Press Release: Unit Corporation Reports First Quarter Results

Dow Jones05-07
TULSA, Okla.--(BUSINESS WIRE)--May 07, 2026-- 

Unit Corporation (OTCQX: UNTC) (Company) filed consolidated financial statements for the three months ended March 31, 2026 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/.

On April 27, 2026, the Company entered into a purchase and sale agreement to sell certain oil and gas leasehold interests, consisting of deep rights in the Woodford and Mississippian formations underlying acreage located in Caddo and Blaine Counties, Oklahoma, for an aggregate purchase price of approximately $18.7 million, subject to customary purchase price adjustments. The transaction is expected to close within 60 days of execution, subject to customary closing conditions.

Phil Frohlich, Chief Executive Officer, commented, "this divestiture of deeper rights in the Woodford and Mississippian formations reflects our ongoing effort to streamline the portfolio and focus on areas where we see the strongest returns. By monetizing these non-core undeveloped interests, we're sharpening our operational focus. We're particularly encouraged by the opportunities emerging in the Cherokee Shale and Red Fork formations, where we continue to see meaningful development potential."

First Quarter Results

The Selected Financial Highlights should be read in conjunction with the Company's unaudited condensed consolidated financial statements and the notes thereto.

 
                                       Three Months Ended March 31, 
                               --------------------------------------------- 
                                        2026                   2025 
                               ----------------------  --------------------- 
                                  (In thousands except per share amounts) 
 
Total revenues                 $               29,067  $              28,387 
                               ---  -----------------  ---  ---------------- 
 
Net income from continuing 
 operations                                     4,662                 11,386 
Net income (loss) from 
 discontinued operations                           --                  6,550 
                               ---  -----------------  ---  ---------------- 
    Net income                 $                4,662  $              17,936 
                               ===  =================  ===  ================ 
 
Diluted net income per common 
share 
    Continuing operations      $                 0.47  $                1.14 
    Discontinued operations                        --                   0.66 
                               ---  -----------------  ---  ---------------- 
      Total diluted earnings 
       per common share        $                 0.47  $                1.80 
                               ===  =================  ===  ================ 
 

Operational highlights for the oil and natural gas segment during the three months ended March 31, 2026 and 2025 include:

 
                             Three Months Ended March 31, 
                          ----------------------------------  ------ 
                                2026              2025         % Change 
                          -----------------  ---------------  ---------- 
Average oil price 
 ($/Bbl)                  $           66.19  $         69.90     (5)% 
Average oil price 
 excluding derivatives 
 ($/Bbl)                  $           69.98  $         69.90       0% 
Average NGLs price 
 ($/Bbl)                  $           18.52  $         23.03    (20)% 
Average NGLs price 
 excluding derivatives 
 ($/Bbl)                  $           18.52  $         23.03    (20)% 
Average natural gas 
 price ($/Mcf)            $            3.05  $          2.94       4% 
Average natural gas 
 price excluding 
 derivatives ($/Mcf)      $            3.53  $          3.23       9% 
Oil production (MBbls)                  199              190       5% 
NGL production (MBbls)                  238              236       1% 
Natural gas production 
 (MMcf)                               2,988            3,089     (3)% 
Total production (MBOE)                 935              941     (1)% 
 

Derivatives

The following non-designated commodity hedges were outstanding as of March 31, 2026:

 
  Remaining       Commodity       Contracted       Weighted       Contracted 
    Term                            Volume         Average          Market 
                                                 Fixed Price 
                                                  for Swaps 
-------------    ------------    ------------    ------------    ------------- 
  Apr'26 -       Natural gas        5,000           $4.22         IF - NYMEX 
   Dec'26           - swap        MMBtu/day                          (HH) 
                 Floating to 
                    fixed 
  Apr'26 -       Natural gas        5,000           $4.22         IF - NYMEX 
   Oct'26           - swap        MMBtu/day                          (HH) 
                 Floating to 
                    fixed 
  Apr'26 -       Natural gas        5,000           $4.02         IF - NYMEX 
   Dec'26           - swap        MMBtu/day                          (HH) 
                 Floating to 
                    fixed 
  Apr'26 -       Crude Oil -        12,000          $65.85        WTI - NYMEX 
   Dec'26            swap         Bbls/month 
                 Floating to 
                    fixed 
  Apr'26 -       Crude Oil -        5,000           $64.40        WTI - NYMEX 
   Dec'26            swap         Bbls/month 
                 Floating to 
                    fixed 
  Apr'26 -       Crude Oil -        7,000           $69.10        WTI - NYMEX 
   Dec'26            swap         Bbls/month 
                 Floating to 
                    fixed 
  Apr'26 -       Crude Oil -        8,000           $70.50        WTI - NYMEX 
   Dec'26            swap         Bbls/month 
                 Floating to 
                    fixed 
  Apr'26 -       Crude Oil -        5,000           $73.75        WTI - NYMEX 
   Dec'26            swap         Bbls/month 
                 Floating to 
                    fixed 
  Jan'27 -       Crude Oil -        5,000           $65.00        WTI - NYMEX 
   Dec'27            swap         Bbls/month 
                 Floating to 
                    fixed 
  Jan'27 -       Crude Oil -        5,000           $63.90        WTI - NYMEX 
   Dec'27            swap         Bbls/month 
                 Floating to 
                    fixed 
  Jan'27 -       Crude Oil -        5,000           $62.10        WTI - NYMEX 
   Dec'27            swap         Bbls/month 
                 Floating to 
                    fixed 
  Jan'27 -       Crude Oil -        7,000           $64.70        WTI - NYMEX 
   Dec'27            swap         Bbls/month 
                 Floating to 
                    fixed 
  Jan'27 -       Crude Oil -        5,000           $67.25        WTI - NYMEX 
   Dec'27            swap         Bbls/month 
                 Floating to 
                    fixed 
 

