Tulsa’s Unit Corporation reported first quarter 2018 net income of $7.9 million and adjusted net income of $11.1 million. And for the first time, the company has started exploration in Oklahoma’s STACK play.
The adjusted net income represented a 47 percent increase over the first quarter of 2017. However, the net income was below the $15.9 million reported a year ago.
The 2018 first quarter net income amounted to 15 cents a diluted share compared to 31 cents a year earlier.
Total revenues for the quarter came to $205.1 million of which half came from oil and natural gas, 23 percent from contract drilling and 27 percent from midstream operations. The total revenues were far more than the $175.7 million reported one year earlier.
During the first quarter, the company also closed the sale of 50 percent interest in its wholly owned midstream subsidiary, Superior to SP Investor Holdings LLC.
As for its oil and gas exploration, Unit indicated it is continuing with its exploration and recompletion programs in the Wilcox area of south Texas. It is moving ahead with C1 zone development efforts in the Buffalo Wallow area of the Granite Wash in the Texas Panhandle. The Francis three-well pad was drilled and completed and first sales started in February.
In the Southern Oklahoma Hoxbar Oil Trend (SOHOT) area, during the quarter, Unit completed three new Marchand horizontal wells, the Schenk Trust #1-17HXL, with an IP30 of 2,318 barrels of oil equivalent (Boe) per day, the McConnell #1-11H with an IP30 of 1,426 Boe per day, and the Livingston Land #1-33/4, which is in the early stages of clean up. Unit’s plan is to continue running one rig throughout the remainder of the year.
In western Oklahoma, Unit spud its initial well in the STACK play, the Irwin #1-4H, in Dewey County, Oklahoma during March and also participated in seven non-operated wells during the first quarter.
