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HOWARD WEIL ENERGY CONFERENCE – Unit Corp.

Unit Corp. · Mar 25, 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. HOWARD WEIL ENERGY CONFERENCE – Unit Corp. – slide 1
    HOWARD WEIL ENERGY CONFERENCE March 25, 2014
  2. HOWARD WEIL ENERGY 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. HOWARD WEIL ENERGY CONFERENCE – Unit Corp. – slide 3
    Key Growth Points Exploration & Production 211% average production replacement since 2004 178% increase in liquids production since Q1 2009, when Unit began focusing almost entirely on increasing liquids production Proved reserves:…
  4. HOWARD WEIL ENERGY CONFERENCE – 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. HOWARD WEIL ENERGY 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. HOWARD WEIL ENERGY 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. HOWARD WEIL ENERGY CONFERENCE – 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. HOWARD WEIL ENERGY CONFERENCE – Unit Corp. – slide 8
    Increasing Production While Improving Commodity Mix Annual Production (MBoe/d) 60 15%-18% 50 46 39 40 33 28 30 27 20 10 0 2009 2010 2011 2012 2013 2014E Net Wells Drilled: 43 88 82 80 91 Oil / NGLs Natural…
  9. HOWARD WEIL ENERGY CONFERENCE – Unit Corp. – slide 9
    Granite Wash Play Highlights: Single Well Parameters: Completed 80 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 Potential: 45%…
  10. HOWARD WEIL ENERGY CONFERENCE – Unit Corp. – slide 10
    Marmaton Oil Play Highlights: 2014 Activity: 120,000 net acres Completed 126 operated 2 rigs horizontal wells since 2010 25 wells Average WI: 84% 67 million well CapEx Average IP30: 346 Boe/d 91% liquids Single Well…
  11. HOWARD WEIL ENERGY CONFERENCE – Unit Corp. – slide 11
    Mississippian Play Highlights: Total 13 producing wells since 2012 7 wells = 75% O&L 4 wells = 50-75% O&L 2 wells…
  12. HOWARD WEIL ENERGY CONFERENCE – Unit Corp. – slide 12
    Wilcox Liquids Play TYPE LOG Highlights: Newton Area 8,000 JAZZ Area 25,000 net acres 28,000 net acres Drilled 120 operated vertical Upper Wilcox wells since 2003 10,500 92% average WI 8 Middle Wilcox Historical ROR: 112% 494…
  13. HOWARD WEIL ENERGY 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. HOWARD WEIL ENERGY CONFERENCE – Unit Corp. – slide 14
    Significant Drilling Presence in Attractive Producing Regions 118 rig fleet Fleet average 1,100 HP rating; 16 97% of contracted rigs drilling horizontal wells 53% utilization rate for Q4 2013 76% of 45 1,200-1,700 HP rigs under…
  15. HOWARD WEIL ENERGY 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 2013 (1) 16 Margins are before elimination of…
  16. HOWARD WEIL ENERGY CONFERENCE – Unit Corp. – slide 16
    Rig Fleet Snap Shot 400700 HP 7501,000 HP 1,2001,700HP 2,000 HP 2,000 HP 29% 41% 24% 71% 59% 76% 100% 100% 28 41 45 3 1 75% of Total Fleet % Utilized % Unutilized 86 rigs equipped with integrated top drives 17
  17. HOWARD WEIL ENERGY 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. HOWARD WEIL ENERGY CONFERENCE – Unit Corp. – slide 18
    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…
  19. HOWARD WEIL ENERGY CONFERENCE – Unit Corp. – slide 19
    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…
  20. HOWARD WEIL ENERGY CONFERENCE – Unit Corp. – slide 20
    Midstream Segment Contract Mix Contract Mix Based on Volume 2010 2013 Commodity Fee Commodity Fee Based Based Based Based 38% 62% 49% 51% Contract Mix Based on Margin Fee Fee Based Based 15% Commodity Commodity 37%…
  21. HOWARD WEIL ENERGY CONFERENCE – Unit Corp. – slide 21
    Balance Sheet Summary 12/31/13 12/31/12 (In Millions) Total Assets 4,022.4 3,761.1 Long-Term Debt Senior Subordinated Notes 645.7 645.3 Bank Facility 71.1 Total Long-Term Debt 645.7 716.4 Shareholders Equity 2,173.4 1,974.3…
  22. HOWARD WEIL ENERGY CONFERENCE – Unit Corp. – slide 22
    Segment Contribution Revenues ( millions) Adjusted EBITDA ( millions)(1) 1,400 1,352 800 1,315 1,208 657 657 1,200 602 600 1,000 871 441 800 707 373 400 600 400 200 200 0 0 2009 2010 2011 2012 2013 2009 2010 2011…
  23. HOWARD WEIL ENERGY CONFERENCE – Unit Corp. – slide 23
    Capital Expenditures (In Millions) 1,500 1,000 500 0 2008 2009 2010 2011 2012 2013 2014 Budget Oil and Natural Gas Contract Drilling Midstream Acquisitions 24
  24. HOWARD WEIL ENERGY CONFERENCE – Unit Corp. – slide 24
    APPENDIX 25
  25. HOWARD WEIL ENERGY CONFERENCE – Unit Corp. – slide 25
    Non-GAAP Financial Measures Adjusted EBITDA Years ended December 31, ( in Millions) 2009 2010 2011 2012 2013 Net Income (56) 146 196 23 185 Income Taxes (32) 91 123 16 117 Depreciation, Depletion and Amortization 177 205 281 319…
  26. HOWARD WEIL ENERGY 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. HOWARD WEIL ENERGY 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 100,000 4.26 10,000 80,000 94.31 8,000 60,000 6,000 40,000 4,000 20,000 2,000 0 0 2014 2014…
  28. HOWARD WEIL ENERGY CONFERENCE – Unit Corp. – slide 28
    HOWARD WEIL ENERGY CONFERENCE March 25, 2014

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