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First Quarter 2004 Operating Results Conference Call Slides

First Quarter 2004 Operating Results Conference Call Slides These slides should be viewed together with the Unocal 1Q 2004 Earnings News Release and related Conference Call replay at www.unocal.com. Forward-Looking Statements; Non-GAAP Financial Measures.

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First Quarter 2004 Operating Results Conference Call Slides

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  1. First Quarter 2004 Operating Results Conference Call Slides These slides should be viewed together with the Unocal 1Q 2004 Earnings News Release and related Conference Call replay at www.unocal.com

  2. Forward-Looking Statements;Non-GAAP Financial Measures Unocal’s first quarter 2004 conference call presentation, including the following slides, contains forward-looking statements regarding, among other matters, expected project developments, exploratory drilling activity and dry hole costs, production rates and timing, commodity prices, future sales and transactions and expected adjusted after-tax earnings. These 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. These risks and uncertainties include, without limitation, those set forth in the related earnings news release and on pages 56-65 of Unocal’s 2003 Annual Report on Form 10-K, as amended, and in subsequent reports filed by Unocal with the U.S. Securities and Exchange Commission (SEC). Unocal’s first quarter 2004 conference call presentation, including the following slides, also contains certain “non-GAAP financial measures” as defined under SEC regulations. Please refer to Unocal’s first quarter 2004 earnings news release and related quarterly fact book for a discussion of these non-GAAP financial measures, a reconciliation to the most directly comparable GAAP financial measure and other information relating thereto. The earnings news release and quarterly fact book are posted on the Unocal web site, www.unocal.com.

  3. Net Debt Reduction Since 12/31/2002 ($MM) Total Debt / Total Total Net Capitalization DebtCashDebt * Ratio Dec. 31, 2002 3,876 ** 168 3,708 54 % Dec, 31, 2003 3,421** 404 3,017 46 % Mar. 31, 2004 3,261 760 2,501 43 % Change (615) 592 (1,207) (11) % * Total debt minus cash ** Pro forma for FIN 46 FIN 46-R

  4. Unocal 2Q 2004 Outlook Summary Worldwide Production: 410,000 – 420,000 boed EPS Adjusted after tax (diluted): $0.65 - $0.75 April 26th Analyst Mean Estimate: $0.72 Commodity Price Assumptions (NYMEX Benchmark at 4-22-2004) Oil: $ 36.50 / bbl (WTI) Gas: $ 5.70 / mmBtu (Henry Hub) Earnings Sensitivities to Commodity Prices Oil: $8 MM change for every $1/bbl change Gas: $3 MM change for every $0.10/mmBtu change in North America realization Pretax Dry Hole Forecast: $25 - $35 MM

  5. Unocal 2004Non E&P Earnings Outlook Ranges Million $ 1Q 2QEFull Year Midstream & Marketing 2313–17 65–75 Geothermal 1612–16 60–70 Corporate & Other Admin & General (27)(22)–(26) (95)-(100) Net Interest (32)(30)–(32) (115)-(125) Environ. & Litigation (5)(3) - (6) (18)-(24) Other (18)(20)-(25) (70)-(80)

  6. Unocal 2Q 2004 Material Hedge Positions* Daily VolumeFixed Price Fixed Price Gas, MMMBTU 225 $5.53 Oil, MBO 36 $31.26 CollarsCeilingFloor Gas, MMMBTU 13 $6.01 $4.65 Oil, MBO 2 $28.40 $24.00 * NYMEX trading closed for April & May

  7. Unocal 3Q 2004 Material Hedge Positions Daily VolumeFixed Price Fixed Price Gas, MMMBTU 280 $5.66 Oil, MBO 17 $ 34.60 Collars CeilingFloor Oil, MBO 2 $28.40 $24.00

  8. Unocal 4Q 2004 Material Hedge Positions Daily VolumeFixed Price Fixed Price Gas, MMMBTU 140 $5.29 Collars CeilingFloor Oil, MBO 2 $28.40 $24.00

  9. Unocal 1Q Reported and Adjusted Earnings $ Million$ Per Share Reported First Quarter 2004 269 1.00 Special Items Gain on Sale of U. S. Assets (6) (.02) Litigation Settlement U.S. E&P (15) (.05) Sale of Geothermal Assets (21) (.08) Environmental & Litigation 12 .04 Adjusted First Quarter 2004 239 .89

  10. Unocal Adjusted Earnings $ Million$ Per Share First Quarter 2004 239 .89 Fourth Quarter 2003 167 .63 Increase 72 .26 Factors: Higher worldwide oil/liquids prices 19 .07 ($30.64 vs. $28.33) Higher worldwide gas prices 39 .14 ($4.00 vs. $3.65) Lower E&P expenses 27 .10 Higher Earnings from non E&P Oper. 10 .04 Lower production volumes (25) (.09) (409 MBOE/D vs. 420 MBOE/D) Timing of Crude Oil Liftings (7) (.03) All Other 9 .03

  11. Unocal E&PUnited States Results1Q 2004 vs. 4Q 2003 United States - Higher earnings 21 Higher liquids prices 1 ($29.87 vs. $29.30) Higher Natural Gas Prices 33 ( $5.57 vs, $ 4.66) Lower cash expenses 10 Lower production volumes (25) All Other 2 $ Million

  12. Unocal E&PCanada Results1Q 2004 vs. 4Q 2003 Canada - Higher results 5 Higher Prices 8 Liquids ($ 28.51 vs. 22.94) Gas ($ 5.08 vs, $4.34) Lower Volumes (2) Other (1) $ Million

  13. Unocal E&PInternational Results1Q 2004 vs. 4Q 2003 $ Million International - Higher earnings 37 Higher production 2 Tax rate & All Other 4 Higher prices 16 Liquids ($31.57 vs. $28.73) Gas ($2.98 vs. $2.96) Lower Cash Expenses 17 Lower Dry Hole Expense 5 Timing of crude oil liftings (7)

  14. Unocal Non E&P Operating Segment Results1Q 2004 vs. 4Q 2003 Non E&P - Higher earnings 10 Geothermal Improved Results 4 Midstream & Marketing 6 Oil & Gas Trade Margins 3 Pipeline Results 3 $ Million

  15. Unocal Corporate & Other Results1Q 2004 vs. 4Q 2003 Corp. & Other - Higher expenses (1) Reclassification Of Preferred Interest (7) Other 7 All Other (1) $ Million

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