| ||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 THIRD QUARTER RESULTS
Tulsa, Oklahoma . . . Unit Corporation (NYSE-UNT) today reported its financial and operational results for the third quarter of 2019. Operational highlights include:
Oil and natural gas segment:
•Segment production increased 6% and capital expenditures decreased 56% during the quarter, as compared to the second quarter.
•Continued focus on increasing oil production, with this quarter's oil production increasing 28% over the second quarter and representing 21% of total equivalent production in the quarter.
•Lease operating expense decreased 11% during the quarter compared to the second quarter.
•Red Fork and SOHOT well results continue to meet or exceed expectations.
Contract drilling segment:
•BOSS drilling rigs continue to be 100% contracted.
•Construction of the 14th BOSS drilling rig was substantially completed and the rig is expected to begin working during the fourth quarter.
•Continued third-party operator drilling activity in the Cashion/Reeding gathering and processing system areas resulted in a 12% quarter-over-quarter throughput volume increase.
THIRD QUARTER 2019 FINANCIAL RESULTS
Net loss attributable to Unit for the quarter was $206.9 million, or $3.91 per diluted share, compared to net income attributable to Unit of $18.9 million, or $0.36 per diluted share, for the third quarter of 2018. The quarter's results included the following pre-tax non-cash write downs: $169.8 million ceiling test write down in the carrying value of Unit’s oil and natural gas properties and certain gathering system assets; $62.8 million in goodwill associated with the contract drilling segment; and $2.3 million in the carrying value of line-fill associated with the mid-stream segment. Adjusted net loss attributable to Unit (which excludes the effect of non-cash commodity derivatives and the effects of the write-downs) for the quarter was $15.7 million, or $0.30 per diluted share, as compared to adjusted net income attributable to Unit of $15.7 million, or $0.30 per diluted share, for the same quarter for 2018 (see non-GAAP financial measures below). The loss is primarily attributable to the deterioration in realized natural gas liquids (NGLs) prices and natural gas prices experienced during the quarter. Total revenues for the quarter were $155.4 million (50% oil and natural gas, 24% contract drilling, and 26% mid-stream), compared to $220.1 million (51% oil and natural gas, 23% contract drilling, and 26% mid-stream) for the third quarter of 2018. Adjusted EBITDA attributable to Unit was $58.8 million, or $1.11 per diluted share (see non-GAAP financial measures below).
For the first nine months of 2019, net loss attributable to Unit was $218.9 million, or $4.14 per diluted share, compared to net income attributable to Unit of $32.6 million, or $0.62 per diluted share, for the first nine months of 2018. Excluding the effect of the third quarter 2019 write downs discussed above and the effect of non-cash commodity derivatives,
The following information was filed by Unit Corp (UNT) on Friday, November 8, 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.