Unocal Posts Record Quarterly Earnings; Lower 48 Natural Gas Production Up 22%

Apr 25, 2001, 01:00 ET from Unocal Corporation

    EL SEGUNDO, Calif., April 25 /PRNewswire/ -- Unocal Corporation
 (NYSE:   UCL) today said that increased Lower 48 natural gas prices and
 production pushed the company's first quarter 2001 earnings to $295 million,
 the highest quarterly earnings in Unocal's history.  On a per-share basis,
 Unocal reported earnings of $1.18 per share (diluted).
     The 1Q 2001 performance is more than double the $133 million, or 55 cents
 per share (diluted), reported in the first quarter a year ago.
     Adjusted aftertax earnings from continuing operations in the quarter
 (excluding special items) were $340 million, or $1.35 per share (diluted).
 This compares with adjusted earnings of $139 million, or 57 cents per share
 (diluted), in 1Q 2000.
 
 
                                                   1st       4th       1st
      CONSOLIDATED RESULTS (UNAUDITED)           Quarter   Quarter   Quarter
      Millions of dollars except                  2001      2000      2000
       per share amounts
      Adjusted after-tax earnings
       from continuing operations                 $340      $261      $139
      Special items                                (48)      (88)      (15)
      Earnings from continuing operations         $292      $173      $124
      Earnings from discontinued operations          4        --         9
      Cumulative effect of accounting change        (1)       --        --
        Net earnings                              $295      $173      $133
      DILUTED EARNINGS PER SHARE DATA
       (UNAUDITED)
      Adjusted after-tax earnings per share
       from continuing operations                $1.35     $1.04     $0.57
      Net earnings per share:
        Continuing operations                    $1.16     $0.70     $0.51
        Discontinued operations                   0.02        --      0.04
      Total net earnings per share               $1.18     $0.70     $0.55
      CASH FLOW DATA (UNAUDITED)
      Adjusted discretionary cash flow            $714      $677      $412
      Adjusted discretionary cash flow
       per share (diluted)                       $2.79     $2.64     $1.70
      REVENUES FROM CONTINUING OPERATIONS
       (UNAUDITED)                              $2,214    $2,783    $1,856
 
 
     "Unocal's Lower 48 natural gas production continued to increase for the
 fifth straight quarter, allowing us to take advantage of the strong natural
 gas market in the U.S.," said Charles R. Williamson, Unocal chief executive
 officer.  "The earnings were further helped by sales at 'bid week' prices,
 which put our realizations higher than average daily spot prices for the
 quarter."
     Unocal's first quarter Lower 48 natural gas prices averaged $6.93 per mcf,
 compared with $2.50 per mcf a year ago.  The year-to-year increase in natural
 gas prices boosted Unocal's aftertax earnings by about $215 million.
     Worldwide, Unocal's average realized natural gas price nearly doubled to
 $4.41 per mcf, compared with $2.26 per mcf in the first quarter 2000.  The
 average worldwide liquids (crude oil, condensate and natural gas liquids)
 price was $24.63 per barrel, up 4 percent.
 
     Production increases
     In the Lower 48 U.S., Unocal's net natural gas production in the first
 quarter was 874 million cubic feet per day (mmcfd), up 22 percent from
 714 mmcfd in the first quarter 2000.  The higher production was due
 principally to the GOM Muni field, which reached peak production of 130 mmcfd;
 production from newly acquired properties in the Norphlet Trend in Mobile Bay
 and other Gulf of Mexico shelf areas; and the Titan Exploration merger and
 subsequent production increases by Unocal's Pure Resources, Inc. (NYSE:   PRS)
 subsidiary (65%-owned).
     Canada natural gas production increased above 4Q 2000 levels due to the
 timing of natural gas produced from the Aitken Creek Facility.
     Worldwide consolidated net daily production in the first quarter 2001
 averaged 495,000 barrels-of-oil equivalent (BOE), up nearly 7 percent from
 464,000 BOE in the same period a year ago.
     Unocal's worldwide production and price data is now reported using the net
 economic interest method, which excludes all host countries' shares under
 foreign production-sharing contracts and concessions from reported amounts.
 The company has also changed its natural gas reporting to a dry basis and now
 includes the produced natural gas liquids with the crude oil and condensate
 volumes.  Prior period data have been restated to conform to the new reporting
 method.
     These changes in production reporting have no impact on past or expected
 revenues and cash flow.
     Production, price and certain other statistical information in the
 Quarterly Fact Book and Production Forecast have been conformed to the new
 reporting method.  The fact book and forecast are available through the
 company's web site, www.unocal.com, in the Investor Information -- Data
 Warehouse section.
 
