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 November 2, 2011
|
Unit Corporation
|
|||
Date: November 2, 2011 | By: | /s/ David T. Merrill | |
David T. Merrill
Chief Financial Officer
and Treasurer
|
99.1
|
Press release dated November 2, 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
|
3rd Qtr 11 | 2nd Qtr 11 | 1st Qtr 11 | 4th Qtr 10 | 3rd Qtr 10 | 2nd Qtr 10 | 1st Qtr 10 | 4th Qtr 09 | 3rd Qtr 09 | |
Rigs
|
126 | 123 | 122 | 121 | 123 | 123 | 125 | 130 | 130 |
Utilization
|
63% | 60% | 58% | 59% | 54% | 47% | 40% | 28% | 26% |
·
|
Completed 40 and 119 gross wells during the third quarter and first nine months of 2011, respectively.
|
·
|
38% of third quarter 2011 production was oil and natural gas liquids compared to 30% for the third quarter of 2010.
|
·
|
Increased our anticipated 2011 production to now fall within the range of 11.8 to 12.1 MMBoe.
|
3rd Qtr 11 | 2nd Qtr 11 | 1st Qtr 11 | 4th Qtr 10 | 3rd Qtr 10 | 2nd Qtr 10 | 1st Qtr 10 | 4th Qtr 09 | 3rd Qtr 09 | |
Oil and NGL Production, MBo | 1,197.5 | 1,158.6 | 1,034.0 | 925.5 | 756.5 | 708.6 | 679.4 | 641.0 | 658.2 |
Natural Gas Production, Bcf | 11.6 | 10.9 | 10.2 | 10.6 | 10.4 | 9.7 | 10.0 | 10.5 | 10.7 |
Production, MBoe
|
3,123 | 2,983 | 2,739 | 2,698 | 2,478 | 2,325 | 2,352 | 2,389 | 2,444 |
Production, MBoe/day | 33.9 | 32.8 | 30.4 | 29.3 | 27.0 | 25.6 | 26.1 | 26.0 | 26.6 |
Realized Price, Boe (1)
|
$41.75 | $42.23 | $40.00 | $41.58 | $38.16 | $38.22 | $40.92 | $36.72 | $35.52 |
·
|
Increased third quarter 2011 liquids sold per day volumes, processing volumes per day, and gathering volumes per day by 73%, 54% and 25%, respectively, over the third quarter of 2010.
|
·
|
Construction of 16-mile pipeline and related compressor station in Preston County, West Virginia is scheduled to be complete and the pipeline operational during the fourth quarter of 2011.
|
·
|
Signed a letter of intent to construct a 7-mile, 16” pipeline in Allegheny and Butler Counties, Pennsylvania scheduled for completion during the fourth quarter of 2011.
|
3rd Qtr 11 | 2nd Qtr 11 | 1st Qtr 11 | 4th Qtr 10 | 3rd Qtr 10 | 2nd Qtr 10 | 1st Qtr 10 | 4th Qtr 09 | 3rd Qtr 09 | |
Gas gathered
MMBtu/day
|
228,247 | 190,921 | 185,730 | 188,252 | 183,161 | 183,858 | 180,117 | 177,145 | 179,047 |
Gas processed
MMBtu/day
|
129,820 | 90,737 | 86,445 | 85,195 | 84,175 | 82,699 | 76,513 | 77,501 | 77,923 |
Liquids sold
Gallons/day
|
449,604 | 356,484 | 328,333 | 291,186 | 260,519 | 279,736 | 253,707 | 263,668 | 251,830 |
Three Months Ended
|
Nine Months Ended
|
|||||||||||
September 30,
|
September 30,
|
|||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||
Statement of Operations:
|
||||||||||||
Revenues:
|
||||||||||||
Contract drilling
|
$
|
128,927
|
$
|
85,004
|
$
|
342,098
|
$
|
217,919
|
||||
Oil and natural gas
|
134,897
|
96,562
|
376,393
|
286,751
|
||||||||
Gas gathering and processing
|
60,688
|
37,429
|
144,820
|
114,908
|
||||||||
Other, net
|
(667
