press release

Unocal Reports $171 Million Earnings for Third Quarter

El Segundo, Calif., Oct. 23, 1996 -- Unocal Corporation (NYSE: UCL) today reported third quarter 1996 net earnings of $171 million, or 69 cents per common share, reflecting increased worldwide natural gas production, higher crude oil and natural gas sales prices, and improved margins for the company's West Coast petroleum refining and marketing unit.

The 1996 results compare with net earnings of $59 million, or 20 cents per common share, in the third quarter a year ago. Unocal's total revenues for the quarter were $2.6 billion, up from $2.0 billion in the same period of 1995.

Earnings from operations in the third quarter, excluding special items (detailed in the attached tables), were $153 million, or 61 cents per common share. This compares with adjusted earnings of $50 million, or 17 cents per common share, last year.

"The solid third quarter performance reflects the success of our focus on key strategic areas in the United States and Southeast Asia," said Roger C. Beach, Unocal chairman and chief executive officer. "We capitalized on higher natural gas prices with increased gas production levels in our Louisiana/Gulf of Mexico, Thailand and Indonesia operations."

Sales prices for crude oil and natural gas continued above 1995 levels. Worldwide natural gas production grew nearly 6 percent from the second quarter 1996 and nearly 11 percent from a year ago (excluding California).

"Our third quarter natural gas production from the Louisiana/Gulf of Mexico area grew 6 percent from 700 million cubic feet per day (mmcfd) in 1995 to nearly 740 mmcfd this year," Beach said. "Looking forward, we expect to see further growth in gas production during the fourth quarter when net production from our Thailand operations should average more than 640 mmcfd."

The improved earnings from oil and gas operations were offset partially by higher dry hole costs that resulted from increased exploration drilling in the U.S.

Beach noted that Unocal's 76 Products Company unit also continued to post higher sales volumes and increased refinery production of light oil products.

"While third quarter 1996 product margins remained above year-ago levels, they were significantly down from the second quarter," Beach said. "This decline has continued into the fourth quarter, and we have maintained our focus on operating efficiency and cost control to help counter the fiercely competitive conditions that have developed in California, which is our key market."

Refinery production averaged 258,000 barrels per day (b/d), up from 243,000 b/d last year despite curtailments in coker operations at the San Francisco Refinery during part of the quarter. Third quarter marketing sales volumes of light oil products rose 14 percent from last year's levels.

Production and product sales volumes of agricultural products, while down from the second quarter because of seasonal demand, continued well above year-ago levels.

Cash flow from operations in the third quarter, before working capital changes, was $449 million, up from $309 million last year. This improvement reflects the improved operating earnings.

Total debt fell to $3.07 billion, down $636 million from the end of 1995. Our debt-to-total capitalization ratio was 48 percent at the end of the third quarter 1996, down from 56 percent at year-end 1995.

For the nine months, Unocal's net earnings were $533 million, or $2.08 per common share. This compares with $211 million, or 75 cents per common share, for the first nine months of 1995. Nine-months revenues were $7.57 billion, up from $6.20 billion last year.

Adjusted earnings from operations, excluding special items (detailed in the attached tables), were $478 million, or $1.85 per common share. This compares with adjusted earnings of $205 million, or 72 cents per common share, for the first nine months of 1995.

                              UNOCAL CORPORATION
                  CONDENSED CONSOLIDATED EARNINGS STATEMENT
                                 (UNAUDITED)
                 Dollars in millions except per share amounts

                           For the Three Months           For the Nine Months
                             Ended September 30            Ended September 30
                            1996           1995           1996           1995
     Total revenues (a)   $2,611         $2,005         $7,573         $6,201
     Costs and other
      deductions (a)       2,360          1,899          6,708          5,839
     Earnings before
      income taxes           251            106            865            362
     Income taxes             80             47            332            151
     Net earnings         $  171         $   59         $  533         $  211
     Dividends on
      preferred stock         --              9             18             27
     Net earnings applicable
      to common shares    $  171         $   50         $  515         $  184
     Earnings per common
      share assuming no
      dilution (b)        $ 0.69         $ 0.20         $ 2.08         $ 0.75
     Earnings per common
      share assuming
      full dilution (c)   $ 0.65         $ 0.22         $ 2.03         $ 0.80

