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JUNE 2014 IPAA OGIS – Unit Corp.

Unit Corp. · Jun 5, 2014 · 32 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. JUNE 2014 IPAA OGIS – Unit Corp. – slide 1
    IPAA Oil & Gas Investment Symposium June 5, 2014
  2. JUNE 2014 IPAA OGIS – 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 16 16 Casper…
  3. JUNE 2014 IPAA OGIS – Unit Corp. – slide 3
    Key Growth Points Exploration & Production 211% average production replacement since 2004 Began focusing on increasing liquids production in early 2009. Liquids production has grown 175% since the end of 2008 Proved reserves: 160…
  4. JUNE 2014 IPAA OGIS – Unit Corp. – slide 4
    2013 Accomplishments Oil and Natural Gas Segment Year over year production increased 18% Total liquids production up 20% Contract Drilling Segment Average per day operating margins, before elimination of intercompany drilling…
  5. JUNE 2014 IPAA OGIS – 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…
  6. JUNE 2014 IPAA OGIS – Unit Corp. – slide 6
    Core Upstream Producing Areas Key focus areas include: Mid Continent Region Mid-Continent: Mississippian Granite Wash (Texas Panhandle) Marmaton Marmaton (Oklahoma Panhandle oil play) Emerging Play Mississippian (Kansas) Granite…
  7. JUNE 2014 IPAA OGIS – Unit Corp. – slide 7
    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 79 80 69 60…
  8. JUNE 2014 IPAA OGIS – Unit Corp. – slide 8
    Increasing Production While Improving Commodity Mix Annual Production (MBoe/d) 60 13%-15% 50 46 39 40 33 30 28 27 20 10 0 2009 2010 2011 2012 2013 2014E Net Wells Drilled: 43 88 82 80 91 Oil / NGLs Natural…
  9. JUNE 2014 IPAA OGIS – Unit Corp. – slide 9
    Granite Wash Play Highlights: Single Well Parameters: 47,000 net acres Completed 92 operated EUR: 3.8 Bcfe horizontal wells since 2008 Well Cost: 5.5 million Average WI: 82% ROR: 55%* Average IP30: 5.3 Mmcfe/d Upside Resource…
  10. JUNE 2014 IPAA OGIS – Unit Corp. – slide 10
    Marmaton Oil Play Highlights: 2014 Activity: 116,000 net acres Completed 138 operated 2 rigs horizontal wells since 2010 35 gross wells Average WI: 83% 67 million well CapEx Average IP30: 340 Boe/d 91% liquids Single Well…
  11. JUNE 2014 IPAA OGIS – Unit Corp. – slide 11
    Mississippian Play Highlights: Total 16 producing wells since 2012 8 wells = 75% O&L 5 wells = 50-75% O&L 3 wells…
  12. JUNE 2014 IPAA OGIS – Unit Corp. – slide 12
    Unit Acreage in a Defined Trap Units Acreage Characteristics A Good oil shows in vertical wells throughout acreage block No oil shows in downdip wet chert A Defined updip fault trap with vertical production adjacent to fault A…
  13. JUNE 2014 IPAA OGIS – Unit Corp. – slide 13
    Wilcox Liquids Play TYPE LOG Highlights: Newton Area 8,000 JAZZ Area 25,000 net acres 28,000 net acres Drilled 124 operated vertical Upper Wilcox wells since 2003 10,500 92% average WI 8 Middle Wilcox Historical ROR: 112% 494…
  14. JUNE 2014 IPAA OGIS – Unit Corp. – slide 14
    Gilly Field Development 15
  15. JUNE 2014 IPAA OGIS – 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. JUNE 2014 IPAA OGIS – Unit Corp. – slide 16
    SOHOT (Southern Oklahoma Hoxbar Oil Trend) Highlights: Potential for five to seven stacked pays in focus area Mix of oil and liquids rich gas zones 12,810 net acres (Focus Area) Current well inventory of 175 to 200 locations…