     Financial measures
     Unocal's adjusted discretionary cash flow for the first quarter was
 $714 million, or $2.79 per share (diluted).  This compares with $412 million,
 or $1.70 per share (diluted), in the same period of 2000.
     Capital spending for the first quarter was $360 million, up from
 $295 million in the first quarter 2000.  The current year expenditures exclude
 the Pure Resources, Inc. acquisition of oil and gas properties from
 International Paper Company for $261 million.  Pure Resources is a
 consolidated subsidiary of Unocal.
     The company's long-term debt (including current maturities) was
 $2.74 billion (45% debt-to-total capitalization ratio) at the end of the
 quarter, compared with $2.51 billion (44% debt-to-total capitalization ratio)
 at the end of 2000.  The debt increase during the first quarter was due to the
 Pure Resources acquisition of various International Paper properties.  Barring
 any other substantial acquisitions, Unocal expects the debt-to-total
 capitalization ratio will decline during the remainder of the year on the
 strength of Unocal's forecasted earnings.
     First quarter revenues from continuing operations were $2.21 billion, up
 19 percent from $1.86 billion in the first quarter 2000.
 
     Special items
     Significant aftertax special charges in the first quarter 2001 included
 $31 million for environmental accruals related to downstream businesses sold
 in prior years and $17 million in non-cash, mark-to-market accruals by
 Unocal's Northrock Resources, Ltd. subsidiary that are related to commodity
 derivative positions not accounted for as hedges.
 
     Earnings/production forecast
     "We are projecting 2Q 2001 adjusted earnings from continuing operations of
 80 to 90 cents per share, depending on the outcome of our deepwater drilling
 results and other factors," Williamson said.
     The company's second quarter forecast assumes average NYMEX benchmark
 commodity prices of $27.75 per barrel of crude oil and $5.15 per mmBtu for
 natural gas.
     For the full-year 2001, Unocal currently estimates earnings of between
 $3.85 and $4.15 per share.  The full-year forecast assumes average NYMEX
 benchmark commodity prices of $28 per barrel for crude oil and $5.70 per mmBtu
 for natural gas.
     Unocal's second-quarter forecasted earnings are expected to change 3 cents
 per share for every $1 change in its average worldwide realized price for
 crude oil and 2 cents per share for every 10-cent change in the company's
 average realized Lower 48 natural gas price.  Full-year adjusted earnings are
 expected to change 13 cents per share for every $1 change in its average
 worldwide realized price for crude oil and 7 cents per share for every 10-cent
 change in the company's average realized Lower 48 natural gas price.
     The company expects that net daily worldwide production for the second
 quarter 2001 will average between 495,000 and 500,000 BOE.  For full-year
 2001, Unocal is forecasting net worldwide daily production of about 500,000 to
 510,000 BOE.  In the Lower 48, dry natural gas production is expected to
 average 880 mmcfd for the year, up from 764 mmcfd in 2000.
 
     Deepwater exploration activities
     "Unocal expects to have exploration wells under way in each of its four
 high potential deepwater areas during the second quarter," Williamson said.
     In the Gulf of Mexico, the Ponza well (Unocal, 50% W.I.) is expected to
 reach the objective zone soon.  Unocal has concluded with its partners that
 for competitive reasons the Ponza results will remain confidential at this
 time.
     The results of the current multi-well Rangass delineation drilling program
 (Unocal, 80% W.I.) offshore Indonesia in the Rapak PSC area will be announced
 after the upcoming lease sale on deepwater Kutei Basin concessions.
     In Gabon, Unocal is participating in a multi-well program (Unocal, 25%
 W.I.).  The company expects to be able to announce the results of the Renee #1
 on the Astrid East prospect and the Judy #1 on the Astrid West prospect in
 May.
     Offshore Brazil, two deepwater wells are expected to begin drilling soon.
 The wells are on the Kitty Hawk prospect in block BC-9 (Unocal, 35% W.I.) and
 the Lagosta prospect in block BES-2 (Unocal, 30% W.I.).
 
