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…
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…
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…
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…
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…
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…
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…
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…
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…
Mississippian Play Highlights: Total 16 producing wells since 2012 8 wells = 75% O&L 5 wells = 50-75% O&L 3 wells…
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…
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…
Gilly Field Development 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…
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…
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…
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…
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
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…
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…
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…
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…
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…
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
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…
APPENDIX 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…
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…
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