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HOWARD WEIL ENERGY CONFERENCE – Unit Corp.

Unit Corp. · Mar 20, 2013 · 29 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 20, 2013
  2. HOWARD WEIL ENERGY CONFERENCE – Unit Corp. – slide 2
    Overview of Operations 16 Bakken 18 Tulsa based diversified energy Casper Office company incorporated in 1963 Marcellus Integrated approach to Tulsa Headquarters business allows Unit to balance 77 Arkoma Basin its capital…
  3. HOWARD WEIL ENERGY 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. HOWARD WEIL ENERGY CONFERENCE – Unit Corp. – slide 4
    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 100%…
  5. HOWARD WEIL ENERGY CONFERENCE – Unit Corp. – slide 5
    2012 Highlights Total revenue for 2012: 1.3 billion, a 9% increase over 2011 Adjusted earnings per share for 2012: 4.15(1), a 2% increase over 2011 Oil and Natural Gas Segment During 2012, oil and natural gas liquids (NGLs) reserves…
  6. HOWARD WEIL ENERGY CONFERENCE – Unit Corp. – slide 6
    Core Upstream Producing Areas Beginning in late 2008, implemented strategy of increasing focus on liquids-rich and oil prospects Forecast 46% liquids production for 2013 Mississippian Key focus areas include: Marmaton Granite Wash…
  7. HOWARD WEIL ENERGY CONFERENCE – Unit Corp. – slide 7
    Significant 2012 A&D Activity Acquired certain oil and natural gas properties and related gathering and processing infrastructure located in Western Oklahoma and the Texas Panhandle from Noble Energy Transaction value 600 million…
  8. HOWARD WEIL ENERGY CONFERENCE – Unit Corp. – slide 8
    Sale of Bakken Shale Properties Net Bakken Acreage Sold: 6,040 net acres McKenzie Co., ND (4,756) Remaining: Williams Co., ND 2,654 Montana 6,040 Remaining acreage 8,694 Bakken Notes 2,654 net acres Q4 Ave: 734 Boe/day…
  9. HOWARD WEIL ENERGY CONFERENCE – Unit Corp. – slide 9
    Track Record of Reserve Growth Proved Reserves (MMBoe) 160 150 Stable and consistent economic growth of oil 2003 2012 CAGR: 15% and natural gas reserves of at least 150% of 140 120 116 each years production 104 100 95 96 86 79 222%…
  10. HOWARD WEIL ENERGY CONFERENCE – Unit Corp. – slide 10
    Increasing Production while Improving Commodity Mix Annual Production (MBoe/d) 50 45 44 40 39 33 29 28 30 27 20 10 28% 55% 0 2008 2009 2010 2011 2012 2013E Net Wells Drilled: 134 43 88 82 80 10 Oil /…
  11. HOWARD WEIL ENERGY CONFERENCE – Unit Corp. – slide 11
    Granite Wash Play Noble acquisition strategic fit with existing UPC leasehold Total 46,000 net acres in the Texas Panhandle Core Area (80% HBP) Approximately 800 potential drilling locations HIGHLIGHTS Production up 41% in…
  12. HOWARD WEIL ENERGY CONFERENCE – Unit Corp. – slide 12
    Marmaton Oil Play Total 112,000 net acres in focus area (44% HBP) HIGHLIGHTS Completed 85 operated horizontal wells since 2010 Production up 61% in 2012 over 2011 Q4 = average net 4,248 Boe per day (93% oil & liquids) 150…
  13. HOWARD WEIL ENERGY CONFERENCE – Unit Corp. – slide 13
    Wilcox Liquids Play WILCOX HIGHLIGHTS Gilly Field Completed 120 wells since 2003 with 73% success rate Discovery Q4 = average net 32 MMcfe per day (42% liquids) 86,000 net acres (51K leasehold 30% HBP, 35K options) Gilly Field…
  14. HOWARD WEIL ENERGY CONFERENCE – Unit Corp. – slide 14
    Mississippian Play Total 105,000 net acres in focus area Central Kansas Uplift HIGHLIGHTS Approximately 300 potential locations (320 acre spacing) Average well depth +/- 8,000 (includes 4,000 lateral) Mississippian pay zone +/-…
