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Capital One Securities 11th Annual Energy Conference – Unit Corp.

Unit Corp. · Dec 7, 2016 · 27 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. Capital One Securities 11th Annual Energy Conference – Unit Corp. – slide 1
    Capital One Securities 11th Annual Energy Conference NYSE: UNT December 7, 2016
  2. Capital One Securities 11th Annual Energy Conference – Unit Corp. – slide 2
    Unit Corporation: A Diversified Energy Company 12 Tulsa based, incorporated 10 in 1963 Casper Marcellus Pittsburgh Integrated approach to business allows Unit to capture margin from each business segment Anadarko Tulsa…
  3. Capital One Securities 11th Annual Energy Conference – Unit Corp. – slide 3
    Setting the Stage for 2017 We have weathered many cycles during our 50+ year history Maintain spending within cash flow Resume E&P drilling program Use cash flow to drill new wells Continue to manage costs NYSE: UNT 4
  4. Capital One Securities 11th Annual Energy Conference – Unit Corp. – slide 4
    2016 Highlights 165 million anticipated 2016 capital expenditures well within budget range of 161 million to 187 million. Exploration & Production Wilcox Q3 production averaged 90 MMcfe per day for 2016, completed 4 horizontal…
  5. Capital One Securities 11th Annual Energy Conference – Unit Corp. – slide 5
    Debt Structure No NearTerm Maturities Senior Subordinated Notes Ratings S&P Moodys Fitch Corporate B+ B2 B+ 650 million, 6.625% Senior Subordinated Notes B+ B3 BB 10year, NC5; maturity 2021 9/30/2016 Key Covenants Interest…
  6. Capital One Securities 11th Annual Energy Conference – Unit Corp. – slide 6
    Core Upstream Producing Areas Mid Continent Region Key focus areas include: Gulf Coast: SOHOT Wilcox (Southeast Texas) Granite Wash MidContinent: Upper Gulf Coast Region Hoxbar (Western Oklahoma) Granite Wash (Texas Panhandle)…
  7. Capital One Securities 11th Annual Energy Conference – Unit Corp. – slide 7
    Buffalo Wallow Field Granite Wash Stacked Pay A A1 Gross Thickness = 2,273 Feet A2 B C C1 Dixon 5554 XL 1H D E F F1 G Vertical well NYSE: UNT * Shaded intervals have been tested horizontally 8
  8. Capital One Securities 11th Annual Energy Conference – Unit Corp. – slide 8
    Granite Wash Extended Length Laterals (7,500) 2,000 Buffalo Wallow Prospect 7,000 contiguous net acres 1,800 Operated and 90% HBP 1,600 Average working interest 95% 190 240 potential XL locations Cummulative Production…
  9. Capital One Securities 11th Annual Energy Conference – Unit Corp. – slide 9
    Hoxbar (Marchand Sand) Marchand Core Case: Marchand Horizontal Producer Marchand Vertical Producer IP30: 803 Boe/d Brown 111H Harper 119H IP30: 867 Boe/d IP30: 2,467 Boe/d Well cost: 4.7 million 1/15 1/15 Schenk 172H 83% liquids…
  10. Capital One Securities 11th Annual Energy Conference – Unit Corp. – slide 10
    Wilcox (Southeast Texas) POLK TYLER Overall Highlights at end of Q3 2016: Drilled 157 operated wells since 2003 (150 vertical, 7 horizontal) 92% average working interest 3D AREA Q3 16 net avg. production: 90 MMcfe/d 494 mi.…
  11. Capital One Securities 11th Annual Energy Conference – Unit Corp. – slide 11
    Gilly Field Wilcox Cross Section Gilly Field Gilly DT Parker Parker Parker 2 GU 1 4 BS O 3 BS R 4 Temporarily Abandoned Perforations Current Production Future Behind Pipe Recompletions 2016 YTD Q3 Behind Pipe Recompletions 2017…
  12. Capital One Securities 11th Annual Energy Conference – Unit Corp. – slide 12
    YTD 2016 Wilcox BPR & Workover Results Composite Gross Production from BPRs and Workovers 10 BPRs & 7 Workovers Total Cost: 7.1 MM End of Q3 Start of Year 30,920 mcfd 3,360 mcfd 1,280 bopd 80 bopd NYSE: UNT * BPR: Behind Pipe…
  13. Capital One Securities 11th Annual Energy Conference – Unit Corp. – slide 13
