exploration drilling program.
-2-
The Company's net crude oil and natural gas production is projected to increase
by about five percent. The Company expects that net worldwide daily production
for 2001 will average about 530,000 to 540,000 barrels-of-oil equivalent (BOE),
up from 509,000 BOE for 2000. First quarter 2001 daily production is expected to
average between 525,000 and 530,000 BOE, compared with 512,000 BOE in the fourth
quarter 2000.
The Company has projected its capital spending for 2001 to be approximately $1.5
to $1.6 billion (excluding significant acquisitions), up from the $1.3 billion
(excluding significant acquisitions) spent in 2000.
Forward-looking statements and estimates regarding projected earnings, capital
expenditures, acquisitions, commodity prices, dry hole costs and production
levels, 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 and subsequent reports.
-3-
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 29, 2001 By: /s/ JOE D. CECIL
------------------------- -------------------------------
Joe D. Cecil
Vice President and Comptroller
-4-
CONSOLIDATED RESULTS UNOCAL CORPORATION
(UNAUDITED)
For the Three Months For the Twelve Months
Ended December 31, Ended December 31,
---------------------- ----------------------
Millions of dollars except per share amounts 2000 1999 2000 1999
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Adjusted after-tax earnings from continuing operations $ 261 $ 72 $ 798 $ 149
Special items (88) (1) (75) (36)
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Earnings from continuing operations $ 173 $ 71 $ 723 $ 113
Earnings from discontinued operations - 26 37 24
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Net earnings $ 173 $ 97 $ 760 $ 137
==================================================================================================================
DILUTED EARNINGS PER SHARE DATA (UNAUDITED)
Adjusted after-tax earnings per share from continuing operations $ 1.04 $ 0.30 $ 3.22 $ 0.61
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Net earnings per share:
Continuing operations $ 0.70 $ 0.29 $ 2.93 $ 0.46
Discontinued operations - 0.11 0.15 0.10
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Total net earnings per share $ 0.70 $ 0.40 $ 3.08 $ 0.56
==================================================================================================================
REVENUES FROM CONTINUING OPERATIONS (UNAUDITED)(a) $ 2,783 $ 1,905 $ 9,202 $ 5,962
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(a) Excludes equity in earnings of affiliated companies of: $ 33 $ 23 $ 134 $ 95
ADJUSTED AFTER-TAX EARNINGS
BY BUSINESS SEGMENT
(UNAUDITED)
For the Three Months For the Twelve Months
Ended December 31, Ended December 31,
---------------------- ----------------------
Millions of dollars 2000 1999 2000 1999
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Exploration & Production
North America
Lower 48 (a) $ 149 $ 26 $ 408 $ 50
Alaska 23 20 92 36
Canada (a) 14 5 17 14
International
Far East 127 57 417 222
Other 14 4 46 (26)
Global Trade 2 1 5 (2)
Pipelines 7 16 53 62
Geothermal and Power Operations 6 2 24 24
Carbon & Minerals (a) 1 1 25 23
Corporate and Unallocated
Administrative & General (26) (16) (88) (81)
Interest Expense - Net (a) (36) (37) (145) (138)
Environmental & Litigation (2) (2) (13) (10)
Other (18) (5) (43) (25)
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Adjusted after-tax earnings from continuing operations $ 261 $ 72 $ 798 $ 149
Adjusted after-tax earnings from discontinued operations - 5 - 9
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Adjusted after-tax earnings $ 261 $ 77 $ 798 $ 158
==================================================================================================================
(a) Includes minority interests of:
Lower 48 (14) (4) (39) (11)
Canada 1 (3) 20 (5)
Carbon & Minerals - - - (2)
Corporate and Unallocated - (1) 3 2
-5-
OPERATING HIGHLIGHTS UNOCAL CORPORATION
(UNAUDITED)
For the Three Months For the Twelve Months
Ended December 31, Ended December 31,