|
)
|
(879
|
)
|
(566
|
)
|
9,691
|
|||||
Total revenues
|
323,845
|
218,116
|
862,745
|
629,269
|
||||||||
Expenses:
|
||||||||||||
Contract drilling:
|
||||||||||||
Operating costs
|
73,004
|
45,406
|
190,086
|
132,847
|
||||||||
Depreciation
|
20,818
|
18,469
|
57,333
|
48,700
|
||||||||
Oil and natural gas:
|
||||||||||||
Operating costs
|
29,598
|
27,092
|
93,796
|
75,943
|
||||||||
Depreciation, depletion
|
||||||||||||
and amortization
|
47,195
|
30,091
|
132,013
|
81,746
|
||||||||
Gas gathering and processing:
|
||||||||||||
Operating costs
|
53,299
|
30,743
|
119,143
|
92,407
|
||||||||
Depreciation
|
||||||||||||
and amortization
|
4,017
|
3,823
|
11,627
|
11,746
|
||||||||
General and administrative
|
7,800
|
6,637
|
22,188
|
19,372
|
||||||||
Interest, net
|
1,351
|
---
|
2,078
|
---
|
||||||||
Total expenses
|
237,082
|
162,261
|
628,264
|
462,761
|
||||||||
Income Before Income Taxes
|
86,763
|
55,855
|
234,481
|
166,508
|
||||||||
Income Tax Expense:
|
||||||||||||
Current
|
(3,949
|
)
|
(8,553
|
)
|
(3,949
|
)
|
(2,488
|
)
|
||||
Deferred
|
37,352
|
29,917
|
94,224
|
66,177
|
||||||||
Total income taxes
|
33,403
|
21,364
|
90,275
|
63,689
|
||||||||
Net Income
|
$
|
53,360
|
$
|
34,491
|
$
|
144,206
|
$
|
102,819
|
||||
Net Income per Common Share:
|
||||||||||||
Basic
|
$
|
1.12
|
$
|
0.73
|
$
|
3.03
|
$
|
2.18
|
||||
Diluted
|
$
|
1.11
|
$
|
0.73
|
$
|
3.01
|
$
|
2.17
|
||||
Weighted Average Common
|
||||||||||||
Shares Outstanding:
|
||||||||||||
Basic
|
47,687
|
47,358
|
47,642
|
47,217
|
||||||||
Diluted
|
47,968
|
47,495
|
47,932
|
47,384
|
September 30,
|
December 31,
|
||||||||
2011
|
2010
|
||||||||
Balance Sheet Data:
|
|||||||||
Current assets
|
$
|
235,970
|
$
|
188,180
|
|||||
Total assets
|
$
|
3,165,251
|
$
|
2,669,240
|
|||||
Current liabilities
|
$
|
178,056
|
$
|
147,128
|
|||||
Long-term debt
|
$
|
305,400
|
$
|
163,000
|
|||||
Other long-term liabilities
|
$
|
112,701
|
$
|
92,389
|
|||||
Deferred income taxes
|
$
|
658,659
|
$
|
556,106
|
|||||
Shareholders’ equity
|
$
|
1,910,435
|
$
|
1,710,617
|
Nine Months Ended September 30,
|
|||||||||
2011
|
2010
|
||||||||
Statement of Cash Flows Data:
|
|||||||||
Cash Flow From Operations before Changes
|
|||||||||
in Operating Assets and Liabilities (1)
|
$
|
450,725
|
$
|
309,861
|
|||||
Net Change in Operating Assets and Liabilities
|
(32,874
|
)
|
(25,965
|
)
|
|||||
Net Cash Provided by Operating Activities
|
$
|
417,851
|
$
|
283,896
|
|||||
Net Cash Used in Investing Activities
|
$
|
(583,790
|
)
|
$
|
(393,804
|
)
|
|||
Net Cash Provided by
Financing Activities
|
$
|
165,740
|
$
|
109,901
|
Three Months Ended
|
Nine Months Ended
|
|||||||||||
September 30,
|
September 30,
|
|||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||
Contract Drilling Operations Data:
|
||||||||||||
Rigs Utilized
|
78.9
|
65.4
|
74.0
|
58.2
|
||||||||
Operating Margins (2)
|
43%
|
47%
|
44%
|
39%
|
||||||||
Operating Profit Before Depreciation (2) ($MM)
