Unocal Reports 4Q Results

September 1, 1999

Unocal Corporation said continued depressed crude oil and natural gas prices, coupled with asset writedowns and restructuring costs, were major factors in the company's reporting a preliminary loss of $29 million in the fourth quarter. This compares with earnings of $142 million in the fourth quarter a year earlier. Because of continued low commodity prices, the company has projected capital expenditures of about one billion dollars for 1999, compared with $1.7 billion in 1998. Unocal has also laid out a goal of reducing annualized cash expenses by $150 million to $200 million from the 1998 level to bolster cash flow. "Our capital plan focuses on preserving our high-potential deepwater exploration and development program in the Gulf of Mexico and Indonesia, while ensuring our debt ratio remains below 50 percent," said Roger C. Beach, Unocal chairman and CEO. The company expects to drill four new deepwater exploration wells in the Gulf of Mexico this year.

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