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ENERCOMS 2011 OIL AND GAS CONFERENCE – Unit Corp.

Unit Corp. · Aug 17, 2011 · 27 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. ENERCOMS 2011 OIL AND GAS CONFERENCE – Unit Corp. – slide 1
    EnerComs 2011 Oil and Gas Conference Wednesday, August 17, 2011 8:50 a.m.
  2. ENERCOMS 2011 OIL AND GAS CONFERENCE – Unit Corp. – slide 2
    Overview of Operations Tulsa based company founded in Bakken 1963 with long history of 3% operations in the Mid-Continent Ticker: UNT / NYSE Market Cap: 2.3 billion(1) Casper Casper Casper Office Office Office Enterprise…
  3. ENERCOMS 2011 OIL AND GAS CONFERENCE – Unit Corp. – slide 3
    Summary of Business Strengths Integrated Integrated approach to business allows Unit to balance its capital Approach Enhances deployment through the various stages of the energy cycle Stability and Vertical integration offers key…
  4. ENERCOMS 2011 OIL AND GAS CONFERENCE – Unit Corp. – slide 4
    Core Upstream Producing Areas Tulsa Anadarko Headquarters 2010 reserves of 104 MMBoe were 68% Basin 55% 19% Arkoma natural gas and 80% proved developed Basin Reserve life of approximately 9 years North LA/East Beginning in late…
  5. ENERCOMS 2011 OIL AND GAS CONFERENCE – Unit Corp. – slide 5
    Track Record of Reserve Growth Stable and consistent economic growth of oil Proved Reserves (MMBoe) and natural gas reserves of at least 150% of 120 104 each years production 100 2001 2010 CAGR: 10% 95 96 86 79 218% average annual…
  6. ENERCOMS 2011 OIL AND GAS CONFERENCE – Unit Corp. – slide 6
    Maintaining Production while Improving Commodity Mix Annual Production (MBoe/d) Production (MBoe/d) 35 35 33 9% 32 CAGR: 32 30 1E 201 29 29 29 5 - 31 28 200 28 27 28 28 27 26 25 25 25 24 21 21 19 14 14 7…
  7. ENERCOMS 2011 OIL AND GAS CONFERENCE – Unit Corp. – slide 7
    Increasing Liquids Focus In the current commodity price Annual Production Mix (MBoe/d) environment, Unit continues to allocate capital towards higher 2008 2009 2010 2011E rate of return liquids-rich production Liquids Liquids…
  8. ENERCOMS 2011 OIL AND GAS CONFERENCE – Unit Corp. – slide 8
    Granite Wash Play Q4 2010 - Q2 2011 Results First sales on 16 operated Granite Wash horizontal wells Average 30-day IP = 6.6 MMcfe/day Average reserves: 4 Bcfe (47% oil & liquids) Current CWC: 5.4 MM (4,000 lateral, 11…
  9. ENERCOMS 2011 OIL AND GAS CONFERENCE – Unit Corp. – slide 9
    Marmaton Oil Play Q4 2010 - Q2 2011 Results First sales on 28 operated Marmaton horizontal wells Average 30-day IP = 216 Boe/day Average reserves: 130 MBoe (90% oil & liquids) Current CWC: 2.7 MM (4,000 lateral, 16 stage…
  10. ENERCOMS 2011 OIL AND GAS CONFERENCE – Unit Corp. – slide 10
    Wilcox Liquids Play 2003 to Year End 2010 West Wilcox Completed 92 wells at 75% Expansion (2008) success rate 2010 Results Average initial production rate = 326 Boe/day Average reserves: 252 MBoe (50% oil & liquids) Average…
  11. ENERCOMS 2011 OIL AND GAS CONFERENCE – Unit Corp. – slide 11
    Bakken Shale Q1 + Q2 2011 Results Average reserves: 628 MBoe 86% oil Average CWC: 10.0 MM (9,000 lateral, 25 stage frac) Average working interest: 12% 2011 Projected 2-3 third party rigs drilling = 20 non-op horizontal…
  12. ENERCOMS 2011 OIL AND GAS CONFERENCE – Unit Corp. – slide 12
    2011 Upstream Capital Program 357 million drilling capital budget allocated principally to the liquids-rich Granite Wash, Marmaton, and Wilcox plays 8% increase in the drilling budget for 2011 Approximately 202 million allocated to…
  13. ENERCOMS 2011 OIL AND GAS CONFERENCE – Unit Corp. – slide 13
    Significant Drilling Presence in Attractive Producing Regions 10 124 rig fleet (excluding 4 of 7 new 5 builds)(1) Fleet average 1,200 HP rating; 16,484 ft depth capacity 70% of rigs capable of drilling horizontal 15 2 Casper 60%…
