Skip to main content July 2019 Investor Presentation – Unit Corp. | Shale Experts
Loading...
Pm

July 2019 Investor Presentation – Unit Corp.

Unit Corp. · Jul 16, 2019 · 41 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. July 2019 Investor Presentation – Unit Corp. – slide 1
    Investor Presentation July 2019
  2. July 2019 Investor Presentation – Unit Corp. – slide 2
    A Diversified Energy Company 11 8 Casper Marcellus Pittsburgh Mississippian Basin Anadarko Tulsa Headquarters Basin 23 Oklahoma Arkoma Basin City Permian North La/ Basin East Texas Basin Tulsa based, 57 Unit Rigs 11…
  3. July 2019 Investor Presentation – Unit Corp. – slide 3
    Business Strategy Increase Exposure to Oil and Liquids Basins Objective: Expand Midstream Enhance shareholder value through Manage Drilling Fleet Operations by sustainable, capitalefficient growth to Maximize Focusing on…
  4. July 2019 Investor Presentation – Unit Corp. – slide 4
    Investment Highlights Unit offers a unique opportunity to invest in an integrated oil & gas company, capturing margin across the value chain 1 Diversified and integrated asset base across upstream, midstream and drilling services 2…
  5. July 2019 Investor Presentation – Unit Corp. – slide 5
    Business Segment Overview Upstream Contract Drilling Midstream Currently running 2 rigs 57 rig fleet; 23 rigs contracted Conducted through Superior Pipeline subsidiary, a JV with SP Investor Holdings 468,315 net acres (689,521…
  6. July 2019 Investor Presentation – Unit Corp. – slide 6
    Upstream Segment Overview Proved Reserves Mid Continent Region YE 2018 Proved PDP Reserves (Mboe): 58% Hoxbar/STACK PDP: 91,743 PUD Granite Wash PDNP: 19,833 30% PUD: 48,105 PDNP Upper Gulf Coast Region 12% Q1 2019 Daily…
  7. July 2019 Investor Presentation – Unit Corp. – slide 7
    Track Record of Disciplined Growth (Mboe/d) 60 55 60% 50 46 47 47 44 45 39 45% 33 Growing Production 29 28 30 25 27 30% with Increased 24 19 Liquids Content 11 15 15 10 10 15% 0 0% 2001 2002 2003 2004 2005 2006 2007…
  8. July 2019 Investor Presentation – Unit Corp. – slide 8
    Track Record of Reserve Growth 179 180 160 160 150 150 150 135 116 118 120 104 95 96 90 86 Proved Reserves 79 69 (MMBoe) 60 58 42 45 48 30 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015…
  9. July 2019 Investor Presentation – Unit Corp. – slide 9
    Core Area Cash Margins per Mcfe (Mcfe) 5.00 4.50 4.00 3.50 3.00 2.50 4.99 2.00 3.52 3.18 1.50 2.61 1.00 1.96 1.41 0.50 0.95 0.00 SOHOT STACK Oil Red Fork STACK Wilcox Granite Wash STACK Dry Gas Condensate…
  10. July 2019 Investor Presentation – Unit Corp. – slide 10
    SOHOT Low Cost, High ROR Oil Play Unit Petroleum 11 5D A 18/7 1HXL IP30: 497 Boe/d 98% Oil Kaiser Francis 10 Amanda 2168 1H IP30: 540 Boe/d 71% Oil Kaiser Francis 9 Torralba 1058 1H IP30: 578 Boe/d 70% Oil Unit Petroleum…
  11. July 2019 Investor Presentation – Unit Corp. – slide 11
    SOHOT Low Cost, High ROR Oil Play Marchand Marchand Type Curve 5,000 7,500 IP 30 (Boe/d) 700 980 ROR (1) 75% 108% EUR (Mboe) 596 850 % Liquids 78% 78% Well Cost (mm) 5.3 6.6 Single Well Economics 350% 300% 250% IRR %…
  12. July 2019 Investor Presentation – Unit Corp. – slide 12
    SOHOT Growing Oil Production and Improving Capital Efficiency Geology Daily Net BOE Marchand stacked lenses provide 6,000 multiple oil drilling targets Medrano proved gas potential 5,000 Land 31,000 net acres 84% HBP 4,000…
  13. July 2019 Investor Presentation – Unit Corp. – slide 13
    Red Fork Adds Oily Drilling Inventory Red Fork Summary 15,100 Net Acres 86% HBP 64% Average WI 3040 Horizontal Locations Well costs: 4,500 6 MM 9,500 7.5 MM Unit Petroleum Unit Petroleum Unit Petroleum Unit…
  14. July 2019 Investor Presentation – Unit Corp. – slide 14
