Delaware
|
1-9260
|
73-1283193
|
|||
(State or other jurisdiction
of incorporation)
|
(Commission File Number)
|
(I.R.S. Employer
Identification No.)
|
7130 South Lewis, Suite 1000, Tulsa, Oklahoma
|
74136
|
||
(Address of principal executive offices)
|
(Zip Code)
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
99.1
|
Press release dated May 3, 2011
|
Unit Corporation
|
|||
Date: May 3, 2011 | By: | /s/ David T. Merrill | |
David T. Merrill
Chief Financial Officer
and Treasurer
|
99.1
|
Press release dated May 3, 2011
|
News
|
UNIT CORPORATION
|
7130 South Lewis Avenue, Suite 1000, Tulsa, Oklahoma 74136
|
|
Telephone 918 493-7700, Fax 918 493-7714
|
Contact:
|
David T. Merrill
|
Chief Financial Officer
|
|
and Treasurer
|
|
(918) 493-7700
www.unitcorp.com
|
1st Qtr 11 | 4th Qtr 10 | 3rd Qtr 10 | 2nd Qtr 10 | 1st Qtr 10 | 4th Qtr 09 | 3rd Qtr 09 |
2nd Qtr 09
|
1st Qtr 09
|
|
Rigs
|
122 | 121 | 123 | 123 | 125 | 130 | 130 |
131
|
131
|
Utilization
|
58% | 59% | 54% | 47% | 40% | 28% | 26% |
24%
|
40%
|
·
|
Completed 34 gross wells in the first quarter of 2011 with a 91% success rate.
|
·
|
38% of first quarter 2011 production was oil and natural gas liquids compared to 29% for the first quarter of 2010.
|
·
|
Anticipated 2011 production of 11.0 to 11.3 MMBoe.
|
1st Qtr 11 | 4th Qtr 10 | 3rd Qtr 10 | 2nd Qtr 10 | 1st Qtr 10 | 4th Qtr 09 | 3rd Qtr 09 |
2nd Qtr 09
|
1st Qtr 09
|
|
Production, MBoe
|
2,739 | 2,698 | 2,478 | 2,325 | 2,352 | 2,389 | 2,444 |
2,572
|
2,713
|
Production, MBoe/day | 30.4 | 29.3 | 27.0 | 25.6 | 26.1 | 26.0 | 26.6 | 28.3 | 30.1 |
Realized Price, Boe (1)
|
$40.00 | $41.58 | $38.16 | $38.22 | $40.92 | $36.72 | $35.52 |
$34.50
|
$32.88
|
Wells Drilled
|
34 | 62 | 39 | 39 | 27 | 37 | 21 |
16
|
21
|
Success Rate
|
91% | 95% | 85% | 92% | 96% | 92% | 90% |
100%
|
90%
|
·
|
Increased first quarter 2011 liquids sold per day volumes, processing volumes per day, and gathering volumes per day by 29%, 13% and 3%, respectively, over the first quarter of 2010.
|
·
|
Construction of 16-mile pipeline and related compressor station in Preston County, West Virginia is on schedule to be operational by mid-2011.
|
·
|
Signed contract to build a 12-mile pipeline system and compressor station in Tioga and Potter Counties, Pennsylvania.
|
1st Qtr 11 | 4th Qtr 10 | 3rd Qtr 10 | 2nd Qtr 10 | 1st Qtr 10 | 4th Qtr 09 | 3rd Qtr 09 |
2nd Qtr 09
|
1st Qtr 09
|
|
Gas gathered
MMBtu/day
|
185,730 | 188,252 | 183,161 | 183,858 | 180,117 | 177,145 | 179,047 |
187,666
|
192,320
|
Gas processed
MMBtu/day
|
86,445 | 85,195 | 84,175 | 82,699 | 76,513 | 77,501 | 77,923 |
75,481
|
72,650
|
Liquids sold
Gallons/day
|
328,333 | 291,186 | 260,519 | 279,736 | 253,707 | 263,668 | 251,830 |
239,121
|
218,762
|
Three Months Ended
|
||||||
March 31,
|
||||||
2011
|
2010
|
|||||
Statement of Operations:
|
||||||
Revenues:
|
||||||
Contract drilling
|
$
|
97,988
|
$
|
60,854
|
||
Oil and natural gas
|
109,834
|
99,053
|
||||
Gas gathering and processing
|
39,764
|
41,135
|
||||
Other, net
|
(181
|
)
|
5,508
|
|||
Total revenues
|
247,405
|
206,550
|
||||
Expenses:
|
||||||
Contract drilling:
|
||||||
Operating costs
|
52,844
|
40,900
|
||||
Depreciation
|
17,297
|
13,786
|
||||
Oil and natural gas:
|
||||||
Operating costs
|
30,781
|
25,034
|
||||
Depreciation, depletion and amortization
|
40,268
|
25,336
|
||||
Gas gathering and processing:
|
||||||
Operating costs
|
29,055
|
32,726
|
||||
Depreciation and amortization
|
3,773
|
3,941
|
||||
General and administrative
|
6,892
|
6,279
|
||||
Interest, net
|
54
|
---
|
||||
Total expenses
|
180,964
|
148,002
|
||||
Income Before Income Taxes
|
66,441
|
58,548
|
||||
Income Tax Expense:
|
||||||
Current
|
---
|
2,240
|
||||
Deferred
|
25,414
|
20,155
|
||||
Total income taxes
|
25,414
|
22,395
|
||||
Net Income
|
$
|
41,027
|
$
|
36,153
|
||
Net Income per Common Share:
|
||||||
Basic
|
$
|
0.86
|
$
|
0.77
|
||
Diluted
|
$
|
0.86
|
$
|
0.76
|
||
Weighted Average Common Shares Outstanding:
|
||||||
Basic
|
47,584
|
47,121
|
||||
Diluted
|
47,905
|
47,686
|
|
March 31,
|
December 31,