     (a) Includes consumer
         excise taxes of  $  279         $  228         $  765         $  665
     (b) Based on weighted
         average common shares
         outstanding
         (in millions)       249            247            248            246
     (c) During 1995, the effect
         of assumed conversion
         of preferred stock is
         antidilutive.

                     CONDENSED CONSOLIDATED BALANCE SHEET
                                 (UNAUDITED)
                             Millions of dollars

                                            Sep. 30                Dec. 31
                                              1996                   1995
     Assets
     Cash and cash equivalents              $  225                  $   94
     Other current assets                    1,387                   1,482
     Investments and long-term receivables   1,105                   1,101
     Properties - net                        6,949                   7,109
     Other assets                              143                     105
     Total assets                           $9,809                  $9,891

     Liabilities and Equity
     Current portion of long-term debt      $  119                  $    8
     Other current liabilities               1,337                   1,308
     Long-term debt and capital lease
      obligations                            2,951                   3,698
     Deferred Income taxes                     678                     722
     Other deferred credits and liabilities  1,391                   1,225
     Convertible preferred securities          522                      --
     Stockholders' equity                    2,811                   2,930
      Total liabilities and equity          $9,809                  $9,891

                              UNOCAL CORPORATION
                      CONDENSED CONSOLIDATED CASH FLOWS
                                 (UNAUDITED)
                             Millions of dollars

                                  For the Three Months   For the Nine Months
                                    Ended September 30     Ended September 30
                                     1996         1995      1996       1995
     Cash flows from operating activities
      Cash flow from operations   $     449   $      309 $   1,299 $      862
      Working capital and other changes
       related to operations             57            9      (100)      (186)
        Net cash provided by operating
         activities                     506          318     1,199        676

     Cash flows from investing activities
      Capital expenditures
        (includes dry hole costs)      (318)        (371)     (940)      (967)
      Proceeds from asset sales          46            2       585        130
        Net cash (used) in investing
         activities                    (272)        (369)     (355)      (837)

     Cash flows from financing activities
      Net increase/(decrease) in
       long-term debt and capital lease
       obligations                     (171)         129      (560)       305
      Dividends paid                    (59)         (57)     (176)      (174)
      Other                              12           17        23         50
       Net cash provided/used in financing
        activities                     (218)          89      (713)       181

     Increase in cash and cash
      equivalents                        16           38       131         20
     Cash and cash equivalents
      at beginning of period            209          130        94        148
     Cash and cash equivalents
      at end of period            $     225   $      168 $     225 $      168

                        CONDENSED CAPITAL EXPENDITURES
                                 (UNAUDITED)
                             Millions of dollars

                                    For the Three Months  For the Nine Months
                                     Ended September 30    Ended September 30
                                      1996         1995      1996       1995
     Domestic Exploration &
      Production                  $      92   $      139 $     327 $      345
     Foreign Exploration
      & Production                      101           79       317        256
     76 Products Company                 68          106       157        261
     Geothermal & Power Operations       39           13        91         34
     Diversified Businesses               8           26        26         48
     Corporate & Unallocated             10            8        22         23
      Total                       $     318 $        371 $     940 $      967

                              UNOCAL CORPORATION
       RESULTS OF OPERATIONS FOR EXPLORATION AND PRODUCTION ACTIVITIES
                                 (UNAUDITED)
                             Millions of dollars

