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 1, 2012
|
Unit Corporation
|
|||
Date: November 1, 2012 | By: | /s/ David T. Merrill | |
David T. Merrill
Chief Financial Officer
and Treasurer
|
99.1
|
Press release dated November 1, 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
|
3rd Qtr 12 | 2nd Qtr 12 | 1st Qtr 12 | 4th Qtr 11 | 3rd Qtr 11 | 2nd Qtr 11 | 1st Qtr 11 | 4th Qtr 10 | 3rd Qtr 10 | |
Rigs
|
127 | 128 | 127 | 127 | 126 | 123 | 122 | 121 | 123 |
Utilization
|
58% | 60% | 64% | 65% | 63% | 60% | 58% | 59% | 54% |
·
|
Third quarter 2012 production was 3.5 MMBoe, an increase of 12% over the third quarter 2011.
|
·
|
44% of third quarter 2012 production was oil and NGLs compared to 38% for the third quarter of 2011.
|
·
|
Production guidance for 2012, including the impact of acquisitions, is 13.9 to 14.2 MMBoe, an increase of 15% to 17% over 2011.
|
3rd Qtr 12 | 2nd Qtr 12 | 1st Qtr 12 | 4th Qtr 11 | 3rd Qtr 11 | 2nd Qtr 11 | 1st Qtr 11 | 4th Qtr 10 | 3rd Qtr 10 | |
Oil and NGL Production, MBbl | 1,545.8 | 1,460.2 | 1,375.2 | 1,359.9 | 1,197.5 | 1,158.6 | 1,034.0 | 925.5 | 756.5 |
Natural Gas Production, Bcf | 11.7 | 11.3 | 11.4 | 11.4 | 11.6 | 10.9 | 10.2 | 10.6 | 10.4 |
Production, MBoe
|
3,498 | 3,341 | 3,275 | 3,255 | 3,123 | 2,983 | 2,739 | 2,698 | 2,478 |
Production, MBoe/day | 38.0 | 36.7 | 36.0 | 35.4 | 33.9 | 32.8 | 30.4 | 29.3 | 27.0 |
Realized Price, Boe (1)
|
$37.99 | $38.49 | $40.51 | $42.65 | $41.75 | $42.23 | $40.00 | $41.58 | $38.16 |
·
|
Increased third quarter 2012 liquids sold per day volumes, processed volumes per day, and gathered volumes per day by 28%, 28% and 22%, respectively, over the third quarter of 2011.
|
·
|
A new gas gathering system and processing plant in Noble and Kay counties in Oklahoma, known as the Bellmon system, is completed and operating. Extensions are underway to connet to third party producers.
|
3rd Qtr 12 | 2nd Qtr 12 | 1st Qtr 12 | 4th Qtr 11 | 3rd Qtr 11 | 2nd Qtr 11 | 1st Qtr 11 | 4th Qtr 10 | 3rd Qtr 10 | |
Gas gathered
MMBtu/day
|
277,806 | 300,602 | 251,276 | 257,398 | 228,247 | 190,921 | 185,730 | 188,252 | 183,161 |
Gas processed
MMBtu/day
|
166,652 | 177,407 | 154,825 | 156,721 | 129,820 | 90,737 | 86,445 | 85,195 | 84,175 |
Liquids sold
Gallons/day
|
576,889 | 629,350 | 522,829 | 511,410 | 449,604 | 356,484 | 328,333 | 291,186 | 260,519 |
Three Months Ended
|
Nine Months Ended
|
|||||||||||
September 30,
|
September 30,
|
|||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||
Statement of Operations:
|
||||||||||||
Revenues:
|
||||||||||||
Contract drilling
|
$
|
133,420
|
$
|
128,927
|
$
|
421,198
|
$
|
342,098
|
||||
Oil and natural gas
|
131,420
|
134,897
|
397,745
|
376,393
|
||||||||
Gas gathering and processing
|
52,935
|
60,688
|
159,977
|
144,820
|
||||||||
Other, net
|
(15
|
) |
(667
|
) |
1,160
|
(566
|
) | |||||
Total revenues
|
317,760
|
323,845
|
980,080
|
862,745
|
||||||||
Expenses:
|
||||||||||||
Contract drilling:
|
||||||||||||
Operating costs
|
72,988
|
73,004
|
223,980
|
190,086
|
||||||||
Depreciation
|
20,094
|
20,818
|
62,660
|
57,333
|
||||||||
Oil and natural gas:
|
||||||||||||
Operating costs
|
36,147
|
29,598
|
105,035
|
93,796
|
||||||||
Depreciation, depletion
|
||||||||||||
and amortization
|
44,489
|
47,195
|
153,839
|
132,013
|
||||||||
Impairment of oil and natural
gas properties
|
—
|
—
|
115,874
|
—
|
||||||||
Gas gathering and processing:
|