    Rig Fleet Presence in Key Regions 94 rig fleet 20 800 HP: 21% 12 70 1,0001,700 HP: 75% 4 2,000 HP: 4% 69% electric 10 56% 1,500 HP or greater 94 equipped with top drives 59 equipped with skidding or walking systems 17%…
  14. Capital One Securities 11th Annual Energy Conference – Unit Corp. – slide 14
    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 9 mos. '16 Margins Dayrates…
  15. Capital One Securities 11th Annual Energy Conference – Unit Corp. – slide 15
    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…
  16. Capital One Securities 11th Annual Energy Conference – Unit Corp. – slide 16
    Midstream Core Operations Brook Field Pittsburgh Mills Snow Shoe Texas Panhandle Northern Oklahoma and Kansas 52,000 dedicated acres 1,972,000+ dedicated acres Pittsburgh 135 MMcf/d processing capacity 193 MMcf/d processing…
  17. Capital One Securities 11th Annual Energy Conference – Unit Corp. – slide 17
    Midstream Segment Contract Mix 2010 Q3 2016 Contract Mix Based on Volume 23% 49% 51% 77% Fee Based Commodity Based Contract Mix Based on Margin 15% 30% 85% Fee Based 70% Commodity Based Unit vs. 3rd Party Margin…
  18. Capital One Securities 11th Annual Energy Conference – Unit Corp. – slide 18
    Appalachian Growth Projects A P P A L A C H I A N P R O J E C T S Snow Shoe Gathering System in Centre County, PA First flow in January 2016 Six wells currently connected to this system Average gathering volumes were 11…
  19. Capital One Securities 11th Annual Energy Conference – Unit Corp. – slide 19
    Segment Contribution Revenues ( millions) Adjusted EBITDA ( millions)(1) 1,573 800 1,600 787 1,352 1,400 1,315 679 667 1,200 600 1,000 854 410 800 400 600 428 400 200 170 200 0 0 2012 2013 2014 2015 9 mos. 2016 2012…
  20. Capital One Securities 11th Annual Energy Conference – Unit Corp. – slide 20
    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 NYSE: UNT 21
  21. Capital One Securities 11th Annual Energy Conference – Unit Corp. – slide 21
    APPENDIX NYSE: UNT 22
  22. Capital One Securities 11th Annual Energy Conference – Unit Corp. – slide 22
    NonGAAP Financial Measures Corporate Adjusted EBITDA Nine months ended September 30, Years ended December 31, ( In Millions) 2015 2016 2012 2013 2014 2015 Q3 LTM Net Income (Loss) (728) (137) 23 185 136 (1,037) (446) Income Taxes…
  23. Capital One Securities 11th Annual Energy Conference – Unit Corp. – slide 23
    NonGAAP Financial Measures Segments Adjusted EBITDA Nine months ended September 30, Years ended December 31, ( In Millions) 2015 2016 2012 2013 2014 2015 Unit Petroleum Income (Loss) Before Income Taxes (1) (1,163) (137) (77) 239…
  24. Capital One Securities 11th Annual Energy Conference – Unit Corp. – slide 24
    NonGAAP Financial Measures Reconciliation of Average Daily Operating Margin Before Elimination of Intercompany Rig Profit and Bad Debt Expense (In thousands except for Nine months ended September 30, Years ended December 31, operating…
  25. Capital One Securities 11th Annual Energy Conference – Unit Corp. – slide 25
    NonGAAP Financial Measures Reconciliation of Average Daily Operating Margin Before Elimination of Intercompany Rig Profit and Bad Debt Expense (In thousands except for Years ended December 31, operating days 2006 2007 2008 2009 2010…
  26. Capital One Securities 11th Annual Energy Conference – Unit Corp. – slide 26
    Derivative Summary Crude 2016 2017 2018 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Collars Volume (Bbl) 225,400 317,400 Weighted Avg Floor 44.44 41.70 Weighted Avg Ceiling 52.46 49.24 3Way Collars Volume (Bbl) 128,800 128,800 337,500…
  27. Capital One Securities 11th Annual Energy Conference – Unit Corp. – slide 27
    Q4 2016 Economic Prices 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+ 2016 47.070 2.880 0.218 0.554 23.254 0.742 0.831 1.055 0.209 0.532 0.735 0.864 1.072 2017 50.001 3.056…

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