                       For the Three Months         For the Three Months
                     Ended September 30, 1996     Ended September 30, 1995
                       United                     United
                       States  Foreign  Total     States      Foreign    Total
     Sales (includes intercompany sales)
      Crude oil
       and condensate  $ 161   $ 142   $ 303      $ 167       $111      $ 278
      Natural gas        196     142     338        135        111        246
      Natural gas liquids 18       4      22         16          3         19
      Other                1       0       1          0          0          0
       Total             376     288     664        318        225        543
     Other Revenue         5       8      13         39          4         43
     Gain (loss) on
      assets sales         3      18      21         (5)         4         (1)
       Total revenues    384     314     698        352        233        585
     Production costs     65      66     131         93         43        136
     Exploration expenses  8      22      30          6         24         30
     Dry hole costs       38      12      50         22          6         28
     Depreciation, depletion
      & amortization     112      61     173        117         49        166
     Other operating
      expenses            38       9      47         36         21         57
       Results of
       operations before
       income tax      $ 123    $144   $ 267      $  78       $ 90      $ 168

                       For the Nine Months          For the Nine Months
                     Ended September 30, 1996     Ended September 30, 1995
                      United                     United
                      States   Foreign Total     States      Foreign    Total
     Sales (includes intercompany sales)
      Crude oil and
       condensate     $  496     $415  $  911    $   523       $363     $  886
      Natural gas        623      397   1,020        429        320        749
      Natural gas
       liquids            51       15      66         51         13         64
      Other                3        0       3          2          0          2
       Total           1,173      827   2,000      1,005        696      1,701
     Other Revenue        10       21      31         51         21         72
     Gain loss on asset
      sales              118       24     142          4         11         15
       Total revenues  1,301      872   2,173      1,060        728      1,788

     Production costs    230      169     399        302        129        431
     Exploration
      expenses            19       59      78         26         57         83
     Dry hole costs       49       18      67         27         19         46
     Depreciation, depletion
      & amortization     342      207     549        374        172        546
     Other operating
      expenses           113       40     153         98         50        148
        Results of
         operations before
         income tax   $  548     $379  $  927    $  233        $301     $  534

       RESULTS OF OPERATIONS FOR EXPLORATION AND PRODUCTION ACTIVITIES
                                 (UNAUDITED)
                             Millions of dollars

                        For the Three Months           For the Three Months
                         Ended June 30, 1996            Ended June 30, 1995
                      United                         United
                      States    Foreign    Total     States    Foreign   Total
     Sales (includes intercompany sales)
      Crude oil and
       condensate     $ 154     $ 150     $ 304     $ 182      $ 126     $ 308
      Natural gas       201       128       329       154        102       256
      Natural gas
       liquids           18         5        23        17          5        22
      Other               1         0         1         1          0         1
       Total            374       283       657       354        233       587
     Other Revenue        2         5         7         5          9        14
     Gain(loss) on asset
      sales             111         0       111        (3)         1       (2)
       Total revenues   487       288       775       356        243       599

     Production costs    72        49       121       103         46       149
     Exploration expenses 7        20        27        10         15        25
     Dry hole costs       1         3         4         5         11        16
     Depreciation, depletion
      & amortization    103        84       187       139         48       187
     Other operating
      expenses           34        20        54        33         15        48
       Results of
       operations before
       income tax     $ 270     $ 112     $ 382      $  66     $ 108     $ 174

                          For the Three Months         For the Three Months
                          Ended March 31, 1996         Ended March 31, 1995
                      United                        United
                      States    Foreign    Total    States    Foreign   Total
     Sales (includes intercompany sales)
      Crude oil and
       condensate      $181      $123      $304       $174      $126     $300
      Natural gas       226       127       353        140       107      247
      Natural gas
      liquids            15         6        21         18         5        23
     Other                1         0         1          1         0         1
       Total            423       256       679        333       238       571
     Other Revenue        3         8        11          7         8        15
     Gain on asset
      sales               4         6        10         12          6       18
       Total
        revenues        430       270       700        352        252      604
     Production
      costs              93        54       147       106          40      146
     Exploration
      expenses            4        17        21        10          18       28
     Dry hole costs      10         3        13         0           2        2
     Depreciation,
      depletion &
      amortization      127        62       189       118          75      193
     Other operating
      expenses           41        11        52        29          14       43
       Results of
        operations before
        income tax     $155      $123      $278      $ 89        $103     $192
                              UNOCAL CORPORATION
 RESULTS OF OPERATIONS FOR REFINING, MARKETING AND TRANSPORTATION ACTIVITIES
                             76 PRODUCTS COMPANY
                                 (UNAUDITED)
                             Millions of dollars

