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ENERCOMS THE OIL AND SERVICES CONFERENCE – Unit Corp.

Unit Corp. · Feb 19, 2014 · 28 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 SERVICES CONFERENCE – Unit Corp. – slide 1
    EnerComs The Oil & Services Conference February 19, 2014
  2. ENERCOMS THE OIL AND SERVICES 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 16 16 Casper…
  3. ENERCOMS THE OIL AND SERVICES CONFERENCE – Unit Corp. – slide 3
    Key Growth Points Exploration & Production 212% average production replacement since 2003 130% increase in liquids production since Q1 2009, when Unit began focusing almost entirely on increasing liquids production Proved reserves:…
  4. ENERCOMS THE OIL AND SERVICES CONFERENCE – Unit Corp. – slide 4
    2013 Accomplishments Oil and Natural Gas Segment Production estimated to be up 15-18% for year Total liquids production estimated to be up 20% Segment cash flow up 14% through third quarter Contract Drilling Segment Average per…
  5. ENERCOMS THE OIL AND SERVICES 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…
  6. ENERCOMS THE OIL AND SERVICES CONFERENCE – Unit Corp. – slide 6
    Core Upstream Producing Areas Key focus areas include: Mid-Continent: Mid Continent Region Granite Wash (Texas Panhandle) Mississippian Marmaton (Oklahoma Panhandle oil play) Marmaton Mississippian (Kansas) Emerging Play…
  7. ENERCOMS THE OIL AND SERVICES CONFERENCE – Unit Corp. – slide 7
    Track Record of Reserve Growth Proved Reserves (MMBoe) 160 150 Stable and consistent economic growth of oil and natural 140 gas reserves of at least 150% of each years production 116 120 104 222% average annual reserve…
  8. ENERCOMS THE OIL AND SERVICES CONFERENCE – Unit Corp. – slide 8
    Increasing Production while Improving Commodity Mix Annual Production (MBoe/d) 60 15%-18% 50 46 39 45 40 33 29 28 30 27 20 10 28% 55% 0 2008 2009 2010 2011 2012 2013E 2014E Net Wells Drilled: 134 43 88 82 80…
  9. ENERCOMS THE OIL AND SERVICES CONFERENCE – Unit Corp. – slide 9
    Granite Wash Play Single Well Parameters: Upside Resource Potential: EUR: 3.8 Bcfe 800 1,000 wells Well Cost: 5.5 million 70% average WI ROR: 41%* 2.1 2.7 Tcfe 45% liquids 2014 Activity: 2 5 rigs 29 net wells 47,500 net acres…
  10. ENERCOMS THE OIL AND SERVICES CONFERENCE – Unit Corp. – slide 10
    Marmaton Oil Play 120,000 Single Well Parameters: net acres EUR: 110 MBoe Well Cost: 2.8 million ROR: 65%* 2014 Activity: 2 rigs 25 net wells 67 million well CapEx Upside Resource 6,000 Potential: 4,000 125 200 wells…
  11. ENERCOMS THE OIL AND SERVICES CONFERENCE – Unit Corp. – slide 11
    Mississippian Play Well Results: Total 7 producing wells 3 wells = 80-90% O&L 3 wells = 45-70% O&L 1 well = 25-30% O&L Well Cost: 3.1 million Working Interest: 100% Moderate water production (500 to 1,500 Bwpd) 140,000 net…
  12. ENERCOMS THE OIL AND SERVICES CONFERENCE – Unit Corp. – slide 12
    Wilcox Liquids Play TYPE LOG Gilly Field Basal Wilcox JAZZ Area Newton Area 8,000 Blackwood A Sand 25,000 net acres 28,000 net acres Upper Parameters: Wilcox EUR: 12.9 Bcfe 10,500 8 Middle Wilcox Well Cost: 5.2 million 494…
  13. ENERCOMS THE OIL AND SERVICES CONFERENCE – Unit Corp. – slide 13
    Emerging Play Highlights: Potential for five to seven stacked pays in play area Mix of oil and liquids rich gas zones Current well inventory of 150 to 175 locations Single Well Parameters: Zone A Zone B EUR: 5.1 Bcfe 364 MBoe…
  14. ENERCOMS THE OIL AND SERVICES CONFERENCE – Unit Corp. – slide 14
