Tulsa’s Unit Corporation is making a shift to focus more heavily on oil production while at the same time reporting first quarter 2019 net losses of $3.5 million or 7 cents per diluted share.
The loss compares to net income of $7.9 million or 15 cents a share in the first quarter of 2018. Unit reported the adjusted net income for this year’s first quarter was $4.5 million or 9 cents a diluted share compared to 21 cents a share for the same quarter of 2018.
The company stated its adjusted net income dropped due to lower oil and gas segment margins which were primarily reduced by lost production from a plant shut-down. Total revenues for the quarter were $189.7 million compared to $205.1 million a year earlier. The adjusted EBITDA for Unit was $77.1 million or $1.47 per diluted share.
As a result of shifting the focus to more oil content, the company’s remaining Granite Wash rig was redeployed to the Penn Sands Prospect area of the Anadarko Basin in western Oklahoma. Unit now has four operated drilling rigs in that part of the state.
The Tulsa firm recently paid $8 million for another 8,200 net leasehold acres in the Penn Sands area. The acquisition resulted in the addition of 19 prospective controlled horizontal drilling locations and 12 non-controlled locations.
Unit reported its total equivalent production for the quarter was 4.1 million barrels of oil equivalent, a drop of 5 percent from the fourth quarter of 2018. Oil production was 7,642 barrels a day, a decrease of 7 percent from the production reported at the end of 2018.
But it saw a one percent increase in its NGLs production which totaled 13,410 barrels a day. However natural gas production was 148.6 million cubic feet a day, a decline of 3 percent from the last quarter. The decline was primarily due to a 14-day plant shut-down.
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