     About Unocal Corporation
     Unocal is one of the world's leading independent natural gas and crude oil
 exploration and production companies.  The company's principal operations are
 located in North America (Gulf of Mexico region, Alaska and Canada) and in
 Asia (Thailand, Indonesia, Myanmar and Bangladesh).  The company is also
 pursuing exploration programs in West Africa and Brazil.
 
     Conference call/financial database
     Unocal will broadcast its quarterly earnings conference call today at
 1 p.m. PDT (4 p.m. EDT) over the Internet.  To listen to the live webcast, go
 to the Investor Information section of the Unocal web site, www.unocal.com.
 Replays of the conference call, including questions and answers, will be
 available until May 31, 2001.
     In addition, complete detailed financial tables for the 1Q 2001 and the
 comparable prior periods are available in the "Quarterly Fact Book," which has
 been posted in the Unocal Investor Data Warehouse on the web site.
 
     This news release contains certain forward-looking statements about
 production, drilling activities, debt ratio, commodity prices, other operating
 and financial measures.  These statements are not guarantees of future
 performance.  The statements are based upon Unocal'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 2000 Form 10-K and
 other reports filed with the U.S. Securities and Exchange Commission.  Unocal
 undertakes no obligation to update the information in this news release.
 
     Production amounts include minority interest and equity investee shares in
 the U.S. Investors are urged to consider closely the disclosure in Unocal's
 2000 Form 10-K and other reports.  Copies of the company's SEC filings are
 available from the company by calling 800-252-2233.  The reports are also
 available on the Unocal web site, www.unocal.com.
 
 
      ADJUSTED AFTER-TAX EARNINGS                  1st       4th        1st
      BY BUSINESS SEGMENT (UNAUDITED)            Quarter   Quarter    Quarter
      Millions of dollars                         2001      2000       2000
      Exploration & Production
        North America
           Lower 48 (a) (b)                        241       149        63
           Alaska                                   19        23        24
           Canada (a)                               14         6         3
      International
           Far East                                106       127        82
           Other                                    22        14        (2)
      Global Trade                                   3         2        (2)
      Midstream                                      9        15        16
      Geothermal and Power Operations                1         6         9
      Corporate and Other
           Administrative & General                (23)      (26)      (22)
           Interest Expense - Net (a)              (33)      (36)      (36)
           Environmental & Litigation               (3)       (2)       (3)
           Other                                   (16)      (17)        7
      Adjusted after-tax earnings                 $340      $261      $139
      (a) Includes minority interests of:
           Lower 48                                (17)      (14)       (5)
           Canada                                   --         1         8
           Corporate and Other                       1        --         1
      (b) Includes earnings (loss) from:
           Onshore / Shelf                         264       188        75
           Deep Water                              (23)      (39)      (12)
 
 
      ADJUSTED DISCRETIONARY CASH FLOW             1st       4th        1st
       (UNAUDITED)                               Quarter   Quarter    Quarter
      Millions except per share amounts           2001      2000       2000
 
      Adjusted after-tax earnings                 $340      $261      $139
      Adjustments to earnings, excluding
       special items:
        Depreciation, depletion
         and amortization                          245       250       206
        Dry hole costs                              40        58        14
        Deferred income taxes                       60        72         6
        Exploration expenses                        34        41        49
        Capitalized interest                        (5)       (5)       (2)
          Total adjusted discretionary
           cash flow                              $714      $677      $412
 
      Diluted weighted average shares              256       256       243
      Adjusted discretionary cash flow
       per share (diluted)                        2.79      2.64      1.70
 
 
     The preceding table of discretionary cash flow, excluding special items
 and all asset sales, is provided for analysts and others in the investment
 community as a supplement to conventional financial data prepared in
 accordance with generally accepted accounting principles.  Discretionary cash
 flow assumes certain income taxes related to special items are deferred and
 does not give effect to significant uses of cash, including those for capital
 projects, debt reduction and regular dividends, some of which result from
 previous commitments, and should only be considered in conjunction with the
 full presentation of condensed consolidated cash flows in the company's
 quarterly fact book.
 
