Unit Corp. presents at EnerCom’s The Oil & Gas Conference®
Unit (ticker: UNT) is an energy company engaged through its subsidiaries in the exploration for and production of oil and natural gas, the acquisition of producing oil and natural gas properties, the contract drilling of onshore oil and natural gas wells, and the gathering and processing of natural gas.
Q2 highlights
- Net income attributable to Unit of $5.8 million; adjusted net income attributable to Unit of $11.3 million, a 216% increase over second quarter 2017 adjusted net income.
- Oil and natural gas segment production increased 1% over first quarter 2018 and 9% over the second quarter 2017.
- Delineation wells in the Wing and Brandt Prospects in Unit’s Wilcox play have provided very promising results. Further delineation work continues.
- Contract drilling segment completed construction of its 11th BOSS drilling rig placed into service following the end of the quarter.
- The 12th BOSS rig is under construction, and a new contract has been signed for the construction of the 13th BOSS rig, both with initial multi-year terms. The 12th and 13th BOSS rigs are expected to be placed into service in the first quarter of 2019.
- Thirty-five drilling rigs are operating; all eleven BOSS drilling rigs are under contract.
- On April 3, 2018, Unit completed the sale of 50% of the ownership interests in Superior Pipeline Company LLC (Superior) to SP Investor Holdings, LLC for cash consideration of $300 million. The effective date of the sale was April 1st.
- During the second quarter, Superior signed a five-year $200 million senior secured credit facility.
- Midstream segment gas processed, gas gathered, and liquids sold volumes per day increased 6%, 5%, and 17%, respectively, as compared to the first quarter of 2018.
- Midstream segment began construction of its new Reeding gas processing plant near Cashion, Oklahoma.
Breakout session at the EnerCom conference
During Unit Corp’s breakout session at the 2018 EnerCom conference, management was asked the following questions:
- Can you talk about the take-away of natural gas out of your fields?
- How positive are you on NGL pricing?
- Any plans to re-invest proceeds from the midstream operations?
- How long is your “long term” contract on rigs?
- You have three processing plants right now; do you think that by this time next year you would be working on a 4th? Or perhaps an extension of either of the current three?
- Can you talk about your Marcellus operations in a little bit more detail?
- How long does it take to move a rig from Permian to the Eagle Ford?
- Where do the gas gathering lines in Marcellus connect to? Interstate or Intrastate lines or both?
- Do you think that the activities by other companies in the Mid-continent will peak or drop giving the constraints in the Permian?
You can listen to Unit Corp’s presentation here.
