Unit Corporation Reports Second Quarter Results

TULSA, Okla.--(BUSINESS WIRE)-- On August 10, 2023, Unit Corporation (OTCQX: UNTC) (Company) filed unaudited condensed consolidated financial statements for the three and six months ended June 30, 2023 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 Results

Net income attributable to Unit Corporation for the three months ended June 30, 2023 was $28.0 million, or $2.86 per diluted share, compared to $80.1 million, or $7.82 per diluted share, for the three months ended June 30, 2022. Total revenues for the three months ended June 30, 2023 was $78.6 million, compared to $134.6 million for the three months ended June 30, 2022.

For the six months ended June 30, 2023, net income attributable to Unit Corporation was $162.7 million, or $16.62 per diluted share, compared to $33.2 million, or $3.25 per diluted share, for the six months ended June 30, 2022. Total revenues for the six months ended June 30, 2023 was $172.5 million, compared to $322.9 million for the six months ended June 30, 2022.

Phil Frohlich, the Company’s Chief Executive Officer, commented, "We are pleased with our second quarter results highlighted by our cash balance of $199.8 million at quarter end, zero long-term debt, and strong operational performance. We remain committed to a disciplined approach towards financial management that allows us to create and return value to our shareholders.”

Operational highlights for the oil and natural gas and contract drilling segments during the three and six months ended June 30, 2023 and 2022 include:

	Three Months Ended June 30,						Six Months Ended June 30,
	2023		2022		% Change		2023		2022		% Change
Oil and Natural Gas:
Avg. oil price ($/Bbl)	$ 57.34		$ 56.28		2 %		$ 62.05		$ 58.23		7 %
Avg. oil price excl. derivatives ($/Bbl)	$ 71.62		$ 110.29		(35) %		$ 72.89		$ 100.03		(27) %
Avg. NGLs price ($/Bbl)	$ 14.77		$ 34.72		(57) %		$ 18.04		$ 33.82		(47) %
Avg. NGLs price excl. derivatives ($/Bbl)	$ 14.77		$ 34.72		(57) %		$ 18.04		$ 33.82		(47) %
Avg. natural gas price ($/Mcf)	$ 1.46		$ 4.24		(66) %		$ 2.77		$ 3.78		(27) %
Avg. natural gas price excl. derivatives ($/Mcf)	$ 1.32		$ 6.62		(80) %		$ 2.23		$ 5.60		(60) %
Oil production (MBbls)	250		309		(19) %		550		714		(23) %
NGL production (MBbls)	428		620		(31) %		848		1,233		(31) %
Natural gas production (MMcf)	5,188		6,821		(24) %		10,556		13,336		(21) %
	2023		2022		% Change		2023		2022		% Change
Contract Drilling:
Drilling rigs available (end of the period)	14		21		(33) %		14		21		(33) %
Average drilling rigs in use	15.6		16.3		(4) %		15.6		15.9		(2) %
Average dayrate on daywork contracts ($/day)	$ 31,764		$ 21,285		49 %		$ 30,632		$ 20,555		49 %
BOSS rigs average dayrate ($/day)	$ 33,140		$ 21,955		51 %		$ 31,990		$ 21,344		50 %
SCR rigs average dayrate ($/day)	$ 21,087		$ 18,217		16 %		$ 22,981		$ 17,119		34 %

Common Stock Dividends

On January 5, 2023, the Company announced the declaration of a special cash dividend of $10.00 per share and approved a quarterly cash dividend policy beginning in the Company’s second quarter. The special dividend totaling $96.1 million was paid on January 31, 2023, to stockholders of record as of the close of business on January 20, 2023.

On June 26, 2023, the Company paid a quarterly cash dividend of $2.50 per share of common stock totaling $24.1 million to stockholders of record as of the close of business on June 16, 2023.

On August 10, 2023, the Company announced approval of quarterly dividends of $2.50 per share for each of the third and fourth quarters of 2023. The record and payment dates for the third and fourth quarter dividends will be determined at a later date.

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.

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 (Unaudited)

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
	(In thousands except per share amounts)
Revenues:
Oil and natural gas	$ 31,176		$ 100,912		$ 79,202		$ 177,722
Contract drilling	47,405		33,642		93,308		62,524
Gas gathering and processing	—		—		—		82,673
Total revenues	78,581		134,554		172,510		322,919
Expenses:
Operating costs:
Oil and natural gas	15,224		27,619		32,388		51,094
Contract drilling	26,882		25,763		53,754		52,000
Gas gathering and processing	—		—		—		62,388
Total operating costs	42,106		53,382		86,142		165,482
Depreciation, depletion, and amortization	3,824		5,661		7,715		16,931
General and administrative	4,809		7,421		9,899		13,947
Gain on disposition of assets	(5,676)		(2,066)		(9,429)		(4,241)
Total operating expenses	45,063		64,398		94,327		192,119
Income from operations	33,518		70,156		78,183		130,800
Other income (expense):
Interest income	2,426		152		4,183		162
Interest expense	(41)		(97)		(80)		(371)
Gain (loss) on derivatives, net	1,500		2,609		15,095		(61,467)
Gain (loss) on change in fair value of warrants	—		7,289		—		(29,323)
Loss on deconsolidation of Superior	—		—		—		(13,141)
Gain on sale of Superior investment	17,812		—		17,812		—
Reorganization items, net	(70)		(39)		(151)		(42)
Other, net	52		23		159		770
Total other income (expense)	21,679		9,937		37,018		(103,412)
Income before income taxes	55,197		80,093		115,201		27,388
Income tax expense (benefit), net:
Current	159		—		349		—
Deferred	27,021		—		(47,815)		—
Total income tax expense (benefit), net	27,180		—		(47,466)		—
Net income	28,017		80,093		162,667		27,388
Net loss attributable to non-controlling interests	—		—		—		(5,828)
Net income attributable to Unit Corporation	$ 28,017		$ 80,093		$ 162,667		$ 33,216
Net income attributable to Unit Corporation per common share:
Basic	$ 2.90		$ 7.99		$ 16.82		$ 3.31
Diluted	$ 2.86		$ 7.82		$ 16.62		$ 3.25

Unit Corporation
Selected Financial Highlights (Unaudited) - Continued

	June 30, 2023		December 31, 2022
Balance Sheet Data:	(In thousands)
Cash and cash equivalents	$ 199,845		$ 213,975
Current assets	$ 255,823		$ 275,469
Total assets	$ 493,946		$ 469,255
Current liabilities	$ 48,737		$ 68,232
Long-term debt	$ —		$ —
Other long-term liabilities	$ 34,940		$ 33,362
Total shareholders’ equity attributable to Unit Corporation	$ 405,125		$ 362,626

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20230814104887/en/

Rene Punch

Investor Relations

(918) 493-7700

www.unitcorp.com

Source: Unit Corporation