IPAA Oil & Gas Investment Symposium April 10, 2018
A Diversified Energy Company 10 10 Tulsa based, Casper incorporated in 1963 Marcellus Pittsburgh Integrated approach to Mississippian Basin business allows Unit to capture margin Anadarko Tulsa Headquarters from each…
Company Highlights Highly economic opportunities for our E&P segment Contract drilling segment activity rebounding Midstream segment EBITDA poised for growth Fiscally conservative Capital spending in line with cash flow 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%…
Superior Joint Venture Overview SP Investor Holdings LLC 50% 50% Retains 50% equity interest Acquired 50% equity interest Received 300 million 300 million consideration Retains operational control of Non-managing member…
Unit Corporation Pro-Forma Superior Transaction (in thousands except leverage ratios) 12/31/2017 ProForma Long term debt Bank 178,000 0 Bonds 650,000 650,000 Total 828,000 650,000 Cash 701 120,093 Unused bank commitment 295,600…
Midstream Core Operations Key Metrics Northern Oklahoma and Kansas 2,000,000+ dedicated acres 22 active systems 193 MMcf/d processing capacity 593 miles of gathering pipeline Three natural gas treatment Texas Panhandle plants Reno…
Midstream Segment Contract Mix 2010 2017 Contract Mix Based on Volume 29% 49% 51% Fee Based 71% Commodity Based Contract Mix Based on Margin 15% 38% 85% Fee Based 62% Commodity Based Unit vs. 3rd Party Margin…
Core Upstream Producing Areas Average Production (MBoe/d) Net Wells Drilled: 91 121 35 10 26 34 60 55 Oil 46 50 47 47-48 17% 50 44 40 Gas 30 NGLs 53% 30% 20 10 0 2013 2014 2015 2016 2017 2018 est 2017 Daily Production: Natural Gas…
Units STACK & 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 15-20 wells per section *…
STACK Acreage Proven Across Multiple Targets Oil Condensate 12 Dry Gas Anderson Half 1-30-19XH (CLR) 1 IP30: 17.1 Mmcfepd (99% Gas) 11 10 7.1% WI 3 2 1 Edith Mae 1-24-25XH (CLR) 2 IP30: 23.6 Mmcfepd (99% Gas) 8 5 Jordan…
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% 180 - 200 potential XL locations Continuing to expand…
Granite Wash Extended Lateral (7,500) Potential Reserve Range Granite Wash B well Granite Wash C1 well ROR uses the 04/01/2018 Strip Price Deck with 1st Production Starting 04/01/2018 and includes 50% of the midstream margin.…
Wilcox (Southeast Texas) TYLER POLK Wilcox Strategy for Future Growth Over 80 stacked pay recompletion and workover opportunities in existing wells (e.g. Gilly Field/Cherry Creek/Brandt) Drill exploratory prospects with large…
Wilcox Activity Map for 2018 Scheduled for 2018 (2 wells scheduled for Brandt) TYLER JACKS CREEK SEGNO NE HICKWOOD POLK PAVEY GILLY VILLAGE MILLS WING CHERRY CREEK HARDIN LIBERTY 18
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…
Wilcox Exploration Activity 20
Rig Fleet Presence in Key Regions 95 rig fleet 20 800 HP: 21% 10 71 1,000-1,700 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…
SCR Rigs Continue to Make an Important Contribution 40 35 26 At industry trough 13 30 22 drilling rigs operating 21 25 Currently, 32 drilling rigs operating 20 12 15 All BOSS rigs operating 7 10 22 SCR rigs operating 10…
Average Dayrates and Margins (1) 20,000 100% 15,000 75% Average Rig Utilization Margins and Dayrates Decline in dayrates lagged utilization decrease due to 10,000 50% long-term contract roll-off Utilization increased…
The 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 1,500 gpm…
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…
Investment Considerations New capital partners to help facilitate accelerated midstream growth Corporate net debt < 2X EBITDA Focus on all segment growth E&P segment core areas provide compelling economics Contract drilling…
APPENDIX 29
Non-GAAP 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…
Non-GAAP 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…
Non-GAAP 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)…
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