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,
|
|
December 31,
|
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/
Contacts
Rene Punch
Investor Relations
(918) 493-7700
www.unitcorp.com
