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 February 21, 2012
|
Unit Corporation
|
|||
Date: February 21, 2012 | By: | /s/ David T. Merrill | |
David T. Merrill
Chief Financial Officer
and Treasurer
|
99.1
|
Press release dated February 21, 2012
|
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
|
4th Qtr 11 | 3rd Qtr 11 | 2nd Qtr 11 | 1st Qtr 11 | 4th Qtr 10 | 3rd Qtr 10 | 2nd Qtr 10 | 1st Qtr 10 | 4th Qtr 09 | |
Rigs
|
127 | 126 | 123 | 122 | 121 | 123 | 123 | 125 | 130 |
Utilization
|
65% | 63% | 60% | 58% | 59% | 54% | 47% | 40% | 28% |
·
|
During 2011, Unit’s oil and NGLs reserves increased 16% and 37%, respectively.
|
·
|
Replaced 202% of 2011 production with new reserve additions, of which 141% was through the drill bit.
|
·
|
Total production for 2011 was 12.1 MMBoe, an increase of 23% over 2010, and included an increase in oil and NGLs production of 55%.
|
·
|
Production guidance for 2012 is 13.2 to 13.5 MMBoe, an increase of 9% to 12% over 2011.
|
4th Qtr 11 | 3rd Qtr 11 | 2nd Qtr 11 | 1st Qtr 11 | 4th Qtr 10 | 3rd Qtr 10 | 2nd Qtr 10 | 1st Qtr 10 | 4th Qtr 09 | |
Oil and NGL Production, MBo | 1,359.9 | 1,197.5 | 1,158.6 | 1,034.0 | 925.5 | 756.5 | 708.6 | 679.4 | 641.0 |
Natural Gas Production, Bcf | 11.4 | 11.6 | 10.9 | 10.2 | 10.6 | 10.4 | 9.7 | 10.0 | 10.5 |
Production, MBoe
|
3,255 | 3,123 | 2,983 | 2,739 | 2,698 | 2,478 | 2,325 | 2,352 | 2,389 |
Production, MBoe/day | 35.4 | 33.9 | 32.8 | 30.4 | 29.3 | 27.0 | 25.6 | 26.1 | 26.0 |
Realized Price, Boe (1)
|
$42.65 | $41.75 | $42.23 | $40.00 | $41.58 | $38.16 | $38.22 | $40.92 | $36.72 |
·
|
Increased 2011 liquids sold per day volumes, processing volumes per day, and gathering volumes per day by 52%, 41% and 17%, respectively, over 2010.
|
·
|
Completed construction of 16-mile, 16” pipeline and related compressor station in Preston County, West Virginia. The system is currently flowing 6 MMcf per day.
|
·
|
Due to high level of activity around the Hemphill facility in Texas, a 45 MMcf per day gas processing plant will be installed with completion anticipated during second quarter of 2012.
|
4th Qtr 11 | 3rd Qtr 11 | 2nd Qtr 11 | 1st Qtr 11 | 4th Qtr 10 | 3rd Qtr 10 | 2nd Qtr 10 | 1st Qtr 10 | 4th Qtr 09 | |
Gas gathered
MMBtu/day
|
257,398 | 228,247 | 190,921 | 185,730 | 188,252 | 183,161 | 183,858 | 180,117 | 177,145 |
Gas processed
MMBtu/day
|
156,721 | 129,820 | 90,737 | 86,445 | 85,195 | 84,175 | 82,699 | 76,513 | 77,501 |
Liquids sold
Gallons/day
|
511,410 | 449,604 | 356,484 | 328,333 | 291,186 | 260,519 | 279,736 | 253,707 | 263,668 |
Three Months Ended
|
Twelve Months Ended
|
|||||||||||
December 31,
|
December 31,
|
|||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||
Statement of Operations:
|
||||||||||||
Revenues:
|
||||||||||||
Contract drilling
|
$
|
142,553
|
$
|
98,465
|
$
|
484,651
|
$
|
316,384
|
||||
Oil and natural gas
|
139,923
|
114,056
|
516,316
|
400,807
|
||||||||
Gas gathering and processing
|
63,418
|
39,608
|
208,238
