Skip to main content BANK OF AMERICA MERRILL LYNCH LEVERAGED FINANCE CONFERENCE – Unit Corp. Investor Presentation | Shale Experts
Loading...
Pm

BANK OF AMERICA MERRILL LYNCH LEVERAGED FINANCE CONFERENCE – Unit Corp.

Unit Corp. · Dec 1, 2011 · 27 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. BANK OF AMERICA MERRILL LYNCH LEVERAGED FINANCE CONFERENCE – Unit Corp. – slide 1
    Bank of America Merrill Lynch Leveraged Finance Conference Thursday, December 1, 2011 8:50 a.m.
  2. BANK OF AMERICA MERRILL LYNCH LEVERAGED FINANCE CONFERENCE – Unit Corp. – slide 2
    Overview of Operations Bakken 3% Tulsa based company founded in 1963 with long history of operations in the Mid-Continent Ticker: UNT / NYSE Casper Casper Casper Office Office Office Market Cap: 2.4 billion(1)…
  3. BANK OF AMERICA MERRILL LYNCH LEVERAGED FINANCE CONFERENCE – Unit Corp. – slide 3
    Summary of Business Strengths Integrated Integrated approach to business allows Unit to balance its capital Approach Enhances deployment through the various stages of the energy cycle Stability and Vertical integration offers key…
  4. BANK OF AMERICA MERRILL LYNCH LEVERAGED FINANCE CONFERENCE – Unit Corp. – slide 4
    Core Upstream Producing Areas Tulsa Anadarko Headquarters 2010 reserves of 104 MMBoe were 68% Basin 55% 19% Arkoma natural gas and 80% proved developed Basin Reserve life of approximately 9 years North LA/East Beginning in late…
  5. BANK OF AMERICA MERRILL LYNCH LEVERAGED FINANCE CONFERENCE – Unit Corp. – slide 5
    Track Record of Reserve Growth Proved Reserves (MMBoe) 120 104 Stable and consistent economic growth of oil 100 2001 2010 CAGR: 10% 95 96 and natural gas reserves of at least 150% of 86 79 each years production 80 69 60 58…
  6. BANK OF AMERICA MERRILL LYNCH LEVERAGED FINANCE CONFERENCE – Unit Corp. – slide 6
    Maintaining Production while Improving Commodity Mix Annual Production (MBoe/d) Production (MBoe/d) 35 35 34 33 0% R: 1 33 CAG 33 E 011 30 005-2 29 29 29 2 32 28 28 28 27 28 27 26 25 25 25 24 21 21 19 6% AG R:…
  7. BANK OF AMERICA MERRILL LYNCH LEVERAGED FINANCE CONFERENCE – Unit Corp. – slide 7
    Increasing Liquids Focus In the current commodity price Annual Production Mix (MBoe/d) environment, Unit continues to allocate capital towards higher 2008 2009 2010 2011E rate of return liquids-rich production Liquids Liquids…
  8. BANK OF AMERICA MERRILL LYNCH LEVERAGED FINANCE CONFERENCE – Unit Corp. – slide 8
    Granite Wash Play Q4 2010 Q3 2011 Results First sales on 21 operated Granite Wash horizontal wells Average 30-day IP = 6.7 MMcfe/day Average reserves: 4.1 Bcfe (47% oil & liquids) Current CWC: 5.4 MM (4,000 lateral, 11…
  9. BANK OF AMERICA MERRILL LYNCH LEVERAGED FINANCE CONFERENCE – Unit Corp. – slide 9
    Marmaton Oil Play Q4 2010 Q3 2011 Results First sales on 35 operated Marmaton horizontal wells Average 30-day IP = 239 Boe/day Average reserves: 130 MBoe (90% oil & liquids) Current CWC: 2.7 MM (4,000 lateral, 16 stage…
  10. BANK OF AMERICA MERRILL LYNCH LEVERAGED FINANCE CONFERENCE – Unit Corp. – slide 10
    Wilcox Liquids Play 2003 to Q3 2011 West Wilcox Completed 105 wells at 74% Expansion (2008) success rate Q1 Q3 2011 Results Completed 13 wells at 69% success rate Average 30-day IP rate = 326 Boe/day Average reserves: 252…
  11. BANK OF AMERICA MERRILL LYNCH LEVERAGED FINANCE CONFERENCE – Unit Corp. – slide 11
    Acquired Properties Purchase Price: 30.5 Million Reserves: 31.2 Bcfe (99% natural gas) 83% proved developed Production: 7.8 MMcfe/day 55,000 Net Acres, 96% HBP Upside in Woodford Shale and Hartshorne Coal Unit…
  12. BANK OF AMERICA MERRILL LYNCH LEVERAGED FINANCE CONFERENCE – Unit Corp. – slide 12
    2011 Upstream Capital Program 357 million drilling capital budget allocated principally to the liquids-rich Granite Wash, Marmaton, and Wilcox plays 8% increase in the drilling budget for 2011 Approximately 202 million allocated to…
  13. BANK OF AMERICA MERRILL LYNCH LEVERAGED FINANCE CONFERENCE – Unit Corp. – slide 13
    Significant Drilling Presence in Attractive Producing Regions 10 126 rig fleet (excluding 2 of 7 new 5 builds)(1) Fleet average 1,200 HP rating; 16,484 ft depth capacity 70% of rigs capable of drilling horizontal 15 2 Casper 63%…
