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EXHIBIT 99.2
NEWS RELEASE
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[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 SIGNIFICANTLY HIGHER
FIRST QUARTER EARNINGS
IMPROVED OIL AND LNG PRICES, INCREASED ETHYLENE MARGINS
CONTRIBUTE TO HIGHER INCOME
Houston, April 21, 1995 -- Union Texas Petroleum Holdings, Inc. today
reported 1995 first quarter earnings of 53 cents per share, up from 30 cents
per share in 1994's corresponding period. Net income for 1995's first three
months was $47 million, compared to $27 million in the same period a year ago.
"Union Texas posted a very strong first quarter," said Chairman and CEO
Clark Johnson. "Our 1995 first quarter results benefited from improved prices
for crude oil and liquefied natural gas (LNG) as well as a significant increase
in ethylene margins.
"In the U.K. North Sea, we experienced a 24% increase in our crude oil
prices for the first three months of 1995. During the first quarter of 1995,
our average sales price for U.K. North Sea oil was $16.34 per barrel, compared
to $13.13 per barrel a year ago.
"In Indonesia, we saw a 13% improvement during the first three months
of 1995 in our average LNG sales prices, which are set monthly based on a
'basket' of world oil prices. LNG prices averaged $3.07 per thousand cubic
feet in 1995's first quarter, versus $2.72 per thousand cubic feet a year ago.
The price increase was offset by a 14% decline in LNG sales volumes in the
first quarter of 1995
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compared to the same period in 1994 due to the contracted cargo mix," Johnson
said.
"During the first quarter of 1995, our ethylene margins averaged
approximately 16 cents per pound of ethylene, compared to 1 cent per pound a
year ago. Ethylene sales volumes rose to 120 million pounds of ethylene in the
first quarter of 1995."
Union Texas also noted that its average worldwide sales price for
natural gas was $2.75 per thousand cubic feet in the first three months of
1995, compared to $2.46 per thousand cubic feet in 1994's same period. All of
Union Texas' oil and gas producing operations are located overseas, where about
90% of the company's oil and gas revenues are indexed to world crude oil
prices.
Sales and operating revenues for 1995's first quarter totaled $240
million, up from $194 million a year ago, reflecting increased prices for crude
oil, LNG and ethylene.
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.
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Comparative financial highlights follow (amounts in millions, except
per share data):
THREE MONTHS
ENDED MARCH 31,
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1995 1994
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Net income.............................. $ 47 $ 27
Earnings per share...................... $ .53 $ .30
Sales and operating revenues............ $ 240 $ 194
Average common shares outstanding....... 87.6 87.7
See footnotes on page 6.
Additional financial and operating information appears on the attached pages.
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UNION TEXAS PETROLEUM
FINANCIAL SUMMARY
(amounts in millions, except per share data)
FIRST QUARTER
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1995 1994
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Sales and operating revenues $ 240 $ 194
Net income $ 47 $ 27
Major operations(a)
Indonesia $ 28 $ 29
U.K. North Sea $ 18 $ 15
Pakistan $ 4 $ 3
Petrochemicals $ 12 --
Earnings per share of
common stock $ .53 $ .30
Discretionary cash flow(b) $ 112 $ 90
Major operations(a)
Indonesia $ 44 $ 46
U.K. North Sea $ 51 $ 46
Pakistan $ 8 $ 7
Petrochemicals $ 19 $ 2
Average common shares 87.6 87.7
See footnotes on page 6.
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UNION TEXAS PETROLEUM
DISCRETIONARY CASH FLOW SUMMARY (b)
(amounts in millions)
FIRST QUARTER
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1995 1994
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Net income $ 47 $ 27
Less: Equity partnership
income $ (5) $ (7)
Add: DD&A $ 47 $ 47
Deferred taxes $ (2) $ (1)
Exploration expenses $ 15 $ 13
Unimar equity DCF (c) $ 10 $ 11
Discretionary cash flow $ 112 $ 90
See footnotes on page 6.
OPERATING SUMMARY (d)
FIRST QUARTER
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1995 1994
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Net crude oil sales (MBBLS/D)
U.K. North Sea 37 35
Indonesia 6 7
Pakistan 5 4
Average crude oil prices (per BBL)
U.K. North Sea $16.34 $13.13
Indonesia $17.28 $14.72
Pakistan $14.62 $12.77
Net natural gas sales (MMCF/D)
Indonesian LNG 242 280
U.K. North Sea 44 41
Pakistan 43 46
Average natural gas prices (per MCF)
Indonesian LNG $ 3.07 $ 2.72
U.K. North Sea (e) $ 3.01 $ 2.88
Pakistan $ 1.30 $ 1.11
Ethylene (per LB)
Sales price $ .28 $ .15
Margins $ .16 $ .01
Sales volumes (MLBS/D)(f) 1,338 904
See footnotes on page 6.
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FOOTNOTES
(a) Excludes corporate items and other worldwide 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 $17 million and $16 million in the first
quarters 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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