    Red Fork Production Performance 70,000 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 Red Fork Type Curve assumes…
  15. July 2019 Investor Presentation – Unit Corp. – slide 15
    STACK Core Provides High ROR Oil/Wet Gas with Dry Gas Optionality Continental Resources 10 Privott 17_2016N9 1HX 10 IP30: 4,308 Boe/d 30% Oil Unit Petroleum Contl Resources Devon Energy Devon Energy 9 9 Tiger Swallowtail 1HX…
  16. July 2019 Investor Presentation – Unit Corp. – slide 16
    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*) 1,698 1,762 12,224* ROR (1) 111% 35% 2% EUR (Mboe/Bcfe*) 1,925 1,955 13.2* %…
  17. July 2019 Investor Presentation – Unit Corp. – slide 17
    STACK Growing into Core Area for Unit Petroleum Geology Stacked drilling targets in Osage, Meramec, and Woodford Daily Net BOE Red Fork Potential in some areas 2,000 Sands consistently present across play Land 1,500 12,000…
  18. July 2019 Investor Presentation – Unit Corp. – slide 18
    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 Francis 5859 EXL 5H 2 5 IP30: 10.0 MMcfe/d (84% Gas) IP30: 5.5 Mmcfe/d (63% Gas) Meek 6836H…
  19. July 2019 Investor Presentation – Unit Corp. – slide 19
    Granite Wash Competitive Advantages Drive Differentiated Value Geology 11 Stacked Granite Wash sands significantly improves capital efficiency Daily Net MMcfe Sands present across acreage 60 Land 50 9,000 net largely contiguous…
  20. July 2019 Investor Presentation – Unit Corp. – slide 20
    Wilcox Conventional Stacked OverPressured Intervals Provide Low Cost High Potential Overall Wilcox Drilling Program Results Drilled 177 operated wells since 2003 TYLER POLK (166 vertical, 11 horizontal) Program ROR 80% Operated…
  21. July 2019 Investor Presentation – Unit Corp. – slide 21
    Wilcox Trend Provides an Extensive Play Area Wilcox Strategy for Future Growth Continue development of Gilly Texas Gulf Coast Field area with vertical and Wilcox Trend horizontal drilling and stacked pay recompletion/workover…
  22. July 2019 Investor Presentation – Unit Corp. – slide 22
    Rig Fleet Presence in Key Regions 11 57 rig fleet 40% total fleet utilization 54 rigs pad capable 8 SCR rigs modified to meet customer requirements All 13 BOSS rigs operating 14th BOSS rig being constructed and under longterm…
  23. July 2019 Investor Presentation – Unit Corp. – slide 23
    SCR Rigs Continue to Make an Important Contribution 40 35 Currently, 23 drilling rigs 30 21 21 operating 25 18 All BOSS rigs operating 10 20 or under contract 12 15 10 SCR rigs operating 10 13 11 10 9 5 7 0 Dec.…
  24. July 2019 Investor Presentation – Unit Corp. – slide 24
    Average Dayrates and Margins (1) 20,000 100% 15,000 75% Average dayrates increased Average Rig Utilization Margins and Dayrates 2% quarteroverquarter * 10,000 50% Average utilization increased from low in Q2 2016…
  25. July 2019 Investor Presentation – Unit Corp. – slide 25
    The BOSS Drilling Rig Optimized for Pad Drilling Multidirection walking system Racking & setback capacity for additional tubulars Faster Between Locations Quick assembly substructure 3234 truck loads More Hydraulic Horsepower…
  26. July 2019 Investor Presentation – Unit Corp. – slide 26
    Midstream Core Operations Key Metrics Northern Oklahoma and Kansas Tulsa Approx. 1.9 million dedicated acres Bellmon Headquarters 22 active gathering systems 176 MMcf/d processing capacity Hemphill 635 miles of gathering pipeline…
  27. July 2019 Investor Presentation – Unit Corp. – slide 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 Nonmanaging member…
  28. July 2019 Investor Presentation – Unit Corp. – slide 28
