| ||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
May 2, 2019
UNIT CORPORATION REPORTS 2019 FIRST QUARTER RESULTS
Tulsa, Oklahoma . . . Unit Corporation (NYSE - UNT) today reported its financial and operational results for the first quarter of 2019. Operational highlights include:
Oil and natural gas segment:
•Continues to refocus the drilling program on prospects considered to provide higher oil content. At the end of the quarter, its remaining Granite Wash rig was redeployed to the Penn Sands prospect area. This segment has four operated drilling rigs in Western Oklahoma.
•In its Penn Sands prospect area in western Oklahoma, acquired an additional 8,200 net leasehold acres for approximately $8 million, adding 19 prospective controlled horizontal drilling locations and 12 non-controlled drilling locations. The locations are prospective for Marchand or Red Fork intervals.
•In the Shoal Creek prospect in the Wilcox area, which was originally developed from the Blackstone G-1 well and reprocessed seismic data, the Blackstone G-2 delineation well was successfully drilled and completed. Further delineation of this prospect continues with the Blackstone G-3 well, which is currently drilling.
•Experienced a third-party gas processor plant shut-down for 14 days, resulting in lost Wilcox production 200 MBoe (approximately 40% oil and liquids, 60% natural gas). The shut-down occurred from March 19th through April 2, 2019. The impact to first quarter production was slightly over 165 MBoe. Without this shut-down, daily production would have been 47.6 MBoe per day, a 1% increase over the fourth quarter of 2018.
Contract drilling segment:
•Placed its 12th and 13th BOSS drilling rigs into service during the quarter.
•Average rig utilization for the quarter was 31.4 rigs.
•Natural gas gathered and gas processed volumes per day increased by 14% and 1%, respectively, over the fourth quarter of 2018.
•Seven new extended lateral wells were brought on-line on the Pittsburgh Mills gathering system, increasing the daily volumes by nearly 115 MMcfe per day.
•The Reeding processing plant, an addition to the Cashion system, was recently placed into service.
FIRST QUARTER 2019 FINANCIAL RESULTS
Net loss attributable to Unit for the quarter was $3.5 million, or $0.07 per diluted share, compared to net income attributable to Unit of $7.9 million, or $0.15 per diluted share, for the first quarter of 2018. Adjusted net income attributable to Unit (which excludes the effect of non-cash commodity derivatives) for the quarter was $4.5 million, or $0.09 per diluted share, as compared to $0.21 per diluted share for the same quarter for 2018 (see Non-GAAP financial measures below). Adjusted net income decreased due to lower oil and gas segment margins, which were primarily reduced by lost production resulting from the plant shut-down and an increase in DD&A, which was partially offset by improved contract drilling margins and derivative settlements received. Total revenues for the quarter were $189.7 million (45% oil and natural gas, 27% contract drilling, and
The following information was filed by Unit Corp (UNT) on Thursday, May 2, 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-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.