TULSA, Okla., November 07, 2024--(BUSINESS WIRE)--Unit Corporation (OTCQX: UNTC) (Company) filed unaudited condensed consolidated financial statements for the three and nine months ended September 30, 2024 with OTC Markets Group Inc. (OTC). The Company’s current, quarterly, and annual reports may be accessed on the OTC’s website at https://www.otcmarkets.com/stock/UNTC/disclosure, as well as the Company’s website at https://unitcorp.com/investor-relations/otc-sec-filings/.
Third Quarter and Year to Date Results
Net income for the three months ended September 30, 2024 was $8.9 million, or $0.89 per diluted share, compared to $28.8 million, or $2.94 per diluted share, for the three months ended September 30, 2023. Total revenue for the three months ended September 30, 2024 was $53.7 million, compared to $80.2 million for the three months ended September 30, 2023.
For the nine months ended September 30, 2024, net income was $36.6 million, or $3.67 per diluted share, compared to $191.5 million, or $19.55 per diluted share, for the nine months ended September 30, 2023. Total revenue for the nine months ended September 30, 2024 was $177.7 million, compared to $252.7 million for the nine months ended September 30, 2023.
"Our current year results remain on track, with results reflecting a relatively stable contract drilling market, as well as the expected decline in production volumes due to the December 2023 sale of certain non-core oil and gas assets in the Texas Panhandle," said Phil Frohlich, Chief Executive Officer.
Operational highlights for the oil and natural gas and contract drilling segments during the three and nine months ended September 30, 2024 and 2023 include:
Three Months Ended September 30,
Nine Months Ended September 30,
2024
2023
% Change
2024
2023
% Change
Oil and Natural Gas:
Avg. oil price ($/Bbl)
$74.18
$60.33
23%
$76.24
$61.55
24%
Avg. oil price excl. derivatives ($/Bbl)
$74.18
$80.83
(8)%
$76.24
$75.19
1%
Avg. NGLs price ($/Bbl)
$18.70
$17.79
5%
$19.34
$17.95
8%
Avg. NGLs price excl. derivatives ($/Bbl)
$18.70
$17.79
5%
$19.34
$17.95
8%
Avg. natural gas price ($/Mcf)
$1.42
$1.75
(19)%
$1.42
$2.44
(42)%
Avg. natural gas price excl. derivatives ($/Mcf)
$1.42
$1.78
(20)%
$1.42
$2.08
(32)%
Oil production (MBbls)
160
225
(29)%
517
775
(33)%
NGL production (MBbls)
248
429
(42)%
763
1,277
(40)%
Natural gas production (MMcf)
3,288
5,185
(37)%
9,772
15,741
(38)%
Total production (MBOE)
956
1,518
(37)%
2,909
4,676
(38)%
2024
2023
% Change
2024
2023
% Change
Contract Drilling:
Total rigs available (end of the period)
14
14
—%
14
14
—%
Average number of drilling rigs in use
11.1
14.1
(21)%
12.2
15.5
(21)%
Average dayrate on daywork contracts ($/day)
$29,956
$32,572
(8)%
$30,569
$31,220
(2)%
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
2024
First quarter
Quarterly
$
1.25
$
12,269
March 18, 2024
March 28, 2024
Second quarter
Quarterly
$
1.25
$
12,961
June 17, 2024
June 27, 2024
Third quarter
Quarterly
$
1.25
$
12,248
September 16, 2024
September 27, 2024
The declaration and payment of any future dividend, whether fixed, special, or variable, are at the sole discretion of the Company’s Board of Directors. This decision will depend upon several factors, including the Company’s financial position, results of operations, cash flows, capital requirements, business conditions, future expectations, legal requirements, and other relevant factors at the time of consideration. Future dividends are expected to be funded by cash on the Company's balance sheet.
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 agreement, 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 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 September 30,
Nine Months Ended September 30,
2024
2023
2024
2023
(In thousands except per share amounts)
Revenues:
Oil and natural gas
$
21,277
$
35,205
$
68,259
$
114,407
Contract drilling
32,453
44,951
109,432
138,259
Total revenues
53,730
80,156
177,691
252,666
Expenses:
Operating costs:
Oil and natural gas
10,503
16,823
32,962
49,211
Contract drilling
23,117
27,629
73,893
81,383
Total operating costs
33,620
44,452
106,855
130,594
Depreciation, depletion, and amortization
3,934
4,778
11,494
12,493
General and administrative
5,533
4,952
16,112
14,851
Gain on disposition of assets
(180
)
(4,149
)
(1,325
)
(13,578
)
Total operating expenses
42,907
50,033
133,136
144,360
Income from operations
10,823
30,123
44,555
108,306
Other income (expense):
Interest income
1,161
2,872
3,196
7,055
Interest expense
(8
)
(41
)
(46
)
(121
)
Gain on derivatives, net
(243
)
(3,239
)
(110
)
11,856
Gain on sale of Superior investment
—
—
—
17,812
Reorganization items, net
(34
)
(12
)
(56
)
(163
)
Other, net
82
(146
)
(73
)
13
Total other income (expense)
958
(566
)
2,911
36,452
Income before income taxes
11,781
29,557
47,466
144,758
Income tax expense (benefit), net:
Current
143
532
(72
)
881
Deferred
2,689
190
10,976
(47,625
)
Total income tax expense (benefit), net
2,832
722
10,904
(46,744
)
Net income
$
8,949
$
28,835
$
36,562
$
191,502
Net income per common share:
Basic
$
0.91
$
2.98
$
3.73
$
19.81
Diluted
$
0.89
$
2.94
$
3.67
$
19.55
Unit Corporation
Selected Financial Highlights - Continued
September 30, 2024
December 31, 2023
Balance Sheet Data:
(In thousands)
Cash and cash equivalents
$
80,088
$
60,779
Current assets
$
115,452
$
118,296
Total assets
$
307,658
$
322,720
Current liabilities
$
29,374
$
42,399
Long-term debt
$
—
$
—
Other long-term liabilities
$
22,600
$
22,803
Total shareholders’ equity attributable to Unit Corporation