------------------------ -----------------------
2000 1999 2000 1999
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North America Net Daily Production
Crude oil (thousand barrels)
Lower 48 (a) 46 41 45 40
Alaska 25 28 26 27
Canada (a) 15 14 15 12
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Total North America crude oil 86 83 86 79
Natural gas - wet basis (million cubic feet)
Lower 48 (a) 852 722 786 747
Alaska 90 154 128 133
Canada (a) 104 105 99 70
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Total North America natural gas 1,046 981 1,013 950
North America Average Prices (b)
Crude oil (per barrel)
Lower 48 $ 30.43 $ 21.90 $ 28.69 $ 16.65
Alaska $ 28.03 $ 18.35 $ 25.20 $ 13.05
Canada $ 22.54 $ 17.77 $ 22.75 $ 13.99
Average North America crude oil prices $ 28.32 $ 20.01 $ 26.57 $ 14.99
Natural gas (per mcf)
Lower 48 $ 5.27 $ 2.41 $ 3.93 $ 2.17
Alaska $ 1.20 $ 1.20 $ 1.20 $ 1.20
Canada $ 3.20 $ 2.28 $ 2.30 $ 2.31
Average North America natural gas prices $ 4.69 $ 2.19 $ 3.40 $ 2.03
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International Net Daily Production (c)
Crude oil (thousand barrels)
Far East 69 76 70 73
Other 17 21 19 23
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Total International crude oil 86 97 89 96
Natural gas - wet basis (million cubic feet)
Far East 940 825 936 847
Other 58 53 58 39
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Total International natural gas 998 878 994 886
International Average Prices (b)
Crude oil (per barrel)
Far East $ 28.07 $ 20.08 $ 26.17 $ 15.38
Other $ 29.08 $ 22.08 $ 27.84 $ 16.80
Average International crude oil prices $ 28.28 $ 20.73 $ 26.64 $ 15.81
Natural gas (per mcf)
Far East $ 2.68 $ 2.22 $ 2.46 $ 2.03
Other $ 2.86 $ 2.74 $ 2.81 $ 2.19
Average International natural gas prices $ 2.69 $ 2.25 $ 2.48 $ 2.04
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Worldwide Net Daily Production (a) (c)
Crude oil (thousand barrels) 172 180 175 175
Natural gas - wet basis (million cubic feet) 2,044 1,859 2,007 1,836
Barrels oil equivalent (thousands) 512 490 509 481
Worldwide Average Prices (b)
Crude oil (per barrel) $ 28.30 $ 20.34 $ 26.60 $ 15.38
Natural gas (per mcf) $ 3.76 $ 2.22 $ 2.96 $ 2.04
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(a) production includes 100 percent of production of consolidated subsidiaries and proportionate share of equity affiliates.
(b) average prices include hedging gains and losses but exclude gains or losses on derivative positions not
accounted for as hedges and other Global Trade margins.
(c) production includes certain host countries' shares of: Crude oil 23 27 26 24
Natural gas 104 75 107 82
-6-
PRODUCTION PROFILE UNOCAL CORPORATION
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1999A 2000A 2001E
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Lower 48 United States
Oil/Cond (MBOPD) 40.0 45.1 49.0
Wet Gas (MMCFD) 747.0 785.6 897.9
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Total (MBOED) 176.0 176.0 198.7
Total MMBOE per year (a) 64.3 64.3 72.5
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Alaska
Oil/Cond (MBOPD) 27.0 25.6 26.0
Wet Gas (MMCFD) 133.0 128.4 114.0
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Total (MBOED) 47.0 47.0 45.0
Total MMBOE per year 17.2 17.2 16.4
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Total United States
Oil/Cond (MBOPD) 67.0 70.7 75.0
Wet Gas (MMCFD) 880.0 914.0 1,011.9
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Total (MBOED) 213.7 223.0 243.7
Total MMBOE per year (a) 78.0 81.4 88.9
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Canada
Oil/Cond (MBOPD) 12.0 15.3 15.8
Wet Gas (MMCFD) 70.0 99.2 140.0
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Total (MBOED) 31.8 31.8 39.1
Total MMBOE per year 11.6 11.6 14.3
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Total North America
Oil/Cond (MBOPD) 79.0 86.0 90.8
Wet Gas (MMCFD) 950.0 1,013.2 1,151.9
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Total (MBOED) 237.2 254.8 282.8
Total MMBOE per year (a) 86.6 93.0 103.2
