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IPAA Oil & Gas Investment Symposium – Unit Corp.

Unit Corp. · Apr 12, 2016 · 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. IPAA Oil & Gas Investment Symposium – Unit Corp. – slide 1
    IPAA Oil & Gas Investment Symposium April 12, 2016
  2. IPAA Oil & Gas Investment Symposium – Unit Corp. – slide 2
    Unit Corporation: A Diversified Energy Company 12 Tulsa based, incorporated in 1963 10 Casper Integrated approach to Marcellus Pittsburgh business allows Unit to capture margin from each business segment Tulsa…
  3. IPAA Oil & Gas Investment Symposium – Unit Corp. – slide 3
    We Are Focused on 2016 and Beyond We have weathered many cycles during our 50+ year history Balance sheet preservation is key Spending within cash flow Reduce debt with excess cash flow Manage costs 4
  4. IPAA Oil & Gas Investment Symposium – Unit Corp. – slide 4
    2015 Statistics Exploration & Production Attained record annual production of 20 MMBoe, a 9% increase year over year Liquids production grew 7% year over year Proved reserves: 135 MMBoe (1) Drilling Eight BOSS rigs placed into…
  5. IPAA Oil & Gas Investment Symposium – Unit Corp. – slide 5
    Segment EBITDA Margins (1) in Line with Pure Play Peers 90% 80% 70% EBITDA Margins 60% 50% E&P Company Peer Average 40% 30% Land Drilling 20% Peer Average Midstream 10% Peer Average 0% 2005 2006 2007 2008…
  6. IPAA Oil & Gas Investment Symposium – Unit Corp. – slide 6
    Debt Structure No NearTerm Maturities Senior Subordinated Notes Ratings S&P Moodys Fitch 650 million, 6.625% Corporate B+ B2 B+ Senior Subordinated Notes B+ B3 BB 10year, NC5; maturity 2021 Key Covenants Coverage ratio 2.25x (1)…
  7. IPAA Oil & Gas Investment Symposium – Unit Corp. – slide 7
    Core Upstream Producing Areas Mid Continent Region Key focus areas include: SOHOT Gulf Coast: Granite Wilcox (Southeast Texas) Wash MidContinent: Upper Gulf Coast Region Hoxbar (Western Oklahoma) Wilcox Granite Wash (Texas…
  8. IPAA Oil & Gas Investment Symposium – Unit Corp. – slide 8
    Historical and Projected Production Average Production (MBoe/d) 60 55 50 4648 50 46 39 40 33 30 20 10 0 2011 2012 2013 2014 2015 2016 est. Natural Gas Oil / NGLs Prod. Range Net Wells Drilled: 82 80 91 121 35 1015…
  9. IPAA Oil & Gas Investment Symposium – Unit Corp. – slide 9
    Wilcox (Southeast Texas) Overall Highlights Year End 2015: Drilled 153 operated wells since 2003 (150 vertical, 3 horizontal) TYLER POLK 92% average working interest Q4 15 net avg. production: 88 MMcfe/d 42% liquids (12% oil)…
  10. IPAA Oil & Gas Investment Symposium – Unit Corp. – slide 10
    Gilly Field Cross Section Allar Parker GU 1 GU 1 A 3.8 miles A Lower Wilcox 91 Mcfed Temporarily Abandoned Perforations Current Production Future Behind Pipe Recompletions *Feb. 16 Exit Rate
  11. IPAA Oil & Gas Investment Symposium – Unit Corp. – slide 11
    Allar GU 1 Allar GU 1 Lower Gilchrease B Sand Production Summary Production increased from: 15 Bopd and 445 Mcfd to: 300 Bopd and 5,700 Mcfd AOF Potential: 23 MMcfd 1,200 Bopd Economics Cost: 690,000 Net PW10: 8.5…
  12. IPAA Oil & Gas Investment Symposium – Unit Corp. – slide 12
    Parker GU 1 Parker GU 1 Lower Gilchrease B Sand Production Summary Production increased from: 10 Bopd and 200 Mcfd to: 300 Bopd and 6,000 Mcfd AOF Potential: 22 MMcfd 1,100 Bopd Economics Cost: 400,000 Net PW10: 6.2…
  13. IPAA Oil & Gas Investment Symposium – Unit Corp. – slide 13
    Hoxbar (Marchand Sand) Marchand Core Case: EUR: 530 MBoe* IP30: 802 Boe/d* Harper 119H Brown 111H IP30: 2,467 Boe/d Well cost: 4.9 million IP30: 867 Boe/d 1/15 Extensional Area 1/15 ROR: 30%1 84% liquids (72% oil) Rosey 1H…
  14. IPAA Oil & Gas Investment Symposium – Unit Corp. – slide 14
    Expertise in Areas of Operations 16 Unit has experienced management and operating teams and is a leader in minimizing operating expenses Operating Expense / Boe (1) 12 Average: 9.64 8 4 0 Peer 1 Peer 2 Unit…
