Unit Corporation Reports Third Quarter Results
TULSA, Okla.--(BUSINESS WIRE)--November 07, 2024--
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 $252.7 million for the nine months ended September 30, 2023.
"Our current year results remain on track, with results reflecting a relatively stable contract drilling market, as well as the expected decline in production volumes due to the December 2023 sale of certain non-core oil and gas assets in the Texas Panhandle," said Phil Frohlich, Chief Executive Officer.
Operational highlights for the oil and natural gas and contract drilling segments during the three and nine months ended September 30, 2024 and 2023 include:
Three Months Ended Nine Months Ended
September 30, September 30,
2024 2023 % Change 2024 2023 % Change
------- --------- -------- ------- --------- --------
Oil and Natural Gas:
Avg. oil price
($/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:
Dividend Total Record Payment
Type per share Amount Date Date
---------- ------------ ---------------- ---------- ----------
2023 (In thousands)
First January January
quarter Special $ 10.00 $ 96,179 20, 2023 31, 2023
Second June 16, June 26,
quarter Quarterly $ 2.50 $ 24,071 2023 2023
Third September September
quarter Quarterly $ 2.50 $ 24,113 15, 2023 26, 2023
Fourth December December
quarter Quarterly $ 2.50 $ 24,226 18, 2023 27, 2023
Fourth December December
quarter Special $ 15.00 $ 145,353 18, 2023 27, 2023
Fourth December December
quarter Special $ 5.00 $ 48,451 18, 2023 27, 2023
2024
First March 18, March 28,
quarter Quarterly $ 1.25 $ 12,269 2024 2024
Second June 17, June 27,
quarter Quarterly $ 1.25 $ 12,961 2024 2024
Third September September
quarter Quarterly $ 1.25 $ 12,248 16, 2024 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 Nine Months Ended
September 30, 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,
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