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Raymond James Institutional Investor Conference – Unit Corp.

Unit Corp. · Mar 5, 2019 · 37 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 Institutional Investor Conference – Unit Corp. – slide 1
    Raymond James Institutional Investors Conference March 5, 2019
  2. Raymond James Institutional Investor Conference – Unit Corp. – slide 2
    A Diversified Energy Company 11 8 Tulsa based, Casper incorporated in 1963 Marcellus Pittsburgh Integrated approach to Mississippian Basin business allows Unit to capture margin Anadarko Tulsa Headquarters from each business…
  3. Raymond James Institutional Investor Conference – Unit Corp. – slide 3
    Investment Highlights Diversified energy company with upstream, midstream and drilling rig segments and track record of growing with a capital budget in-line with anticipated cash flow Upstream portfolio of high return drilling…
  4. Raymond James Institutional Investor Conference – Unit Corp. – slide 4
    Core Upstream Producing Areas Average Production (MBoe/d) Net Wells Drilled: 121 35 10 26 33 30-40 60 55 Oil 50 50 47 47 48-49 17% 44 40 Gas 30 NGLs 54% 29% 20 10 0 2014 2015 2016 2017 2018 2019 est 2018 Daily Production:…
  5. Raymond James Institutional Investor Conference – Unit Corp. – slide 5
    Reserve Detail Reserve summary, as of 12/31/2018, audited by Ryder Scott Company, L.P. Reserves up 7% Y/Y PDP up 2% Y/Y PV-10 up 23% Y/Y Oil (Mbbls) Nat Gas (MMcf) NGL (Mbbls) Total (Mboe) PV-10 (MM) PDP 13,248 301,948 28,171…
  6. Raymond James Institutional Investor Conference – Unit Corp. – slide 6
    Track Record of Reserve Growth Proved Reserves (MMBoe) 180 179 160 160 150 150 150 135 120 116 118 104 95 96 90 86 79 69 60 58 42 45 48 30 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011…
  7. Raymond James Institutional Investor Conference – Unit Corp. – slide 7
    Core Area Cash Margins 8.00 Adjusted Base 6.96 7.00 0.36 Adjusted Base Adjusted Base 5.97 5.76 6.00 1.35 0.81 Adjusted Base 0.47 5.04 5.00 1.17 0.53 Adjusted Base Adjusted Base Differential - Adjusted* 1.47 4.04 4.08 LOE…
  8. Raymond James Institutional Investor Conference – Unit Corp. – slide 8
    SOHOT Low Cost, High ROR Oil Play 10 Kaiser Francis Amanda 21-6-8 1H IP: 540 Boe/d 71% Oil Unit Petroleum 9 Kaiser Francis Camino Torralba 10-5-8 1H Echo E&P LLC IP: 578 Boe/d 70% Oil Kaiser- Francis Limerock Resources 8 Unit…
  9. Raymond James Institutional Investor Conference – Unit Corp. – slide 9
    SOHOT Low Cost, High ROR Oil Play Marchand Marchand Type Curve 5,000 7,500 IP - 30 (Boe/d) 699 978 ROR (1) 81% 115% EUR (Mboe) 620 883 % Liquids 77% 77% Lateral Length 5,000 7,500 Well Cost (mm) 5.3 6.6 Single Well…
  10. Raymond James Institutional Investor Conference – Unit Corp. – slide 10
    SOHOT Growing Oil Production and Improving Capital Efficiency Yearly Net BOE Geology 2,000,000 Marchand stacked lenses provide multiple oil drilling targets 1,800,000 Medrano proved gas potential 1,600,000 Land 1,400,000 27,000 net…
  11. Raymond James Institutional Investor Conference – Unit Corp. – slide 11
    Red Fork Adds Oily Drilling Inventory Red Fork Summary 10,600 Net Acres 86% HBP 64% Average WI 20-30 Horizontal Locations Well costs: 4,500 6 MM 9,500 7.5 MM 1 Unit Petroleum 2 Unit Petroleum 3 Unit Petroleum Frymire…
  12. Raymond James Institutional Investor Conference – Unit Corp. – slide 12
    Red Fork Production Performance 60,000 Cumulative Production per 1,000 of Lateral (boe) 50,000 40,000 30,000 20,000 10,000 0 0 50 100 150 200 250 300 350 400 450 500 Days Online SCHROCK 2215 1HX HAMAR…
