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BAML LEVERAGED FINANACE CONFERENCE – Unit Corp.

Unit Corp. · Dec 2, 2014 · 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. BAML LEVERAGED FINANACE CONFERENCE – Unit Corp. – slide 1
    BAML Leveraged Finance Conference December 2, 2014
  2. BAML LEVERAGED FINANACE 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 14 16 Casper…
  3. BAML LEVERAGED FINANACE CONFERENCE – Unit Corp. – slide 3
    Key Growth Points Exploration & Production 211% average production replacement since 2004 Liquids production has grown 162% since the end of 2009 Proved reserves: 160 MMBoe (1) Drilling Grown rig count 19% since 2004 Sold 22…
  4. BAML LEVERAGED FINANACE CONFERENCE – Unit Corp. – slide 4
    First 9 Months YOY Accomplishments Unit Corporation Revenue increased 20% Adjusted EBITDA increased 26% (1) Oil and Natural Gas Segment Production has increased 9% Liquids production (oil and NGLs) have increased 18% Contract…
  5. BAML LEVERAGED FINANACE CONFERENCE – Unit Corp. – slide 5
    Strong Capital Discipline Debt to market capitalization of 22% Strong access to capital No near-term maturities Consistent growth profile for all segments Oil and natural gas exploration not driven by lease expirations 6
  6. BAML LEVERAGED FINANACE CONFERENCE – Unit Corp. – slide 6
    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 80 79 69 60 58…
  7. BAML LEVERAGED FINANACE CONFERENCE – Unit Corp. – slide 7
    Increasing Production While Improving Commodity Mix Annual Production (MBoe/d) 60 50 46 9%-10% 40 39 33 30 28 27 20 10 0 2009 2010 2011 2012 2013 2014E Net Wells Drilled: 43 88 82 80 91 Oil / NGLs Natural Gas…
  8. BAML LEVERAGED FINANACE CONFERENCE – Unit Corp. – slide 8
    Core Upstream Producing Areas Key focus areas include: Mid Continent Region Gulf Coast: Wilcox (Southeast Texas) Mississippian Mid-Continent: SOHOT Hoxbar (Western Oklahoma) Granite Granite Wash (Texas Panhandle) Wash…
  9. BAML LEVERAGED FINANACE CONFERENCE – Unit Corp. – slide 9
    Wilcox (Liquids) Overall Highlights: TYLER JASPER NEWTON Drilled 126 operated vertical POLK wells since 2003 (11 years) 92% average WI Q3 14 avg. production: 65 MMcfe/d 3D AREA 494 mi. 43% liquids (11% oil) Gilly Field…
  10. BAML LEVERAGED FINANACE CONFERENCE – Unit Corp. – slide 10
    Hoxbar (Oil/Liquids) SOHOT Medrano & Marchand Sands Medrano Marchand Claiborne 14H Allen 161H Rosey Havenstrite 130H Discovery 2011 (2013) (2014) IP30: 897 boe/d IP30: 1,312 boe/d Extensional Extensional Area Area Cody 136H…
  11. BAML LEVERAGED FINANACE CONFERENCE – Unit Corp. – slide 11
    Granite Wash (Liquids) Historical Highlights: Buffalo Wallow Highlights: Completed 93 operated Completed 9 H wells horizontal wells since 2008 GW [B, C(3), D, E(3), F] zones Average WI: 80% Average WI: 100% Buffalo Q3 14 avg.…
  12. BAML LEVERAGED FINANACE CONFERENCE – Unit Corp. – slide 12
    Mississippian (Oil) Central Kansas Horizontal Wells by Uplift Core Leasehold Operator Highlights: UNIT TAPSTONE CHESAPEAKE Q3 14 avg. production: 1,860 Boe/d DEVON RANGE 71% liquids (61% oil) SANDRIDGE OTHER Avg. working…
  13. BAML LEVERAGED FINANACE CONFERENCE – Unit Corp. – slide 13
    Significant Drilling Presence in Attractive Producing Regions Bakken 120 rig fleet Fleet average 1,100 HP rating; Almost all of contracted rigs drilling horizontal wells 67% utilization rate for Q3 2014 Pinedale Anticline 87%…
  14. BAML LEVERAGED FINANACE CONFERENCE – Unit Corp. – slide 14
    Average Dayrates and Margins (1) 20,000 90 Average Number of Rigs Utilized 15,000 Margins / DayRates () 60 10,000 30 5,000 0 0 2010 2011 2012 2013 9 mos. '14 Margins Dayrates Rigs Utilized (1) 15 Margins…
  15. BAML LEVERAGED FINANACE CONFERENCE – Unit Corp. – slide 15
