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Unit Corporation Reports First Quarter Results

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Unit reported a net income of $16.1 million for the first quarter of 2024, a decrease from $134.7 million in the same period in 2023. Total revenues were $67.2 million, down from $93.9 million in 2023. The company is focusing on core asset development after selling non-core assets. Operational highlights show decreases in oil and natural gas production volumes but an increase in oil prices.

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TULSA, Okla.--(BUSINESS WIRE)-- On May 9, 2024, Unit Corporation (OTCQX: UNTC) (Company) filed unaudited condensed consolidated financial statements for the three months ended March 31, 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/.

First Quarter Results

Net income for the three months ended March 31, 2024 was $16.1 million, or $1.61 per diluted share, compared to $134.7 million, or $13.75 per diluted share, for the three months ended March 31, 2023. Total revenues for the three months ended March 31, 2024 were $67.2 million, compared to $93.9 million for the three months ended March 31, 2023.

“After completing the previously announced sale of certain non-core oil and gas assets in the Texas Panhandle, we are pleased to be focused on developing and optimizing production in our core properties,” said Phil Frohlich, Chief Executive Officer. “In addition, we continue to work diligently towards a cost structure that remains appropriate for our core assets while ensuring that we have the resources available to maximize value.”

Operational highlights for the oil and natural gas and contract drilling segments during the three months ended March 31, 2024 and 2023 include:

 

Three Months Ended March 31,

 

 

 

2024

 

2023

 

% Change

Oil and Natural Gas:

 

 

 

 

 

Avg. oil price ($/Bbl)

$75.28

 

$65.96

 

14%

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

$75.28

 

$73.94

 

2%

Avg. NGLs price ($/Bbl)

$20.74

 

$21.37

 

(3)%

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

$20.74

 

$21.37

 

(3)%

Avg. natural gas price ($/Mcf)

$1.79

 

$4.04

 

(56)%

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

$1.79

 

$3.11

 

(42)%

Oil production (MBbls)

187

 

300

 

(38)%

NGL production (MBbls)

298

 

419

 

(29)%

Natural gas production (MMcf)

3,501

 

5,369

 

(35)%

Total production (MBOE)

1,069

 

1,614

 

(34)%

 

 

 

 

 

 

Contract Drilling:

 

 

 

 

 

BOSS rigs available (end of the period)

14

 

14

 

—%

Average BOSS rigs in use

13.7

 

13.8

 

(1)%

BOSS rigs average dayrate ($/day)

$30,891

 

$30,845

 

—%

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

2024

 

 

 

 

 

First quarter

Quarterly

$

1.25

$

12,269

March 18, 2024

March 28, 2024

The declaration and payment of any future dividend, whether fixed, special, or variable, will remain at the full discretion of the Company’s Board of Directors and will depend upon the Company’s financial position, results of operations, cash flows, capital requirements, business conditions, future expectations, the requirements of applicable law, and other factors that the Company’s Board of Directors finds relevant at the time of considering any potential dividend declaration. Future dividends are expected to be funded by cash on the Company's balance sheet.

The Company recently posted its preliminary 2024 Form 8937 (Report of Organizational Actions Affecting Basis of Securities) which 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 agreements, 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 and SEC 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 March 31,

 

 

2024

 

 

 

2023

 

 

(In thousands except per share amounts)

Revenues:

 

 

 

Oil and natural gas

$

26,572

 

 

$

48,026

 

Contract drilling

 

40,632

 

 

 

45,903

 

Total revenues

 

67,204

 

 

 

93,929

 

Expenses:

 

 

 

Operating costs:

 

 

 

Oil and natural gas

 

11,979

 

 

 

17,164

 

Contract drilling

 

25,725

 

 

 

26,872

 

Total operating costs

 

37,704

 

 

 

44,036

 

Depreciation, depletion, and amortization

 

3,901

 

 

 

3,891

 

General and administrative

 

4,978

 

 

 

5,090

 

(Gain) loss on disposition of assets

 

65

 

 

 

(3,753

)

Total operating expenses

 

46,648

 

 

 

49,264

 

Income from operations

 

20,556

 

 

 

44,665

 

Other income (expense):

 

 

 

Interest income

 

954

 

 

 

1,757

 

Interest expense

 

(30

)

 

 

(39

)

Gain (loss) on derivatives, net

 

 

 

 

13,595

 

Reorganization items, net

 

(22

)

 

 

(81

)

Other, net

 

(377

)

 

 

107

 

Total other income (expense)

 

525

 

 

 

15,339

 

Income before income taxes

 

21,081

 

 

 

60,004

 

Income tax expense (benefit), net:

 

 

 

Current

 

75

 

 

 

190

 

Deferred

 

4,902

 

 

 

(74,836

)

Total income tax expense (benefit), net

 

4,977

 

 

 

(74,646

)

Net income

 

16,104

 

 

 

134,650

 

Net income per common share:

 

 

 

Basic

$

1.64

 

 

$

13.93

 

Diluted

$

1.61

 

 

$

13.75

 

Unit Corporation

Selected Financial Highlights - Continued

 

 

March 31,
2024

 

December 31,
2023

Balance Sheet Data:

(In thousands)

Cash and cash equivalents

$

65,599

 

$

60,779

Current assets

$

115,528

 

$

118,296

Total assets

$

314,383

 

$

322,720

Current liabilities

$

30,021

 

$

42,399

Long-term debt

$

 

$

Other long-term liabilities

$

22,796

 

$

22,803

Total shareholders’ equity

$

258,360

 

$

254,126

 

Rene Punch

Investor Relations

(918) 493-7700

www.unitcorp.com

Source: Unit Corporation

FAQ

What was Unit 's net income for the first quarter of 2024?

Unit reported a net income of $16.1 million for the first quarter of 2024.

How do I access Unit 's financial reports?

You can access Unit 's financial reports on OTC Markets Group Inc.'s website or the company's investor relations webpage.

What were Unit 's total revenues for the first quarter of 2024?

Unit 's total revenues for the first quarter of 2024 were $67.2 million.

What did Unit focus on after selling non-core assets?

After selling non-core assets, Unit is focusing on developing and optimizing production in its core properties.

What were the oil prices for Unit in the first quarter of 2024?

The average oil price for Unit in the first quarter of 2024 was $75.28 per barrel.

UNIT CORP

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