    Midstream Segment Contract Mix 2010 Q1 2019 Contract Mix Based on Volume 24% 49% 51% Fee Based 76% Commodity Based Contract Mix Based on Margin 15% 28% 85% Fee Based 72% Commodity Based Unit vs. 3rd Party Margin…
  29. July 2019 Investor Presentation – Unit Corp. – slide 29
    Capital Structure Overview Current Capitalization Financials ( in millions) ( in millions) 3/31/2019 LTM Q1'19 Cash & Equivalents 4 LTM EBITDA 366 Interest Expense 32 RBL Facility due 2023 (425 Borrowing Base) 40 Capex 523 6.625%…
  30. July 2019 Investor Presentation – Unit Corp. – slide 30
    Financial and Hedging Policy Financial Policy Hedging Policy Capital Stewardship Hedged Volumes Summary(1) Q2 2019 Q3 2019 Q4 2019 History of growing production and reserves Oil 3 Way Collars (Mbbl) 364 368 368 Focus on living…
  31. July 2019 Investor Presentation – Unit Corp. – slide 31
    2019 Plan and Outlook 2019 Guidance Key Objectives Capital Budget Exploration & Production Units 2019 capital budget is anticipated to range from 336 Increase exposure to oil and liquids basins million to 422 million, a decrease of…
  32. July 2019 Investor Presentation – Unit Corp. – slide 32
    Investment Highlights Unit offers a unique opportunity to invest in an integrated oil & gas company, capturing margin across the value chain 1 Diversified and integrated asset base across upstream, midstream and drilling services 2…
  33. July 2019 Investor Presentation – Unit Corp. – slide 33
    Appendix NYSE: UNT 34
  34. July 2019 Investor Presentation – Unit Corp. – slide 34
    Reconciliation of Free Cash Flow ( in thousands) 2001 2002 2003 2004 2005 2006 2007 2008 2009 Net cash provided by operating activities: 133,021 70,547 121,712 203,210 317,771 506,702 577,571 689,913 490,475 Proceeds from…
  35. July 2019 Investor Presentation – Unit Corp. – slide 35
    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 PV10 up 23% Y/Y Oil (Mbbls) Nat Gas (MMcf) NGL (Mbbls) Total (Mboe) PV10 (MM) PDP 13,248 301,948 28,171 91,743…
  36. July 2019 Investor Presentation – Unit Corp. – slide 36
    Core Area Cash Margins (Mcfe) 8.00 Adjusted Base 7.00 6.78 0.46 6.00 Adjusted Base Adjusted Base 1.33 5.37 5.22 5.00 0.58 0.73 Adjusted Base 4.31 Differential - Adjusted* 4.00 1.11 0.65 Adjusted Base Adjusted Base LOE &…
  37. July 2019 Investor Presentation – Unit Corp. – slide 37
    NonGAAP Financial Measures Corporate Adjusted EBITDA Three months ended March 31, Years ended December 31, ( In millions) 2018 2019 2015 2016 2017 2018* Net Income (Loss) 8 (2) (1,037) (136) 118 (40) Income Taxes 3 (1) (627)…
  38. July 2019 Investor Presentation – Unit Corp. – slide 38
    NonGAAP Financial Measures Segments Segment Adjusted EBITDA (with G&A allocated) ( In millions) Three months ended March 31, Years ended December 31, Unit Petroleum 2018 2019 2015 2016 2017 2018 LTM Q119 Income (Loss) Before Income…
  39. July 2019 Investor Presentation – Unit Corp. – slide 39
    NonGAAP Financial Measures Reconciliation of Average Contract Drilling Daily Operating Margin Before Elimination of Intercompany Rig Profit and Bad Debt Expense Three months ended Years ended (In thousands except for operating days…
  40. July 2019 Investor Presentation – Unit Corp. – slide 40
    Derivative Summary 2019 2020 Q2 Q3 Q4 CRUDE: Collars Volume (Bbl) Weighted Avg Floor Weighted Avg Ceiling 3Way Collars Volume (Bbl) 364,000 368,000 368,000 Weighted Avg Floor 61.25 61.25 61.25 Weighted Avg Subfloor 51.25 51.25…
  41. July 2019 Investor Presentation – Unit Corp. – slide 41
    Q3 2019 Economic Prices Strip Case* NGPL Natural PEPL Midcon MB C3 Crude Gas Basis Basis MB C2 MB C3 per barrel MB NC4 MB iC4 MB C5+ CW C2 CW C3 CW NC4 CW iC4 CW C5+ 2019 57.768 2.383 (0.585) (0.589) 0.149 0.462 19.393 0.503…

From the store

Browse maps, data & reports in the Shale Experts store