                   For the Three Months             For the Nine Months
                    Ended September 30               Ended September 30
                    1996           1995              1996             1995
     Sales (includes intercompany sales)
      Gasoline    $   510         $   404         $ 1,473         $ 1,168
      Jet             102              69             294             184
      Diesel          174             122             454             293
      Other products  207             154             580             589
      Excise tax      250             228             735             665
       Total        1,243             977           3,536           2,899

     Other Revenue     31              26              93              74
      Total
       revenues     1,274           1,003           3,629           2,973
     Raw materials    514             406           1,485           1,235
     Product
      purchases       216             140             559             434
     Manufacturing &
      operating
      expense         117             113             355             355
     Selling,
      administrative &
      general          75              68             237             208
     Depreciation &
      amortization     36              28             107              80
     Excise tax       250             228             735             665
     Other expense      7              10              23              31
      Total
       expenses   $ 1,215         $   993         $ 3,501         $ 3,008
     Results of
      operations before
      income tax  $    59         $    10         $   128         $   (35)

                   For the Three Months              For the Three Months
                      Ended June 30                     Ended March 31
                   1996            1995             1996             1995
     Sales (includes intercompany sales)
      Gasoline   $   558         $   410          $   405          $   354
      Jet             81              55              111               60
      Diesel         150              96              130               75
      Other products 202             226              171              209
      Excise tax     250             228              235              209
       Total       1,241           1,015            1,052              907
     Other Revenue    37              25               25               23
        Total
         revenues  1,278           1,040            1,077              930

     Raw materials   504             470              467              359
     Product
      purchases      187             128              156              166
     Manufacturing &
      operating
      expense        123             114              115              128
     Selling, administrative
      & general       87              72               75               68
     Depreciation &
      amortization    39              26               32               26
     Excise tax      250             228              235              209
     Other expense     8              12                8                9
       Total
        expenses $ 1,198         $ 1,050          $ 1,088          $   965
      Results of operations
       before income
       tax       $    80         $   (10)         $   (11)         $   (35)

                              UNOCAL CORPORATION
                             OPERATING HIGHLIGHTS
                                 (UNAUDITED)

                          For the Three Months            For the Nine Months
                           Ended September 30              Ended September 30
                          1996           1995             1996           1995
     Net daily production
      Crude oil and condensate (thousand barrels daily):
       United States(a)   86.1           123.6            98.9           126.4
       Foreign:
        Far East(b)       82.2            81.9            82.4            84.6
        Other             27.2            29.6            27.6            30.3
         Total Foreign   109.4           111.5           110.0           114.9
      Worldwide          195.5           235.1           208.9           241.3

     Natural gas (million cubic feet daily):
      United States(a)   1,099           1,077           1,091           1,109
      Foreign:
       Far East(b)         667             577             626             597
       Other                63              55              71              48
        Total Foreign      730             632             697             645
      Worldwide          1,829           1,709           1,788           1,754

     Natural gas liquids
      (thousand barrels
       daily)(a)          19.3            20.2            19.6            21.4
     Geothermal (million
      kilowatt-hours
      daily)              21.0            17.7            17.3            16.0

     Average sales prices
      Crude oil and condensate
      (per barrel):
       United States   $ 20.01         $ 14.83         $ 18.31         $ 15.17
       Foreign:
        Far East       $ 18.89         $ 15.26         $ 18.32         $ 16.11
        Other          $ 19.89         $ 15.12         $ 18.53         $ 15.84
         Total Foreign $ 19.21         $ 15.21         $ 18.39         $ 16.01
      Worldwide        $ 19.62         $ 14.98         $ 18.34         $ 15.51

