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IPAA OGIS NEW YORK – Unit Corp.

Unit Corp. · Apr 20, 2015 · 31 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. IPAA OGIS NEW YORK – Unit Corp. – slide 1
    IPAA Oil & Gas Investment Symposium April 20, 2015
  2. IPAA OGIS NEW YORK – Unit Corp. – slide 2
    Overview of Operations Tulsa based diversified energy company incorporated in 1963 Integrated approach to business allows Unit to balance its capital deployment through the various stages of the energy cycle 12 9 Casper…
  3. IPAA OGIS NEW YORK – Unit Corp. – slide 3
    Key Growth Points Exploration & Production 203% average production replacement since 2005 Liquids production has grown 258% since the fourth quarter of 2009 Proved reserves: 179 MMBoe (1) Drilling Six BOSS rigs operating; two…
  4. IPAA OGIS NEW YORK – Unit Corp. – slide 4
    2014 Accomplishments Unit Corporation Revenue increased 16% Adjusted EBITDA increased 17% (1) Oil and Natural Gas Segment Production has increased 9% Liquids production (oil and NGLs) have increased 16% Contract Drilling…
  5. IPAA OGIS NEW YORK – Unit Corp. – slide 5
    Strong Capital Discipline Debt to market capitalization of 26% Strong access to capital No near-term maturities Consistent growth profile for all segments Oil and natural gas exploration not driven by lease expirations 6
  6. IPAA OGIS NEW YORK – Unit Corp. – slide 6
    Track Record of Reserve Growth Proved Reserves (MMBoe) 179 180 160 Stable and consistent economic growth 150 150 of oil and natural gas reserves of at 116 120 95 96 104 least 150% of each years production 86 90 79 69 60…
  7. IPAA OGIS NEW YORK – Unit Corp. – slide 7
    Increasing Production While Improving Commodity Mix Annual Production (MBoe/d) 60 50 2%-4% growth 50 46 40 39 33 30 27 20 10 0 2010 2011 2012 2013 2014 2015E Net Wells Drilled: 88 82 80 91 121 Oil / NGLs…
  8. IPAA OGIS NEW YORK – Unit Corp. – slide 8
    Core Upstream Producing Areas Key focus areas include: Mid Continent Region Gulf Coast: Wilcox (Southeast Texas) Mississippian Mid-Continent: SOHOT Hoxbar (Western Oklahoma) Granite Granite Wash (Texas Panhandle) Wash…
  9. IPAA OGIS NEW YORK – Unit Corp. – slide 9
    Wilcox (Liquids) Overall Highlights: Drilled 133 operated vertical wells since 2003 (12 years) 92% average WI TYLER JASPER NEWTON Q4 14 avg. production: POLK 70 MMcfe/d 43% liquids (11% oil) Historical ROR: 112% 3D AREA…
  10. IPAA OGIS NEW YORK – Unit Corp. – slide 10
    Wilcox (Southeast Texas) 2015 Activity: Upside Resource Potential: 1-2 rigs 135 wells (110 horizontal) 12-14 gross wells 870 Bcfe (6 horizontal) 95% average WI 2015 projected 18% growth 43% Liquids (11% oil, 32% NGLs) Wilcox…
  11. IPAA OGIS NEW YORK – Unit Corp. – slide 11
    Hoxbar (Liquids) SOHOT Medrano Sand Medrano Single Well Parameters: Claiborne 14H Discovery 2011 EUR: 5.8 Bcfe (larger frac) Extensional Area Well cost: 4.8 million HOXBAR 3,000 ROR: 44%* Ellen 120H IP30: 14,898 Mcfe/d 33%…
  12. IPAA OGIS NEW YORK – Unit Corp. – slide 12
    Hoxbar (Oil) SOHOT Marchand Sand Marchand Single Well Parameters: Earl 230H Rosey Havenstrite 1H IP30: 1,772 Boe/d IP30: 1,457 Boe/d EUR: 447 MBoe Extensional Area Well cost: 6.0 million HOXBAR 3,000 ROR: 92%* 89% liquids…
  13. IPAA OGIS NEW YORK – Unit Corp. – slide 13
    SOHOT Upside Springer Shale Woodford Shale CLR Discovery Wilkerson 120H IP: 2038 Boe/d CLR Confirmation Birt 113H IP: 793 Boe/d Unit 2015 Springer Location Woodford Gas/Condensate Springer Fairway Horizontal…
  14. IPAA OGIS NEW YORK – Unit Corp. – slide 14
    Granite Wash (Liquids) Historical Highlights: Buffalo Wallow Highlights: Completed 93 operated Completed 9 H wells horizontal wells since 2008 GW [B, C(3), D, E(3), F] zones Average WI: 80% Average WI: 100% Buffalo Q4 14 avg.…
  15. IPAA OGIS NEW YORK – Unit Corp. – slide 15
