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ENERCOMS THE OIL AND GAS CONFERENCE – Unit Corp.

Unit Corp. · Aug 20, 2014 · 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. ENERCOMS THE OIL AND GAS CONFERENCE – Unit Corp. – slide 1
    EnerComs The Oil & Gas Conference August 20, 2014
  2. ENERCOMS THE OIL AND GAS CONFERENCE – 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 14 16 Casper…
  3. ENERCOMS THE OIL AND GAS CONFERENCE – Unit Corp. – slide 3
    Key Growth Points Exploration & Production 211% average production replacement since 2004 Liquids production has grown 162% since the end of 2009 Proved reserves: 160 MMBoe (1) Drilling Grown rig count 19% since 2004 Sold 24…
  4. ENERCOMS THE OIL AND GAS CONFERENCE – Unit Corp. – slide 4
    First 6 Months YOY Accomplishments Unit Corporation Revenue increased 20% Adjusted EBITDA increased 23% (1) Oil and Natural Gas Segment Year over year production increased 9% Total liquids production up 17% Contract Drilling…
  5. ENERCOMS THE OIL AND GAS CONFERENCE – Unit Corp. – slide 5
    Capital Allocation Criteria Oil and Natural Gas Segment Minimum 15% risk-adjusted ROR for new well proposals Contract Drilling Segment New build rigs minimum contract term of 2 to 3 years at a day rate sufficient to provide a 100%…
  6. ENERCOMS THE OIL AND GAS CONFERENCE – Unit Corp. – slide 6
    Track Record of Reserve Growth Proved Reserves (MMBoe) 160 160 150 Stable and consistent economic growth 140 120 116 of oil and natural gas reserves of at 104 100 86 95 96 least 150% of each years production 80 79 69 60 58…
  7. ENERCOMS THE OIL AND GAS CONFERENCE – Unit Corp. – slide 7
    Increasing Production While Improving Commodity Mix Annual Production (MBoe/d) 60 13%-15% 50 46 40 39 33 30 28 27 20 10 0 2009 2010 2011 2012 2013 2014E Net Wells Drilled: 43 88 82 80 91 Oil / NGLs Natural Gas…
  8. ENERCOMS THE OIL AND GAS CONFERENCE – Unit Corp. – slide 8
    Core Upstream Producing Areas Key focus areas include: Mid-Continent: Mid Continent Region Granite Wash (Texas Panhandle) Mississippian Marmaton Hoxbar (Western Oklahoma) Marmaton (Oklahoma Panhandle) SOHOT Play Granite…
  9. ENERCOMS THE OIL AND GAS CONFERENCE – Unit Corp. – slide 9
    Granite Wash (Liquids) Highlights: Single Well Parameters: 47,000 net acres Completed 93 operated EUR: 3.8 Bcfe horizontal wells since 2008 Well Cost: 5.5 million Average WI: 82% Average IP30: 5.2 Mmcfe/d Upside Resource…
  10. ENERCOMS THE OIL AND GAS CONFERENCE – Unit Corp. – slide 10
    Hoxbar (Oil/Liquids) (SOHOT) Highlights: Potential for stacked pays in focus area Mix of oil and liquids rich gas zones 13,100 net acres (Focus Area) Current well inventory of 175 to 200 locations Single Well Parameters:…
  11. ENERCOMS THE OIL AND GAS CONFERENCE – Unit Corp. – slide 11
    Marmaton (Oil) Highlights: 2014 Activity: 116,000 net acres Completed 147 operated 2 rigs horizontal wells since 2010 35 40 gross operated wells Average WI: 83% 72 million well CapEx Average IP30: 340 Boe/d 91% liquids Single…
  12. ENERCOMS THE OIL AND GAS CONFERENCE – Unit Corp. – slide 12
    Mississippian (Oil) Highlights: Total 20 producing wells since 2012 10 wells = 75% O&L 7 wells = 50-75% O&L 3 wells…
  13. ENERCOMS THE OIL AND GAS CONFERENCE – Unit Corp. – slide 13
    Wilcox (Liquids) TYPE LOG Highlights: Newton Area 8,000 JAZZ Area 25,000 net acres 28,000 net acres Drilled 126 operated vertical Upper Wilcox wells since 2003 10,500 92% average WI 8 Middle Wilcox Historical ROR: 112% 494…
  14. ENERCOMS THE OIL AND GAS CONFERENCE – Unit Corp. – slide 14
    Gilly Field Development 15
  15. ENERCOMS THE OIL AND GAS CONFERENCE – Unit Corp. – slide 15
    Gilly Field Strike Cross Section Basal Wilcox Sands Allar GU 1 Parker GU 2 Parker GU 1 Parker GU 3 Epstein 1 Epstein 2 Epstein 3 Epstein 4 Epstein 5 BS O 1 1497 1219 2815 2474 1283 1306 1357 1387 1249 A A Resource 40 BCFE…
  16. ENERCOMS THE OIL AND GAS CONFERENCE – Unit Corp. – slide 16
