Unit Corporation hit with 65% drop in 2Q net income


Tulsa’s Unit Corporation second quarter financial results might have been like a punch in the gut as net income fell 65% from a year earlier. But for the first six months, it was still upbeat and leadership was still full of optimism.

Net income for the latest quarter was $28 million or $2.86 per diluted share compared to $80.1 million or $7.82 a share at the end of June 2022. Total revenues fell 41% going from $134.6 million a year ago to $78.6 million in this year’s second quarter.

For the six months ended June 30, 2023, net income attributable to Unit Corporation was $162.7 million, or $16.62 per diluted share, compared to $33.2 million, or $3.25 per diluted share, for the six months ended June 30, 2022. Total revenues for the six months ended June 30, 2023 was $172.5 million, compared to $322.9 million for the six months ended June 30, 2022.

Despite the decline in the second quarter, Phil Frohlich, Unit’s Chief Executive Officer was still optimistic.

“We are pleased with our second quarter results highlighted by our cash balance of $199.8 million at quarter end, zero long-term debt, and strong operational performance. We remain committed to a disciplined approach towards financial management that allows us to create and return value to our shareholders.”

Unit reported a 19% drop in crude oil production in the second quarter and 23% less for the first two quarters of the year. The second quarter natural gas production fell 24%.

Its contract drilling dropped 33% in the second quarter compared to the second quarter of 2022.

The Company’s current, quarterly, and annual reports may be accessed on the OTC’s website at https://www.otcmarkets.com/stock/UNTC/disclosure, as well as the Company’s website at https://unitcorp.com/investor-relations/otc-sec-filings/.