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IPAA OGIS – Unit Corp.

Unit Corp. · Apr 13, 2011 · 24 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. IPAA OGIS – Unit Corp. – slide 1
    IPAA Oil & Gas Investment Symposium Presentation April 13, 2011 1:35 p.m.
  2. IPAA OGIS – Unit Corp. – slide 2
    Overview of Operations Tulsa based company founded in 1963 with long history of operations in the Mid-Continent Bakken 3% Ticker: UNT / NYSE Market Cap: 2.9 billion(1) Casper Casper CasperOffice Casper Casper Casper Office…
  3. IPAA OGIS – Unit Corp. – slide 3
    Summary of Business Strengths Integrated approach to business allows Unit to balance its capital Integrated Approach deployment through the various stages of the energy cycle Enhances Stability and Flexibility Vertical integration…
  4. IPAA OGIS – Unit Corp. – slide 4
    Core Upstream Producing Areas Tulsa Anadarko Headquarters Basin 2010 reserves of 104 MMBoe were 68% 55% 19% Arkoma natural gas and 80% proved developed Basin Reserve life of approximately 10 years North LA/East Permian 3% Texas…
  5. IPAA OGIS – Unit Corp. – slide 5
    Track Record of Reserve Growth Proved Reserves (MMBoe) Stable and consistent economic growth of oil 120 104 and natural gas reserves of at least 150% of 100 2001 2010 CAGR: 10% 95 96 each years production 86 79 80 69 218%…
  6. IPAA OGIS – Unit Corp. – slide 6
    Maintaining Production while Improving Commodity Mix Annual Production (MBoe/d) Production (MBoe/d) 35 35 R: 9% 31 CAG 31 11E 29 -20 29 29 5 30 200 28 28 30 28 28 27 27 26 25 25 25 24 21 21 19 14 14 7…
  7. IPAA OGIS – 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. IPAA OGIS – Unit Corp. – slide 8
    Low Risk Growth Opportunities Unit has a multi-year backlog of highly economic drilling locations providing it with plenty of running room with good visibility Proved Q4 2010 2010 Net Reserves (1) Daily Production R/P Capex Region…
  9. IPAA OGIS – Unit Corp. – slide 9
    Granite Wash Play Q4 2010 Results Average 30-day IP for 7 operated horizontal wells = 1,133 Boe/day Average reserves: 585 MBoe (48% oil & liquids) Average CWC: 5.1 MM (4,000 lateral, 11 stage frac) Average working interest:…
  10. IPAA OGIS – Unit Corp. – slide 10
    Marmaton Oil Play Q4 2010 Results Average 30-day IP for operated horizontal wells = 230 Boe/day Average reserves: 131 MBoe (90% oil & liquids) Average CWC: 2.5 MM (4,000 lateral, 16 stage frac) Average working interest:…
  11. IPAA OGIS – Unit Corp. – slide 11
    Segno Wilcox Extension 3-D Area 2003 to Current West Segno Completed 87 wells at 77% Expansion (2008) success rate 2010 Results Average initial production rate = 326 Boe/day Average reserves: 252 MBoe (50% oil & liquids)…
  12. IPAA OGIS – Unit Corp. – slide 12
    2011 Upstream Capital Program 357 million drilling capital budget allocated principally to the liquids-rich Granite Wash, Marmaton, and Segno plays 8% increase in the drilling budget for 2011 Approximately 202 million allocated to…
  13. IPAA OGIS – Unit Corp. – slide 13
    Significant Drilling Presence in Attractive Producing Regions 7 5 122 rig fleet (excluding 4 of 5 new builds)(1) Fleet average 1,200 HP rating; 16,400 ft depth capacity 20 70% of rigs capable of drilling horizontal Casper Office…
  14. IPAA OGIS – Unit Corp. – slide 14
    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 Percentage horizontal drilling (59% as of 12/31/10) activity…
  15. IPAA OGIS – Unit Corp. – slide 15
    Conditions Support Improving Utilization, Dayrates and Margins (1) 20,000 100% 15,000 75% Margins / DayRates () Utilization (%) 10,000 50% 5,000 25% 0 0% 2007 2008 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Margins Day…
  16. IPAA OGIS – Unit Corp. – slide 16
    Superior Pipelines Core Operations Average Processing Pipeline Average Volume Processing Capacity Pipeline (miles) Volume (MMbtu/d) Capacity (MMcf/d) (miles) (MMbtu/d) (MMcf/d) Hemphill/Mendota 130 43,700 100…
  17. IPAA OGIS – Unit Corp. – slide 17
    Historical Performance Historical Daily Gathering Volumes (MMBtu / d) NGLs / Condensate Volumes (Bbl / d) 250,000 8,000 200,000 6,000 150,000 4,000 100,000 2,000 50,000 0 0 2006 2007 2008 2009 2010 2006 2007 2008 2009…
  18. IPAA OGIS – Unit Corp. – slide 18
    Segment Contribution Revenues ( millions) EBITDA ( millions)(1) 1,400 1,358 800 754 1,200 600 1,000 882 442 800 710 400 371 600 400 200 200 0 0 2008 2009 2010 2008 2009 2010 Unit Petroleum Unit Drilling…
  19. IPAA OGIS – Unit Corp. – slide 19
    Strong Capital Structure Strong capital structure Capitalization ( millions) 12/31/2010 12/31/2009 In the process of extending Cash & Cash Equivalents 1 1 maturity of Credit Facility to Debt - Revolver (May 2012) 163 30 2016 Book…
  20. IPAA OGIS – Unit Corp. – slide 20
    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 Hedged over 600,000…
  21. IPAA OGIS – Unit Corp. – slide 21
    Prudent Capital Spending Unit maintains a conservative and disciplined approach towards asset development with a focus on maintaining balance sheet strength Target capex spending to remain in-line with projected cash flows Ability…
  22. IPAA OGIS – Unit Corp. – slide 22
    Why Unit Three consistent growing energy segments: Unit Petroleum Company 191% average production replacement since 2001 90% success rate for wells drilled during 2010 Unit Drilling Company Average 1,200 HP for 122 rig fleet(1)(2)…
  23. IPAA OGIS – Unit Corp. – slide 23
    Appendix
  24. IPAA OGIS – Unit Corp. – slide 24
    Non-GAAP Financial Measures EBITDA Year ended December 31, ( in Millions) 2008 2009 2010 Net Income 144 (56) 146 Income Taxes 82 (32) 91 Depreciation, Depletion and Amortization 245 177 205 Impairment of Oil and Natural Gas…

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