Unit Corp. records net income of $0.03 per share in Q4 2016
Gulf Coast/Mid-Con producer Unit Corporation (ticker: UNT) reported fourth quarter and year-end results Thursday, saying the company generated net income of $1.7 million in the final quarter of 2016. On a per-share basis, the income equates to $0.03 per share, compared to a $6.29 per share loss in the fourth quarter of 2015, the company said in a press release.
For 2016, Unit recorded a net loss of $135.6 million, or $2.71 per share, compared to a net loss of $1.0 billion, or $21.12 per share, for 2015. For the full year, Unit incurred pre-tax non-cash ceiling test write-downs of $161.6 million in the carrying value of its oil and natural gas properties, compared to Unit’s 2015 pre-tax non-cash ceiling test write-downs of $1.6 billion in the carrying value of its oil and natural gas properties, $8.3 million in the carrying value of certain drilling rigs and other assets removed from service, and $27.0 million for the gas gathering systems discussed above.
Total production for 2016 was 17.3 MMBOE, a 14% decrease from 2015. For the quarter, total equivalent production was 4.2 MMBOE, a decrease of 12% from the fourth quarter of 2015 and essentially unchanged from the third quarter of 2016.
Liquids production represented 47% of total equivalent production for the quarter. Oil production for the quarter was 7,762 BOPD, a decrease of 9% from the fourth quarter of 2015 and an increase of 2% over the third quarter of 2016. NGLs production for the quarter was 13,790 BOPD, a decrease of 4% from the fourth quarter of 2015 and a 1% increase over the third quarter of 2016. Natural gas production for the quarter was 145,202 Mcf/d, a decrease of 16% from the fourth quarter of 2015 and essentially unchanged from the third quarter of 2016.
During the quarter, Unit continued its Wilcox recompletion and workover program, the company said in its release. There were 10 new behind pipe re-completions during the quarter, which increased combined production on those wells by 9.8 MMcf/d and 300 BOPD at a total capital cost of $3.0 million. During 2016, total production from the Wilcox play increased 22% over 2015. Unit’s plan for 2017 is for 10 – 15 Wilcox re-completions and seven new wells (4 vertical and 3 horizontal).
In the SOHOT area, Unit resumed its drilling program in October drilling and completing two Marchand horizontal wells. Production is being monitored for a few months with plans to begin drilling additional wells in the second quarter. Unit is planning a seven well program for the balance of 2017.
Unit resumed drilling in the Granite Wash play in December drilling an extended length lateral in the A2 interval of Buffalo Wallow that is anticipated to be completed in late February. The Dixon 5554 XL #1H, which was completed in the C1 interval, continues to perform at a rate over 50% better than its type curve forecast. Unit plans to continuously operate at least one drilling rig in the Granite Wash during 2017, which is planned to result in nine new extended length lateral wells, the company said in its release.
Unit Corp. presenting at EnerCom Dallas
Unit Corp. will be presenting its story at the Tower Club Downtown Dallas on Wednesday, March 1, as part of EnerCom Dallas, an investor conference which is modeled after EnerCom’s The Oil & Gas Conference® in Denver.
The Dallas conference is designed to offer investment professionals a unique opportunity to listen to a wide variety of oil and gas company senior management teams update investors on their operational and financial strategies and learn how the leading independent energy companies are building value in 2017.
The forum offers healthy dialogue and informal networking opportunities for attendees. Additionally one-on-one meetings with Unit management are open to request by buyside investing institutions at the attendee registration tab on the conference website.
To sign up for EnerCom Dallas and hear Unit Corp., or to find out more information about presenting companies and industry experts speaking at EnerCom Dallas, click here to visit the conference website.
