2nd-qtr - 2003, 04/18/23 15:27 Page 1

Fourth Quarter Operating Results Conference Call Slides

Slides contain certain non-GAAP measures.For reconciliation to GAAP measures refer to the Unocal 4Q 2003

Earnings News Release and Quarterly Fact Book

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Clean earnings $ 2.95 per share

ROCE 12.6 %

Operating cash flow $ 2.047 billion

Free cash flow $ 883 million

Reduction in net debt and other financings $ 691 million

Year-end debt / total cap ratio 39%

Reserve replacement * 149%

Worldwide F&D costs $ 6.92 / BOE

2003 Performance Wrap-up

* * Excluding purchases & salesExcluding purchases & sales

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Significant deepwater discoveries: St. Malo, Puma (Gulf of Mexico) and Gehem (Indonesia)

Agreements in Thailand to extend gas sales contracts and increase contract volumes; plans to double oil production

A restructured North American business

East China Sea exploration & production PSCs

Gas sales agreement for new field in Bangladesh

Major Progress on AIOC Phase 1 project & pipeline

Debt reduction for 2003 (39% debt-to-cap)

Unocal 2003 – Operations Highlights

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Unocal What To Watch For In 2004

Major new developments near completion, resulting in 8-10% production growth in 2005

– AIOC, Mad Dog, Bangladesh, Thai oil

Continued deepwater exploration success and appraisal of 2003 deepwater discoveries

– St. Malo, Puma, Gehem

– Commercial progress in Perdido (Trident)

Launching Indonesia deepwater gas developments for Bontang LNG

Meet $8.00 per BOE Finding & Development Cost Target for all of North America, including the reduced Gulf of Mexico shelf program

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Dec. 31, 2002 3,338 ** 168 3,170 47%

Dec. 31, 2003 2,883 404 2,479 39%

Decrease in net debt ($691)

Net Debt Reduced in 2003($MM)

Total Debt /Total Debt / Total Total

TotalTotal NetNet Capitalization CapitalizationDebtDebt CashCash DebtDebt * * Ratio Ratio

* Total debt minus cash** Proforma for FIN 46

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Deepwater GOMDeepwater GOM $85 MM$85 MM

Deep Shelf GOMDeep Shelf GOM $30 MM$30 MM

Deepwater IndonesiaDeepwater Indonesia $60 MM$60 MM

All OtherAll Other $120 $120 MMMM

2004 Estimated Capital Expenditures

Other E&P$600 MM

Major Projects(incl. BTC)$930 MM

Explor. Drilling$295 MM

Note: Excludes Capitalized Interest

Total = $1,926 MM

All OtherAll Other$110 MM$110 MM

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Unocal Reserves & Production

Total: 448,200 barrelsTotal: 448,200 barrelsof oil equivalent per dayof oil equivalent per day

64% gas64% gas 36% oil36% oil

Production (MBOE/D)2003 Average

Far EastFar East46%46%

205

Other Intl.Other Intl.8%8%

35

Lower 48Lower 4832%32%

145

32AlaskaAlaska

7%7%CanadaCanada

7%7%

31

Far EastFar East50%50% Lower 48 Lower 48

21%21%

AlaskaAlaska6%6%

Total: 1,765 million Total: 1,765 million barrels of oil equivalentbarrels of oil equivalent

62% gas62% gas 38% oil38% oil

Reserves (MMBOE)12/31/2003

Other Intl.Other Intl.17%17%

889

293

373

109

CanadaCanada6%6%

101

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2003 Year-End Preliminary Proved Undeveloped Hydrocarbon Reserves

Thailand40 %

MajorDevelopments

40%

P.U.D. = 880 Million BOE

Total = 1,765 Million BOE

All Other20%

West Seno Phase 1 & 2West Seno Phase 1 & 2AIOC AIOC Merah BesarMerah BesarMad DogMad DogK2K2RanggasRanggas

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Thailand Proved Undeveloped Reserves350 Million BOE

• Current Production is Pipeline Limited

• Net Sales Commitments expected to rise from 590 MMCFPD to 920 MMCFPD, contract extension to 2022

• Third Pipeline is under Construction – Est. Completion 2006

• Thailand has a long history of just-in-time Development and routine promotion of PUD units to PDP and Production.

• In order to justify Thailand’s investment in Pipelines and Power Plants the government requires assurance of Proved Reserves for future needs.

• Thai National pipeline company reviews Unocal’s reserve estimates as part of their due diligence

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Quality AssuranceReserve Process

• Reserves are calculated by professionals degreed in engineering and Reserves are calculated by professionals degreed in engineering and geologygeology

• Calculations are reviewed by business unit’s qualified expertsCalculations are reviewed by business unit’s qualified experts

• Business Unit Vice President and experts make representation that Business Unit Vice President and experts make representation that annual reserve estimates are in accordance with SEC standardsannual reserve estimates are in accordance with SEC standards

• In aggregate, a rotating 50% of the asset base and 90% of changes In aggregate, a rotating 50% of the asset base and 90% of changes reviewed by the corporate review team reviewed by the corporate review team

•Leader reports directly to the CFO Leader reports directly to the CFO •No team member has direct or indirect management ties to the No team member has direct or indirect management ties to the `business unit under review `business unit under review•All team members are considered an expert in their disciplineAll team members are considered an expert in their discipline•No team member has a reserve volume goalNo team member has a reserve volume goal•One member from independent 3rd party (Ryder Scott) One member from independent 3rd party (Ryder Scott)

• Material changes reviewed by Management CommitteeMaterial changes reviewed by Management Committee

• Letter of Confidence issued by Outside Audit FirmLetter of Confidence issued by Outside Audit Firm

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2003 Proved Hydrocarbon ReservesAudit Coverage