||||||||||||
Operating costs
|
46,267
|
53,299
|
136,243
|
119,143
|
||||||||
Depreciation
|
||||||||||||
and amortization
|
5,884
|
4,017
|
16,330
|
11,627
|
||||||||
General and administrative
|
8,434
|
7,800
|
23,814
|
22,188
|
||||||||
Interest, net
|
7,087
|
1,351
|
11,455
|
2,078
|
||||||||
Total expenses
|
241,390
|
237,082
|
849,230
|
628,264
|
||||||||
Income Before Income Taxes
|
76,370
|
|
86,763
|
130,850
|
234,481
|
|||||||
Income Tax Expense (Benefit):
|
||||||||||||
Current
|
2,516
|
|
(3,949
|
) |
450
|
|
(3,949
|
) | ||||
Deferred
|
27,268
|
|
37,352
|
50,677
|
94,224
|
|||||||
Total income taxes
|
29,784
|
|
33,403
|
51,127
|
90,275
|
|||||||
Net Income
|
$
|
46,586
|
|
$
|
53,360
|
$
|
79,723
|
$
|
144,206
|
|||
Net Income per Common Share:
|
||||||||||||
Basic
|
$
|
0.97
|
|
$
|
1.12
|
$
|
1.66
|
$
|
3.03
|
|||
Diluted
|
$
|
0.97
|
|
$
|
1.11
|
$
|
1.66
|
$
|
3.01
|
|||
Weighted Average Common
|
||||||||||||
Shares Outstanding:
|
||||||||||||
Basic
|
47,938
|
47,687
|
47,891
|
47,642
|
||||||||
Diluted
|
48,201
|
47,968
|
48,106
|
47,932
|
September 30,
|
December 31,
|
||||||||
2012
|
2011
|
||||||||
Balance Sheet Data:
|
|||||||||
Current assets
|
$
|
210,084
|
$
|
228,465
|
|||||
Total assets
|
$
|
3,821,083
|
$
|
3,256,720
|
|||||
Current liabilities
|
$
|
247,447
|
$
|
212,750
|
|||||
Long-term debt
|
$
|
645,154
|
$
|
300,000
|
|||||
Other long-term liabilities
|
$
|
165,384
|
$
|
113,830
|
|||||
Deferred income taxes
|
$
|
734,122
|
$
|
683,123
|
|||||
Shareholders’ equity
|
$
|
2,028,976
|
$
|
1,947,017
|
Nine Months Ended September 30,
|
|||||||||
2012
|
2011
|
||||||||
Statement of Cash Flows Data:
|
|||||||||
Cash Flow From Operations before Changes
|
|||||||||
in Operating Assets and Liabilities (1)
|
$
|
499,609
|
$
|
450,725
|
|||||
Net Change in Operating Assets and
Liabilities
|
12,531
|
|
(32,874
|
)
|
|||||
Net Cash Provided by Operating Activities
|
$
|
512,140
|
$
|
417,851
|
|||||
Net Cash Used in Investing Activities
|
$
|
(888,597
|
)
|
$
|
(583,790
|
)
|
|||
Net Cash Provided by
Financing Activities
|
$
|
376,645
|
$
|
165,740
|
Three Months Ended
|
Nine Months Ended
|
|||||||||||
September 30,
|
September 30,
|
|||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||
Contract Drilling Operations Data:
|
||||||||||||
Rigs Utilized
|
73.4
|
78.9
|
77.2
|
74.0
|
||||||||
Operating Margins (2)
|
45%
|
43%
|
47%
|
44%
|
||||||||
Operating Profit Before Depreciation (2)
($MM)
|
$
|
60.4
|
$
|
55.9
|
$
|
197.2
|
$
|
152.0
|
||||
Oil and Natural Gas Operations Data:
|
||||||||||||
Production:
|
||||||||||||
Oil – MBbls
|
861
|
620
|
2,367
|
1,767
|
||||||||
Natural Gas Liquids - MBbls
|
684
|
578
|
2,014
|
1,623
|
||||||||
Natural Gas - MMcf
|
11,716
|
11,553
|
34,403
|
32,730
|
||||||||
Average Prices:
|
||||||||||||
Oil price per barrel received
Oil price per barrel received,
excluding hedges
|
$
$
|
91.07
87.38
|
$
$
|
86.19
89.47
|
$
$
|
92.96
91.93
|
$
$
|
86.80
93.75
|
||||
NGLs price per barrel received
NGLs price per barrel received,
excluding hedges
|
$
$
|
21.34
20.75
|
$
$
|
45.40
46.33
|
$
$
|
30.70
29.61
|
$
$
|
43.72
44.65
|
||||
Natural Gas price per Mcf received
Natural Gas price per Mcf received,
excluding hedges
|
$
$
|
3.40
2.50
|
$
$
|
4.39
4.01
|
$
$
|
3.26
2.29
|
$
$
|
4.33
3.94
|
||||
Operating Profit Before DD&A
and impairment (2) ($MM)
|
$
|
95.3
|
$
|
105.3
|
$
|
292.7
|
$
|
282.6
|
||||
Mid-Stream Operations Data:
