|News ||UNIT CORPORATION |
| ||8200 South Unit Drive, Tulsa, Oklahoma, 74132|
| ||Telephone 918 493-7700, Fax 918 493-7711|
|Contact: ||Michael D. Earl |
| ||Vice President, Investor Relations |
| ||(918) 493-7700|
For Immediate Release…
February 21, 2019
UNIT CORPORATION REPORTS 2018 FOURTH QUARTER AND YEAR-END RESULTS
Tulsa, Oklahoma . . . Unit Corporation (NYSE - UNT) today reported its financial and operational results for the fourth quarter and year-end 2018. Fourth quarter and 2018 operational highlights include:
•Oil and natural gas segment production increased 7% year-over-year from 2017.
•Total year-end 2018 proved oil and natural gas reserves increased 7% over 2017, and 158% of 2018 production was replaced with new reserves.
•In December, Unit acquired approximately 8,700 net acres in the Penn sands play in western Oklahoma adding additional oil prospects similar to Unit’s existing Southern Oklahoma Hoxbar Oil Trend (SOHOT) play. The final adjusted price of the acquisition totaled approximately $29.6 million and included net proved reserves of 2.6 million barrels of oil equivalent (MMBoe). The acquisition provides Unit with 20 to 30 horizontal drilling locations and 82% of the acreage is held by production.
•Contract drilling segment placed its 11th BOSS rig into service during the second quarter. Its 12th BOSS rig was placed into service during January 2019. Further, its 13th BOSS rig was recently placed into service under a long-term contract.
•During the quarter, the mid-stream segment completed the connection of the Miller Pad to its Pittsburgh Mills gathering system. The wells from the new pad began being placed online in late January 2019.
•The mid-stream segment’s natural gas gathering, processing and liquids sold volumes increased 2%, 15% and 24% year-over-year, respectively.
•Unit amended its bank credit agreement during the quarter, in part extending its maturity until October 2023.
FOURTH QUARTER AND YEAR-END 2018 FINANCIAL RESULTS
Net loss attributable to Unit for the quarter was $77.8 million, or $1.49 loss per diluted share, compared to net income attributable to Unit of $89.2 million, or $1.71 per diluted share, for the fourth quarter of 2017. (For the fourth quarter of 2017, Unit recorded an $81.3 million net tax benefit related to tax legislation enacted during the quarter.) For the fourth quarter of 2018, Unit recorded a pre-tax non-cash write-down of $147.9 million associated with the removal of 41 drilling rigs from its drilling fleet along with some other equipment. The drilling rigs removed from service included our remaining 29 mechanical drilling rigs and 12 SCR drilling rigs. The company strategically decided to focus on its new BOSS drilling rigs and specific SCR drilling rigs (good candidates for modification) and sell the other drilling rigs it now chooses not to market. Adjusted net income attributable to Unit for the quarter (which excludes the effect of non-cash commodity derivatives and the write-down) was $13.8 million, or $0.27 per diluted share compared to $0.22 per diluted share for the same quarter for 2017, a 22% increase in adjusted net income (see Non-GAAP financial measures below). Total revenues for the quarter were $214.8 million (49% oil and natural gas, 25% contract drilling, and 26% mid-stream), compared to $204.8 million (49% oil and natural gas, 23% contract drilling, and 28% mid-stream) for the fourth quarter of 2017. Adjusted EBITDA attributable to Unit was $88.2 million, or $1.69 per diluted share (see Non-GAAP financial measures below).
The following information was filed by Unit Corp (UNT) on Thursday, February 21, 2019 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-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.