Net income attributable to Unit Corporation for the three months ended December 31, 2023 was $57.4 million, or $5.79 per diluted share, compared to $59.3 million, or $6.07 per diluted share, for the three months ended December 31, 2022. Total revenues for the three months ended December 31, 2023 was $74.6 million, compared to $102.3 million for the three months ended December 31, 2022.
For the twelve months ended December 31, 2023, net income attributable to Unit Corporation was $248.9 million, or $25.32 per diluted share, compared to $148.4 million, or $14.78 per diluted share, for the twelve months ended December 31, 2022. Total revenues for the twelve months ended December 31, 2023 was $327.3 million, compared to $545.5 million for the twelve months ended December 31, 2022.
"This was an important year for Unit as we paid a total of $37.50 per share in cash dividends during 2023, returning cash to shareholders that had been generated from our past operations as well as from divestitures of certain non-core assets," stated Phil Frohlich, the Company’s Chief Executive Officer. "Looking forward, we expect to continue to return value to shareholders through future quarterly cash dividends, as well as through additional future special cash dividends if deemed appropriate based on future results and circumstances."
The Company announced on March 7, 2024 that a quarterly cash dividend of $1.25 per share had been declared for the first quarter of 2024, to be paid on March 28, 2024 to shareholders of record as of the close of business on March 18, 2024. The Company also announced that it plans on approving a quarterly cash dividend of $1.25 per share for the second, third, and fourth quarters of 2024.
Operational highlights for the oil and natural gas and contract drilling segments during the twelve months ended December 31, 2023 and 2022 include:
Three Months Ended December 31,
Twelve Months Ended December 31,
2023
2022
% Change
2023
2022
% Change
Oil and Natural Gas:
Avg. oil price ($/Bbl)
$
57.12
$
56.31
1
%
$
60.61
$
57.48
5
%
Avg. oil price excl. derivatives ($/Bbl)
$
76.98
$
82.48
(7
)%
$
75.57
$
94.28
(20
)%
Avg. NGLs price ($/Bbl)
$
18.25
$
18.07
1
%
$
18.02
$
30.00
(40
)%
Avg. NGLs price excl. derivatives ($/Bbl)
$
18.25
$
18.07
1
%
$
18.02
$
30.00
(40
)%
Avg. natural gas price ($/Mcf)
$
1.72
$
3.42
(50
)%
$
2.28
$
3.65
(38
)%
Avg. natural gas price excl. derivatives ($/Mcf)
$
2.04
$
4.98
(59
)%
$
2.07
$
5.79
(64
)%
Oil production (MBbls)
209
290
(28
)%
984
1,281
(23
)%
NGL production (MBbls)
360
368
(2
)%
1,636
2,148
(24
)%
Natural gas production (MMcf)
4,453
5,424
(18
)%
20,195
24,211
(17
)%
Total production (Mboe)
1,310
1,562
(16
)%
5,986
7,464
(20
)%
Contract Drilling:
Drilling rigs available (end of the period)
14
18
(22
)%
14
18
(22
)%
Average drilling rigs in use
13.9
17.0
(18
)%
15.1
16.4
(8
)%
Average dayrate on daywork contracts ($/day)
$
31,245
$
27,579
13
%
$
31,225
$
23,132
35
%
BOSS rigs average dayrate ($/day)
$
31,245
$
28,385
10
%
$
31,690
$
23,963
32
%
SCR rigs average dayrate ($/day)
$
—
$
23,861
(100
)%
$
22,944
$
19,422
18
%
Common Stock Dividends
The table below presents information about the dividends paid during the periods indicated:
Type
Dividend
per share
Total
Amount
Record Date
Payment Date
2023
(In thousands)
First quarter
Special
$
10.00
$
96,179
January 20, 2023
January 31, 2023
Second quarter
Quarterly
$
2.50
$
24,071
June 16, 2023
June 26, 2023
Third quarter
Quarterly
$
2.50
$
24,113
September 15, 2023
September 26, 2023
Fourth quarter
Quarterly
$
2.50
$
24,226
December 18, 2023
December 27, 2023
Fourth quarter
Special
$
15.00
$
145,353
December 18, 2023
December 27, 2023
Fourth quarter
Special
$
5.00
$
48,451
December 18, 2023
December 27, 2023
The declaration and payment of any future dividend, whether fixed, special, or variable, will remain at the full discretion of the Company’s Board of Directors and will depend upon the Company’s financial position, results of operations, cash flows, capital requirements, business conditions, future expectations, the requirements of applicable law, and other factors that the Company’s Board of Directors finds relevant at the time of considering any potential dividend declaration. Future dividends are expected to be funded by cash on the Company's balance sheet.