    Rig Fleet Snap Shot 72% of Total Fleet 800 HP 8001,000 HP 1,2001,700HP 2,000 HP 13% 60% 36% 100% 40% 64% 87% 30 39 47 4 % Utilized % Unutilized 86 rigs equipped with integrated top drives 16
  16. BAML LEVERAGED FINANACE CONFERENCE – Unit Corp. – slide 16
    Introducing the New BOSS Drilling Rig Optimized for Pad Drilling Multi-direction walking system Faster Between Locations Quick assembly substructure 32-34 truck loads More Hydraulic Horsepower (2) 2,200 horsepower mud pumps…
  17. BAML LEVERAGED FINANACE CONFERENCE – Unit Corp. – slide 17
    Midstream Core Operations Pittsburgh Mills Texas Panhandle Northern Oklahoma and Kansas 32,000 dedicated acres 1,750,000+ dedicated acres Pittsburgh Regional office 135 MMcf/d processing capacity 188 MMcf/d processing capacity…
  18. BAML LEVERAGED FINANACE CONFERENCE – Unit Corp. – slide 18
    Midstream Segment Historical Performance 34% compound growth rate in assets since year-end 2004 Operating 14 processing plants at eight different locations with combined processing capacity of 335 MMcf per day Increased from 12 to…
  19. BAML LEVERAGED FINANACE CONFERENCE – Unit Corp. – slide 19
    Midstream Segment Contract Mix 2010 Contract Mix Based on Volume Q3 2014 32% 49% 51% Fee Based 68% Commodity Based Contract Mix Based on Margin 15% Fee Based 56% 44% 85% Commodity Based Unit vs. 3rd Party Margin…
  20. BAML LEVERAGED FINANACE CONFERENCE – Unit Corp. – slide 20
    Appalachian Growth Opportunities Constructing Snowshoe Gathering System in Centre County, PA Estimated Total Capital: 97 million Initial 2015 Capital: 40 million Negotiating New Fee-based Gathering Project in Butler County, PA…
  21. BAML LEVERAGED FINANACE CONFERENCE – Unit Corp. – slide 21
    Balance Sheet Summary 9/30/14 12/31/13 (In Millions) Total Assets 4,431.8 4,022.4 Long-Term Debt Senior Subordinated Notes 646.0 645.7 Bank Facility 30.8 Total Long-Term Debt 676.8 645.7 Shareholders Equity 2,367.5 2,173.4…
  22. BAML LEVERAGED FINANACE CONFERENCE – Unit Corp. – slide 22
    Current Debt Structure Senior Subordinated Notes 650 million, 6.625% Ratings S&P Moodys Fitch Corporate BB Ba3 BB 10-year, NC5; maturity 2021 Senior Subordinated Notes BB B1 BB Unsecured Bank Facility Current Borrowing Base…
  23. BAML LEVERAGED FINANACE CONFERENCE – Unit Corp. – slide 23
    Historical Credit Ratios Total Debt / EBITDA EBITDA / Total Interest 100 1.2 90 1 80 70 0.8 60 0.6 50 97.5 1.1 1.0 1.0 40 0.4 30 66.5 0.2 0.4 0.5 20 38.4 10 21.1 13.5 15.0 0 0.1 0 2009 2010 2011 2012 2013 Sept. '14* 2009…
  24. BAML LEVERAGED FINANACE CONFERENCE – Unit Corp. – slide 24
    Segment Contribution Revenues ( millions) Adjusted EBITDA ( millions)(1) 1,400 1,315 1,352 800 1,208 1,194 1,200 657 657 602 600 1,000 871 474 800 441 400 600 400 200 200 0 0 2010 2011 2012 2013 9 mos. '14 2010 2011…
  25. BAML LEVERAGED FINANACE CONFERENCE – Unit Corp. – slide 25
    Capital Expenditures (In Millions) 1,500 1,000 500 0 2010 2011 2012 2013 2014 Forecast Oil and Natural Gas Contract Drilling Midstream Acquisitions 26
  26. BAML LEVERAGED FINANACE CONFERENCE – Unit Corp. – slide 26
    APPENDIX 27
  27. BAML LEVERAGED FINANACE CONFERENCE – Unit Corp. – slide 27
    Non-GAAP Financial Measures Adjusted EBITDA Nine months ended September 30, Years ended December 31, ( in Millions) 2013 2014 2010 2011 2012 2013 Net Income 133 179 146 196 23 185 Income Taxes 84 112 91 123 16 117 Depreciation,…
  28. BAML LEVERAGED FINANACE CONFERENCE – Unit Corp. – slide 28
    Hedges Natural Gas Weighted Average Price Period Type MMBTU/Day Floor Ceiling Swap Oct Dec 14 Swap 80,000 4.24 Oct Dec 14 Collar 10,000 3.75 4.37 Jan Mar 15 Collar 30,000 4.20 5.03 Jan Dec 15 Swap 40,000 3.98 Crude…
  29. BAML LEVERAGED FINANACE CONFERENCE – Unit Corp. – slide 29
    BAML Leveraged Finance Conference December 2, 2014

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