Unit Corporation reports stronger third quarter revenues
After the sale of its drilling division last month for $120 million, Unit Corporation in Tulsa released its third quarter earnings report showing an 11% increase in revenues.
Additionally, this signals continued revenues growth momentum even while the firm shifts away from owned drilling assets.
Unit said the revenues increased by $2.3 million compared to the third quarter of 2024, “primarily due to higher price realizations for natural gas.” The company report indicated it saw a 14% drop in the average price of oil while average natural gas pricing rose 44%. NGL prices fell 10% during the quarter.
Operating cost changes reflect mixed inflation dynamics
Operating costs for the company grew $0.6 million or 5% compared to the third quarter of 2024 and Unit explained it was “primarily due to higher workover costs, partially offset by lower gathering, processing, and transportation expenses.”
Additionally, this blend shows cost movement that tracks operational cycle timing, not structural long-term inflation acceleration.
Nine month revenue trend moves higher
As for nine month revenues, they grew by $9.3 million or 14% compared to the same time in 2024. Again, increased prices for natural gas pricing helped with the gain.
Net cash provided by operating activities during the first nine months of 2025 increased by $13.4 million as compared to the first nine months of 2024 primarily due to higher net income, cash settlements on derivatives, and an increase in changes in working capital.
Net cash provided by (used in) investing activities decreased by $21.5 million during the first nine months of 2025 compared to the first nine months of 2024 primarily due to the participation in more wells, partially offset by proceeds from the Superior sale received in April 2024.
Well activity remains materially higher year over year
Unit had 1.89 net well completions or in progress for the nine months ended September 30, 2025 compared to 0.44 net wells completed or in progress for the nine months ended September 30, 2024.
“We participated in the completion of 19 gross wells (1.57 net wells) drilled by other operators during the first nine months of 2025 compared to 10 gross wells (0.43 net wells) during the first nine months of 2024. Oil and natural gas capital expenditures, including oil and gas properties on the full cost method, during the first nine months of 2025 totaled $19.7 million, compared to $7.0 million during the first nine months of 2024. We had 19 gross wells (0.32 net wells) in progress as of September 30, 2025 compared to 5 gross wells (0.01 net wells) in progress as of September 30, 2024.”
Drilling sale shifts financial presentation going forward
Last month’s sale of the Unit Drilling Company to Cactus Drilling Company was for $120 million cash.
“The sale will impact our operations and financial results going forward, as such, the results of operations and cash flows for UDC have been classified as discontinued operations for all periods presented and prior periods have been retrospectively adjusted in the consolidated statements of operations and consolidated statements of cash flows,” stated Unit in its quarterly release.
Additionally, that classification shift now clears the way for sharper Oklahoma Energy measurement of future quarterly comps without drilling distortions.
Specific uses of the proceeds from the transaction will be determined by the Board in the future. The Company expects that its available tax attributes will substantially offset the gains from this transaction.