 
     OPERATING HIGHLIGHTS (UNAUDITED)               1st       4th       1st
                                                  Quarter   Quarter   Quarter
                                                   2001      2000      2000
      North America Net Daily Production
        Crude oil, condensate and
         natural gas liquids (thousand barrels)
          Lower 48 (a)                              53        52        54
          Alaska                                    24        25        28
          Canada (a)                                15        16        17
             Total crude oil, condensate and
              natural gas liquids                   92        93        99
        Natural gas - dry basis
         (million cubic feet)
          Lower 48 (a)                             874       840       714
          Alaska                                   138        87       151
          Canada (a)                               140       105        98
             Total natural gas                   1,152     1,032       963
      North America Average Prices (b)
        Crude oil, condensate and
         natural gas liquids (per barrel)
          Lower 48                              $26.71    $29.69    $25.15
          Alaska                                $22.76    $28.02    $23.15
          Canada                                $20.46    $22.55    $18.82
             Average                            $24.60    $27.97    $23.47
        Natural gas (per mcf)
          Lower 48                               $6.93     $5.27     $2.50
          Alaska                                 $1.20     $1.20     $1.20
          Canada                                 $4.22     $3.20     $1.60
            Average                              $5.87     $4.69     $2.19
 
      International Net Daily Production
        Crude oil, condensate and natural
         gas liquids (thousand barrels)
          Far East                                  50        50        46
          Other                                     19        17        18
            Total crude oil, condensate and
             natural gas liquids                    69        67        64
        Natural gas - dry basis
         (million cubic feet)
          Far East                                 793       799       781
          Other                                     57        56        61
            Total natural gas                      850       855       842
      International Average Prices (b)
        Crude oil, condensate and
         natural gas liquids (per barrel)
          Far East                              $24.25    $28.16    $23.60
          Other                                 $25.55    $29.08    $25.53
            Average                             $24.67    $28.34    $24.00
        Natural gas (per mcf)
          Far East                               $2.48     $2.68     $2.29
          Other                                  $2.89     $2.86     $2.73
            Average                              $2.50     $2.69     $2.33
      Worldwide Net Daily Production (a)
        Crude oil, condensate and natural
         gas liquids (thousand barrels)            161       160       163
        Natural gas - dry basis
         (million cubic feet)                    2,002     1,887     1,805
        Barrels oil equivalent (thousands)         495       475       464
      Worldwide Average Prices (b)
        Crude oil, condensate and
         natural gas liquids (per barrel)       $24.63    $28.12    $23.66
        Natural gas (per mcf)                    $4.41     $3.76     $2.26
 
     (a) Production includes 100 percent of production of consolidated
         subsidiaries and proportional shares of production of equity
         investees.
 
     (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.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X21583452
 
 

SOURCE Unocal Corporation
    EL SEGUNDO, Calif., April 25 /PRNewswire/ -- Unocal Corporation
 (NYSE:   UCL) today said that increased Lower 48 natural gas prices and
 production pushed the company's first quarter 2001 earnings to $295 million,
 the highest quarterly earnings in Unocal's history.  On a per-share basis,
 Unocal reported earnings of $1.18 per share (diluted).
     The 1Q 2001 performance is more than double the $133 million, or 55 cents
 per share (diluted), reported in the first quarter a year ago.
     Adjusted aftertax earnings from continuing operations in the quarter
 (excluding special items) were $340 million, or $1.35 per share (diluted).
 This compares with adjusted earnings of $139 million, or 57 cents per share
 (diluted), in 1Q 2000.
 
 
                                                   1st       4th       1st
      CONSOLIDATED RESULTS (UNAUDITED)           Quarter   Quarter   Quarter
      Millions of dollars except                  2001      2000      2000
       per share amounts
      Adjusted after-tax earnings
       from continuing operations                 $340      $261      $139
      Special items                                (48)      (88)      (15)
      Earnings from continuing operations         $292      $173      $124
      Earnings from discontinued operations          4        --         9
      Cumulative effect of accounting change        (1)       --        --
        Net earnings                              $295      $173      $133
      DILUTED EARNINGS PER SHARE DATA
       (UNAUDITED)
      Adjusted after-tax earnings per share
       from continuing operations                $1.35     $1.04     $0.57
      Net earnings per share:
        Continuing operations                    $1.16     $0.70     $0.51
        Discontinued operations                   0.02        --      0.04
      Total net earnings per share               $1.18     $0.70     $0.55
      CASH FLOW DATA (UNAUDITED)
      Adjusted discretionary cash flow            $714      $677      $412
      Adjusted discretionary cash flow
       per share (diluted)                       $2.79     $2.64     $1.70
      REVENUES FROM CONTINUING OPERATIONS
       (UNAUDITED)                              $2,214    $2,783    $1,856
 
