Unit Corporation Reports Third Quarter Results

07.11.24 22:30 Uhr

Unit Corporation (OTCQX: UNTC) (Company) filed unaudited condensed consolidated financial statements for the three and nine months ended September 30, 2024 with OTC Markets Group Inc. (OTC). The Company’s current, quarterly, and annual reports may be accessed on the OTC’s website at https://www.otcmarkets.com/stock/UNTC/disclosure, as well as the Company’s website at https://unitcorp.com/investor-relations/otc-sec-filings/.

Third Quarter and Year to Date Results

Net income for the three months ended September 30, 2024 was $8.9 million, or $0.89 per diluted share, compared to $28.8 million, or $2.94 per diluted share, for the three months ended September 30, 2023. Total revenue for the three months ended September 30, 2024 was $53.7 million, compared to $80.2 million for the three months ended September 30, 2023.

For the nine months ended September 30, 2024, net income was $36.6 million, or $3.67 per diluted share, compared to $191.5 million, or $19.55 per diluted share, for the nine months ended September 30, 2023. Total revenue for the nine months ended September 30, 2024 was $177.7 million, compared to $252.7 million for the nine months ended September 30, 2023.

"Our current year results remain on track, with results reflecting a relatively stable contract drilling market, as well as the expected decline in production volumes due to the December 2023 sale of certain non-core oil and gas assets in the Texas Panhandle,” said Phil Frohlich, Chief Executive Officer.

Operational highlights for the oil and natural gas and contract drilling segments during the three and nine months ended September 30, 2024 and 2023 include:

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2024

 

2023

 

% Change

2024

 

2023

 

% Change

Oil and Natural Gas:

 

 

 

 

 

 

 

 

 

 

Avg. oil price ($/Bbl)

$74.18

 

$60.33

 

23%

$76.24

 

$61.55

 

24%

Avg. oil price excl. derivatives ($/Bbl)

$74.18

 

$80.83

 

(8)%

$76.24

 

$75.19

 

1%

Avg. NGLs price ($/Bbl)

$18.70

 

$17.79

 

5%

$19.34

 

$17.95

 

8%

Avg. NGLs price excl. derivatives ($/Bbl)

$18.70

 

$17.79

 

5%

$19.34

 

$17.95

 

8%

Avg. natural gas price ($/Mcf)

$1.42

 

$1.75

 

(19)%

$1.42

 

$2.44

 

(42)%

Avg. natural gas price excl. derivatives ($/Mcf)

$1.42

 

$1.78

 

(20)%

$1.42

 

$2.08

 

(32)%

Oil production (MBbls)

160

 

225

 

(29)%

517

 

775

 

(33)%

NGL production (MBbls)

248

 

429

 

(42)%

763

 

1,277

 

(40)%

Natural gas production (MMcf)

3,288

 

5,185

 

(37)%

9,772

 

15,741

 

(38)%

Total production (MBOE)

956

 

1,518

 

(37)%

2,909

 

4,676

 

(38)%

 

2024

 

2023

 

% Change

2024

 

2023

 

% Change

Contract Drilling:

 

 

 

 

 

 

 

 

 

 

Total rigs available (end of the period)

14

 

14

 

—%

14

 

14

 

—%

Average number of drilling rigs in use

11.1

 

14.1

 

(21)%

12.2

 

15.5

 

(21)%

Average dayrate on daywork contracts ($/day)

$29,956

 

$32,572

 

(8)%

$30,569

 

$31,220

 

(2)%

 

Common Stock Dividends

The table below presents information about the dividends paid during the periods indicated:

 

Type

Dividend

per share

Total

Amount

Record Date

Payment Date

2023

 

 

(In thousands)

 

 

First quarter

Special

$

10.00

$

96,179

January 20, 2023

January 31, 2023

Second quarter

Quarterly

$

2.50

$

24,071

June 16, 2023

June 26, 2023

Third quarter

Quarterly

$

2.50

$

24,113

September 15, 2023

September 26, 2023

Fourth quarter

Quarterly

$

2.50

$

24,226

December 18, 2023

December 27, 2023

Fourth quarter

Special

$

15.00

$

145,353

December 18, 2023

December 27, 2023

Fourth quarter

Special

$

5.00

$

48,451

December 18, 2023

December 27, 2023

2024

 

 

 

 

 

First quarter

Quarterly

$

1.25

$

12,269

March 18, 2024

March 28, 2024

Second quarter

Quarterly

$

1.25

$

12,961

June 17, 2024

June 27, 2024

Third quarter

Quarterly

$

1.25

$

12,248

September 16, 2024

September 27, 2024

The declaration and payment of any future dividend, whether fixed, special, or variable, are at the sole discretion of the Company’s Board of Directors. This decision will depend upon several factors, including the Company’s financial position, results of operations, cash flows, capital requirements, business conditions, future expectations, legal requirements, and other relevant factors at the time of consideration. Future dividends are expected to be funded by cash on the Company's balance sheet.

