Unit Corporation Reports Second Quarter Results

TULSA, Okla.–(BUSINESS WIRE)–On August 8, 2024, Unit Corporation (OTCQX: UNTC) (Company) filed unaudited condensed consolidated financial statements for the three and six months ended June 30, 2024 with OTC Markets Group Inc. (OTC). The Company’s current, quarterly, and annual reports may be accessed on the OTC’s website at https://www.otcmarkets.com/stock/UNTC/disclosure, as well as the Company’s website at https://unitcorp.com/investor-relations/otc-sec-filings/.

Second Quarter and Year to Date Results

Net income for the three months ended June 30, 2024 was $11.5 million, or $1.15 per diluted share, compared to $28.0 million, or $2.86 per diluted share, for the three months ended June 30, 2023. Total revenue for the three months ended June 30, 2024 was $56.8 million, compared to $78.6 million for the three months ended June 30, 2023.

For the six months ended June 30, 2024, net income was $27.6 million, or $2.76 per diluted share, compared to $162.7 million, or $16.62 per diluted share, for the six months ended June 30, 2023. Total revenue for the six months ended June 30, 2024 was $124.0 million, compared to $172.5 million for the six months ended June 30, 2023.

Operational highlights for the oil and natural gas and contract drilling segments during the three and six months ended June 30, 2024 and 2023 include:

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2024

 

2023

 

% Change

2024

 

2023

 

% Change

Oil and Natural Gas:

 

 

 

 

 

 

 

 

 

 

Avg. oil price ($/Bbl)

$79.23

 

$57.34

 

38%

$77.16

 

$62.05

 

24%

Avg. oil price excl. derivatives ($/Bbl)

$79.23

 

$71.62

 

11%

$77.16

 

$72.89

 

6%

Avg. NGLs price ($/Bbl)

$18.15

 

$14.77

 

23%

$19.65

 

$18.04

 

9%

Avg. NGLs price excl. derivatives ($/Bbl)

$18.15

 

$14.77

 

23%

$19.65

 

$18.04

 

9%

Avg. natural gas price ($/Mcf)

$1.00

 

$1.46

 

(32)%

$1.42

 

$2.77

 

(49)%

Avg. natural gas price excl. derivatives ($/Mcf)

$1.00

 

$1.32

 

(24)%

$1.42

 

$2.23

 

(36)%

Oil production (MBbls)

170

 

250

 

(32)%

357

 

550

 

(35)%

NGL production (MBbls)

217

 

428

 

(49)%

515

 

848

 

(39)%

Natural gas production (MMcf)

2,982

 

5,188

 

(43)%

6,484

 

10,556

 

(39)%

Total production (MBOE)

884

 

1,543

 

(43)%

1,953

 

3,157

 

(38)%

 

2024

 

2023

 

% Change

2024

 

2023

 

% Change

Contract Drilling:

 

 

 

 

 

 

 

 

 

 

Total rigs available (end of the period)

14

 

14

 

—%

14

 

14

 

—%

Average number of drilling rigs in use

11.9

 

15.6

 

(24)%

12.8

 

16.2

 

(21)%

Average dayrate on daywork contracts ($/day)

$30,786

 

$31,764

 

(3)%

$30,842

 

$30,632

 

1%

Common Stock Dividends

The table below presents information about the dividends paid during the periods indicated:

 

Type

Dividend

per share

Total

Amount

Record Date

Payment Date

 

2023

 

 

(In thousands)

 

 

 

First quarter

Special

$

10.00

$

96,179

January 20, 2023

January 31, 2023

 

Second quarter

Quarterly

$

2.50

$

24,071

June 16, 2023

June 26, 2023

 

Third quarter

Quarterly

$

2.50

$

24,113

September 15, 2023

September 26, 2023

 

Fourth quarter

Quarterly

$

2.50

$

24,226

December 18, 2023

December 27, 2023

 

Fourth quarter

Special

$

15.00

$

145,353

December 18, 2023

December 27, 2023

 

Fourth quarter

Special

$

5.00

$

48,451

December 18, 2023

December 27, 2023

 

2024

 

 

 

 

 

 

First quarter

Quarterly

$

1.25

$

12,269

March 18, 2024

March 28, 2024

 

Second quarter

Quarterly

$

1.25

$

12,961

June 17, 2024

June 27, 2024

 

The declaration and payment of any future dividend, whether fixed, special, or variable, are at the sole discretion of the Company’s Board of Directors. This decision will depend upon several factors, including the Company’s financial position, results of operations, cash flows, capital requirements, business conditions, future expectations, legal requirements, and other relevant factors at the time of consideration. Future dividends are expected to be funded by cash on the Company’s balance sheet.

The Company’s preliminary 2024 Form 8937 (Report of Organizational Actions Affecting Basis of Securities) can be found on its website at https://unitcorp.com/investor-relations/tax-reporting/.