 
     "Unocal's Lower 48 natural gas production continued to increase for the
 fifth straight quarter, allowing us to take advantage of the strong natural
 gas market in the U.S.," said Charles R. Williamson, Unocal chief executive
 officer.  "The earnings were further helped by sales at 'bid week' prices,
 which put our realizations higher than average daily spot prices for the
 quarter."
     Unocal's first quarter Lower 48 natural gas prices averaged $6.93 per mcf,
 compared with $2.50 per mcf a year ago.  The year-to-year increase in natural
 gas prices boosted Unocal's aftertax earnings by about $215 million.
     Worldwide, Unocal's average realized natural gas price nearly doubled to
 $4.41 per mcf, compared with $2.26 per mcf in the first quarter 2000.  The
 average worldwide liquids (crude oil, condensate and natural gas liquids)
 price was $24.63 per barrel, up 4 percent.
 
     Production increases
     In the Lower 48 U.S., Unocal's net natural gas production in the first
 quarter was 874 million cubic feet per day (mmcfd), up 22 percent from
 714 mmcfd in the first quarter 2000.  The higher production was due
 principally to the GOM Muni field, which reached peak production of 130 mmcfd;
 production from newly acquired properties in the Norphlet Trend in Mobile Bay
 and other Gulf of Mexico shelf areas; and the Titan Exploration merger and
 subsequent production increases by Unocal's Pure Resources, Inc. (NYSE:   PRS)
 subsidiary (65%-owned).
     Canada natural gas production increased above 4Q 2000 levels due to the
 timing of natural gas produced from the Aitken Creek Facility.
     Worldwide consolidated net daily production in the first quarter 2001
 averaged 495,000 barrels-of-oil equivalent (BOE), up nearly 7 percent from
 464,000 BOE in the same period a year ago.
     Unocal's worldwide production and price data is now reported using the net
 economic interest method, which excludes all host countries' shares under
 foreign production-sharing contracts and concessions from reported amounts.
 The company has also changed its natural gas reporting to a dry basis and now
 includes the produced natural gas liquids with the crude oil and condensate
 volumes.  Prior period data have been restated to conform to the new reporting
 method.
     These changes in production reporting have no impact on past or expected
 revenues and cash flow.
     Production, price and certain other statistical information in the
 Quarterly Fact Book and Production Forecast have been conformed to the new
 reporting method.  The fact book and forecast are available through the
 company's web site, www.unocal.com, in the Investor Information -- Data
 Warehouse section.
 
     Financial measures
     Unocal's adjusted discretionary cash flow for the first quarter was
 $714 million, or $2.79 per share (diluted).  This compares with $412 million,
 or $1.70 per share (diluted), in the same period of 2000.
     Capital spending for the first quarter was $360 million, up from
 $295 million in the first quarter 2000.  The current year expenditures exclude
 the Pure Resources, Inc. acquisition of oil and gas properties from
 International Paper Company for $261 million.  Pure Resources is a
 consolidated subsidiary of Unocal.
     The company's long-term debt (including current maturities) was
 $2.74 billion (45% debt-to-total capitalization ratio) at the end of the
 quarter, compared with $2.51 billion (44% debt-to-total capitalization ratio)
 at the end of 2000.  The debt increase during the first quarter was due to the
 Pure Resources acquisition of various International Paper properties.  Barring
 any other substantial acquisitions, Unocal expects the debt-to-total
 capitalization ratio will decline during the remainder of the year on the
 strength of Unocal's forecasted earnings.
     First quarter revenues from continuing operations were $2.21 billion, up
 19 percent from $1.86 billion in the first quarter 2000.
 
     Special items
     Significant aftertax special charges in the first quarter 2001 included
 $31 million for environmental accruals related to downstream businesses sold
 in prior years and $17 million in non-cash, mark-to-market accruals by
 Unocal's Northrock Resources, Ltd. subsidiary that are related to commodity
 derivative positions not accounted for as hedges.
 