|
||||||||||||
2011
|
2010
|
||||||||||||
Balance Sheet Data:
|
|||||||||||||
Current assets
|
$
|
189,015
|
$
|
188,180
|
|||||||||
Total assets
|
$
|
2,786,044
|
$
|
2,669,240
|
|||||||||
Current liabilities
|
$
|
176,274
|
$
|
147,128
|
|||||||||
Long-term debt
|
$
|
185,000
|
$
|
163,000
|
|||||||||
Other long-term liabilities
|
$
|
100,821
|
$
|
92,389
|
|||||||||
Deferred income taxes
|
$
|
579,085
|
$
|
556,106
|
|||||||||
Shareholders’ equity
|
$
|
1,744,864
|
$
|
1,710,617
|
Three Months Ended March 31,
|
|||||||||
2011
|
2010
|
||||||||
Statement of Cash Flows Data:
|
|||||||||
Cash Flow From Operations before Changes
|
|||||||||
in Operating Assets and Liabilities (1)
|
$
|
134,697
|
$
|
97,030
|
|||||
Net Change in Operating Assets and Liabilities
|
(13,492
|
)
|
(17,363
|
)
|
|||||
Net Cash Provided by Operating Activities
|
$
|
121,205
|
$
|
79,667
|
|||||
Net Cash Used in Investing Activities
|
$
|
(169,212
|
)
|
$
|
(86,926
|
)
|
|||
Net Cash Provided by Financing Activities
|
$
|
47,884
|
$
|
7,158
|
Three Months Ended March 31,
|
||||||
2011
|
2010
|
|||||
Contract Drilling Operations Data:
|
||||||
Rigs Utilized
|
70.0
|
50.9
|
||||
Operating Margins (2)
|
46%
|
33%
|
||||
Operating Profit Before
|
||||||
Depreciation (2) ($MM)
|
$
|
45.1
|
$
|
20.0
|
||
Oil and Natural Gas Operations Data:
|
||||||
Production:
|
||||||
Oil - MBbls
|
556
|
303
|
||||
Natural Gas Liquids - MBbls
|
478
|
377
|
||||
Natural Gas - MMcf
|
10,231
|
10,034
|
||||
Average Prices:
|
||||||
Oil price per barrel received
|
$
|
84.33
|
$
|
67.33
|
||
Oil price per barrel received, excluding hedges
|
$
|
90.78
|
$
|
75.70
|
||
NGLs price per barrel received
|
$
|
39.61
|
$
|
42.76
|
||
NGLs price per barrel received, excluding hedges
|
$
|
40.36
|
$
|
42.76
|
||
Natural Gas price per Mcf received
|
$
|
4.28
|
$
|
5.95
|
||
Natural Gas price per Mcf received, excluding hedges
|
$
|
3.85
|
$
|
5.14
|
||
Operating Profit Before DD&A (2) ($MM)
|
$
|
79.1
|
$
|
74.0
|
||
Mid-Stream Operations Data:
|
||||||
Gas Gathering - MMBtu/day
|
185,730
|
180,117
|
||||
Gas Processing - MMBtu/day
|
86,445
|
76,513
|
||||
Liquids Sold – Gallons/day
|
328,333
|
253,707
|
||||
Operating Profit Before Depreciation
|
||||||
and Amortization (2) ($MM)
|
$
|
10.7
|
$
|
8.4
|
March 31,
|
||||||||||||
2011
|
2010
|
|||||||||||
(In thousands)
|
||||||||||||
Net cash provided by operating activities
|
$
|
121,205
|
$
|
79,667
|
||||||||
Subtract:
|
||||||||||||
Net change in operating assets and liabilities
|
(13,492
|
)
|
(17,363
|
)
|
||||||||
Cash flow from operations before changes
|
||||||||||||
in operating assets and liabilities
|
$
|
134,697
|
$
|
97,030
|
·
|
It is an accepted financial indicator used by our management and companies in our industry to measure the company’s ability to generate cash which is used to internally fund our business activities.
|
·
|
It is used by investors and financial analysts to evaluate the performance of our company.
|
Three Months Ended | |||||||||||||||
March 31,
|
December 31,
|
||||||||||||||
2011
|
2010
|
2010
|
|||||||||||||
(In thousands)
|
|||||||||||||||
Contract drilling revenue
|
$
|
97,988
|
$
|
60,854
|
$
|
98,465
|
|||||||||
Contract drilling operating cost
|
52,844
|
40,900
|
53,966
|
||||||||||||
Operating profit from contract drilling
|
45,144
|
19,954
|
44,499
|
||||||||||||
Add:
Elimination of intercompany rig profit
|
5,044
|
376
|
4,440
|
||||||||||||
Operating profit from contract drilling
|
|||||||||||||||
before elimination of intercompany
|
|||||||||||||||
rig profit
|
50,188
|
20,330
|
48,939
|
||||||||||||
Contract drilling operating days
|
6,214
|
4,584
|
6,474
|
||||||||||||
Average daily operating margin before
|
|||||||||||||||
elimination of intercompany rig profit
|
$
|
8,077
|
$
|
4,435
|
$
|
7,559
|
·
|
Our management uses the measurement to evaluate the cash flow performance or our contract drilling segment and to evaluate the performance of contract drilling management.
|
·
|
It is used by investors and financial analysts to evaluate the performance of our company.
|