  14. ENERCOMS 2011 OIL AND GAS CONFERENCE – Unit Corp. – slide 14
    Diverse and Versatile Rig Fleet 400-700 h.p. 750-1,000 h.p. 1,200-1,700 h.p. 2,000 h.p. 2,500 h.p. 0 20% Growing demand from increased 40% Utilization shallow 39 of 39 Percentage horizontal drilling working (65% as of…
  15. ENERCOMS 2011 OIL AND GAS CONFERENCE – Unit Corp. – slide 15
    Overview of Drilling Fleet Contracted Rig Commodity Mix Geographical Location TX Panhandle Liquids 26% Arkoma Rich 6% 63% E. TX, LA, Anadarko GC, S. TX Basin 12% Oil 30% Barnett 17% 4% Rockies/Bakken Dry Gas 22% 20%…
  16. ENERCOMS 2011 OIL AND GAS CONFERENCE – Unit Corp. – slide 16
    Conditions Support Improving Utilization, Dayrates and Margins(1) 20,000 100% Margins / DayRates () 15,000 75% Utilization (%) 10,000 50% 5,000 25% 0 0% 2007 2008 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2…
  17. ENERCOMS 2011 OIL AND GAS CONFERENCE – Unit Corp. – slide 17
    Superior Pipelines Core Operations Average Processing Pipeline Average Volume Processing Capacity Pipeline (MMbtu/d) (miles) Volume Capacity (MMcf/d) (miles) (MMbtu/d) (MMcf/d) Hemphill/Mendota 130 43,700 100…
  18. ENERCOMS 2011 OIL AND GAS CONFERENCE – Unit Corp. – slide 18
    Historical Performance Historical Daily Gathering Volumes (MMBtu / d) NGLs / Condensate Volumes (Bbl / d) 250,000 8,000 200,000 6,000 150,000 4,000 100,000 2,000 50,000 0 0 2006 2007 2008 2009 2010 1st Half 2006 2007…
  19. ENERCOMS 2011 OIL AND GAS CONFERENCE – Unit Corp. – slide 19
    Balance Sheet Summary 6/30/11 12/31/10 (In Millions) Working Capital 43.7 41.1 Total Assets 2,917.5 2,669.2 Long-Term Debt 250.0 163.0 Shareholders Equity 1,813.3 1,710.6 Credit Line Undrawn 325.0 162.0 Long-Term Debt to…
  20. ENERCOMS 2011 OIL AND GAS CONFERENCE – Unit Corp. – slide 20
    Senior Subordinated Notes Offered Issuer: Unit Corporation (the Issuer) Amount: 250 million Issue: Senior Subordinated Notes Maturity: 10 years (2021) Interest: 6.625% Optional Redemption: Non-callable for the first 5 years…
  21. ENERCOMS 2011 OIL AND GAS CONFERENCE – Unit Corp. – slide 21
    Segment Contribution Revenues ( millions) EBITDA ( millions)(1) 1,358 1,400 800 754 1,200 600 1,000 882 800 442 710 400 371 600 539 278 400 200 200 0 0 2008 2009 2010 1st Half 2011 2008 2009 2010 1st Half…
  22. ENERCOMS 2011 OIL AND GAS CONFERENCE – Unit Corp. – slide 22
    Adjusted Earnings per Share(1) 7.00 6.00 5.00 4.00 3.00 2.00 1.00 0.00 2006 2007 2008 2009 2010 2011 First Half Year-End (1) See Adjusted EPS reconciliation to EPS.
  23. ENERCOMS 2011 OIL AND GAS CONFERENCE – Unit Corp. – slide 23
    Hedges Target 5070% of current year projected oil and natural gas production Crude oil 63% in 2011 Natural gas 60% in 2011 Primarily utilize swaps and collars Current hedge portfolio consists of swaps Hedged over 600,000…
  24. ENERCOMS 2011 OIL AND GAS CONFERENCE – Unit Corp. – slide 24
    Capital Expenditures (In Thousands) 800,000 600,000 400,000 200,000 0 2006 2007 2008 2009 2010 2011 Budget Unit Petroleum Unit Drilling Superior Pipeline
  25. ENERCOMS 2011 OIL AND GAS CONFERENCE – Unit Corp. – slide 25
    Non-GAAP Financial Measures EBITDA Six months ended June 30, Years ended December 31, ( in Millions) 2010 2011 2008 2009 2010 Net Income 68 91 144 (56) 146 Income Taxes 42 57 82 (32) 91 Depreciation, Depletion and Amortization 90…
  26. ENERCOMS 2011 OIL AND GAS CONFERENCE – Unit Corp. – slide 26
    EPS Reconciliation 1st Half 1st Half 2008 2008 2009 2009 2009 2009 (in millions except per share amounts) Amount Per Share Amount Per Share Amount Per Share Net income before impairment of oil and natural gas properties 319.1 6.80…
  27. ENERCOMS 2011 OIL AND GAS CONFERENCE – Unit Corp. – slide 27

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