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Raymond James Investor Conference – Unit Corp.

Unit Corp. · Mar 6, 2018 · 33 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. Raymond James Investor Conference – Unit Corp. – slide 1
    Raymond James Institutional Investors Conference March 6, 2018
  2. Raymond James Investor Conference – Unit Corp. – slide 2
    Unit Corporation: A Diversified Energy Company 10 Tulsa based, incorporated in 1963 10 Casper Marcellus Pittsburgh Integrated approach to business allows Unit to capture margin from each business segment Anadarko Tulsa…
  3. Raymond James Investor Conference – Unit Corp. – slide 3
    Company Highlights Highly economic Midstream segment opportunities for our E&P EBITDA poised for growth segment Fiscally conservative Contract drilling segment Capital spending in line activity rebounding with cash flow 4
  4. Raymond James Investor Conference – Unit Corp. – slide 4
    2017 Accomplishments Exploration & Production Acquired certain oil and natural gas assets located in our core Hoxbar play in western Oklahoma for 54.3 million. Total year end 2017 proved oil and natural gas reserves increased 27%…
  5. Raymond James Investor Conference – Unit Corp. – slide 5
    Core Upstream Producing Areas Key focus areas include: Mid Continent Region Gulf Coast: Wilcox (Southeast Texas) Hoxbar/STACK MidContinent: Granite Wash Granite Wash (Texas Panhandle) Upper Gulf Coast Region Hoxbar (Western…
  6. Raymond James Investor Conference – Unit Corp. – slide 6
    Units STACK and STACK Extension Positions STACK Extension STACK 12,000+ acres 87% HBP 80% in Over Pressured Window Upper, Middle and Lower Meramec also Woodford and Osage targets Operators are testing 1520 wells per section…
  7. Raymond James Investor Conference – Unit Corp. – slide 7
    STACK Acreage Proven Across Multiple Targets Anderson Half 13019XH (CLR) Lorene 185XH (CLR) Privott 17_2016N9W 1H (DVN) Geronimo 1207 62MH (89 Eng) Carpenter 120H (XEC) IP30: 17.1 Mmcfepd (99% Gas) IP30: 31.8 Mmcfepd (70% Gas) IP30:…
  8. Raymond James Investor Conference – Unit Corp. – slide 8
    STACK Extension Pushing Boundary of STACK Howard 51917 1H (Tapstone) McConnell 191H (Comanche) Moss 301H (Corlena) Schoeppel 162012 (CHK) Medrill 2015 127H (SD) IP30: 2,494 Boepd (62% Oil) 1 IP30: 532 Boepd (46% Oil) 11 IP30: 491 Boepd…
  9. Raymond James Investor Conference – Unit Corp. – slide 9
    Buffalo Wallow Field Economic Advantages Geology 11 Granite Wash lenses Sands present across acreage Land 9,000 net acres Operated and 90% HBP Average working interest 90% 200 230 potential XL locations Continuing to expand…
  10. Raymond James Investor Conference – Unit Corp. – slide 10
    Granite Wash Extended Lateral (7,500) Potential Reserve Range ROR uses the 02/01/2018 Strip Price Deck with 1st Production Starting 04/01/2018 and includes the midstream margin. See Q1 2018 Economic Prices in Appendix (also available…
  11. Raymond James Investor Conference – Unit Corp. – slide 11
    Hoxbar (Marchand Sand) Nina 122H Schmidt 110H McConnell 111H Schenk Trust 117HXL IP30: 1,116 Boepd (77 % Oil) IP30: 685 Boepd (80% Oil) IP30*: 1,395 Boepd (62% Oil) IP30*: 2,469 Boepd (79% Oil) 87% WI 98% WI 87% WI *16 Days Online 68%…
  12. Raymond James Investor Conference – Unit Corp. – slide 12
    Wilcox (Southeast Texas) Wilcox Strategy for Future Growth POLK TYLER Over 100 stacked pay recompletion and workover opportunities in existing wells (e.g. Gilly Field/Cherry Creek/Brandt) Drill exploratory prospects with large…
  13. Raymond James Investor Conference – Unit Corp. – slide 13
    Wilcox Activity Map for 2018 TYLER JACKS CREEK SEGNO NE HICKWOOD POLK PAVEY GILLY VILLAGE MILLS WING CHERRY CREEK HARDIN LIBERTY Scheduled for 2018 14 (1 well scheduled for Brandt)
  14. Raymond James Investor Conference – Unit Corp. – slide 14
    2017 Wilcox Recompletions & Workover Results Composite Gross Production from Recompletions and Workovers 28 Recompletions & 13 Workovers Total Cost: 15MM End of Year 34.0 MMcfd 900 bopd Start of Year 9.0 MMcfd 300 bopd…
  15. Raymond James Investor Conference – Unit Corp. – slide 15
    Wilcox Exploration Activity 16
  16. Raymond James Investor Conference – Unit Corp. – slide 16
    Rig Fleet Presence in Key Regions 95 rig fleet 20 800 HP: 21% 10 71 1,0001,700 HP: 75% 4 2,000 HP: 4% 69% electric 10 54% 1,500 HP or greater 34 equipped with skidding or walking systems 27 additional can be skidded 34% total…
