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BREAN MURRAY EP BEST IDEAS CONFERENCE – Unit Corp.

Unit Corp. · Nov 8, 2012 · 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. BREAN MURRAY EP BEST IDEAS CONFERENCE – Unit Corp. – slide 1
    Brean Murray E&P Best Ideas Conference November 8, 2012
  2. BREAN MURRAY EP BEST IDEAS CONFERENCE – Unit Corp. – slide 2
    Overview of Operations 16 Bakken Tulsa based company founded in 18 1963 with long history of operations Casper in the Mid-Continent Office Integrated approach to business Marcellus allows Unit to balance its capital Tulsa…
  3. BREAN MURRAY EP BEST IDEAS 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. BREAN MURRAY EP BEST IDEAS CONFERENCE – Unit Corp. – slide 4
    Core Upstream Producing Areas Beginning in late 2008, implemented strategy of increasing focus on liquids-rich and oil prospects Forecast 42% liquids production for 2012 Key focus areas include: Marmaton Granite Wash (Texas…
  5. BREAN MURRAY EP BEST IDEAS CONFERENCE – Unit Corp. – slide 5
    Strategic Acquisition Unit Corporation acquired certain oil and natural gas properties and related gathering and processing infrastructure primarily located in Western Oklahoma and the Texas Panhandle from Noble Energy (Acquisition)…
  6. BREAN MURRAY EP BEST IDEAS CONFERENCE – Unit Corp. – slide 6
    Transaction Rationale Quality, liquids rich oil and gas property set with significant upside 44 MMboe of proved reserves (80% PD)(1) 10.0 Mboe/d April 2012 daily production (36% Oil/NGLs) Strategic fit with Units existing E&P assets…
  7. BREAN MURRAY EP BEST IDEAS CONFERENCE – Unit Corp. – slide 7
    Significant Overlap in Core Operating Area Material acreage overlap with existing Pro forma Acreage Position in Core Mid-Continent Area properties adding 188,000 gross acres (84,000 net acres) which is 95% HBP Adds 25,000 net acreage…
  8. BREAN MURRAY EP BEST IDEAS CONFERENCE – Unit Corp. – slide 8
    Sale of Bakken Shale Properties Net Bakken Acreage North Dakota Williams County 2,654 McKenzie County 4,756 6,040 net acres Montana 6,040 13,450 QEP Transaction Details 243 million sales price, subject to adjustment 2,654 net…
  9. BREAN MURRAY EP BEST IDEAS CONFERENCE – Unit Corp. – slide 9
    Track Record of Reserve Growth Proved Reserves (MMBoe) 160 160 Stable and consistent economic growth of oil 2002 2011 CAGR: 14% and natural gas reserves of at least 150% of 140 120 116 each years production 104 100 95 96 86 79…
  10. BREAN MURRAY EP BEST IDEAS CONFERENCE – Unit Corp. – slide 10
    Increasing Production while Improving Commodity Mix Annual Production (MBoe/d) 50 39 40 37 38 33 36 29 28 30 27 20 10 55% 0 2008 2009 2010 2011 2012E 2012E Incl. Noble Net Wells Drilled: 134 43 88 82 Oil /…
  11. BREAN MURRAY EP BEST IDEAS CONFERENCE – Unit Corp. – slide 11
    Granite Wash Play Noble acquisition increases Granite Wash position 119% to 46,000 net acres in the Texas Panhandle Core Area Adds 600 potential drilling locations 2011 Q3 2012 Results First sales on 38 operated Granite Wash…
  12. BREAN MURRAY EP BEST IDEAS CONFERENCE – Unit Corp. – slide 12
    Marmaton Oil Play 2011 Q3 2012 Results First sales on 51 operated Marmaton horizontal wells (includes two extended lateral wells) Extended Lateral (9500) First Sales 2 wells 30-Day IP 765 Boe/day Estimated reserves: 200 - 400…
  13. BREAN MURRAY EP BEST IDEAS CONFERENCE – Unit Corp. – slide 13
    Wilcox Liquids Play 2003 - 2011 Completed 109 wells at 72% success rate Field Discovery announced July 2012 Reserve Resource Potential Gross 229 Bcfe; Net 159 Bcfe 8% oil, 35% NGL, 57% natural gas Field Four Wells Completed…