     Earnings/production forecast
     "We are projecting 2Q 2001 adjusted earnings from continuing operations of
 80 to 90 cents per share, depending on the outcome of our deepwater drilling
 results and other factors," Williamson said.
     The company's second quarter forecast assumes average NYMEX benchmark
 commodity prices of $27.75 per barrel of crude oil and $5.15 per mmBtu for
 natural gas.
     For the full-year 2001, Unocal currently estimates earnings of between
 $3.85 and $4.15 per share.  The full-year forecast assumes average NYMEX
 benchmark commodity prices of $28 per barrel for crude oil and $5.70 per mmBtu
 for natural gas.
     Unocal's second-quarter forecasted earnings are expected to change 3 cents
 per share for every $1 change in its average worldwide realized price for
 crude oil and 2 cents per share for every 10-cent change in the company's
 average realized Lower 48 natural gas price.  Full-year adjusted earnings are
 expected to change 13 cents per share for every $1 change in its average
 worldwide realized price for crude oil and 7 cents per share for every 10-cent
 change in the company's average realized Lower 48 natural gas price.
     The company expects that net daily worldwide production for the second
 quarter 2001 will average between 495,000 and 500,000 BOE.  For full-year
 2001, Unocal is forecasting net worldwide daily production of about 500,000 to
 510,000 BOE.  In the Lower 48, dry natural gas production is expected to
 average 880 mmcfd for the year, up from 764 mmcfd in 2000.
 
     Deepwater exploration activities
     "Unocal expects to have exploration wells under way in each of its four
 high potential deepwater areas during the second quarter," Williamson said.
     In the Gulf of Mexico, the Ponza well (Unocal, 50% W.I.) is expected to
 reach the objective zone soon.  Unocal has concluded with its partners that
 for competitive reasons the Ponza results will remain confidential at this
 time.
     The results of the current multi-well Rangass delineation drilling program
 (Unocal, 80% W.I.) offshore Indonesia in the Rapak PSC area will be announced
 after the upcoming lease sale on deepwater Kutei Basin concessions.
     In Gabon, Unocal is participating in a multi-well program (Unocal, 25%
 W.I.).  The company expects to be able to announce the results of the Renee #1
 on the Astrid East prospect and the Judy #1 on the Astrid West prospect in
 May.
     Offshore Brazil, two deepwater wells are expected to begin drilling soon.
 The wells are on the Kitty Hawk prospect in block BC-9 (Unocal, 35% W.I.) and
 the Lagosta prospect in block BES-2 (Unocal, 30% W.I.).
 
     About Unocal Corporation
     Unocal is one of the world's leading independent natural gas and crude oil
 exploration and production companies.  The company's principal operations are
 located in North America (Gulf of Mexico region, Alaska and Canada) and in
 Asia (Thailand, Indonesia, Myanmar and Bangladesh).  The company is also
 pursuing exploration programs in West Africa and Brazil.
 
     Conference call/financial database
     Unocal will broadcast its quarterly earnings conference call today at
 1 p.m. PDT (4 p.m. EDT) over the Internet.  To listen to the live webcast, go
 to the Investor Information section of the Unocal web site, www.unocal.com.
 Replays of the conference call, including questions and answers, will be
 available until May 31, 2001.
     In addition, complete detailed financial tables for the 1Q 2001 and the
 comparable prior periods are available in the "Quarterly Fact Book," which has
 been posted in the Unocal Investor Data Warehouse on the web site.
 
     This news release contains certain forward-looking statements about
 production, drilling activities, debt ratio, commodity prices, other operating
 and financial measures.  These statements are not guarantees of future
 performance.  The statements are based upon Unocal'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 2000 Form 10-K and
 other reports filed with the U.S. Securities and Exchange Commission.  Unocal
 undertakes no obligation to update the information in this news release.
 
     Production amounts include minority interest and equity investee shares in
 the U.S. Investors are urged to consider closely the disclosure in Unocal's
 2000 Form 10-K and other reports.  Copies of the company's SEC filings are
 available from the company by calling 800-252-2233.  The reports are also
 available on the Unocal web site, www.unocal.com.
 
 
      ADJUSTED AFTER-TAX EARNINGS                  1st       4th        1st
      BY BUSINESS SEGMENT (UNAUDITED)            Quarter   Quarter    Quarter
      Millions of dollars                         2001      2000       2000
      Exploration & Production
        North America
           Lower 48 (a) (b)                        241       149        63
           Alaska                                   19        23        24
           Canada (a)                               14         6         3
      International
           Far East                                106       127        82
           Other                                    22        14        (2)
      Global Trade                                   3         2        (2)
      Midstream                                      9        15        16
      Geothermal and Power Operations                1         6         9
      Corporate and Other
           Administrative & General                (23)      (26)      (22)
           Interest Expense - Net (a)              (33)      (36)      (36)
           Environmental & Litigation               (3)       (2)       (3)
           Other                                   (16)      (17)        7
      Adjusted after-tax earnings                 $340      $261      $139
      (a) Includes minority interests of:
           Lower 48                                (17)      (14)       (5)
           Canada                                   --         1         8
           Corporate and Other                       1        --         1
      (b) Includes earnings (loss) from:
           Onshore / Shelf                         264       188        75
           Deep Water                              (23)      (39)      (12)
 