    Significant Drilling Presence in Attractive Producing Regions 14 119 rig fleet Fleet average 1,100 HP rating; Almost all of contracted rigs drilling horizontal wells 62% utilization rate for Q2 2014 16 Casper Office 88% of 49…
  17. ENERCOMS THE OIL AND GAS CONFERENCE – Unit Corp. – slide 17
    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 6 mos. '14 Margins Dayrates Rigs Utilized (1) 18 Margins…
  18. ENERCOMS THE OIL AND GAS CONFERENCE – Unit Corp. – slide 18
    Rig Fleet Snap Shot 77% of Total Fleet 700 HP 7501,000 HP 1,2002,000HP 4,000 HP 12% 35% 65% 35% 100% 65% 88% 26 43 49 1 % Utilized % Unutilized 86 rigs equipped with integrated top drives 19
  19. ENERCOMS THE OIL AND GAS CONFERENCE – Unit Corp. – slide 19
    Introducing the New BOSS Drilling Rig Optimized for Pad Drilling Multi-direction walking system Faster Between Locations Quick assembly substructure 32 truck loads More Hydraulic Horsepower (2) 2,200 horsepower mud pumps 1,500…
  20. ENERCOMS THE OIL AND GAS CONFERENCE – Unit Corp. – slide 20
    Midstream Core Operations 1,350,000 Dedicated Acres Texas Panhandle Northern Oklahoma / Kansas 32,000 dedicated acres 1,200,000+ dedicated acres 135 MMcf/d processing capacity 188 MMcf/d processing capacity 318 miles of gathering…
  21. ENERCOMS THE OIL AND GAS CONFERENCE – Unit Corp. – slide 21
    Midstream Segment Granite Wash Overview Granite Wash Assets High Growth Area with Strong Anticipated Drilling Activity Driven by Liquid Rich Production Existing Available Capacity Expansion Opportunities with Limited Capital…
  22. ENERCOMS THE OIL AND GAS CONFERENCE – Unit Corp. – slide 22
    Midstream Segment Historical Performance 37% compound growth rate in assets since year-end 2004 Installed processing capacity of 335 MMcf per day at eight different locations Increased from 12 to over 145 employees since 2004…
  23. ENERCOMS THE OIL AND GAS CONFERENCE – Unit Corp. – slide 23
    Midstream Segment Contract Mix 2010 Contract Mix Based on Volume Q2 2014 30% 49% 51% Fee Based 70% Commodity Based Contract Mix Based on Margin 15% Fee Based 53% 47% 85% Commodity Based Unit vs. 3rd Party Margin…
  24. ENERCOMS THE OIL AND GAS CONFERENCE – Unit Corp. – slide 24
    Balance Sheet Summary 6/30/14 12/31/13 (In Millions) Total Assets 4,277.7 4,022.4 Long-Term Debt Senior Subordinated Notes 645.9 645.7 Bank Facility Total Long-Term Debt 645.9 645.7 Shareholders Equity 2,294.7 2,173.4 Credit…
  25. ENERCOMS THE OIL AND GAS CONFERENCE – Unit Corp. – slide 25
    Segment Contribution Revenues ( millions) Adjusted EBITDA ( millions)(1) 1,400 1,315 1,352 800 1,208 657 657 1,200 602 600 1,000 871 793 441 800 391 400 600 400 200 200 0 0 2010 2011 2012 2013 6 mos. '14 2010 2011…
  26. ENERCOMS THE OIL AND GAS CONFERENCE – Unit Corp. – slide 26
    Capital Expenditures (In Millions) 1,500 1,000 500 0 2010 2011 2012 2013 2014 Budget Oil and Natural Gas Contract Drilling Midstream Acquisitions 27
  27. ENERCOMS THE OIL AND GAS CONFERENCE – Unit Corp. – slide 27
    Current Debt Structure Senior Subordinated Notes 650 million, 6.625% 10-year, NC5; maturity 2021 Unsecured Bank Facility Current Borrowing Base 900 million Elected Commitment 500 million Outstanding (1) None Maturity…
  28. ENERCOMS THE OIL AND GAS CONFERENCE – Unit Corp. – slide 28
    APPENDIX 29
  29. ENERCOMS THE OIL AND GAS CONFERENCE – Unit Corp. – slide 29
    Non-GAAP Financial Measures Adjusted EBITDA Six months ended June 30, Years ended December 31, ( in Millions) 2013 2014 2010 2011 2012 2013 Net Income 99 111 146 196 23 185 Income Taxes 62 70 91 123 16 117 Depreciation, Depletion…
  30. ENERCOMS THE OIL AND GAS CONFERENCE – Unit Corp. – slide 30
    Hedges Target 5070% of current year projected oil and natural gas production Natural Gas Crude Oil MMBtu/d Bbls/d 100,000 4.22 10,000 80,000 94.02 8,000 60,000 6,000 40,000 4,000 20,000 2,000 95.00 0 0 2014 2014…
  31. ENERCOMS THE OIL AND GAS CONFERENCE – Unit Corp. – slide 31
    EnerComs The Oil & Gas Conference August 20, 2014

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