Unit Corporation Reports Second Quarter Results

August 08, 2024 at 09:15 AM EDT

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

View source version on businesswire.com: https://www.businesswire.com/news/home/20240808057152/en/

Contacts

Rene Punch

Investor Relations

(918) 493-7700

www.unitcorp.com

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