     Natural gas (per mcf):
      United States    $  2.09         $  1.43         $  2.20         $  1.49
      Foreign:
       Far East        $  2.27         $  2.05         $  2.23         $  2.00
       Other           $  2.05         $  1.21         $  1.82         $  1.14
        Total Foreign  $  2.25         $  1.97         $  2.18         $  1.94
      Worldwide        $  2.15         $  1.64         $  2.20         $  1.66

     (a) Includes production from
         California upstream properties of:
       Crude oil and
        condensate         1.0            28.7            10.9            29.4
       Natural gas           0              58              17              64
       Natural gas liquids 0.0             0.7             0.2             1.1

     (b) Includes host country
         share in Indonesia of:
       Crude oil and
        condensate        26.4            33.0            26.8            31.7
       Natural gas          29              20              26              23

                              UNOCAL CORPORATION
                       OPERATING HIGHLIGHTS (continued)
                                 (UNAUDITED)

                                 For the Three Months      For the Nine Months
                                  Ended September 30        Ended September 30
                                  1996         1995         1996         1995

     Input to crude oil processing units
      (thousand barrels daily)     229          220          231          207

     Refinery production
      (thousand barrels daily)
      EPA gasoline                  31          120           52          107
      CARB  gasoline                90            0           64            0
      Jet fuel, kerosene and
       heating oil                  33           29           36           21
      Diesel fuel                   19           14           21           12
      CARB  Diesel fuel             27           27           24           24
      Other products
       (lubricants, gas oils, etc.) 58           53           61           62
      Total                        258          243          258          226

     Petroleum product sales  (thousand barrels daily)
      Marketing(a)
       EPA gasoline                 27          116           67          116
       CARB  gasoline              103            0           64            0
       Diesel fuel                  15           12           14           12
       CARB  Diesel fuel            20           17           16           15
        Other  (includes lube oil,
         kerosene and fuel oil)      7            7            7            7
          Total                    172          152          168          150

     Product supply and refinery (b)
      EPA gasoline                   4           31            9           23
      CARB  gasoline                21            0           12            0
      Jet fuel                      38           32           40           29
      Diesel fuel                   14           14           14           10
      CARB  Diesel fuel             15           11           12            6
       Other products (includes
        petroleum coke,
        gas oil, etc.)              34           35           36           42
       Total                       126          123          123          110

         Total petroleum product
          sales                    298          275          291          260

     Agricultural products production volumes (thousand tons)
       Ammonia                     360          296        1,089          988
       Urea                        275          242          845          806
       Other products              149          169          494          583

     Agricultural products sales volumes (thousand tons)
      Ammonia                      206          106          574          500
      Urea                         198          247          779          773
      Other products               302          255          971          962

     (a)  Primarily sold through retail channels
     (b)  Primarily sold through wholesale or commercial channels

                              UNOCAL CORPORATION
                         EARNINGS BY BUSINESS SEGMENT
                                 (Unaudited)
                             Millions of dollars

                         3rd Quarter of 1996   3rd Quarter of 1995
                        Before-tax  After-tax  Before-tax After-tax
     Petroleum
      Exploration and Production
       United States      $ 123      $  77      $  78      $  49
       Foreign              144        100         90         50

      Refining, Marketing and Transportation
       76 Products           59         37         10         12

     Geothermal and Power
        Operations           15          6         13          6

     Diversified Businesses
       Agricultural Products 31         20          5          3
       Carbon and Minerals   15         13         15         13
       Pipelines             17         14         19         15
       Other                 16         10          3          2

     Corporate and Unallocated
      Administrative and
       general expense      (33)       (21)       (34)       (22)
      Net interest expense  (62)       (37)       (68)       (50)
      Environmental and litigation
       expense              (60)       (37)       (16)       (10)
      Other                 (14)       (11)        (9)        (9)
        Total             $ 251      $ 171      $ 106      $  59

         Exploration and Production - this segment is engaged in the
     exploration for, and the production and marketing of, crude oil,
     condensate, natural gas and natural gas liquids.