As of March 31, 2026, based on our first quarter 2026 average daily production, the approximated percentages of our production under swaps are as follows:

 
                                2026  2027 and beyond 
 Daily oil production           56%         41% 
 Daily natural gas production   46%         0% 
 

Common Stock Dividends

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

 
                          Dividend 
                             per      Total    Record     Payment 
                Type        share     Amount    Date       Date 
             ----------   ---------  -------  ---------  --------- 
2025 
   First                                      March 18,  March 28, 
    quarter  Quarterly    $    1.25  $12,317    2025       2025 
   Second                                     June 17,   June 27, 
    quarter  Quarterly    $    1.25  $12,317    2025       2025 
   Third                                      September  September 
    quarter  Quarterly    $    1.25  $12,335  16, 2025   26, 2025 
   Fourth                                     December   December 
    quarter  Quarterly    $    1.25  $12,375  16, 2025   26, 2025 
2026 
   First                                      March 17,  March 27, 
    quarter  Quarterly    $    1.25  $12,370    2026       2026 
 

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.

About Unit Corporation

Unit Corporation is a Tulsa-based, publicly held energy company engaged in oil and natural gas production through its wholly owned subsidiary, Unit Petroleum Company. 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, 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, 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.

In conjunction with this release, the Company has posted a supplemental investor presentation on the Investor Relations section of its website at https://unitcorp.com/investor-relations/#presentations.

 
                              Unit Corporation 
                       Selected Financial Highlights 
                                     Three Months Ended March 31, 
                           ------------------------------------------------- 
                                   2026                      2025 
                           --------------------  ---  ------------------ 
                                (In thousands except per share amounts) 
Revenues: 
   Total revenues          $             29,067       $           28,387 
                           ---  ---------------  ---      -------------- 
Expenses: 
   Operating costs                       10,988                   10,063 
   Depreciation, 
    depletion, and 
    amortization                          2,636                    2,174 
   General and 
    administrative                        5,262                    5,296 
   Gain on disposition of 
    assets                                  (22)                      -- 
                           ---  ---------------           -------------- 
      Total operating 
       expenses                          18,864                   17,533 
                           ---  ---------------  ---      -------------- 
Income from operations                   10,203                   10,854 
                           ---  ---------------  ---      -------------- 
   Other income 
   (expense): 
   Interest income                        1,624                      547 
   Interest expense                          (8)                     (10) 
   Gain (loss) on 
    derivatives, net                     (6,069)                   2,302 
   Other, net                                32                       93 
                           ---  ---------------  ---      -------------- 
      Total other income 
       (expense)                         (4,421)                   2,932 
                           ---  ---------------           -------------- 
Income from continuing 
 operations before income 
 taxes                                    5,782                   13,786 
                           ---  ---------------  ---      -------------- 
Income tax expense 
(benefit), net 
   Current                                 (320)                      84 
   Deferred                               1,440                    2,316 
                           ---  ---------------  ---      -------------- 
      Total income tax 
       expense (benefit), 
       net                                1,120                    2,400 
                           ---  ---------------  ---      -------------- 
Income from continuing 
 operations                               4,662                   11,386 
Income from discontinued 
 operations, net of tax                      --                    6,550 
                           ---  ---------------  ---      -------------- 
Net income                 $              4,662       $           17,936 
                           ===  ===============  ===      ============== 
Basic net income per 
common share 
   Continuing operations   $               0.47       $             1.15 
   Discontinued 
    operations                               --                     0.66 
                           ---  ---------------  ---      -------------- 
      Total basic 
       earnings per 
       common share        $               0.47       $             1.81 
                           ===  ===============  ===      ============== 
 
 
 
                      Unit Corporation 
         Selected Financial Highlights -- Continued 
                                   March 31,    December 31, 
                                     2026           2025 
                                  -----------  -------------- 
                                        (In thousands) 
Balance Sheet Data: 
    Cash and cash equivalents     $   173,463  $      181,713 
    Current assets                $   192,478  $      200,470 
    Total assets                  $   321,139  $      330,742 
    Current liabilities           $    22,365  $       28,416 
    Long-term debt                $        --  $           -- 
    Other long-term liabilities   $    21,367  $       21,212 
    Total shareholders' equity    $   273,493  $      281,074 
 

View source version on businesswire.com: https://www.businesswire.com/news/home/20260507669441/en/

 
    CONTACT:    Rene Punch 

Investor Relations

(918) 493-7700

www.unitcorp.com

 
 

(END) Dow Jones Newswires

May 07, 2026 09:04 ET (13:04 GMT)

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