Slide 1: Investor Presentation March 2024
Investor Presentation March 2024
Slide 2: Forward Looking Statement
Forward Looking Statement This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this presentation that addres
Slide 3: Investment Highlights
Investment Highlights • Established track record of returning value to shareholders • $37.50 per share of dividends paid in 2023 • 2.47 million shares repurchased since 2020 bankruptcy emergence • 2024 Quarterly Dividends of $1.25 per share • Strong balance sheet as of December 31, 2023 • $61 millio
Slide 4: 2023 Consolidated Financial Highlights
2023 Consolidated Financial Highlights 1Q23 1 2Q23 3Q23 4Q23 FY2023 (in thousands, except per share amounts) Revenues: Oil and natural gas $ 48,026 $ 31,176 $ 35,205 $ 31,830 $ 146,237 Contract drilling $ 45,903 $ 47,405 $ 44,951 $ 42,797 $ 181,056 Gas gathering and processing $ - $ - $ - $ - $ - To
Slide 5: Unit Petroleum Company (UPC) Summary
Unit Petroleum Company (UPC) Summary • Efficient, low-cost production and modest decline in PDP reserves • Substantial position of ~147,500 net acres in the Anadarko Basin • Development strategies: • Converting non-producing reserves to producing reserves • Evaluating acquisitions of producing prope
Slide 6: Unit Petroleum Company Operations Footprint
Unit Petroleum Company Operations Footprint Anadarko Basin Tulsa Headquarters E&P Operations Office Location 6
Slide 7: Unit Petroleum Company 2023 Operating and Financial Highlights
Unit Petroleum Company 2023 Operating and Financial Highlights 1Q23 2Q23 3Q23 4Q23 YTD (In thousands unless otherwise specified) Oil and Natural Gas: Revenue, before inter-segment eliminations $ 48,026 $ 31,176 $ 35,205 $ 31,830 $ 146,237 Operating costs, before inter-segment eliminations $ 17,164 $
Slide 8: Producing Properties
Unit Petroleum Company Producing Properties NET PRODUCTION (EXCLUDES SOLD WELLS) • ~147,500 net developed acres 20,000 in Anadarko Basin 15,000 BOEPD • Modest production decline rate 10,000 • 4,623 wells (~788 net wells) 5,000 • Low water production 0 July July July Sep Jan Jan Jan Nove Mar Sep May
Slide 9: Unit Petroleum Company Reserves Update
Unit Petroleum Company Reserves Update The following table presents the components of the standardized measure of discounted future net cash flows: 2023 (In thousands) Future cash inflows $ 850,979 Future production costs $ (434,221) Future development costs $ (991) Future income tax expenses $ (11,
Slide 10: Change in PDP Reserves during 2023
Unit Petroleum Company Change in PDP Reserves during 2023 The decrease in estimated quantities of proved developed oil, NGLs, and natural gas reserves during 2023 was primarily due to divestitures, changes in prices, and current year production. The table below presents estimated quantities of prove
Slide 11: Development Potential
Unit Petroleum Company Development Potential • Potential locations in Red Fork, Cherokee Shale, Marchand, Medrano, Meramec, Woodford and Granite Wash • Drill or farm-out high-graded drilling locations • Monetize non-core drilling locations • Anticipate drilling or participating in 1 to 2 net wells p
Slide 12: Divestitures
Unit Petroleum Company Divestitures • Sold interests in 958 wells for $50 million during 2023 • Sold wells in Texas panhandle and other non-core assets • Sold interests in 727 wells for $57 million during 2022 • Sold wells in Gulf Coast area, Oklahoma panhandle, and other non-core assets • Plugging
Slide 13: Unit Drilling Company (UDC) Summary
Unit Drilling Company (UDC) Summary • 100% pure-play, high-spec drilling fleet of 14 BOSS rigs, working for top- tier operators • Focused on operating efficiencies with central relocation to core operating region (Texas, New Mexico, and Oklahoma) • Well balanced contract tenure between term and pad-
Slide 14: Unit Drilling Company Operational Footprint
Unit Drilling Company Operational Footprint BAKKEN POWDER RIVER NIOBRARA MARCELLUS ROCKIES UITCA MID-CON PERMIAN ARKLATEX Permian Basin: (14) GULF COAST OFFICE/YARD: EAGLEFORD STACKED RIG: WORKING RIG: 14
Slide 15: Unit Drilling Company 2023 Operating and Financial Highlights
Unit Drilling Company 2023 Operating and Financial Highlights 1Q23 2Q23 3Q23 4Q23 YTD (In thousands except rig and day amounts, and as otherwise specified) Contract Drilling: Revenue, before inter-segment eliminations $ 45,903 $ 47,405 $ 44,951 $ 42,797 $ 181,056 Operating costs, before inter-segmen
Slide 16: High Specification Drilling Contractor
Unit Drilling Company High Specification Drilling Contractor Optimized for Complex Horizontal Wells on Large Drilling Locations • Multi-direction walking systems designed for large pads • Increased racking & setback capacity designed for extended reach horizontal drilling programs • High-Torque 500-
Slide 17: Returning Value to Shareholders
Returning Value to Shareholders • Total cash dividends of $37.50 per share paid in 2023 • Dividend policy: • 2024 quarterly cash dividends of $1.25 per share • Subsequent variable or special dividends to be determined based on future operating cash flows, available cash, working capital, and capital
Slide 18: Contact
Contact Investor Relations, Unit Corporation https://unitcorp.com/investor-relations ir@unitcorp.com 918-493-7700 Rene Punch - 918-477-4404 rene.punch@unitcorp.com 18
Slide 19: Appendix 1: Reconciliation of Net Income to Adjusted EBITDA
Appendix 1 Reconciliation of Net Income to Adjusted EBITDA 1Q23 2Q23 3Q23 4Q23 FY2023 (in thousands) Net income attributable to Unit Corporation $ 134,650 $ 28,017 $ 28,835 $ 57,437 $ 248,939 Add: (Gain)/loss on derivatives $ (13,595) $ (1,500) $ 3,239 $ (1,119) $ (12,975) Less: Cash payments on der
Slide 20: Appendix 2: Standardized Measure to PV-10 Reconciliation
Appendix 2 Description Amount Standardized Measure 1 $237 million Discounted effect of future income tax expenses $12 million Pre-tax PV-10 value under SEC pricing 2 $249 million Impact of adjusting SEC pricing to forward strip pricing ($1) million Pre-tax PV-10 value under forward strip pricing 3 $