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Far East
Oil/Cond (MBOPD) 73.0 70.1 68.0
Gas (MMCFD) 847.0 936.5 930.0
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Total (MBOED) 214.2 226.2 223.0
Total MMBOE per year 78.2 82.6 81.4
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Other International
Oil/Cond (MBOD) 23.0 18.5 22.4
Gas (MMCFD) 39.0 57.8 65.0
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Total (MBOED) 29.5 28.1 33.2
Total MMBOE per year 10.8 10.3 12.1
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Total International
Oil/Cond (MBOPD) 96.0 88.6 90.4
Gas (MMCFD) 886.0 994.3 995.0
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Total (MBOED) 243.7 254.3 256.2
Total MMBOE per year 88.9 92.8 93.5
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Total Worldwide Production
Oil/Cond (MBOD) 175.0 174.6 181.2
Gas (MMCFD) 1,836.0 2,007.5 2,146.9
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Total (MBOED) 481.0 509.2 539.0
Total MMBOE per year (a) 175.6 185.9 196.6
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(a) Includes equity affiliates BOE production of: 1.3 3.2 3.8
-7-
NORTH AMERICA UNOCAL CORPORATION
ADJUSTED OPERATING EXPENSES (PRE-TAX)
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Per BOE
---------------------------------
Millions of dollars except BOE amounts 1999A 2000A 2001E 1999A 2000A 2001E
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Lower 48
Production Costs $ 167 $ 208 $ 235 $ 2.84 $ 3.40 $ 3.42
Exploration Expenses 74 90 79 1.26 1.47 1.15
Dry Hole Costs 82 85 160 1.39 1.39 2.33
DD&A 365 427 471 6.21 6.97 6.86
Other 65 78 98 1.11 1.27 1.43
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Total Lower 48 operating expense $ 753 $ 888 $ 1,043 $ 12.81 $ 14.50 $15.18
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Alaska
Production Costs $ 69 $ 80 $ 83 $ 3.85 $ 4.65 $ 5.05
Exploration Expenses 2 3 2 0.11 0.17 0.12
Dry Hole Costs - 3 4 - 0.17 0.24
DD&A 53 57 51 2.96 3.31 3.11
Other 10 9 11 0.56 0.52 0.67
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Total Alaska operating expense $ 134 $ 152 $ 151 $ 7.48 $ 8.82 $ 9.19
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United States
Production Costs $ 236 $ 288 $ 318 $ 3.08 $ 3.67 $ 3.74
Exploration Expenses 76 93 81 0.99 1.18 0.95
Dry Hole Costs 82 88 164 1.07 1.12 1.93
DD&A 418 484 522 5.45 6.17 6.13
Other 75 87 109 0.98 1.11 1.28
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Total U.S. operating expense $ 887 $ 1,040 $ 1,194 $ 11.56 $ 13.25 $14.03
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Canada
Production Costs $ 35 $ 51 $ 48 $ 4.07 $ 4.38 $ 3.36
Exploration Expenses 7 7 8 0.81 0.60 0.56
Dry Hole Costs 4 7 8 0.47 0.60 0.56
DD&A 54 111 131 6.28 9.53 9.17
Other 11 13 12 1.40 1.12 0.84
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Total Canada operating expense $ 111 $ 189 $ 207 $ 13.03 $ 16.23 $14.49
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North America
Production Costs $ 271 $ 339 $ 366 $ 3.18 $ 3.76 $ 3.68
Exploration Expenses 83 100 89 0.97 1.11 0.90
Dry Hole Costs 86 95 172 1.01 1.05 1.73
DD&A 472 595 653 5.53 6.60 6.57
Other 86 100 121 1.02 1.11 1.22
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Total North America operating expense $ 998 $ 1,229 $ 1,401 $ 11.71 $ 13.63 $14.09
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-8-
INTERNATIONAL/WORLDWIDE UNOCAL CORPORATION
ADJUSTED OPERATING EXPENSES (PRE-TAX)
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Per BOE
--------------------------------
Millions of dollars except BOE amounts 1999A 2000A 2001E 1999A 2000A 2001E
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Far East
Production Costs $ 134 $ 152 $ 157 $ 1.71 $ 1.83 $ 1.93
Exploration Expenses 36 41 47 0.46 0.49 0.58
Dry Hole Costs 41 58 30 0.53 0.70 0.37
DD&A 207 221 234 2.65 2.66 2.87
Other 58 61 70 0.74 0.73 0.86
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Total Far East operating expense $ 476 $ 533 $ 538 $ 6.09 $ 6.41 $ 6.61
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Other International