Audit TeamReview

Audit Team &Partner Review

Not ReviewedIn 2003

Total = 1,765 Million BOE

Third PartyThird PartyReviewReview

11 %11 %

33 %33 %

23 %23 %

33 %33 %100 % of Major100 % of Major

Changes ReviewedChanges Reviewed Every YearEvery Year

95 % of All Changes95 % of All ChangesReviewed in 2003Reviewed in 2003

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Unocal 1Q 2004 Outlook Summary

Worldwide Production: 410,000 – 420,000 boed

EPS

Adjusted after tax (diluted): $0.70 - $0.80

Feb 2nd Analyst Mean Estimate: $0.73

Commodity Price Assumptions

(NYMEX Benchmark at 1-29-2004)

Oil: $ 34.25/bbl (WTI)

Gas: $ 6.00/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: $40 - $50 MM

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Unocal 2004Non E&P Earnings Outlook Ranges

Trade 0 - 1 0 - 4

Midstream 20–25 65–75

Geothermal 12–18 50–65

Corporate & Other

Admin & General (20)–(24) (90)-(95)

Net Interest (23)–(28) (80)-(90)

Environ. & Litigation (3)-(6) (18)-(24)

Other (30)-(35) (100-110)

Million $ 1Q Full Year

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Unocal 1Q 2004 Material Hedge Positions*

* NYMEX trading closed for January & February

Fixed Price

Gas, MMMBTU 448 $6.25

Oil, MBO 30 $30.14

Collars Ceiling Floor

Oil, MBO 2 $28.40 $24.00

DailyVolume Fixed Price

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Unocal 2Q 2004 Material Hedge Positions

Fixed Price Gas, MMMBTU 102 $5.31

Oil, MBO 26 $30.67

Collars Ceiling FloorGas, MMMBTU 13 $5.76 $4.65Oil, MBO 2 $28.40 $24.00

DailyVolume Fixed Price

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Unocal 3Q 2004 Material Hedge Positions

Fixed Price

Gas, MMMBTU 140 $5.29

Collars Ceiling Floor

Oil, MBO 2 $28.40 $24.00

DailyVolume Fixed Price

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Unocal 4Q 2004 Material Hedge Positions

Fixed Price

Gas, MMMBTU 140 $5.29

Collars Ceiling Floor

Oil, MBO 2 $28.40 $24.00

DailyVolume Fixed Price

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Unocal Full Year 2004 Material Hedge Positions*

* NYMEX trading closed for January & February

Fixed Price Gas, MMMBTU 211 $5.80

Oil, MBO 14 $30.39Collars Ceiling Floor

Gas, MMMBTU 3 $5.76 $4.65Oil, MBO 2 $28.40 $27.41

DailyVolume Fixed Price

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Reported Fourth Quarter 2003 180 .68

Special Items

Gain on Sale of L 48 Assets (3) (.01)

Canadian Statutory Tax Rate (29) (.11)

Insurance Recoveries (17) (.06)

Premium on Debt Buy Back 28 .11

Environmental & Litigation 15 .05Restructuring Charge 1 -

Discontinued Ops (R&M) (8) (.03)

Unocal 4Q Reported and Adjusted Earnings

$ Million $ Per Share

Adjusted Fourth Quarter 2003 167 .63

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Fourth Quarter 2003 167 .63

Third Quarter 2003 190 .72

Decrease (23) (.09)

Factors:Higher worldwide oil/liquids prices 8 .03 ($28.33 vs. $27.28)

Higher worldwide gas prices 9 .03 ($3.65 vs. $3.60)

Higher E&P expenses (Timing) (37) (.13)

Lower Earnings from non E&P oper. (10) (.04)

Lower production volumes (19) (.07) (420 MBOE/D vs. 441 MBOE/D)

Timing of Crude Oil Liftings 10 .03

Lower Corporate & Other Expense 16 .06

Unocal Adjusted Earnings

$ Million $ Per Share

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Unocal E&PLower 48 Results

4Q 2003 vs. 3Q 2003

Lower 48 - lower earnings (27)

Higher oil and liquids prices 3($28.50 vs. $27.71)

Higher Natural Gas Prices 4( $4.91 vs, $ 4.82)

Higher cash expenses (10)

Lower Dry Holes (9)

Lower production volumes (15)

$ Million

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Unocal E&PAlaska Results

4Q 2003 vs. 3Q 2003

$ Million

Alaska – higher results 4

Higher liquids price 1($30.73 vs. $29.39)

Timing of crude oil liftings 3

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Unocal E&PCanada Results

4Q 2003 vs. 3Q 2003

$ Million

Canada - Lower results (8)

Timing of 3Q Gain on sale of Tar Sands (7)

Lower Prices (3)Liq. ($ 22.94 vs. 24.02)Gas ($ 4.34 vs, $4.64)

Income Tax & Other 2

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Unocal E&PInternational Results4Q 2003 vs. 3Q 2003

International - Higher earnings 2

Lower production (3)( 236 MBOEPD vs. 238 MBOEPD)

Timing of crude oil liftings 7

Tax rate & Other 3

Higher liquids prices 5($28.73 vs. $27.20)

Higher natural gas prices 7($2.96 vs. $2.87)

Timing of Cash Expenses (17)

$ Million

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$ Million

Unocal Non E&P Operating Segment Results

4Q 2003 vs. 3Q 2003

Non E&P - Lower earnings (10)

Geothermal Timing of Power Results (6) All Other (1)

Oil and gas marketing - (Trade) (3)

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Unocal Corporate & Other Results

4Q 2003 vs. 3Q 2003

$ Million

Corp. & Other - Lower expenses 16

Lower net interest expense 6

Higher Minerals results 2

Timing of litigation expense 7

All Other 1