The Company's preliminary 2024 Form 8937 (Report of Organizational Actions Affecting Basis of Securities) can be found on its website at https://unitcorp.com/investor-relations/tax-reporting/.

About Unit Corporation

Unit Corporation is a Tulsa-based, publicly held energy company engaged through its wholly-owned subsidiaries in oil and gas production and contract drilling. For more information about Unit Corporation, visit its website at http://www.unitcorp.com.

Forward-Looking Statements

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act. All statements, other than statements of historical facts, included in this release that address activities, events, or developments that the Company expects, believes, or anticipates will or may occur are forward-looking statements. Several risks and uncertainties could cause actual results to differ materially from these statements, including changes in commodity prices, the productive capabilities of the Company’s wells, future demand for oil and natural gas, future drilling rig utilization and dayrates, projected rate of the Company’s oil and natural gas production, the amount available to the Company for borrowings, its anticipated borrowing needs under its credit agreement, the number of wells to be drilled by the Company’s oil and natural gas segment, the potential productive capability of its prospective plays, and other factors described occasionally in the Company’s publicly available OTC reports. The Company assumes no obligation to update publicly such forward-looking statements, whether because of new information, future events, or otherwise.

 

Unit Corporation

Selected Financial Highlights

 

 

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

2024

 

2023

 

2024

 

2023

 

(In thousands except per share amounts)

Revenues:

 

 

 

 

 

 

 

Oil and natural gas

$

21,277

 

 

$

35,205

 

 

$

68,259

 

 

$

114,407

 

Contract drilling

 

32,453

 

 

 

44,951

 

 

 

109,432

 

 

 

138,259

 

Total revenues

 

53,730

 

 

 

80,156

 

 

 

177,691

 

 

 

252,666

 

Expenses:

 

 

 

 

 

 

 

Operating costs:

 

 

 

 

 

 

 

Oil and natural gas

 

10,503

 

 

 

16,823

 

 

 

32,962

 

 

 

49,211

 

Contract drilling

 

23,117

 

 

 

27,629

 

 

 

73,893

 

 

 

81,383

 

Total operating costs

 

33,620

 

 

 

44,452

 

 

 

106,855

 

 

 

130,594

 

Depreciation, depletion, and amortization

 

3,934

 

 

 

4,778

 

 

 

11,494

 

 

 

12,493

 

General and administrative

 

5,533

 

 

 

4,952

 

 

 

16,112

 

 

 

14,851

 

Gain on disposition of assets

 

(180

)

 

 

(4,149

)

 

 

(1,325

)

 

 

(13,578

)

Total operating expenses

 

42,907

 

 

 

50,033

 

 

 

133,136

 

 

 

144,360

 

Income from operations

 

10,823

 

 

 

30,123

 

 

 

44,555

 

 

 

108,306

 

Other income (expense):

 

 

 

 

 

 

 

Interest income

 

1,161

 

 

 

2,872

 

 

 

3,196

 

 

 

7,055

 

Interest expense

 

(8

)

 

 

(41

)

 

 

(46

)

 

 

(121

)

Gain on derivatives, net

 

(243

)

 

 

(3,239

)

 

 

(110

)

 

 

11,856

 

Gain on sale of Superior investment

 

 

 

 

 

 

 

 

 

 

17,812

 

Reorganization items, net

 

(34

)

 

 

(12

)

 

 

(56

)

 

 

(163

)

Other, net

 

82

 

 

 

(146

)

 

 

(73

)

 

 

13

 

Total other income (expense)

 

958

 

 

 

(566

)

 

 

2,911

 

 

 

36,452

 

Income before income taxes

 

11,781

 

 

 

29,557

 

 

 

47,466

 

 

 

144,758

 

Income tax expense (benefit), net:

 

 

 

 

 

 

 

Current

 

143

 

 

 

532

 

 

 

(72

)

 

 

881

 

Deferred

 

2,689

 

 

 

190

 

 

 

10,976

 

 

 

(47,625

)

Total income tax expense (benefit), net

 

2,832

 

 

 

722

 

 

 

10,904

 

 

 

(46,744

)

Net income

$

8,949

 

 

$

28,835

 

 

$

36,562

 

 

$

191,502

 

Net income per common share:

 

 

 

 

 

 

 

Basic

$

0.91

 

 

$

2.98

 

 

$

3.73

 

 

$

19.81

 

Diluted

$

0.89

 

 

$

2.94

 

 

$

3.67

 

 

$

19.55

 

 
 

Unit Corporation

Selected Financial Highlights - Continued

 

 

September 30,
2024

 

December 31,
2023

Balance Sheet Data:

(In thousands)

Cash and cash equivalents

$

80,088

 

$

60,779

Current assets

$

115,452

 

$

118,296

Total assets

$

307,658

 

$

322,720

Current liabilities

$

29,374

 

$

42,399

Long-term debt

$

 

$

Other long-term liabilities

$

22,600

 

$

22,803

Total shareholders’ equity attributable to Unit Corporation

$

253,475

 

$

254,126

 

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