Production Costs $ 44 $ 45 $ 48 $ 4.00 $ 4.50 $ 3.96
Exploration Expenses 52 33 36 4.73 3.30 2.97
Dry Hole Costs 21 3 38 1.91 0.30 3.13
DD&A 63 50 50 5.73 5.00 4.12
Other 25 32 19 2.27 3.20 1.57
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Total Other International operating expense $ 205 $ 163 $ 191 $ 18.64 $ 16.30 $15.75
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International
Production Costs $ 178 $ 197 $ 205 $ 2.00 $ 2.12 $ 2.19
Exploration Expenses 88 74 83 0.99 0.80 0.89
Dry Hole Costs 62 61 68 0.70 0.66 0.73
DD&A 270 271 284 3.03 2.91 3.04
Other 83 93 89 0.93 1.00 0.95
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Total International operating expense $ 681 $ 696 $ 729 $ 7.65 $ 7.49 $ 7.79
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Worldwide
Production Costs $ 449 $ 536 $ 571 $ 2.58 $ 2.93 $ 2.96
Exploration Expenses 171 174 172 0.98 0.95 0.89
Dry Hole Costs 148 156 240 0.85 0.85 1.24
DD&A 742 866 937 4.26 4.73 4.86
Other 169 193 210 0.98 1.05 1.09
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Total worldwide operating expense $ 1,679 $ 1,925 $ 2,130 $ 9.65 $ 10.51 $11.05
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-9-
TOTAL EXPLORTION CAPITAL AND CASH EXPENSE UNOCAL CORPORATION
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Exploration Exploration
Capital Expense
1999A 2000A 2001E 1999A 2000A 2001E
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North America
Lower 48 $275 $248 $397 $74 $90 $79
Alaska 3 3 10 2 3 2
Canada 34 33 36 7 7 8
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Total North America 312 284 443 83 100 89
International
Far East 125 100 72 36 41 47
Other International 48 14 54 52 33 36
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Total International $173 $114 $126 $88 $74 $83
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Worldwide $485 $398 $569 $171 $174 $172
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EXPLORATION DRILLING UNOCAL CORPORATION
1999A 2000A 2001E
---------------------------------------------------------------------------------------------------------------------------
Exploration Dry Success Exploration Dry Success Exploration Dry Success
Millions of dollars Drilling Holes Rate Drilling Holes Rate Drilling Holes Rate
---------------------------------------------------------------------------------------------------------------------------
North America
Lower 48 $ 246 $82 67% $ 206 $ 85 59% $ 376 $160 57%
Alaska 2 - 100% 3 3 0% 10 4 60%
Canada 20 4 80% 27 7 74% 31 8 74%
---------------------------------------------------------------------------------------------------------------------------
Total North America 268 86 68% 236 95 60% 417 172 59%
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International
Far East 118 41 65% 94 58 38% 72 30 58%
Other International 42 21 50% 13 3 77% 54 38 30%
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Total International 160 62 61% 107 61 43% 126 68 46%
---------------------------------------------------------------------------------------------------------------------------
Worldwide $ 428 $148 65% $ 343 $ 156 55% $ 543 $240 56%
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-10-
ADJUSTED DEPRECIATION, DEPLETION & AMORTIZATION UNOCAL CORPORATION
----------------------------------------------------------------------------------------------------------------------------
Amount Per BOE
Millions of dollars except BOE amounts 1999A 2000A 2001E 1999A 2000A 2001E
----------------------------------------------------------------------------------------------------------------------------
North America
Lower 48 $365 $427 $471 $6.21 $6.97 $6.86
Alaska 53 57 51 2.96 3.31 3.11
Canada 54 111 131 6.28 9.53 9.17
----------------------------------------------------------------------------------------------------------------------------
Total North America 472 595 653 5.53 6.60 6.57
International
Far East 207 221 234 2.65 2.66 2.87
Other International 63 50 50 5.73 5.00 4.12
