The ratings for Unocal Corp. reflect its position as an independent exploration and production (E&P) company with a large, geographically diverse reserve base (10.6 trillion cubic feet equivalent at year-end 2001; 61% natural gas; 51% proved developed), relatively competitive finding costs, and a large exposure to international markets. These strengths are partly offset by historically mediocre, but significantly improved, production costs and exposure of Unocal's large foreign operations to emerging market political risks. In recent years, divestiture of non-E&P assets has reduced Unocal's business diversification, while providing cash to expand E&P operations. At the same time, Unocal has sought to maximize value from its onshore North American properties by selling inefficient assets or contributing assets into ventures with efficient regional...
Companies mentioned in this report are: Unocal Corp.
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