UNIT CORPORATION REPORTS 2017 FIRST QUARTER RESULTS
Tulsa, Oklahoma . . . Unit Corporation (NYSE - UNT) today reported its financial and operational results for the first quarter 2017. Results and recent highlights include:
Net income of $15.9 million.
The contract drilling segment increased its drilling rigs in service from 21 at the end of the fourth quarter of 2016 to 29 at the end of the first quarter, a 38% increase.
Started construction of the tenth BOSS drilling rig.
On April 4, 2017, Unit announced the closing of an agreement to acquire additional oil and natural gas assets in its Hoxbar core area.
Midstream segment began construction to connect an additional multi-well pad to its Pittsburgh Mills gathering system.
Midstream segment entered into a new fee-based agreement with a third party operator to gather and process 10 MMcf per day with a term of five years for the Cashion system.
Reduced long-term debt by $10.3 million from the end of the fourth quarter 2016.
April redetermination of Unit's borrowing base amount was maintained at $475 million.
FIRST QUARTER 2017 FINANCIAL RESULTS
Unit recorded net income of $15.9 million for the quarter, or $0.31 per diluted share, compared to a net loss of $41.1 million, or $0.83 per share, for the first quarter of 2016. For the first quarter of 2016, Unit incurred a pre-tax non-cash ceiling test write-down of $37.8 million in the carrying value of its oil and natural gas properties. Adjusted net income (which excludes the effect of non-cash commodity derivatives) for the quarter was $7.5 million, or $0.15 per diluted share (see Non-GAAP financial measures below). Total revenues were $175.7 million (50% oil and natural gas, 21% contract drilling, and 29% midstream), compared to $136.2 million (43% oil and natural gas, 28% contract drilling, and 29% midstream) for the first quarter of 2016. Adjusted EBITDA for the quarter was $74.5 million, or $1.46 per diluted share (see Non-GAAP financial measures below).
OIL AND NATURAL GAS SEGMENT INFORMATION
For the quarter, total production averaged 42,000 barrels of oil equivalent (Boe) per day, a decrease of 15% from the first quarter of 2016 and an 8% decrease from the fourth quarter of 2016. Liquids (oil and NGLs) production represented 46% of total equivalent production. Oil production was 7,141 barrels per day, a decrease of 19% from the first quarter of 2016 and a decrease of 8% from the fourth quarter of 2016. NGLs production was 12,190 barrels per day, a decrease of 14% from the first quarter of 2016 and a 12% decrease from the fourth quarter of 2016. Natural gas production was 135,838 thousand cubic feet (Mcf) per day, a decrease of 15% from the first quarter of 2016 and a decrease of 6% from the fourth quarter of 2016. Unit's production for the quarter was in line with its expectations. In addition to the continued production decline of existing wells, the decreases were due primarily to reduced drilling activity, approximately 0.5 billion cubic feet of natural gas equivalent (Bcfe) of production in the Wilcox play being shut in for five days during the quarter because of maintenance on a third-party processing plant, and approximately 0.3 Bcfe of reduced production due to weather related events. Unit’s original 2017
The following information was filed by Unit Corp (UNT) on Thursday, May 4, 2017 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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Ticker: UNT CIK: 798949 Form Type:10-Q Quarterly Report Accession Number: 0000798949-17-000015 Submitted to the SEC: Thu May 04 2017 9:02:42 AM EST Accepted by the SEC: Thu May 04 2017 Period: Friday, March 31, 2017 Industry: Crude Petroleum And Natural Gas