  13. Raymond James Institutional Investor Conference – Unit Corp. – slide 13
    STACK Core - Provides High ROR Oil/Wet Gas with Dry Gas Optionality 10 10 Continental Resources Privott 17_20-16N-9 1HX 9 IP: 4,308 Boe/d 30% Oil 9 Devon Energy 8 Tiger Swallowtail 1HX 6 IP: 18.4 MMcfe/d 81% Gas 8 Devon…
  14. Raymond James Institutional Investor Conference – Unit Corp. – slide 14
    STACK Core - Provides High ROR Oil/Wet Gas with Dry Gas Optionality Oil Condensate Dry Gas* Type Curve Window Window Window IP - 30 (Boe/d, Mcfe/d*) 1,699 1,762 12,224* ROR (1) 77% 52% 2% EUR (Mboe/Bcfe*) 1,930 1,961 13.2* %…
  15. Raymond James Institutional Investor Conference – Unit Corp. – slide 15
    STACK Growing into Core Area for Unit Petroleum Yearly Net BOE Geology 800,000 Stacked drilling targets in Osage, Meramec and Woodford 700,000 Red Fork Potential in some areas Sands consistently present across play 600,000 Land…
  16. Raymond James Institutional Investor Conference – Unit Corp. – slide 16
    Granite Wash Low Risk Wet Gas Condensate Play with NGL Price Upside Francis 5713 EXL 3H 1 IP30: 9.5 Mmcfe/d (78% Gas) Carr 1357 WXL 4H 2 Spot: 9.5 Mmcfe/d (84% Gas) Meek 6836H 3 Spot: 5.7 Mmcfe/d (76% Gas) Meek 5453 CXL 2H…
  17. Raymond James Institutional Investor Conference – Unit Corp. – slide 17
    Granite Wash G Production Performance 500 Cumulative Prod per 1,000 of Lateral (MMCFE) 400 300 200 100 0 0 50 100 150 200 250 300 350 400 Days Online CARR 1357 WXL 4H FRANCIS 5713 EXL 3H MEEK 68 6836H 18
  18. Raymond James Institutional Investor Conference – Unit Corp. – slide 18
    Granite Wash Competitive Advantages Drive Differentiated Value Buffalo Wallow Yearly Net MMcfe Geology 25000 11 Stacked Granite Wash lenses significantly improves capital efficiency Sands present across acreage 20000 Land 9,000…
  19. Raymond James Institutional Investor Conference – Unit Corp. – slide 19
    Wilcox Conventional Stacked Over-Pressured Intervals Provide Low Cost Homerun Potential Overall Wilcox Drilling Program Results Drilled 177 operated wells since 2003 POLK TYLER (166 vertical, 11 horizontal) Program ROR 80% Operated…
  20. Raymond James Institutional Investor Conference – Unit Corp. – slide 20
    Wilcox Trend Provides an Extensive Play Area 2019 Exploration Hightower Enterprise Menard Creek Bivens Shoal Creek Wilcox Strategy for Future Growth Continue development of Gilly Field area with vertical and horizontal…
  21. Raymond James Institutional Investor Conference – Unit Corp. – slide 21
    Rig Fleet Presence in Key Regions 11 57 rig fleet 56% total fleet utilization 52 rigs pad capable SCR rigs modified to meet customer 8 requirements All 13 BOSS rigs operating 12th and 13th BOSS rigs completed and placed into…
  22. Raymond James Institutional Investor Conference – Unit Corp. – slide 22
    SCR Rigs Continue to Make an Important Contribution 40 35 At industry trough 13 30 21 19 drilling rigs operating 21 25 Currently, 32 drilling rigs 18 operating 20 12 15 All BOSS rigs operating 13 10 10 11 19 SCR rigs…
  23. Raymond James Institutional Investor Conference – Unit Corp. – slide 23
    Average Dayrates and Margins (1) 20,000 100% 15,000 75% Average dayrates Average Rig Utilization Margins and Dayrates increased 8% year-over- year 10,000 50% Average utilization has increased from low in Q2 5,000…
  24. Raymond James Institutional Investor Conference – Unit Corp. – slide 24
    The BOSS Drilling Rig Optimized for Pad Drilling Multi-direction walking system Racking & setback capacity for additional tubulars Faster Between Locations Quick assembly substructure 32-34 truck loads More Hydraulic Horsepower…