|
$
|
55.9
|
$
|
39.6
|
$
|
152.0
|
$
|
85.1
|
||||
Oil and Natural Gas Operations Data:
|
||||||||||||
Production:
|
||||||||||||
Oil – MBbls
|
620
|
379
|
1,767
|
1,002
|
||||||||
Natural Gas Liquids - MBbls
|
578
|
378
|
1,623
|
1,143
|
||||||||
Natural Gas - MMcf
|
11,553
|
10,385
|
32,730
|
30,121
|
||||||||
Average Prices:
|
||||||||||||
Oil price per barrel received
Oil price per barrel received, excluding hedges
|
$
$
|
86.19
89.47
|
$
$
|
66.94
72.52
|
$
$
|
86.80
93.75
|
$
$
|
67.05
74.11
|
||||
NGLs price per barrel received
NGLs price per barrel received,
excluding hedges
|
$
$
|
45.40
46.33
|
$
$
|
31.67
31.27
|
$
$
|
43.72
44.65
|
$
$
|
35.91
35.70
|
||||
Natural Gas price per Mcf received
Natural Gas price per Mcf received,
excluding hedges
|
$
$
|
4.39
4.01
|
$
$
|
5.55
3.94
|
$
$
|
4.33
3.94
|
$
$
|
5.71
4.27
|
||||
Operating Profit Before DD&A (2) ($MM)
|
$
|
105.3
|
$
|
69.5
|
$
|
282.6
|
$
|
210.8
|
||||
Mid-Stream Operations Data:
|
||||||||||||
Gas Gathering - MMBtu/day
|
228,247
|
183,161
|
201,788
|
182,390
|
||||||||
Gas Processing - MMBtu/day
|
129,820
|
84,175
|
102,493
|
81,157
|
||||||||
Liquids Sold – Gallons/day
|
449,604
|
260,519
|
378,585
|
264,679
|
||||||||
Operating Profit Before Depreciation
|
||||||||||||
and Amortization (2) ($MM)
|
$
|
7.4
|
$
|
6.7
|
$
|
25.7
|
$
|
22.5
|
Nine Months Ended
September 30,
|
||||||||||||
2011
|
2010
|
|||||||||||
(In thousands)
|
||||||||||||
Net cash provided by operating activities
|
$
|
417,851
|
$
|
283,896
|
||||||||
Subtract:
|
||||||||||||
Net change in operating assets and liabilities
|
32,874
|
25,965
|
||||||||||
Cash flow from operations before changes
|
||||||||||||
in operating assets and liabilities
|
$
|
450,725
|
$
|
309,861
|
·
|
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
|
Nine Months Ended
|
|||||||||||||||
June 30,
|
September 30,
|
September 30,
|
||||||||||||||
2011
|
2011
|
2010
|
2011
|
2010
|
||||||||||||
(In thousands)
|
||||||||||||||||
Contract drilling revenue
|
$
|
115,183
|
$
|
128,927
|
$
|
85,004
|
$
|
342,098
|
$
|
217,919
|
||||||
Contract drilling operating cost
|
64,238
|
73,004
|
45,406
|
190,086
|
132,847
|
|||||||||||
Operating profit from contract drilling
|
50,945
|
55,923
|
39,598
|
152,012
|
85,072
|
|||||||||||
Add:
Elimination of intercompany rig profit
|
5,092
|
4,820
|
2,888
|
14,955
|
4,717
|
|||||||||||
Operating profit from contract drilling
|
||||||||||||||||
before elimination of intercompany
|
||||||||||||||||
rig profit
|
56,037
|
60,743
|
42,486
|
166,967
|
89,789
|
|||||||||||
Contract drilling operating days
|
6,695
|
7,220
|
6,021
|
20,129
|
15,894
|
|||||||||||
Average daily operating margin before
|
||||||||||||||||
elimination of intercompany rig profit
|
$
|
8,370
|
$
|
8,413
|
$
|
7,056
|
$
|
8,295
|
$
|
5,649
|
·
|
Our management uses the measurement to evaluate the cash flow performance of 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.
|