  17. JUNE 2014 IPAA OGIS – Unit Corp. – slide 17
    Significant Drilling Presence in Attractive Producing Regions 118 rig fleet Fleet average 1,100 HP rating; 16 Almost all of contracted rigs drilling horizontal wells 57% utilization rate for Q1 2014 80% of 45 1,200-1,700 HP rigs…
  18. JUNE 2014 IPAA OGIS – Unit Corp. – slide 18
    Average Dayrates and Margins (1) 20,000 90 15,000 Average Number of Rigs Utilized Margins / DayRates () 60 10,000 30 5,000 0 0 2010 2011 2012 2013 Q1 2014 Margins Dayrates Rigs Utilized (1) 19 Margins…
  19. JUNE 2014 IPAA OGIS – Unit Corp. – slide 19
    Rig Fleet Snap Shot 400700 HP 7501,000 HP 1,2001,700HP 2,000 HP 4,000 HP 32% 39% 20% 68% 61% 80% 100% 100% 28 41 45 3 1 75% of Total Fleet % Utilized % Unutilized 86 rigs equipped with integrated top drives 20
  20. JUNE 2014 IPAA OGIS – Unit Corp. – slide 20
    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…
  21. JUNE 2014 IPAA OGIS – Unit Corp. – slide 21
    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 198 MMcf/d processing capacity 314 miles of gathering…
  22. JUNE 2014 IPAA OGIS – Unit Corp. – slide 22
    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…
  23. JUNE 2014 IPAA OGIS – Unit Corp. – slide 23
    Midstream Segment Historical Performance 37% compound growth rate in assets since year-end 2004 Installed processing capacity of 345 MMcf per day at eight different locations Increased from 12 to over 140 employees since 2004…
  24. JUNE 2014 IPAA OGIS – Unit Corp. – slide 24
    Midstream Segment Contract Mix Contract Mix Based on Volume 2010 Q1 2014 Commodity Commodity Fee Based Fee Based Based 30% Based 49% 51% 70% Contract Mix Based on Margin Fee Based 15% Commodity Fee Commodity Based…
  25. JUNE 2014 IPAA OGIS – Unit Corp. – slide 25
    Balance Sheet Summary 3/31/14 12/31/13 (In Millions) Total Assets 4,116.8 4,022.4 Long-Term Debt Senior Subordinated Notes 645.8 645.7 Bank Facility Total Long-Term Debt 645.8 645.7 Shareholders Equity 2,234.8 2,173.4 Credit…
  26. JUNE 2014 IPAA OGIS – Unit Corp. – slide 26
    Segment Contribution Revenues ( millions) Adjusted EBITDA ( millions)(1) 1,400 1,352 800 1,315 1,208 658 650 1,200 602 600 1,000 871 441 800 400 600 388 194 400 200 200 0 0 2010 2011 2012 2013 Q1 2014 2010 2011…
  27. JUNE 2014 IPAA OGIS – Unit Corp. – slide 27
    Capital Expenditures (In Millions) 1,500 1,000 500 0 2010 2011 2012 2013 2014 Budget Oil and Natural Gas Contract Drilling Midstream Acquisitions 28
  28. JUNE 2014 IPAA OGIS – Unit Corp. – slide 28
    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…
  29. JUNE 2014 IPAA OGIS – Unit Corp. – slide 29
    APPENDIX 30
  30. JUNE 2014 IPAA OGIS – Unit Corp. – slide 30
    Non-GAAP Financial Measures Adjusted EBITDA Three months ended March 31, Years ended December 31, ( in Millions) 2013 2014 2010 2011 2012 2013 Net Income 40 57 146 196 23 185 Income Taxes 25 36 91 123 16 117 Depreciation, Depletion…
  31. JUNE 2014 IPAA OGIS – Unit Corp. – slide 31
    Hedges Target 5070% of current year projected oil and natural gas production Natural Gas Crude Oil MMBtu/d Bbls/d 100,000 4.26 10,000 80,000 94.42 8,000 60,000 6,000 40,000 4,000 20,000 2,000 0 0 2014 2014…
  32. JUNE 2014 IPAA OGIS – Unit Corp. – slide 32
    IPAA Oil & Gas Investment Symposium June 5, 2014

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