Supplemental Condensed Consolidating Financial Information (Tables)

3 Months Ended

Mar. 31, 2019

Supplemental Condensed Consolidated Financial Information [Abstract]

Condensed Consolidating Balance Sheets (Unaudited)


	March 31, 2019
	Parent		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Consolidating Adjustments		Total Consolidated
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	507	$	256	$	3,128	$	—	$	3,891
Accounts receivable, net of allowance for doubtful accounts of $2,531 (Guarantor of $1,326 and Parent of $1,205)	1,879		75,400		23,871		(7,275)		93,875
Materials and supplies	—		495		—		—		495
Current derivative asset	3,464		—		—		—		3,464
Income taxes receivable	243		1,811		—		—		2,054
Assets held for sale	—		19,728		—		—		19,728
Prepaid expenses and other	2,190		2,868		2,446		—		7,504
Total current assets	8,283		100,558		29,445		(7,275)		131,011
Property and equipment:
Oil and natural gas properties on the full cost method:
Proved properties	—		6,104,092		—		—		6,104,092
Unproved properties not being amortized	—		339,957		—		—		339,957
Drilling equipment	—		1,279,735		—		—		1,279,735
Gas gathering and processing equipment	—		—		781,970		—		781,970
Saltwater disposal systems	—		69,010		—		—		69,010
Corporate land and building	—		59,080		—		—		59,080
Transportation equipment	9,731		17,332		3,264		—		30,327
Other	28,669		28,955		—		—		57,624
	38,400		7,898,161		785,234		—		8,721,795
Less accumulated depreciation, depletion, amortization, and impairment	29,057		5,820,157		376,006		—		6,225,220
Net property and equipment	9,343		2,078,004		409,228		—		2,496,575
Intercompany receivable	993,100		—		—		(993,100)		—
Goodwill	—		62,808		—		—		62,808
Investments	1,171,779		1,500		—		(1,171,779)		1,500
Right of use asset	10		1,762		2,779		—		4,551
Other assets	8,758		7,929		16,048		—		32,735
Total assets	$	2,191,273	$	2,252,561	$	457,500	$	(2,172,154)	$	2,729,180


	March 31, 2019
	Parent		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Consolidating Adjustments		Total Consolidated
	(In thousands)
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	10,199	$	104,928	$	24,176	$	(6,404)	$	132,899
Accrued liabilities	29,654		15,342		3,555		(467)		48,084
Current operating lease liability	9		658		1,702		—		2,369
Current portion of other long-term liabilities	781		6,606		6,923		—		14,310
Total current liabilities	40,643		127,534		36,356		(6,871)		197,662
Intercompany debt	—		993,182		(82)		(993,100)		—
Long-term debt less debt issuance costs	685,031		—		—		—		685,031
Non-current derivative liability	475		—		—		—		475
Operating lease liability	—		1,015		937		—		1,952
Other long-term liabilities	14,356		76,831		13,048		(403)		103,832
Deferred income taxes	57,319		87,050		—		—		144,369
Shareholders’ equity:
Preferred stock, $1.00 par value, 5,000,000 shares authorized, none issued	—		—		—		—		—
Common stock, $.20 par value, 175,000,000 shares authorized, 55,467,987 shares issued	10,578		—		—		—		10,578
Capital in excess of par value	633,361		45,921		197,042		(242,963)		633,361
Contributions from Unit	—		—		1,078		(1,078)		—
Accumulated other comprehensive loss	—		(457)		—		—		(457)
Retained earnings	749,510		921,485		6,254		(927,739)		749,510
Total shareholders’ equity attributable to Unit Corporation	1,393,449		966,949		204,374		(1,171,780)		1,392,992
Non-controlling interests in consolidated subsidiaries	—		—		202,867		—		202,867
Total shareholders' equity	1,393,449		966,949		407,241		(1,171,780)		1,595,859
Total liabilities and shareholders’ equity	$	2,191,273	$	2,252,561	$	457,500	$	(2,172,154)	$	2,729,180


