Unit Corporation recovers from losses

Unit Corporation comes out of Chapter 11 bankruptcy – Oklahoma Energy Today


Company leaders at Tulsa-based Unit Corporation sounded optimistic Friday after releasing the firm’s second quarter earnings report showing $80 million net income compared to a $13 million loss a year earlier.

The figures are estimates because Unit stated it had not completed the reporting process for the quarter. It explained preliminary results are based on “reasonable estimates” and available information at this time.

Net income for the second quarter amounted to $80.1 million or $7.82 a diluted share while a year earlier, Unit suffered a $13 million loss or $1.09 a share. The company stated its total revenues for the three months ended June 30 will be about $134.6 million, only about half-a-million dollars more than the second quarter 2021.

The firm’s net income for the first half of 2022 is expected to be $33.2 million or $3.25 a diluted share, up from the nearly $15 million loss compared to the same time period in 2021. Total revenues from the first half of this year will be nearly $323 million while a year earlier, they were $255 million.

“We are pleased with our quarterly results and excited about future opportunities given the recent decision to terminate our upstream sales process,” said Philip B. Smith, the Company’s Chairman and Chief Executive Officer.
He said shareholders should get more return based on the sale of the company’s Gulf Coast oil and gas properties, zero long-term debt and full utilization of Unit’s BOSS rig fleet.
“Given the company’s growing cash balance, the company is currently updating its calculation of tax earnings and profits. This will be important information which can be used by the Board in implementing any future plan for return of cash via dividends and distributions to the shareholders in a tax efficient manner.”
Unit recently closed on another asset divestiture as part of a program adopted at the beginning of 2021. It later expanded the divestiture program and on July 1 of this year, the company closed on certain wells and related leases near the Texas Gulf Coast for $43.7 million cash proceeds.
Click here for Unit’s SEC filing