    Significant Drilling Presence in Attractive Producing Regions Bakken 92 rig fleet Fleet average 1,250 HP rating; Almost all of contracted rigs drilling horizontal wells 68% utilization rate for Q4 2014 Pinedale Anticline 43% of…
  16. IPAA OGIS NEW YORK – Unit Corp. – slide 16
    Average Dayrates and Margins (1) 20,000 90 Average Number of Rigs Utilized 15,000 Margins / DayRates () 60 10,000 30 5,000 0 0 2010 2011 2012 2013 2014 Margins(1) Dayrates Rigs Utilized (1) See Reconciliation…
  17. IPAA OGIS NEW YORK – Unit Corp. – slide 17
    Rig Fleet Snap Shot 82% of Total Fleet
  18. IPAA OGIS NEW YORK – Unit Corp. – slide 18
    Introducing the New BOSS Drilling Rig Optimized for Pad Drilling Multi-direction walking system Faster Between Locations Quick assembly substructure 32-34 truck loads More Hydraulic Horsepower (2) 2,200 horsepower mud pumps…
  19. IPAA OGIS NEW YORK – Unit Corp. – slide 19
    Midstream Core Operations Brook Field Pittsburgh Mills Snow Shoe Texas Panhandle Northern Oklahoma and Kansas 35,000 dedicated acres 1,800,000+ dedicated acres Pittsburgh Regional office 135 MMcf/d processing capacity 197 MMcf/d…
  20. IPAA OGIS NEW YORK – Unit Corp. – slide 20
    Midstream Segment Historical Performance 34% compound growth rate in assets since year-end 2004 Operating 14 processing plants at eight different locations with combined processing capacity of 335 MMcf per day Increased from 12 to…
  21. IPAA OGIS NEW YORK – Unit Corp. – slide 21
    Midstream Segment Contract Mix 2010 Contract Mix Based on Volume 2014 31% 49% 51% Fee Based 69% Commodity Based Contract Mix Based on Margin 15% Fee Based 53% 47% 85% Commodity Based Unit vs. 3rd Party Margin…
  22. IPAA OGIS NEW YORK – Unit Corp. – slide 22
    Appalachian Growth Opportunities Constructing Snowshoe Gathering System in Centre County, PA Estimated Total Capital: 97 million Initial 2015 Capital: 42 million Expansion of Pittsburgh Mills gathering system into Butler…
  23. IPAA OGIS NEW YORK – Unit Corp. – slide 23
    Balance Sheet Summary 12/31/14 12/31/13 (In Millions) Total Assets 4,473.7 4,022.4 Long-Term Debt Senior Subordinated Notes 646.2 645.7 Bank Facility 166.0 Total Long-Term Debt 812.2 645.7 Shareholders Equity 2,332.4 2,173.4…
  24. IPAA OGIS NEW YORK – Unit Corp. – slide 24
    Segment Contribution Revenues ( millions) Adjusted EBITDA ( millions)(1) 1,573 767 1,600 800 1,400 1,352 657 657 1,315 1,208 602 1,200 600 1,000 871 441 800 400 600 400 200 200 0 2010 2011 2012 2013 2014 0 2010 2011…
  25. IPAA OGIS NEW YORK – Unit Corp. – slide 25
    Capital Expenditures (In Millions) 1,500 1,000 500 0 2010 2011 2012 2013 2014 2015 Forecast Oil and Natural Gas Contract Drilling Midstream Acquisitions 26
  26. IPAA OGIS NEW YORK – Unit Corp. – slide 26
    Current Debt Structure Senior Subordinated Notes 650 million, 6.625% Ratings S&P Moodys Fitch Corporate BB Ba3 BB 10-year, NC5; maturity 2021 Senior Subordinated Notes BB B1 BB Unsecured Bank Facility Current Borrowing Base…
  27. IPAA OGIS NEW YORK – Unit Corp. – slide 27
    APPENDIX 28
  28. IPAA OGIS NEW YORK – Unit Corp. – slide 28
    Non-GAAP Financial Measures Adjusted EBITDA Years ended December 31, ( in Millions) 2010 2011 2012 2013 2014 Net Income 146 196 23 185 136 Income Taxes 91 123 16 117 87 Depreciation, Depletion and Amortization 205 281 319 334 405…
  29. IPAA OGIS NEW YORK – Unit Corp. – slide 29
    Non-GAAP Financial Measures Reconciliation of Average Daily Operating Margin Before Elimination of Intercompany Rig Profit and Bad Debt Expense Years ended December 31, (In thousands except for operating days and operating margins)…
  30. IPAA OGIS NEW YORK – Unit Corp. – slide 30
    Hedges Natural Gas Swap Volume Collar Volume Average Average Average Period MMBTU/Day MMBTU/Day Swap Price Floor Price Ceiling Price Q1 2015 40,000 30,000 3.98 4.20 5.03 Q2 2015 70,000 30,000 3.60 2.92 3.26 Q3 2015 40,000 30,000…
  31. IPAA OGIS NEW YORK – Unit Corp. – slide 31
    IPAA Oil & Gas Investment Symposium April 20, 2015

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