	December 31, 2018
	Parent			Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Consolidating Adjustments		Total Consolidated
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	403		$	208	$	5,841	$	—	$	6,452
Accounts receivable, net of allowance for doubtful accounts of $2,531 (Guarantor of $1,326 and Parent of $1,205)	2,539			94,526		36,676		(14,344)		119,397
Materials and supplies	—			473		—		—		473
Current derivative asset	12,870			—		—		—		12,870
Income tax receivable	243		—	1,811		—		—		2,054
Assets held for sale	—			22,511		—		—		22,511
Prepaid expenses and other	1,993			3,560		1,049		—		6,602
Total current assets	18,048			123,089		43,566		(14,344)		170,359
Property and equipment:
Oil and natural gas properties on the full cost method:
Proved properties	—			6,018,568		—		—		6,018,568
Unproved properties not being amortized	—			330,216		—		—		330,216
Drilling equipment	—			1,284,419		—		—		1,284,419
Gas gathering and processing equipment	—			—		767,388		—		767,388
Saltwater disposal systems	—			68,339		—		—		68,339
Corporate land and building	—			59,081		—		—		59,081
Transportation equipment	9,273			17,165		3,086		—		29,524
Other	28,584			28,923		—		—		57,507
	37,857			7,806,711		770,474		—		8,615,042
Less accumulated depreciation, depletion, amortization, and impairment	27,504			5,790,481		364,741		—		6,182,726
Net property and equipment	10,353			2,016,230		405,733		—		2,432,316
Intercompany receivable	950,916			—		—		(950,916)		—
Goodwill	—			62,808		—		—		62,808
Investments	1,160,444			1,500		—		(1,160,444)		1,500
Other assets	8,225			5,293		17,552		—		31,070
Total assets	$	2,147,986		$	2,208,920	$	466,851	$	(2,125,704)	$	2,698,053


	December 31, 2018
	Parent		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Consolidating Adjustments		Total Consolidated
	(In thousands)
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	8,697	$	122,610	$	32,214	$	(13,576)	$	149,945
Accrued liabilities	28,230		16,409		5,493		(468)		49,664
Current portion of other long-term liabilities	812		6,563		6,875		—		14,250
Total current liabilities	37,739		145,582		44,582		(14,044)		213,859
Intercompany debt	—		948,707		2,209		(950,916)		—
Long-term debt less debt issuance costs	644,475		—		—		—		644,475
Non-current derivative liability	293		—		—		—		293
Other long-term liabilities	13,134		73,713		14,687		(300)		101,234
Deferred income taxes	60,983		83,765		—		—		144,748
Shareholders’ equity:
Preferred stock, $1.00 par value, 5,000,000 shares authorized, none issued	—		—		—		—		—
Common stock, $.20 par value, 175,000,000 shares authorized, 54,055,600 shares issued	10,414		—		—		—		10,414
Capital in excess of par value	628,108		45,921		197,042		(242,963)		628,108
Contributions from Unit	—		—		792		(792)		—
Accumulated other comprehensive loss	—		(481)		—		—		(481)
Retained earnings	752,840		911,713		4,976		(916,689)		752,840
Total shareholders’ equity attributable to Unit Corporation	1,391,362		957,153		202,810		(1,160,444)		1,390,881
Non-controlling interests in consolidated subsidiaries	—		—		202,563		—		202,563
Total shareholders' equity	1,391,362		957,153		405,373		(1,160,444)		1,593,444
Total liabilities and shareholders’ equity	$	2,147,986	$	2,208,920	$	466,851	$	(2,125,704)	$	2,698,053

Condensed Consolidating Statements of Operations (Unaudited)


	Three Months Ended March 31, 2019
	Parent		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Consolidating Adjustments		Total Consolidated
	(In thousands)
Revenues	$	—	$	144,294	$	70,509	$	(25,112)	$	189,691
Expenses:
Operating costs	—		71,393		56,129		(24,052)		103,470
Depreciation, depletion, and amortization	1,934		48,466		11,726		—		62,126
General and administrative	—		9,741		—		—		9,741
(Gain) loss on disposition of assets	(10)		1,667		(42)		—		1,615
Total operating costs	1,924		131,267		67,813		(24,052)		176,952
Income (loss) from operations	(1,924)		13,027		2,696		(1,060)		12,739
Interest, net	(8,202)		—		(336)		—		(8,538)
Loss on derivatives	(6,932)		—		—		—		(6,932)
Other, net	5		—		—		—		5
Income (loss) before income taxes	(17,053)		13,027		2,360		(1,060)		(2,726)
Income tax expense (benefit)	(3,699)		3,255		—		—		(444)
Equity in net earnings from investment in subsidiaries, net of taxes	9,850		—		—		(9,850)		—
Net income (loss)	(3,504)		9,772		2,360		(10,910)		(2,282)
Less: net income attributable to non-controlling interest	—		—		1,222		—		1,222
Net income (loss) attributable to Unit Corporation	$	(3,504)	$	9,772	$	1,138	$	(10,910)	$	(3,504)