 
      ADJUSTED DISCRETIONARY CASH FLOW             1st       4th        1st
       (UNAUDITED)                               Quarter   Quarter    Quarter
      Millions except per share amounts           2001      2000       2000
 
      Adjusted after-tax earnings                 $340      $261      $139
      Adjustments to earnings, excluding
       special items:
        Depreciation, depletion
         and amortization                          245       250       206
        Dry hole costs                              40        58        14
        Deferred income taxes                       60        72         6
        Exploration expenses                        34        41        49
        Capitalized interest                        (5)       (5)       (2)
          Total adjusted discretionary
           cash flow                              $714      $677      $412
 
      Diluted weighted average shares              256       256       243
      Adjusted discretionary cash flow
       per share (diluted)                        2.79      2.64      1.70
 
 
     The preceding table of discretionary cash flow, excluding special items
 and all asset sales, is provided for analysts and others in the investment
 community as a supplement to conventional financial data prepared in
 accordance with generally accepted accounting principles.  Discretionary cash
 flow assumes certain income taxes related to special items are deferred and
 does not give effect to significant uses of cash, including those for capital
 projects, debt reduction and regular dividends, some of which result from
 previous commitments, and should only be considered in conjunction with the
 full presentation of condensed consolidated cash flows in the company's
 quarterly fact book.
 
 
     OPERATING HIGHLIGHTS (UNAUDITED)               1st       4th       1st
                                                  Quarter   Quarter   Quarter
                                                   2001      2000      2000
      North America Net Daily Production
        Crude oil, condensate and
         natural gas liquids (thousand barrels)
          Lower 48 (a)                              53        52        54
          Alaska                                    24        25        28
          Canada (a)                                15        16        17
             Total crude oil, condensate and
              natural gas liquids                   92        93        99
        Natural gas - dry basis
         (million cubic feet)
          Lower 48 (a)                             874       840       714
          Alaska                                   138        87       151
          Canada (a)                               140       105        98
             Total natural gas                   1,152     1,032       963
      North America Average Prices (b)
        Crude oil, condensate and
         natural gas liquids (per barrel)
          Lower 48                              $26.71    $29.69    $25.15
          Alaska                                $22.76    $28.02    $23.15
          Canada                                $20.46    $22.55    $18.82
             Average                            $24.60    $27.97    $23.47
        Natural gas (per mcf)
          Lower 48                               $6.93     $5.27     $2.50
          Alaska                                 $1.20     $1.20     $1.20
          Canada                                 $4.22     $3.20     $1.60
            Average                              $5.87     $4.69     $2.19
 
      International Net Daily Production
        Crude oil, condensate and natural
         gas liquids (thousand barrels)
          Far East                                  50        50        46
          Other                                     19        17        18
            Total crude oil, condensate and
             natural gas liquids                    69        67        64
        Natural gas - dry basis
         (million cubic feet)
          Far East                                 793       799       781
          Other                                     57        56        61
            Total natural gas                      850       855       842
      International Average Prices (b)
        Crude oil, condensate and
         natural gas liquids (per barrel)
          Far East                              $24.25    $28.16    $23.60
          Other                                 $25.55    $29.08    $25.53
            Average                             $24.67    $28.34    $24.00
        Natural gas (per mcf)
          Far East                               $2.48     $2.68     $2.29
          Other                                  $2.89     $2.86     $2.73
            Average                              $2.50     $2.69     $2.33
      Worldwide Net Daily Production (a)
        Crude oil, condensate and natural
         gas liquids (thousand barrels)            161       160       163
        Natural gas - dry basis
         (million cubic feet)                    2,002     1,887     1,805
        Barrels oil equivalent (thousands)         495       475       464
      Worldwide Average Prices (b)
        Crude oil, condensate and
         natural gas liquids (per barrel)       $24.63    $28.12    $23.66
        Natural gas (per mcf)                    $4.41     $3.76     $2.26
 
     (a) Production includes 100 percent of production of consolidated
         subsidiaries and proportional shares of production of equity
         investees.
 
     (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.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X21583452
 
 SOURCE  Unocal Corporation