----------------------------------------------------------------------------------------------------------------------------
Total International $270 $271 $284 $3.03 $2.91 $3.04
----------------------------------------------------------------------------------------------------------------------------
Worldwide E&P $742 $866 $937 $4.26 $4.73 $4.86
----------------------------------------------------------------------------------------------------------------------------
Global Trade 1 1 1
Pipelines 12 12 12
Geothermal and Power Operations 22 17 19
Carbon and Minerals 11 11 10
Other 10 12 18
----------------------------------------------------------------------------------------------------------------------------
Total $798 $919 $997
Discontinued operations 15 - -
----------------------------------------------------------------------------------------------------------------------------
Total DD&A $813 $919 $997
----------------------------------------------------------------------------------------------------------------------------
CAPITAL EXPENDITURES UNOCAL CORPORATION
---------------------------------------------------------------------------------------------------------------------
YTD YTD YTD
Millions of dollars 1999A 2000A 2001E
---------------------------------------------------------------------------------------------------------------------
Exploration & Production
North America
Lower 48 $ 530 $ 628 $ 727
Alaska 28 34 64
Canada (a) 112 164 129
International
Far East (b) 320 325 426
Other 118 62 152
Global Trade 3 1 2
Pipelines 7 16 34
Geothermal and Power Operations 21 18 17
Carbon & Minerals 12 26 20
Corporate and Unallocated 10 14 24
---------------------------------------------------------------------------------------------------------------------
Total capital expenditures for continuing operations 1,161 1,288 1,595
Discontinued Operations 10 14 -
---------------------------------------------------------------------------------------------------------------------
Total capital expenditures $ 1,171 $ 1,302 $ 1,595
---------------------------------------------------------------------------------------------------------------------
(a) 1999 and 2000 exclude $205mm and $161mm, respectively, for Northrock acquisition.
(b) 2000 excludes $157mm for additional interests in Indonesian production sharing contracts.
-11-
NON-E&P ADJUSTED SEGMENT EARNINGS UNOCAL CORPORATION
-----------------------------------------------------------------------------------------------------------------------
Pre-Tax After-Tax
Millions of dollars 1999A 2000A 2001E 1999A 2000A 2001E
-----------------------------------------------------------------------------------------------------------------------
Global Trade $ (7) $ 6 $ 14 $ (2) $ 5 $10
Pipelines 73 63 72 62 53 63
Geothermal and Power Operations 43 45 55 24 24 35
Carbon and Minerals 23 20 25 23 25 24
-----------------------------------------------------------------------------------------------------------------------
Total non-E&P adjusted earnings $ 132 $134 $ 166 $ 107 $107 $132
-----------------------------------------------------------------------------------------------------------------------
ADJUSTED CORPORATE AND UNALLOCATED UNOCAL CORPORATION
----------------------------------------------------------------------------------------------------------------------
Pre-Tax After-Tax
Millions of dollars 1999A 2000A 2001E 1999A 2000A 2001E
----------------------------------------------------------------------------------------------------------------------
Corporate and Unallocated
Administrative and General (117) (124) (121) (81) (88) (85)
Interest Expense - net (174) (175) (144) (138) (145) (124)
Environmental and Litigation (17) (21) (16) (10) (13) (10)
Other (23) (53) (40) (25) (43) (32)
----------------------------------------------------------------------------------------------------------------------
Total Adjusted Corporate and Unallocated $(331) $(373) $(321) $(254) $(289) $(251)
----------------------------------------------------------------------------------------------------------------------
-12-