|
||||||||||||
Gas Gathering - MMBtu/day
|
277,806
|
228,247
|
276,566
|
201,788
|
||||||||
Gas Processing - MMBtu/day
|
166,652
|
129,820
|
166,296
|
102,493
|
||||||||
Liquids Sold – Gallons/day
|
576,889
|
449,604
|
576,358
|
378,585
|
||||||||
Operating Profit Before Depreciation
|
||||||||||||
and Amortization (2) ($MM)
|
$
|
6.7
|
$
|
7.4
|
$
|
23.7
|
$
|
25.7
|
Three Months Ended
|
Nine Months Ended
|
||||||||||||||
September 30,
|
September 30,
|
||||||||||||||
2012
|
2011
|
2012
|
2011
|
||||||||||||
(In thousands)
|
|||||||||||||||
Net income excluding impairment of oil and
|
|||||||||||||||
natural gas properties:
|
|||||||||||||||
Net income
|
$
|
46,586
|
|
$
|
53,360
|
$
|
79,723
|
$
|
144,206
|
||||||
Add:
|
|||||||||||||||
Impairment of oil and natural gas properties
|
|||||||||||||||
(net of income tax)
|
---
|
---
|
72,132
|
---
|
|||||||||||
Net income excluding impairment of oil and
|
|||||||||||||||
natural gas properties
|
$
|
46,586
|
$
|
53,360
|
$
|
151,855
|
$
|
144,206
|
|||||||
Diluted earnings per share excluding
|
|||||||||||||||
impairment of oil and natural gas properties:
|
|||||||||||||||
Diluted earnings per share
Add:
Diluted earnings per share from impairment
|
$
|
0.97
|
|
$
|
1.11
|
$
|
1.66
|
$
|
3.01
|
||||||
of oil and natural gas properties
|
---
|
---
|
1.50
|
---
|
|||||||||||
Diluted earnings per share excluding
|
|||||||||||||||
impairment of oil and natural gas properties
|
$
|
0.97
|
$
|
1.11
|
$
|
3.16
|
$
|
3.01
|
·
|
We use the adjusted net income to evaluate the operational performance of the company.
|
·
|
The adjusted net income is more comparable to earnings estimates provided by securities analyst.
|
·
|
The impairment of oil and natural gas properties does not occur on a recurring basis and the amount and timing of impairments cannot be reasonably estimated for budgeting purposes and is therefore typically not included for forecasting operating results.
|
Nine Months Ended
September 30,
|
||||||||||||
2012
|
2011
|
|||||||||||
(In thousands)
|
||||||||||||
Net cash provided by operating activities
|
$
|
512,140
|
$
|
417,851
|
||||||||
Subtract:
|
||||||||||||
Net change in operating assets and
liabilities
|
(12,531
|
)
|
32,874
|
|
||||||||
Cash flow from operations before
|
||||||||||||
changes in operating assets and
liabilities
|
$
|
499,609
|
$
|
450,725
|
·
|
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,
|
||||||||||||||
2012
|
2012
|
2011
|
2012
|
2011
|
||||||||||||
(In thousands)
|
||||||||||||||||
Contract drilling revenue
|
$
|
146,872
|
$
|
133,420
|
$
|
128,927
|
$
|
421,198
|
$
|
342,098
|
||||||
Contract drilling operating cost
|
74,819
|
72,988
|
73,004
|
223,980
|
190,086
|
|||||||||||
Operating profit from contract drilling
|
72,053
|
60,432
|
55,923
|
197,218
|
152,012
|
|||||||||||
Add:
Elimination of intercompany rig profit
|
4,669
|
3,983
|
4,820
|
12,936
|
14,955
|
|||||||||||
Operating profit from contract drilling
|
||||||||||||||||
before elimination of intercompany
|
||||||||||||||||
rig profit
|
76,722
|
64,415
|
60,743
|
210,154
|
166,967
|
|||||||||||
Contract drilling operating days
|
6,893
|
6,660
|
7,220
|
20,884
|
20,129
|
|||||||||||
Average daily operating margin before
|
||||||||||||||||
elimination of intercompany rig profit
|
$
|
11,130
|
$
|
9,672
|
$
|
8,413
|
$
|
10,063
|
$
|
8,295
|
·
|
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.
|