         Refining, Marketing and Transportation
          76 Products Company - this segment is principally responsible for
     the company's West Coast petroleum refining operations, marketing and
     transportation of refined petroleum products and the manufacturing and
     marketing of petroleum coke.

         Geothermal and Power - this segment is involved in the exploration
     for, and the production and sale of geothermal resources for the
     generation of electricity.

         Diversified Businesses:
          Agricultural Products - manufactures and markets nitrogen-based
     fertilizers for wholesale markets to the western United States and to the
     Pacific Rim.
          Carbon and Minerals - produces and markets petroleum coke (other
     than on the West Coast), graphites, solvents and specialty minerals.
          Pipelines - principally includes the company's equity interests in
     affiliated pipeline companies.
          Other - includes the development and sale of real estate assets and
     the company's equity interest in The UNO-VEN Company, a refining and
     marketing partnership in the midwestern United States.

                              UNOCAL CORPORATION
                             SPECIAL ADJUSTMENTS
                                 (Unaudited)
                 Dollars in millions except per share amounts

                        3rd Quarter of 1996             3rd Quarter of 1995
                     Before-tax      After-tax       Before-tax     After-tax
     Reported earnings $ 251           $ 171           $ 106           $  59
     Less: Special items
      Exploration & Production
       United States
        Asset Sales        4               3              (1)             (1)
        Florida and Alaska
         OCS settlement   --              --              29              18
       Foreign
        Asset Sales       18              37               1              --
      76 Products
        Asset Sales        1               1              --              --
        Litigation
         provision        (2)             (2)             --              --
        Other              4               3              --              --
      Geothermal and Power Operations
       Asset Sales        --              --               2               2
      Diversified Businesses
       Asset sales
        Other             13               8              --              --
      Corporate & Unallocated
       Asset Sales         1              --              --              --
       Environmental
        provision        (20)            (12)             (2)             (1)
       Litigation
        provision        (31)            (20)             (7)             (5)
       Other              --              --              --              (4)
      Total special
         items           (12)             18              22               9

     Adjusted earnings $ 263           $ 153           $  84           $  50
     Less: Dividends on
      preferred stock                     --                               9
     Adjusted net earnings
      applicable to common shares        153                              41
     Adjusted net earnings
      per common share                 $0.61                           $0.17

                              UNOCAL CORPORATION
                         EARNINGS BY BUSINESS SEGMENT
                        EXCLUDING SPECIAL ADJUSTMENTS
                                 (Unaudited)
                             Millions of dollars

                         3rd Quarter of 1996          3rd Quarter of 1995
                       Before-tax    After-tax      Before-tax      After-tax
     Petroleum
      Exploration and Production
       United States    $ 119          $  74           $  50            $  32
       Foreign            126             63              89               50

      Refining, Marketing and Transportation
       76 Products         56             35              10               12

     Geothermal and Power
       Operations          15              6              11                4
     Diversified Businesses
      Agricultural
       Products            31             20               5                3
      Carbon and Minerals  15             13              15               13
      Pipelines            17             14              19               15
      Other                 3              2               3                2

     Corporate and Unallocated
      Administrative and
       general expense    (33)           (21)            (34)             (22)
      Net interest
       expense            (62)           (37)            (68)             (50)
      Environmental and
       litigation expense  (9)            (5)             (7)              (4)
      Other               (15)           (11)             (9)              (5)
        Total           $ 263          $ 153           $  84            $  50

                              UNOCAL CORPORATION
                         EARNINGS BY BUSINESS SEGMENT
                                 (Unaudited)
                             Millions of dollars