About Unit Corporation

Unit Corporation is a Tulsa-based, publicly held energy company engaged through its wholly-owned subsidiaries in oil and gas production and contract drilling. For more information about Unit Corporation, visit its website at http://www.unitcorp.com.

Forward-Looking Statements

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act. All statements, other than statements of historical facts, included in this release that address activities, events, or developments that the Company expects, believes, or anticipates will or may occur are forward-looking statements. Several risks and uncertainties could cause actual results to differ materially from these statements, including changes in commodity prices, the productive capabilities of the Company’s wells, future demand for oil and natural gas, future drilling rig utilization and dayrates, projected rate of the Company’s oil and natural gas production, the amount available to the Company for borrowings, its anticipated borrowing needs under its credit agreement, the number of wells to be drilled by the Company’s oil and natural gas segment, the potential productive capability of its prospective plays, and other factors described occasionally in the Company’s publicly available OTC reports. The Company assumes no obligation to update publicly such forward-looking statements, whether because of new information, future events, or otherwise.

Unit Corporation

Selected Financial Highlights

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

 

(In thousands except per share amounts)

Revenues:

 

 

 

 

 

 

 

Oil and natural gas

$

20,410

 

 

$

31,176

 

 

$

46,982

 

 

$

79,202

 

Contract drilling

 

36,347

 

 

 

47,405

 

 

 

76,979

 

 

 

93,308

 

Total revenues

 

56,757

 

 

 

78,581

 

 

 

123,961

 

 

 

172,510

 

Expenses:

 

 

 

 

 

 

 

Operating costs:

 

 

 

 

 

 

 

Oil and natural gas

 

10,480

 

 

 

15,224

 

 

 

22,459

 

 

 

32,388

 

Contract drilling

 

25,051

 

 

 

26,882

 

 

 

50,776

 

 

 

53,754

 

Total operating costs

 

35,531

 

 

 

42,106

 

 

 

73,235

 

 

 

86,142

 

Depreciation, depletion, and amortization

 

3,659

 

 

 

3,824

 

 

 

7,560

 

 

 

7,715

 

General and administrative

 

5,601

 

 

 

4,809

 

 

 

10,579

 

 

 

9,899

 

Gain on disposition of assets

 

(1,210

)

 

 

(5,676

)

 

 

(1,145

)

 

 

(9,429

)

Total operating expenses

 

43,581

 

 

 

45,063

 

 

 

90,229

 

 

 

94,327

 

Income from operations

 

13,176

 

 

 

33,518

 

 

 

33,732

 

 

 

78,183

 

Other income (expense):

 

 

 

 

 

 

 

Interest income

 

1,081

 

 

 

2,426

 

 

 

2,035

 

 

 

4,183

 

Interest expense

 

(8

)

 

 

(41

)

 

 

(38

)

 

 

(80

)

Gain on derivatives, net

 

133

 

 

 

1,500

 

 

 

133

 

 

 

15,095

 

Gain on sale of Superior investment

 

 

 

 

17,812

 

 

 

 

 

 

17,812

 

Reorganization items, net

 

 

 

 

(70

)

 

 

(22

)

 

 

(151

)

Other, net

 

222

 

 

 

52

 

 

 

(155

)

 

 

159

 

Total other income (expense)

 

1,428

 

 

 

21,679

 

 

 

1,953

 

 

 

37,018

 

Income before income taxes

 

14,604

 

 

 

55,197

 

 

 

35,685

 

 

 

115,201

 

Income tax expense (benefit), net:

 

 

 

 

 

 

 

Current

 

(290

)

 

 

159

 

 

 

(215

)

 

 

349

 

Deferred

 

3,385

 

 

 

27,021

 

 

 

8,287

 

 

 

(47,815

)

Total income tax expense (benefit), net

 

3,095

 

 

 

27,180

 

 

 

8,072

 

 

 

(47,466

)

Net income

$

11,509

 

 

$

28,017

 

 

$

27,613

 

 

$

162,667

 

Net income per common share:

 

 

 

 

 

 

 

Basic

$

1.17

 

 

$

2.90

 

 

$

2.81

 

 

$

16.82

 

Diluted

$

1.15

 

 

$

2.86

 

 

$

2.76

 

 

$

16.62

 

Unit Corporation

Selected Financial Highlights – Continued

 

 

June 30,
2024

 

December 31,
2023

Balance Sheet Data:

(In thousands)

Cash and cash equivalents

$

80,808

 

$

60,779

Current assets

$

117,326

 

$

118,296

Total assets

$

312,648

 

$

322,720

Current liabilities

$

30,275

 

$

42,399

Long-term debt

$

 

$

Other long-term liabilities

$

22,698

 

$

22,803

Total shareholders’ equity attributable to Unit Corporation

$

257,056

 

$

254,126

 

Contacts

Rene Punch

Investor Relations

(918) 493-7700

www.unitcorp.com

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