Unit Corporation reports drop in 3Q net income and oil and gas production


A big drop in net income and earnings per share was reported in the third quarter by Unit Corporation.

The Tulsa company made its financial report available on Frday, showing net income of $28.8 million and $2.94 a share in the third quarter, compared to $55.8 million and $5.60 a share a year earlier.

Total revenues for the three months ended Sept. 30 was $80.2 million, down from the $120.3 million compared to the third quarter of 2022.

For the nine months ended September 30, 2023, net income attributable to Unit Corporation was $191.5 million, or $19.55 per diluted share, compared to $89.0 million, or $8.79 per diluted share, for the nine months ended September 30, 2022. Total revenues for the nine months ended September 30, 2023 was $252.7 million, compared to $443.2 million for the nine months ended September 30, 2022.

“We continue to return value to our shareholders with a dividend paid during the quarter of $2.50 per share while also maintaining a strong cash position of $206.6 million,” said Phil Frohlich, the Company’s Chief Executive Officer.

“We believe our recently announced agreement to sell certain properties in the Texas Panhandle furthers our approach of streamlining our operations and maximizing the value of our assets.”

On October 24, 2023, the company entered into an agreement to sell certain wells and related leases in the Texas Panhandle for a purchase price of $55.0 million, subject to customary closing and post-closing adjustments based on an effective date of October 1, 2023. The sale is expected to close during the fourth quarter of 2023.

During the quarter, Unit had 14 operational rigs, down from the 21 in the same quarter of 2022. The company’s report also showed an 18% decline in oil production during the quarter and  drops in NGL and natural gas production as well.