|
154,516
|
||||||||
Other, net
|
(268
|
)
|
447
|
(834
|
)
|
10,138
|
||||||
Total revenues
|
345,626
|
252,576
|
1,208,371
|
881,845
|
||||||||
Expenses:
|
||||||||||||
Contract drilling:
|
||||||||||||
Operating costs
|
79,813
|
53,966
|
269,899
|
186,813
|
||||||||
Depreciation
|
22,334
|
21,270
|
79,667
|
69,970
|
||||||||
Oil and natural gas:
|
||||||||||||
Operating costs
|
37,475
|
29,422
|
131,271
|
105,365
|
||||||||
Depreciation, depletion
|
||||||||||||
and amortization
|
51,337
|
37,047
|
183,350
|
118,793
|
||||||||
Gas gathering and processing:
|
||||||||||||
Operating costs
|
55,716
|
29,739
|
174,859
|
122,146
|
||||||||
Depreciation
|
||||||||||||
and amortization
|
4,474
|
3,639
|
16,101
|
15,385
|
||||||||
General and administrative
|
7,867
|
6,780
|
30,055
|
26,152
|
||||||||
Interest, net
|
2,089
|
---
|
4,167
|
---
|
||||||||
Total expenses
|
261,105
|
181,863
|
889,369
|
644,624
|
||||||||
Income Before Income Taxes
|
84,521
|
70,713
|
319,002
|
237,221
|
||||||||
Income Tax Expense (Benefit):
|
||||||||||||
Current
|
1,533
|
(7,447
|
)
|
(2,416
|
)
|
(9,935
|
)
|
|||||
Deferred
|
31,327
|
34,495
|
125,551
|
100,672
|
||||||||
Total income taxes
|
32,860
|
27,048
|
123,135
|
90,737
|
||||||||
Net Income
|
$
|
51,661
|
$
|
43,665
|
$
|
195,867
|
$
|
146,484
|
||||
Net Income per Common Share:
|
||||||||||||
Basic
|
$
|
1.08
|
$
|
0.92
|
$
|
4.11
|
$
|
3.10
|
||||
Diluted
|
$
|
1.08
|
$
|
0.92
|
$
|
4.08
|
$
|
3.09
|
||||
Weighted Average Common
|
||||||||||||
Shares Outstanding:
|
||||||||||||
Basic
|
47,703
|
47,457
|
47,658
|
47,278
|
||||||||
Diluted
|
48,028
|
47,678
|
47,951
|
47,454
|
December 31,
|
December 31,
|
||||||||
2011
|
2010
|
||||||||
Balance Sheet Data:
|
|||||||||
Current assets
|
$
|
228,465
|
$
|
188,180
|
|||||
Total assets
|
$
|
3,256,720
|
$
|
2,669,240
|
|||||
Current liabilities
|
$
|
212,750
|
$
|
147,128
|
|||||
Long-term debt
|
$
|
300,000
|
$
|
163,000
|
|||||
Other long-term liabilities
|
$
|
113,830
|
$
|
92,389
|
|||||
Deferred income taxes
|
$
|
683,123
|
$
|
556,106
|
|||||
Shareholders’ equity
|
$
|
1,947,017
|
$
|
1,710,617
|
Twelve Months Ended December 31,
|
|||||||||
2011
|
2010
|
||||||||
Statement of Cash Flows Data:
|
|||||||||
Cash Flow From Operations before Changes
|
|||||||||
in Operating Assets and Liabilities (1)
|
$
|
618,746
|
$
|
454,492
|
|||||
Net Change in Operating Assets and Liabilities
|
(10,291
|
)
|
(64,420
|
)
|
|||||
Net Cash Provided by Operating Activities
|
$
|
608,455
|
$
|
390,072
|
|||||
Net Cash Used in Investing Activities
|
$
|
(768,236
|
)
|
$
|
(536,261
|
)
|
|||
Net Cash Provided by
Financing Activities
|
$
|
159,257
|
$
|
146,408
|
Three Months Ended
|
Twelve Months Ended
|
|||||||||||
December 31,
|
December 31,
|
|||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||
Contract Drilling Operations Data:
|
||||||||||||
Rigs Utilized
|
82.1
|
70.9
|
76.1
|
61.4
|
||||||||
Operating Margins (2)
|
44%
|
45%
|
44%
|
41%
|
||||||||