  17. Raymond James Investor Conference – Unit Corp. – slide 17
    SCR Rigs Continue to Make an Important Contribution 40 35 At industry trough 13 26 30 22 drilling rigs operating 21 25 Currently, 32 drilling rigs 20 operating 12 15 All BOSS rigs operating 10 7 10 10 10 9 22 SCR rigs…
  18. Raymond James Investor Conference – Unit Corp. – slide 18
    Average Dayrates and Margins (1) 20,000 100% 15,000 75% Decline in dayrates lagged Average Rig Utilization utilization decrease due to Margins and Dayrates longterm contract rolloff 10,000 50% Utilization increased…
  19. Raymond James Investor Conference – Unit Corp. – slide 19
    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…
  20. Raymond James Investor Conference – Unit Corp. – slide 20
    Midstream Core Operations Brook Field Pittsburgh Mills Snow Shoe Texas Panhandle Northern Oklahoma and Kansas 47,000+ dedicated acres 2,000,000+ dedicated acres Pittsburgh 135 MMcf/d processing capacity 193 MMcf/d processing…
  21. Raymond James Investor Conference – Unit Corp. – slide 21
    Midstream Segment Contract Mix 2010 2017 Contract Mix Based on Volume 29% 49% 51% 71% Fee Based Commodity Based Contract Mix Based on Margin 15% 38% 85% Fee Based 62% Commodity Based Unit vs. 3rd Party Margin…
  22. Raymond James Investor Conference – Unit Corp. – slide 22
    Effect of Evolving Contract Mix Midstream Revenue vs. Operating Profit(1) 500,000 100,000 400,000 80,000 Profit Margin Revenues 300,000 60,000 200,000 40,000 100,000 20,000 0 0 2009 2010 2011 2012 2013 2014…
  23. Raymond James Investor Conference – Unit Corp. – slide 23
    Debt Structure No NearTerm Maturities Senior Subordinated Notes Ratings S&P Moodys Fitch Corporate B+ B2 B+ 650 million, 6.625% Senior Subordinated Notes BB B3 BB 10year, NC5; maturity 2021 12/31/2017 Key Covenants Interest…
  24. Raymond James Investor Conference – Unit Corp. – slide 24
    Segment Contribution Revenues ( millions) Adjusted EBITDA ( millions)(1) 1,573 800 1,600 787 1,352 1,400 667 1,200 600 1,000 854 410 800 740 400 316 602 600 252 400 200 200 0 0 2013 2014 2015 2016 2017 2013 2014 2015…
  25. Raymond James Investor Conference – Unit Corp. – slide 25
    Operating Segment Capital Expenditures (1) (In Millions) 1,500 1,000 500 0 2013 2014 2015 2016 2017 2018 Forecast Oil and Natural Gas Contract Drilling Midstream (1) Net of acquisitions and plugging liability…
  26. Raymond James Investor Conference – Unit Corp. – slide 26
    Investment Considerations E&P segment core areas provide compelling economics Contract drilling segment activity level rebounding Midstream segment positioned to benefit from increased activity levels and liquids price…
  27. Raymond James Investor Conference – Unit Corp. – slide 27
    APPENDIX 28
  28. Raymond James Investor Conference – Unit Corp. – slide 28
    NonGAAP Financial Measures Corporate Adjusted EBITDA Years ended December 31, (In millions) 2013 2014 2015 2016 2017 Net Income (Loss) 185 136 (1,037) (136) 118 Income Taxes 117 87 (627) (71) (58) Depreciation, Depletion and…
  29. Raymond James Investor Conference – Unit Corp. – slide 29
    NonGAAP Financial Measures Segments Adjusted EBITDA Years ended December 31, (In millions) 2013 2014 2015 2016 2017 Unit Petroleum Income (Loss) Before Income Taxes (1) 239 199 (1,631) (102) 125 Depreciation, Depletion and…
  30. Raymond James Investor Conference – Unit Corp. – slide 30
    NonGAAP Financial Measures Reconciliation of Average Daily Operating Margin Before Elimination of Intercompany Rig Profit and Bad Debt Expense Years ended December 31, (In thousands except for operating days and operating margins) 2013…
  31. Raymond James Investor Conference – Unit Corp. – slide 31
    Derivative Summary 2018 2019 2020 Q1 Q2 Q3 Q4 Q1 Q1 CRUDE: Collars Volume (Bbl) 45,000 Weighted Avg Floor 55.00 Weighted Avg Ceiling 59.50 3Way Collars Volume (Bbl) 180,000 182,000 184,000 184,000 Weighted Avg Floor 47.50…
  32. Raymond James Investor Conference – Unit Corp. – slide 32
    Q1 2018 Economic Prices Strip Case* BBL MB Crude Natural Gas MB C2 MB C3 C3 MB NC4 MB iC4 MB C5+ CW C2 CW C3 CW NC4 CW iC4 CW C5+ 2018 63.253 2.939 0.262 0.842 35.378 0.951 1.048 1.381 0.202 0.772 0.900 0.995 1.336 2019 58.405…
  33. Raymond James Investor Conference – Unit Corp. – slide 33
    Raymond James Institutional Investors Conference March 6, 2018

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