  14. BANK OF AMERICA MERRILL LYNCH LEVERAGED FINANCE CONFERENCE – Unit Corp. – slide 14
    Average Number of Rigs Utilized 100 75 50 25 0 2007 2008 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011
  15. BANK OF AMERICA MERRILL LYNCH LEVERAGED FINANCE CONFERENCE – Unit Corp. – slide 15
    Diverse and Versatile Rig Fleet 400-700 h.p. 750-1,000 h.p. 1,200-1,700 h.p. 2,000 h.p. 2,500 h.p. 0 20% Growing demand from increased 40% Utilization shallow 39 of 39 Percentage horizontal drilling working (65% as of…
  16. BANK OF AMERICA MERRILL LYNCH LEVERAGED FINANCE CONFERENCE – Unit Corp. – slide 16
    Conditions Support Improving Dayrates and Margins(1) 20,000 Margins / DayRates () 15,000 10,000 5,000 0 2007 2008 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Margins Day Rates Six Consecutive…
  17. BANK OF AMERICA MERRILL LYNCH LEVERAGED FINANCE CONFERENCE – Unit Corp. – slide 17
    Overview of Drilling Fleet Contracted Rig Commodity Mix Geographical Location TX Panhandle Liquids 26% Arkoma Rich 6% 63% E. TX, LA, Anadarko GC, S. TX Basin 12% Oil 30% Barnett 17% 4% Rockies/Bakken Dry Gas 22% 20%…
  18. BANK OF AMERICA MERRILL LYNCH LEVERAGED FINANCE CONFERENCE – Unit Corp. – slide 18
    Superior Pipelines Core Operations Average Processing Pipeline Average Volume Processing Capacity Pipeline (MMbtu/d) (miles) Volume Capacity (MMcf/d) (miles) (MMbtu/d) (MMcf/d) Hemphill/Mendota 130 43,700 100…
  19. BANK OF AMERICA MERRILL LYNCH LEVERAGED FINANCE CONFERENCE – Unit Corp. – slide 19
    Capital Structure (1) ( in Millions) Debt Structure Maturity 6.625% Senior Subordinated Notes 250.0 May 2021 Unsecured bank credit facility 55.4 Sept. 2016 Total 305.4 Shareholders equity 1,910.4 Total Assets 3,165.3 (1)…
  20. BANK OF AMERICA MERRILL LYNCH LEVERAGED FINANCE CONFERENCE – Unit Corp. – slide 20
    Debt Structure (1) Senior Subordinated Notes 250 million, 6.625% First-time issuer Issued in May 2011 10-year, NC5 Unsecured Bank Facility Borrowing Base 600 million Elected Commitment 250 million Outstanding 55.4 million…
  21. BANK OF AMERICA MERRILL LYNCH LEVERAGED FINANCE CONFERENCE – Unit Corp. – slide 21
    Credit Statistics and Ratings Credit Statistics (as of September 30, 2011 unless otherwise noted) Total Debt / LTM EBITDA 0.6x LTM EBITDA / LTM Interest 47.1x Debt / Proved Reserves (12/31/10) (/Boe) 1.57 Debt / Proved Developed…
  22. BANK OF AMERICA MERRILL LYNCH LEVERAGED FINANCE CONFERENCE – Unit Corp. – slide 22
    Historical Credit Ratios Total Debt / EBITDA EBITDA / Total Interest 0.6x 102.7x 97.7x 100.0x 80.0x 75.7x 0.4x 66.1x 0.4x 0.3x 60.0x 56.3x 0.3x 0.2x 0.2x 40.0x 0.2x 20.0x 0 0 2006 2007 2008 2009 2010 2006 2007 2008 2009…
  23. BANK OF AMERICA MERRILL LYNCH LEVERAGED FINANCE CONFERENCE – Unit Corp. – slide 23
    Segment Contribution Revenues ( millions) EBITDA ( millions)(1) 1,400 1,358 800 754 1,200 1,162 1,159 660 615 1,000 600 882 863 800 442 436 710 400 371 600 400 200 200 0 0 2006 2007 2008 2009 2010 9 mos 2006 2007 2008…
  24. BANK OF AMERICA MERRILL LYNCH LEVERAGED FINANCE CONFERENCE – Unit Corp. – slide 24
    Hedges Target 5070% of current year projected oil and natural gas production Crude oil 63% in 2011 Natural gas 60% in 2011 Primarily utilize swaps and collars Current hedge portfolio consists of swaps Natural Gas Liquids Hedged…
  25. BANK OF AMERICA MERRILL LYNCH LEVERAGED FINANCE CONFERENCE – Unit Corp. – slide 25
    Capital Expenditures (In Thousands) 800,000 600,000 400,000 200,000 0 2006 2007 2008 2009 2010 2011 Budget Unit Petroleum Unit Drilling Superior Pipeline
  26. BANK OF AMERICA MERRILL LYNCH LEVERAGED FINANCE CONFERENCE – Unit Corp. – slide 26
  27. BANK OF AMERICA MERRILL LYNCH LEVERAGED FINANCE CONFERENCE – Unit Corp. – slide 27
    Non-GAAP Financial Measures EBITDA Nine months ended September 30, Years ended December 31, ( in Millions) 2010 2011 2006 2007 2008 2009 2010 Net Income 103 144 312 266 144 (56) 146 Income Taxes 64 90 176 147 82 (32) 91…

From the store

Browse maps, data & reports in the Shale Experts store