  15. HOWARD WEIL ENERGY CONFERENCE – Unit Corp. – slide 15
    Significant Drilling Presence in Attractive Producing Regions 127 rig fleet 16 Fleet average 1,200 HP rating; 16,724 ft depth capacity 97% of contracted rigs drilling horizontal wells 58% utilization rate for 2012 18 Casper 73%…
  16. HOWARD WEIL ENERGY CONFERENCE – Unit Corp. – slide 16
    Average Dayrates and Margins (1) 20,000 120 Average Number of Rigs Utilized 15,000 90 Margins / DayRates () 10,000 60 5,000 30 0 0 2008 2009 2010 2011 2012 Margins Day Rates Rigs Utilized 16 (1) Margins are…
  17. HOWARD WEIL ENERGY CONFERENCE – Unit Corp. – slide 17
    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% 33 of 45 40% Utilization working Percentage (54% as of 3/15/13) 60% 80% 100% Number of Rigs: 31 38 45 7…
  18. HOWARD WEIL ENERGY CONFERENCE – Unit Corp. – slide 18
    Midstream Segment Core Operations Plants Pipeline systems 18
  19. HOWARD WEIL ENERGY CONFERENCE – Unit Corp. – slide 19
    Historical Performance Historical Daily Gathering Volumes (MMBtu / d) NGLs Volumes (Bbl / d) 300,000 15,000 200,000 10,000 100,000 5,000 0 0 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 Contract Mix (Based on…
  20. HOWARD WEIL ENERGY CONFERENCE – Unit Corp. – slide 20
    Midstream Segment 2012 Major Projects Bellmon gathering and processing system in Mississippian play Constructing Pittsburgh Mills gathering system in Pennsylvania Installed a 5th processing plant at Hemphill facility taking…
  21. HOWARD WEIL ENERGY CONFERENCE – Unit Corp. – slide 21
    Balance Sheet Summary 12/31/12 12/31/11 (In Millions) Total Assets 3,761.1 3,256.7 Long-Term Debt Senior Subordinated Notes 645.3 250.0 Bank Facility 71.1 50.0 Total Long-Term Debt 716.4 300.0 Shareholders Equity 1,974.3…
  22. HOWARD WEIL ENERGY CONFERENCE – Unit Corp. – slide 22
    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- B2 BB- Unsecured Bank Facility Borrowing Base 800…
  23. HOWARD WEIL ENERGY CONFERENCE – Unit Corp. – slide 23
    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 8,000 60, 000 6,000 90.90 40, 000 4,000 20, 000 2,000…
  24. HOWARD WEIL ENERGY CONFERENCE – Unit Corp. – slide 24
    Segment Contribution Revenues ( millions) EBITDA ( millions)(1) 1,400 1,357 800 754 1,315 1,208 656 1,200 604 600 1,000 871 442 800 707 371 400 600 400 200 200 0 0 2008 2009 2010 2011 2012 2008 2009 2010 2011…
  25. HOWARD WEIL ENERGY CONFERENCE – Unit Corp. – slide 25
    Adjusted Earnings per Share (1) 7.00 6.80 6.00 5.00 4.00 4.08 4.15 3.00 3.09 2.52 2.00 1.00 0.00 2008 (1) 2009 (1) 2010 2011 2012 (1) 25 (1) See Adjusted EPS reconciliation to EPS.
  26. HOWARD WEIL ENERGY CONFERENCE – Unit Corp. – slide 26
    Capital Expenditures (In Millions) 1,500 1,000 500 0 2008 2009 2010 2011 2012 2013 Budget Oil and Natural Gas Contract Drilling Midstream Acquisitions 26
  27. HOWARD WEIL ENERGY CONFERENCE – Unit Corp. – slide 27
    Non-GAAP Financial Measures EBITDA Years ended December 31, ( in Millions) 2008 2009 2010 2011 2012 Net Income 144 (56) 146 196 23 Income Taxes 82 (32) 91 123 16 Depreciation, Depletion and Amortization 245 177 205 281 319…
  28. HOWARD WEIL ENERGY CONFERENCE – Unit Corp. – slide 28
    EPS Reconciliation 2008 2008 2009 2009 2012 2012 (in millions except per share amount) Amount Per Share Amount Per Share Amount Per Share Net income before impairment of oil and natural gas properties 319.1 6.80 119.6 2.52 199.7…
  29. HOWARD WEIL ENERGY CONFERENCE – Unit Corp. – slide 29

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