  15. IPAA Oil & Gas Investment Symposium – Unit Corp. – slide 15
    Rig Fleet Presence in Key Regions 94 rig fleet 20 800 HP: 21% 12 Bakken 70 1,0001,700 HP: 75% 4 2,000 HP: 4% 69% electric 56% 1,500 HP or greater 94 equipped with top drives Niobrara 58 equipped with skidding or walking systems…
  16. IPAA Oil & Gas Investment Symposium – Unit Corp. – slide 16
    Average Dayrates and Margins (1) 20,000 100% 15,000 75% Average Rig Utilization Margins and Dayrates 10,000 50% 5,000 25% 0 0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Margins Dayrates Average Rig…
  17. IPAA Oil & Gas Investment Symposium – Unit Corp. – slide 17
    The BOSS Drilling Rig Optimized for Pad Drilling Multidirection walking system Faster Between Locations Quick assembly substructure 3234 truck loads More Hydraulic Horsepower (2) 2,200 horsepower mud pumps 1,500 gpm available…
  18. IPAA Oil & Gas Investment Symposium – Unit Corp. – slide 18
    Midstream Core Operations Brook Field Pittsburgh Mills Snow Shoe Texas Panhandle Northern Oklahoma and Kansas 50,100 dedicated acres 1,972,000+ dedicated acres Pittsburgh 135 MMcf/d processing capacity 193 MMcf/d processing…
  19. IPAA Oil & Gas Investment Symposium – Unit Corp. – slide 19
    Midstream Segment Contract Mix 2010 2015 Contract Mix Based on Volume 32% 49% 51% 68% Fee Based Commodity Based Contract Mix Based on Margin 15% 35% 85% Fee Based 65% Commodity Based Unit vs. 3rd Party Margin…
  20. IPAA Oil & Gas Investment Symposium – Unit Corp. – slide 20
    Appalachian Growth Projects A P P A L A C H I A N P R O J E C T S Completed construction of Snow Shoe Gathering System in Centre County, PA in Q4 2015 First flow in January 2016 Signed contract with new producer to connect…
  21. IPAA Oil & Gas Investment Symposium – Unit Corp. – slide 21
    Segment Contribution Revenues ( millions) Adjusted EBITDA ( millions)(1) 1,573 800 1,600 758 1,400 1,315 1,352 657 640 1,208 603 1,200 600 1,000 854 800 400 385 600 400 200 200 0 0 2011 2012 2013 2014 2015 2011 2012…
  22. IPAA Oil & Gas Investment Symposium – Unit Corp. – slide 22
    Operating Segment Capital Expenditures (In Millions) 1,500 1,000 500 0 2011 2012 2013 2014 2015 2016 Low End 2016 High End Budget Budget Oil and Natural Gas Contract Drilling Midstream Acquisitions 23
  23. IPAA Oil & Gas Investment Symposium – Unit Corp. – slide 23
    APPENDIX 24
  24. IPAA Oil & Gas Investment Symposium – Unit Corp. – slide 24
    Segment EBITDA Margin December 31, 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Revenues Oil and Gas (Including Cash Flow Derivatives Settled) 318,208 357,599 391,480 552,696 362,245 399,771 514,614 567,944 649,718 740,079…
  25. IPAA Oil & Gas Investment Symposium – Unit Corp. – slide 25
    NonGAAP Financial Measures Adjusted EBITDA Years ended December 31, ( in Millions) 2011 2012 2013 2014 2015 Net Income (Loss) 196 23 185 136 (1,037) Income Taxes 123 16 117 87 (627) Depreciation, Depletion and Amortization 281 319…
  26. IPAA Oil & Gas Investment Symposium – Unit Corp. – slide 26
    NonGAAP Financial Measures Reconciliation of Average Daily Operating Margin Before Elimination of Intercompany Rig Profit and Bad Debt Expense (In thousands except for operating days Years ended December 31, and operating margins) 2011…
  27. IPAA Oil & Gas Investment Symposium – Unit Corp. – slide 27
    Derivative Summary Crude 2016 2017 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Collars Volume (Bbl) 195,650 468,650 133,400 133,400 Weighted Avg Floor 46.360 40.714 47.500 47.500 Weighted Avg Ceiling 55.619 49.880 56.400 56.400 3Way Collars Volume (Bbl)…
  28. IPAA Oil & Gas Investment Symposium – Unit Corp. – slide 28
    Q1 2016 Economic Prices February 2, 2016 Strip Case Crude Natural Gas MB C2 MB C3 MB NC4 MB iC4 MB C5+ CW C2 CW C3 CW NC4 CW iC4 CW C5+ 2/161/17 Avg. 35.338 2.316 0.169 0.401 0.602 0.602 0.789 0.160 0.365 0.550 0.674 0.781…

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