                     First Nine Months of 1996      First Nine Months of 1995
                      Before-tax   After-tax       Before-tax      After-tax
     Petroleum
      Exploration and Production
       United States    $ 548        $ 341            $ 233            $ 145
       Foreign            379          232              301              163

      Refining, Marketing and Transportation
       76 Products        128           80              (35)              (5)

      Geothermal and Power
       Operations          33           15               39               21

      Diversified Businesses
       Agricultural
        Products          113           73               88               55
       Carbon and
        Minerals           52           40               55               40
       Pipelines           64           51               63               50
       Other               21           13               14                9

     Corporate and Unallocated
      Administrative and
       general expense    (87)         (55)             (91)             (57)
      Net interest
       expense           (197)        (135)            (199)            (140)
      Environmental and litigation
       expense           (136)         (84)             (92)             (57)
      Other               (53)         (38)             (14)             (13)
        Total           $ 865        $ 533            $ 362            $ 211

                              UNOCAL CORPORATION
                             SPECIAL ADJUSTMENTS
                                 (Unaudited)
                 Dollars in millions except per share amounts

                       First Nine Months of 1996    First Nine Months of 1995
                       Before-tax      After-tax      Before-tax   After-tax
     Reported earnings   $ 865          $ 533          $ 362          $ 211
     Less: Special items
      Exploration and Production
       United States
        Asset Sales          8              5              8              5
        Sale of  California oil and
         gas  properties*  110             68             --             --
        Asset write-downs   --             --            (13)            (8)
        Florida and Alaska OCS
         settlement         --             --             29             18
       Foreign
        Asset Sales         24             41              6              3
      76 Products
        Asset Sales          1              1             --             --
        Sale of California oil and
         gas properties      4              2             --             --
        Litigation          (3)            (2)            --             --
        Environmental       --             --             --             --
        Asset write-downs   (6)            (4)            --             --
        Other               11              7             --             --
      Geothermal and Power
       Operations
        Asset Sales         --             --              9              7
      Diversified Businesses
       Asset Sales
        Pipeline            12              7             --             --
        Agricultural
         Products           --             --              6              4
        Other               13              8              2              1
      Corporate and Unallocated
       Asset Sales           2              1             29             18
       Environmental
        provision          (62)           (38)           (31)           (19)
       Litigation
        provision          (51)           (32)           (27)           (17)
       Asset write-downs    --             --             (3)            (2)
       Other               (11)            (9)            --             (4)
        Total special items 52             55             15              6
     Adjusted earnings   $ 813          $ 478          $ 347          $ 205
     Less: Dividends on
      preferred stock                      18                            27
     Adjusted net earnings applicable
      to common shares                    460                           178
     Adjusted net earnings per
      common share                      $1.85                         $0.72

         *  Net of provision for environmental remediation of $17 million
     before-tax and $10 million after-tax.

                              UNOCAL CORPORATION
                         EARNINGS BY BUSINESS SEGMENT
                        EXCLUDING SPECIAL ADJUSTMENTS
                                 (Unaudited)
                             Millions of dollars

                     First Nine Months of 1996       First Nine Months of 1995
                      Before-tax    After-tax        Before-tax      After-tax
     Petroleum
      Exploration and Production
       United States    $ 430         $ 268              209            $ 130
       Foreign            355           191              295              160

      Refining, Marketing and Transportation
       76 Products        121            76              (35)              (5)

     Geothermal and Power
      Operations          33             15               30               14

     Diversified Businesses
      Agricultural
       Products          113             73               82               51
       Carbon and
        Minerals          52             40               55               40
       Pipelines          52             44               63               50
       Other               8              5               12                8

     Corporate and Unallocated
      Administrative and
       general expense   (87)           (55)             (91)             (57)
      Net interest
       expense          (197)          (135)            (199)            (140)
      Environmental and litigation
       expense           (23)           (14)             (34)             (21)
      Other              (44)           (30)             (40)             (25)
        Total          $ 813          $ 478            $ 347            $ 205

Updated: October 1996