| ||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
UNIT CORPORATION REPORTS 2019 SECOND QUARTER RESULTS
Tulsa, Oklahoma . . . Unit Corporation (NYSE-UNT) today reported its financial and operational results for the second quarter of 2019. Operational highlights include:
Oil and natural gas segment:
•Exploration efforts continue to focus on increasing oil production with second quarter 2019 oil production increasing 6% over first quarter 2019.
•In the Red Fork play, the Wingard Farms 2128 well's peak 24-hour IP was 2,850 barrels of oil equivalent (Boe) (80% oil).
•In the Red Fork play, the Schrock 2215 well, which started production in October 2018, is producing 600 Boe per day (52% oil) and has cumulatively produced 420 thousand barrels of oil equivalent (MBoe) as of June 30, 2019.
•Approximately 2,100 net acres were added to the Penn Sands prospect area inclusive of both Marchand and Red Fork prospects.
Contract drilling segment:
•BOSS drilling rigs continue to be 100% contracted.
•Obtained a long-term contract with an operator to build the 14th BOSS drilling rig. The operator for this new rig also agreed to long-term extensions on two existing BOSS drilling rigs.
•Completed the installation of the new 60 million cubic feet (MMcf) per day Reeding processing plant on the Cashion system.
•The Cashion system throughput volumes increased by 27% over the second quarter of 2018.
•During the first half of 2019, a new well pad was added to the Pittsburgh Mills gathering system resulting in an 82% increase in throughput volume over the second quarter of 2018.
Larry Pinkston, Chief Executive Officer and President, said: “We begin each year setting our capital expenditures budget based on what we then anticipate our cash flow for the year will be. For 2019, we projected a budget range of $336 million to $422 million for the year, consistent with our projected cash flow. At this point in the year and given current commodity prices, we anticipate that both our cash flow and our capital expenditures will end up at the low end of our budget range."
"We concentrated our oil and natural gas segment capital expenditures during the first half of the year so we would have the time needed to allow the new wells to be completed and producing by year-end. Consequently (and by design), borrowings under our bank credit agreement increased during the first and second quarters. Having, for the most part, completed our intended exploration operations, our plans are to now substantially reduce those borrowings by year-end.”
The following information was filed by Unit Corp (UNT) on Tuesday, August 6, 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.