  14. BREAN MURRAY EP BEST IDEAS CONFERENCE – Unit Corp. – slide 14
    Significant Drilling Presence in Attractive Producing Regions 127 rig fleet 16 Fleet average 1,200 HP rating; 16,724 ft depth capacity 58% utilization rate for Q3 2012 70% of 47 1,200-1,700 HP rigs under contract 18 Casper…
  15. BREAN MURRAY EP BEST IDEAS CONFERENCE – Unit Corp. – slide 15
    Average Number of Rigs Utilized 100 75 50 25 0 2008 2009 2010 2011 9 mos. 2012
  16. BREAN MURRAY EP BEST IDEAS CONFERENCE – Unit Corp. – slide 16
    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 47 40% working Utilization Percentage (49% as of 11/1/12) 60% 80% 100% Number of Rigs: 29 38 47 7…
  17. BREAN MURRAY EP BEST IDEAS CONFERENCE – Unit Corp. – slide 17
    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 9 mos. 2012 Margins Day Rates Rigs Utilized (1) Margins…
  18. BREAN MURRAY EP BEST IDEAS CONFERENCE – Unit Corp. – slide 18
    Superior Pipelines Core Operations Three natural gas treatment plants 13 natural gas processing plants 40 active gathering systems 1,143 miles of pipeline Plants Pipeline systems MAJOR SYSTEMS Average Processing…
  19. BREAN MURRAY EP BEST IDEAS 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 9 mos. 2012 2008 2009 2010 2011 9 mos. 2012 Contract…
  20. BREAN MURRAY EP BEST IDEAS CONFERENCE – Unit Corp. – slide 20
    Balance Sheet Summary 9/30/12 12/31/11 (In Millions) Total Assets 3,821.1 3,256.7 Long-Term Debt Senior Subordinated Notes 645.2 250.0 Bank Facility 0 50.0 Total Long-Term Debt 645.2 300.0 Shareholders Equity 2,029.0 1,947.0…
  21. BREAN MURRAY EP BEST IDEAS CONFERENCE – Unit Corp. – slide 21
    Debt Structure Senior Subordinated Notes As of September 30, 2012 650 million, 6.625% 10-year, NC5 Ratings S&P Moodys Fitch Corporate BB Ba3 BB Senior Subordinated Notes BB- B2 BB- Unsecured Bank Facility (1) Borrowing Base…
  22. BREAN MURRAY EP BEST IDEAS CONFERENCE – Unit Corp. – slide 22
    Hedges Target 5070% of current year projected oil and natural gas production Crude oil 77% in 2012 Natural gas 40% in 2012 Anticipate opportunistically adding hedges associated with production from acquired properties MMBtu/d…
  23. BREAN MURRAY EP BEST IDEAS CONFERENCE – Unit Corp. – slide 23
    Segment Contribution Revenues ( millions) EBITDA ( millions)(1) 1,358 754 1,400 800 1,208 1,200 604 980 600 1,000 862 492 442 800 710 371 400 600 400 200 200 0 0 2008 2009 2010 2011 9 mos. 2012 2008 2009 2010…
  24. BREAN MURRAY EP BEST IDEAS CONFERENCE – Unit Corp. – slide 24
    Adjusted Earnings per Share(1) 7.00 6.00 5.00 4.00 3.00 2.00 1.00 0.00 2008 (1) 2009(1) 2010 2011 9 mos. 2011 9 mos. 2012 (1) (1) See Adjusted EPS reconciliation to EPS.
  25. BREAN MURRAY EP BEST IDEAS CONFERENCE – Unit Corp. – slide 25
    Capital Expenditures (In Thousands) 1,000,000 800,000 600,000 400,000 200,000 0 2007 2008 2009 2010 2011 2012 Budget Unit Petroleum Unit Drilling Superior Pipeline
  26. BREAN MURRAY EP BEST IDEAS CONFERENCE – Unit Corp. – slide 26
    Non-GAAP Financial Measures EBITDA Twelve mos. Nine months ended ended September 30, Years ended December 31, Sept. 30, ( in Millions) 2011 2012 2008 2009 2010 2011 2012 Net Income 144 80 144 (56) 146 196 131 Income Taxes 90 51 82…
  27. BREAN MURRAY EP BEST IDEAS CONFERENCE – Unit Corp. – slide 27
    EPS Reconciliation 2008 2008 2009 2009 2012 2012 (in millions except per share amou 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 2.52 151.8…
  28. BREAN MURRAY EP BEST IDEAS CONFERENCE – Unit Corp. – slide 28

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