Unit Corporation Posts $5.8 in Net Income for Second Quarter of 2018

Tulsa-based Unit Corporation posted a net income of $5.8 million for the second quarter of 2018, according to a company press release issued on Wednesday. The results reported below include those attributable to Unit’s consolidated subsidiaries. Second quarter highlights include:

• Net income attributable to Unit of $5.8 million; adjusted net income attributable to Unit of $11.3 million, a 216% increase over second quarter 2017 adjusted net income.
• Oil and natural gas segment production increased 1% over first quarter 2018 and 9% over the second quarter 2017.
• Delineation wells in the Wing and Brandt Prospects in Unit’s Wilcox play have provided very promising results. Further delineation work continues.
• Contract drilling segment completed construction of its 11^thBOSS drilling rig placed into service following the end of the quarter.
• The 12^thBOSS rig is under construction, and a new contract has been signed for the construction of the 13^th BOSS rig, both with initial multi-year terms. The 12^th and 13^th BOSS rigs are expected to be placed into service in the first quarter of 2019.
• Thirty-five drilling rigs are operating; all eleven BOSS drilling rigs are under contract.
• On April 3, 2018, Unit completed the sale of 50% of the ownership interests in Superior Pipeline Company LLC (Superior) to SP Investor Holdings, LLC for cash consideration of $300 million. The effective date of the sale was April 1
• During the second quarter, Superior signed a five-year $200 million senior secured credit facility.
• Midstream segment gas processed, gas gathered, and liquids sold volumes per day increased 6%, 5%, and 17%, respectively, as compared to the first quarter of 2018.
• Midstream segment began construction of its new Reeding gas processing plant near Cashion, Oklahoma.

“Our oil and natural gas segment is on track to deliver on our original growth plan for the year,” said Larry Pinkston, President and CEO of Unit Corporation. “We continue to see some very solid well results from our various exploration and development programs. We are particularly pleased with the results we are seeing in the Wilcox. The Gilly discovery originally announced in 2012 has been a tremendous resource for Unit. With new development in the area and new prospect identification, we believe this asset can continue to be a continuous contributor to the growth of our E&P business.”