  25. Raymond James Institutional Investor Conference – Unit Corp. – slide 25
    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…
  26. Raymond James Institutional Investor Conference – Unit Corp. – slide 26
    Midstream Core Operations Northern Oklahoma and Kansas Tulsa Approx. 1,900,000 dedicated acres Bellmon Headquarters 201 MMcf/d processing capacity 624 miles of gathering pipeline Key Metrics Hemphill Cashion Panola Texas Panhandle…
  27. Raymond James Institutional Investor Conference – Unit Corp. – slide 27
    Midstream Segment Contract Mix 2010 2018 Contract Mix Based on Volume 33% 49% 51% Fee Based 67% Commodity Based Contract Mix Based on Margin 15% 39% 85% Fee Based 61% Commodity Based Unit vs. 3rd Party Margin…
  28. Raymond James Institutional Investor Conference – Unit Corp. – slide 28
    Debt Structure No Near-Term Maturities Senior Subordinated Notes Ratings S&P Moodys Fitch 650 million, 6.625% coupon Corporate B+ B2 B+ Senior Subordinated Notes BB- B3 BB- Maturity of May 15, 2021 Standard high yield incurrence…
  29. Raymond James Institutional Investor Conference – Unit Corp. – slide 29
    Segment Contribution Revenues ( millions) Adjusted EBITDA ( millions)(1) 1,573 785 1,600 800 1,400 1,200 600 1,000 854 843 407 800 740 400 371 602 313 600 250 400 200 200 0 0 2014 2015 2016 2017 2018 2014 2015 2016 2017…
  30. Raymond James Institutional Investor Conference – Unit Corp. – slide 30
    Operating Segment Capital Expenditures (1) (In Millions) 1,500 1,000 500 336 MM - 422 MM Range 0 2014 2015 2016 2017 2018 2019 forecast Oil and Natural Gas Contract Drilling Midstream (1) Net of acquisitions and…
  31. Raymond James Institutional Investor Conference – Unit Corp. – slide 31
    Investment Highlights Diversified energy company with upstream, midstream and drilling rig segments and track record of growing with a capital budget in-line with anticipated cash flow Upstream portfolio of high return drilling…
  32. Raymond James Institutional Investor Conference – Unit Corp. – slide 32
    APPENDIX 33
  33. Raymond James Institutional Investor Conference – Unit Corp. – slide 33
    Non-GAAP Financial Measures - Corporate Adjusted EBITDA Years ended December 31, (In millions) 2014 2015 2016 2017 2018* Net Income (Loss) 136 (1,037) (136) 118 (40) Income Taxes 87 (627) (71) (58) (14) Depreciation, Depletion and…
  34. Raymond James Institutional Investor Conference – Unit Corp. – slide 34
    Non-GAAP Financial Measures - Segments Segment Adjusted EBITDA (with G&A allocated) Years ended December 31, ( In Millions) 2014 2015 2016 2017 2018 Unit Petroleum Income (Loss) Before Income Taxes (1) 211 (1,622) (138) 126 139…
  35. Raymond James Institutional Investor Conference – Unit Corp. – slide 35
    Non-GAAP Financial Measures Reconciliation of Average Contract Drilling Daily Operating Margin Before Elimination of Intercompany Rig Profit and Bad Debt Expense (In thousands except for operating days Years ended December 31, and…
  36. Raymond James Institutional Investor Conference – Unit Corp. – slide 36
    Derivative Summary 2019 2020 Q1 Q2 Q3 Q4 CRUDE: Collars Volume (Bbl) -- -- -- -- -- Weighted Avg Floor -- -- -- -- -- Weighted Avg Ceiling -- -- -- -- -- 3-Way Collars Volume (Bbl) 360,000 364,000 368,000 368,000 -- Weighted Avg…
  37. Raymond James Institutional Investor Conference – Unit Corp. – slide 37
    Q1 2019 Economic Prices Strip Case* Natural MB C3 Crude Gas MB C2 MB C3 per barrel MB NC4 MB iC4 MB C5+ CW C2 CW C3 CW NC4 CW iC4 CW C5+ 2019 55.243 2.877 0.371 0.700 29.391 0.905 0.925 1.182 0.180 0.570 0.712 0.875 0.970 2020…

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