    Significant Drilling Presence in Attractive Producing Regions 117 rig fleet Fleet average 1,200 HP rating; 16 97% of contracted rigs drilling horizontal wells 51% utilization rate for Q3 2013 68% of 45 1,200-1,700 HP rigs under…
  15. ENERCOMS THE OIL AND SERVICES CONFERENCE – Unit Corp. – slide 15
    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 2009 2010 2011 2012 9 mos. '13 Margins Day Rates Rigs Utilized 16 (1)…
  16. ENERCOMS THE OIL AND SERVICES CONFERENCE – Unit Corp. – slide 16
    Rig Fleet Snap Shot 400700 HP 7501,000 HP 1,2001,700HP 2,000 HP 2,000 HP 29% 44% 25% 33% 71% 56% 67% 100% 75% 28 41 44 3 1 73% of Total Fleet % Utilized % Unutilized 17 86 rigs equipped with integrated top drives
  17. ENERCOMS THE OIL AND SERVICES CONFERENCE – Unit Corp. – slide 17
    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…
  18. ENERCOMS THE OIL AND SERVICES CONFERENCE – Unit Corp. – slide 18
    Mid-Stream Core Operations 1,250,000 Dedicated Acres Texas Panhandle Northern Oklahoma / Kansas 32,000 dedicated acres 1,100,000+ dedicated acres 135 MMcf/d processing capacity 198 MMcf/d processing capacity 308 miles of gathering…
  19. ENERCOMS THE OIL AND SERVICES CONFERENCE – Unit Corp. – slide 19
    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 Cumulative Invested…
  20. ENERCOMS THE OIL AND SERVICES CONFERENCE – Unit Corp. – slide 20
    Midstream Segment 2013 Outlook Contract Mix Based on Volume 2010 Current 2013 Commodity Commodity Based Fee Based 27% Based Fee Based 51% 49% 73% Contract Mix Based on Margin 2010 Current 2013 Fee Based 15% Commodity…
  21. ENERCOMS THE OIL AND SERVICES CONFERENCE – Unit Corp. – slide 21
    Balance Sheet Summary 9/30/13 12/31/12 (In Millions) Total Assets 3,924.7 3,761.1 Long-Term Debt Senior Subordinated Notes 645.6 645.3 Bank Facility 71.1 Total Long-Term Debt 645.6 716.4 Shareholders Equity 2,116.9 1,974.3…
  22. ENERCOMS THE OIL AND SERVICES CONFERENCE – Unit Corp. – slide 22
    Segment Contribution Revenues ( millions) Adjusted EBITDA ( millions)(1) 1,400 1,315 800 1,208 657 1,200 602 993 600 1,000 871 474 441 800 707 373 400 600 400 200 200 0 0 2009 2010 2011 2012 9 mos. '13 2009 2010…
  23. ENERCOMS THE OIL AND SERVICES CONFERENCE – Unit Corp. – slide 23
    Capital Expenditures (In Millions) 1,500 1,000 500 0 2008 2009 2010 2011 2012 2013 Estimate 2014 Budget Oil and Natural Gas Contract Drilling Midstream Acquisitions 24
  24. ENERCOMS THE OIL AND SERVICES CONFERENCE – Unit Corp. – slide 24
    APPENDIX 25
  25. ENERCOMS THE OIL AND SERVICES CONFERENCE – Unit Corp. – slide 25
    Non-GAAP Financial Measures Adjusted EBITDA Nine months ended Sept. 30, Years ended December 31, ( in Millions) 2012 2013 2009 2010 2011 2012 Net Income 80 133 (56) 146 196 23 Income Taxes 51 84 (32) 91 123 16 Depreciation,…
  26. ENERCOMS THE OIL AND SERVICES CONFERENCE – Unit Corp. – slide 26
    Debt Structure (1) Senior Subordinated Notes 650 million, 6.625% 10-year, NC5; maturity 2021 Ratings S&P Moodys Fitch Corporate BB Ba3 BB Senior Subordinated Notes BB- B1 BB- Unsecured Bank Facility Borrowing Base 800…
  27. ENERCOMS THE OIL AND SERVICES CONFERENCE – Unit Corp. – slide 27
    Hedges Target 5070% of current year projected oil and natural gas production Natural Gas Crude Oil MMBtu/d Bbls/d 3.67 100,000 10, 000 97.94 80, 000 93.26 8,000 4.23 60, 000 6,000 40, 000 4,000 20, 000…
  28. ENERCOMS THE OIL AND SERVICES CONFERENCE – Unit Corp. – slide 28

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