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
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version on businesswire.com: https://www.businesswire.com/news/home/20240509161277/en/
Rene Punch Investor Relations (918) 493-7700
www.unitcorp.com