EXHIBIT 11 UNOCAL CORPORATION AND CONSOLIDATED SUBSIDIARIES COMPUTATION OF EARNINGS PER COMMON SHARE For the Three Months For the Nine Months Ended September 30 Ended September 30 -------------------------------------------------------------------- Dollars and shares in thousands, except 1996 1995 1996 1995 per share amounts - ------------------------------------------------------------------------------------------------------------ EARNINGS PER SHARE ASSUMING NO DILUTION (A) Net earnings $170,765 $ 58,672 $532,906 $ 210,753 Preferred stock dividend - (8,969) (17,938) (26,906) Non-cash charge related to exchange of preferred stock (54,246) - (54,246) - -------------------------------------------------------------- Net earnings applicable to common stock 116,519 49,703 460,722 183,847 Weighted average common stock outstanding 248,668 246,666 248,211 245,754 - ------------------------------------------------------------------------------------------------------------ NET EARNINGS PER COMMON SHARE $ 0.47 $ 0.20 $ 1.86 $ 0.75 - ------------------------------------------------------------------------------------------------------------ EARNINGS PER SHARE ASSUMING FULL DILUTION Net earnings $170,765 $ 58,672 $532,906 $210,753 Distribution on preferred securities (net of tax) 1,720 - 1,720 - Non-cash charge related to exchange of preferred stock (54,246) - (54,246) - -------------------------------------------------------------- Net earnings applicable to common stock 118,239 58,672 480,380 210,753 Weighted average common stock outstanding 248,668 246,666 248,211 245,754 Dilutive common stock equivalents 2,162 1,565 1,917 1,512 Conversion of preferred stock (b) 431 16,667 431 16,667 Conversion of preferred securities 12,264 - 12,264 - -------------------------------------------------------------------- Weighted average common stock and stock equivalents outstanding 263,525 264,898 262,823 263,933 - ------------------------------------------------------------------------------------------------------------ NET EARNINGS PER COMMON SHARE $ 0.45 $ 0.22 $ 1.83 $ 0.80 - ------------------------------------------------------------------------------------------------------------ (a) The dilutive effect of common stock equivalents is less than 3 percent. (b) During 1995, the effect of assumed conversion of preferred stock on earnings per common stock is antidilutive.