Operating Profit Before Depreciation (2) ($MM)
|
$
|
62.7
|
$
|
44.4
|
$
|
214.8
|
$
|
129.6
|
||||
Oil and Natural Gas Operations Data:
|
||||||||||||
Production:
|
||||||||||||
Oil – MBbls
|
744
|
519
|
2,511
|
1,521
|
||||||||
Natural Gas Liquids - MBbls
|
616
|
406
|
2,239
|
1,549
|
||||||||
Natural Gas - MMcf
|
11,374
|
10,635
|
44,104
|
40,756
|
||||||||
Average Prices:
|
||||||||||||
Oil price per barrel received
Oil price per barrel received, excluding hedges
|
$
$
|
88.06
92.88
|
$
$
|
74.28
81.56
|
$
$
|
87.18
93.49
|
$
$
|
69.52
76.65
|
||||
NGLs price per barrel received
NGLs price per barrel received,
excluding hedges
|
$
$
|
43.47
43.85
|
$
$
|
40.16
40.59
|
$
$
|
43.64
44.44
|
$
$
|
37.04
36.96
|
||||
Natural Gas price per Mcf received
Natural Gas price per Mcf received,
excluding hedges
|
$
$
|
4.09
3.29
|
$
$
|
5.39
3.41
|
$
$
|
4.26
3.78
|
$
$
|
5.62
4.05
|
||||
Operating Profit Before DD&A (2) ($MM)
|
$
|
102.4
|
$
|
84.6
|
$
|
385.0
|
$
|
295.4
|
||||
Mid-Stream Operations Data:
|
||||||||||||
Gas Gathering - MMBtu/day
|
257,398
|
188,252
|
215,805
|
183,867
|
||||||||
Gas Processing - MMBtu/day
|
156,721
|
85,195
|
116,161
|
82,175
|
||||||||
Liquids Sold – Gallons/day
|
511,410
|
291,186
|
412,064
|
271,360
|
||||||||
Operating Profit Before Depreciation
|
||||||||||||
and Amortization (2) ($MM)
|
$
|
7.7
|
$
|
9.9
|
$
|
33.4
|
$
|
32.4
|
Twelve Months Ended
December 31,
|
|||||||||
2011
|
2010
|
||||||||
(In thousands)
|
|||||||||
Net cash provided by operating activities
|
$
|
608,455
|
$
|
390,072
|
|||||
Subtract:
|
|||||||||
Net change in operating assets and liabilities
|
10,291
|
64,420
|
|||||||
Cash flow from operations before changes
|
|||||||||
in operating assets and liabilities
|
$
|
618,746
|
$
|
454,492
|
|||||
·
|
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
|
Twelve Months Ended
|
|||||||||||||||
September 30,
|
December 31,
|
December 31,
|
||||||||||||||
2011
|
2011
|
2010
|
2011
|
2010
|
||||||||||||
(In thousands)
|
||||||||||||||||
Contract drilling revenue
|
$
|
128,927
|
$
|
142,553
|
$
|
98,465
|
$
|
484,651
|
$
|
316,384
|
||||||
Contract drilling operating cost
|
73,004
|
79,813
|
53,966
|
269,899
|
186,813
|
|||||||||||
Operating profit from contract drilling
|
55,923
|
62,740
|
44,499
|
214,752
|
129,571
|
|||||||||||
Add:
Elimination of intercompany rig profit
and bad debt expense
|
4,820
|
4,945
|
4,440
|
19,900
|
9,158
|
|||||||||||
Operating profit from contract drilling
|
||||||||||||||||
before elimination of intercompany
|
||||||||||||||||
rig profit and bad debt expense
|
60,743
|
67,685
|
48,939
|
234,652
|
138,729
|
|||||||||||
Contract drilling operating days
|
7,220
|
7,490
|
6,474
|
27,619
|
22,367
|
|||||||||||
Average daily operating margin before
|
||||||||||||||||
elimination of intercompany rig profit
and bad debt expense
|
$
|
8,413
|
$
|
9,037
|
$
|
7,559
|
$
|
8,496
|
$
|
6,202
|
||||||
·
|
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.
|