	Three Months Ended March 31, 2018
	Parent		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Consolidating Adjustments		Total Consolidated
	(In thousands)
Revenues	$	—	$	153,809	$	74,650	$	(23,327)	$	205,132
Expenses:
Operating costs	—		73,106		59,020		(22,893)		109,233
Depreciation, depletion, and amortization	1,918		44,095		11,053		—		57,066
General and administrative	—		8,229		2,533		—		10,762
Gain on disposition of assets	(30)		(97)		(34)		—		(161)
Total operating costs	1,888		125,333		72,572		(22,893)		176,900
Income (loss) from operations	(1,888)		28,476		2,078		(434)		28,232
Interest, net	(9,855)		—		(149)		—		(10,004)
Loss on derivatives	(6,762)		—		—		—		(6,762)
Other, net	6		1		(1)		—		6
Income (loss) before income taxes	(18,499)		28,477		1,928		(434)		11,472
Income tax expense (benefit)	(4,639)		7,648		598		—		3,607
Equity in net earnings from investment in subsidiaries, net of taxes	21,725		—		—		(21,725)		—
Net income attributable to Unit Corporation	7,865		20,829		1,330		(22,159)		7,865

Condensed Consolidating Statements of Comprehensive Income (Loss) (Unaudited)


	Three Months Ended March 31, 2019
	Parent		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Consolidating Adjustments		Total Consolidated
	(In thousands)
Net income (loss)	$	(3,504)	$	9,772	$	2,360	$	(10,910)	$	(2,282)
Other comprehensive income (loss), net of taxes:
Unrealized gain on securities, net of tax $7	—		24		—		—		24
Comprehensive income (loss)	(3,504)		9,796		2,360		(10,910)		(2,258)
Less: Comprehensive income attributable to non-controlling interests	—		—		1,222		—		1,222
Comprehensive income (loss) attributable to Unit Corporation	$	(3,504)	$	9,796	$	1,138	$	(10,910)	$	(3,480)


	Three Months Ended March 31, 2018
	Parent		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Consolidating Adjustments		Total Consolidated
	(In thousands)
Net income	$	7,865	$	20,829	$	1,330	$	(22,159)	$	7,865
Other comprehensive income, net of taxes:
Unrealized gain on securities, net of tax of ($58)	—		(176)		—		—		(176)
Comprehensive income	7,865		20,653		1,330		(22,159)		7,689
Less: Comprehensive income attributable to non-controlling interests	—		—		—		—		—
Comprehensive income attributable to Unit Corporation	$	7,865	$	20,653	$	1,330	$	(22,159)	$	7,689

Condensed Consolidating Statements of Cash Flows (Unaudited)


	Three Months Ended March 31, 2019
	Parent		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Consolidating Adjustments		Total Consolidated
	(In thousands)
OPERATING ACTIVITIES:
Net cash provided by (used in) operating activities	$	(562)	$	64,168	$	13,506	$	(34)	$	77,078
INVESTING ACTIVITIES:
Capital expenditures	(321)		(110,089)		(12,097)		—		(122,507)
Producing properties and other acquisitions	—		(1,580)		—		—		(1,580)
Proceeds from disposition of assets	10		3,142		38		—		3,190
Net cash used in investing activities	(311)		(108,527)		(12,059)		—		(120,897)
FINANCING ACTIVITIES:
Borrowings under credit agreement	106,900		—		2,900		—		109,800
Payments under credit agreement	(66,900)		—		(2,900)		—		(69,800)
Intercompany borrowings (advances), net	(43,103)		44,407		(1,338)		34		—
Payments on finance leases	—		—		(985)		—		(985)
Distributions to non-controlling interest	919		—		(1,837)		—		(918)
Book overdrafts	3,161		—		—		—		3,161
Net cash provided by financing activities	977		44,407		(4,160)		34		41,258
Net increase (decrease) in cash and cash equivalents	104		48		(2,713)		—		(2,561)
Cash and cash equivalents, beginning of period	403		208		5,841		—		6,452
Cash and cash equivalents, end of period	$	507	$	256	$	3,128	$	—	$	3,891


	Three Months Ended March 31, 2018
	Parent		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Consolidating Adjustments		Total Consolidated
	(In thousands)
OPERATING ACTIVITIES:
Net cash provided by operating activities	$	(5,452)	$	74,277	$	14,743	$	—	$	83,568
INVESTING ACTIVITIES:
Capital expenditures	(56)		(79,855)		(10,338)		—		(90,249)
Producing properties and other acquisitions	—		—		—		—		—
Proceeds from disposition of assets	30		22,028		26		—		22,084
Net cash used in investing activities	(26)		(57,827)		(10,312)		—		(68,165)
FINANCING ACTIVITIES:
Borrowings under credit agreement	67,400		—		—		—		67,400
Payments under credit agreement	(97,700)		—		—		—		(97,700)
Intercompany borrowings (advances), net	19,880		(16,395)		(3,485)		—		—
Payments on finance leases	—		—		(946)		—		(946)
Book overdrafts	15,894		—		—		—		15,894
Net cash provided by (used in) financing activities	5,474		(16,395)		(4,431)		—		(15,352)
Net increase (decrease) in cash and cash equivalents	(4)		55		—		—		51
Cash and cash equivalents, beginning of period	510		191		—		—		701
Cash and cash equivalents, end of period	$	506	$	246	$	—	$	—	$	752