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,
|
|
December 31,
|
||
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 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240509161277/en/
Contacts
Rene Punch
Investor Relations
(918) 493-7700
www.unitcorp.com