Oil and Natural Gas Divestiture
On December 13, 2023, the Company closed on the sale of certain non-core wells and related leases in the Texas Panhandle for cash proceeds of $50.0 million, subject to customary post-closing adjustments based on an effective date of October 1, 2023. The sale represented a significant alteration to the full cost pool as reserves in excess of 25% were divested. To determine the gain, the Company allocated the net book value of the full cost pool based on the relative fair value of the properties retained versus those divested. A gain of $37.2 million was recognized within gain on disposition of assets in the consolidated statements of operations. Proceeds from the sale were used to fund the special dividend of $5.00 per share paid December 27, 2023.
About Unit Corporation
Unit Corporation is a Tulsa-based, publicly held energy company engaged through its wholly-owned subsidiaries in oil and gas production and contract drilling. For more information about Unit Corporation, visit its website at http://www.unitcorp.com.
Forward-Looking Statements
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act. All statements, other than statements of historical facts, included in this release that address activities, events, or developments that the Company expects, believes, or anticipates will or may occur are forward-looking statements. Several risks and uncertainties could cause actual results to differ materially from these statements, including changes in commodity prices, the productive capabilities of the Company’s wells, future demand for oil and natural gas, future drilling rig utilization and dayrates, projected rate of the Company’s oil and natural gas production, the amount available to the Company for borrowings, its anticipated borrowing needs under its credit agreements, the number of wells to be drilled by the Company’s oil and natural gas segment, the potential productive capability of its prospective plays, and other factors described occasionally in the Company’s publicly available OTC and SEC reports. The Company assumes no obligation to update publicly such forward-looking statements, whether because of new information, future events, or otherwise.
Unit Corporation
Selected Financial Highlights
Three Months Ended December 31,
Twelve Months Ended December 31,
2023
2022
2023
2022
(In thousands except per share amounts)
Revenues:
Oil and natural gas
$
31,830
$
57,734
$
146,237
$
315,482
Contract drilling
42,797
44,590
181,056
147,370
Gas gathering and processing
—
—
—
82,673
Total revenues
74,627
102,324
327,293
545,525
Expenses:
Operating costs:
Oil and natural gas
16,528
21,021
65,739
93,350
Contract drilling
26,652
27,564
108,035
105,387
Gas gathering and processing
—
—
—
62,388
Total operating costs
43,180
48,585
173,774
261,125
Depreciation, depletion, and amortization
5,231
3,691
17,724
24,143
General and administrative
7,726
5,096
22,577
24,644
Gain on disposition of assets
(36,372
)
(1,968
)
(49,950
)
(8,367
)
Total operating expenses
19,765
55,404
164,125
301,545
Income from operations
54,862
46,920
163,168
243,980
Other income (expense):
Interest income
2,679
—
9,734
2,642
Interest expense
(43
)
—
(164
)
(447
)
Gain (loss) on derivatives, net
1,119
10,238
12,975
(63,610
)
Gain (loss) on change in fair value of warrants
—
—
—
(29,323
)
Loss on deconsolidation of Superior
—
—
—
(13,141
)
Gain on sale of Superior investment
—
—
17,812
—
Reorganization items, net
(136
)
(37
)
(299
)
(127
)
Other, net
190
(56
)
203
2,900
Total other income (expense)
3,809
12,748
40,261
(101,106
)
Income before income taxes
58,671
59,668
203,429
142,874
Income tax expense (benefit), net:
Current
694
333
1,575
333
Deferred
540
—
(47,085
)
—
Total income tax expense (benefit), net
1,234
333
(45,510
)
333
Net income
57,437
59,335
248,939
142,541
Net loss attributable to non-controlling interests
—
—
—
(5,828
)
Net income attributable to Unit Corporation
$
57,437
$
59,335
$
248,939
$
148,369
Net income attributable to Unit Corporation per common share:
Basic
$
5.89
$
6.16
$
25.68
$
15.03
Diluted
$
5.79
$
6.07
$
25.32
$
14.78
Unit Corporation
Selected Financial Highlights - Continued
December 31, 2023
December 31, 2022
Balance Sheet Data:
(In thousands)
Cash and cash equivalents
$
60,779
$
213,975
Current assets
$
118,296
$
275,469
Total assets
$
322,720
$
469,255
Current liabilities
$
42,399
$
68,232
Long-term debt
$
—
$
—
Other long-term liabilities
$
22,803
$
33,362
Total shareholders’ equity attributable to Unit Corporation
