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EnerCom Oil and Gas Conference – Unit Corp.

Unit Corp. · Aug 13, 2019 · 42 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. EnerCom Oil and Gas Conference – Unit Corp. – slide 1
    EnerComs The Oil & Gas Conference August 13, 2019
  2. EnerCom Oil and Gas Conference – 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, Drilling Rigs (57)…
  3. EnerCom Oil and Gas Conference – 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, capital-efficient growth to Maximize Focusing on High…
  4. EnerCom Oil and Gas Conference – 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. EnerCom Oil and Gas Conference – Unit Corp. – slide 5
    Business Segment Overview Upstream Contract Drilling Midstream Currently running 0 rigs 57 rig fleet; 21 rigs contracted Conducted through Superior Pipeline Company L.L.C., a JV with SP Investor 468,315 net acres (689,521 gross) 37%…
  6. EnerCom Oil and Gas Conference – 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% Q2 2019 Daily…
  7. EnerCom Oil and Gas Conference – Unit Corp. – slide 7
    Track Record of Disciplined Growth (Mboe/d) 60 55 60% 50 46 47 47 44 45 39 45% 33 History of Production 29 28 30 25 27 30% Growth with Increased 24 19 Liquids Content 11 15 15 10 10 15% 0 0% 2001 2002 2003 2004 2005…
  8. EnerCom Oil and Gas Conference – Unit Corp. – slide 8
    Track Record of Reserve Growth 179 180 160 160 150 150 150 135 116 118 120 104 95 96 86 Proved Reserves 90 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. EnerCom Oil and Gas Conference – 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. EnerCom Oil and Gas Conference – 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 21-6-8 1H IP30: 540 Boe/d 71% Oil Kaiser Francis 9 Torralba 10-5-8 1H IP30: 578 Boe/d 70% Oil Unit…
  11. EnerCom Oil and Gas Conference – 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. EnerCom Oil and Gas Conference – 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. EnerCom Oil and Gas Conference – Unit Corp. – slide 13
    Red Fork Adds Oily Drilling Inventory Red Fork Summary 18,600 Net Acres 86% HBP 64% Average WI 30-40 Horizontal Locations Well costs: 4,500 6 MM 9,500 7.5 MM Unit Petroleum Unit Petroleum Unit Petroleum Unit…
  14. EnerCom Oil and Gas Conference – 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. EnerCom Oil and Gas Conference – Unit Corp. – slide 15
    STACK Core Provides High ROR Oil/Wet Gas with Dry Gas Optionality Continental Resources 10 Privott 17_20-16N-9 1HX 10 IP30: 4,308 Boe/d 30% Oil Unit Petroleum Contl Resources Devon Energy Devon Energy 9 9 Tiger Swallowtail 1HX…
  16. EnerCom Oil and Gas Conference – 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. EnerCom Oil and Gas Conference – 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 net…
  18. EnerCom Oil and Gas Conference – 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. EnerCom Oil and Gas Conference – Unit Corp. – slide 19
    Granite Wash Competitive Advantages Drive Differentiated Value Geology 11 Stacked Granite Wash sands significantly improves capital efficiency Daily Net MMcfe 60 Sands present across acreage Land 50 9,000 net largely contiguous…
  20. EnerCom Oil and Gas Conference – Unit Corp. – slide 20
    Wilcox Conventional Stacked Over-Pressured 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. EnerCom Oil and Gas Conference – 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. EnerCom Oil and Gas Conference – Unit Corp. – slide 22
    Rig Fleet Presence in Key Regions 11 57 rig fleet 37% 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 long-term…
  23. EnerCom Oil and Gas Conference – Unit Corp. – slide 23
    SCR Rigs Continue to Make an Important Contribution 40 35 Currently, 21 drilling rigs 30 21 21 operating 25 18 All BOSS rigs operating 20 or under contract 12 8 15 8 SCR rigs operating 10 13 11 10 9 5 7 0 Dec. 31,…
  24. EnerCom Oil and Gas Conference – Unit Corp. – slide 24
    Average Dayrates and Margins (1) 20,000 40 15,000 30 Average dayrates increased Average Rigs Utilized Margins and Dayrates 1% quarter-over-quarter 10,000 20 Average utilization increased from low in Q2 2016 5,000…
  25. EnerCom Oil and Gas Conference – Unit Corp. – slide 25
    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…
  26. EnerCom Oil and Gas Conference – Unit Corp. – slide 26
    Midstream Core Operations Key Metrics Northern Oklahoma and Kansas Tulsa Approx. 1.9 million dedicated acres Bellmon Headquarters 21 active gathering systems 176 MMcf/d processing capacity Hemphill 650 miles of gathering pipeline…
  27. EnerCom Oil and Gas Conference – 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 Non-managing member…
  28. EnerCom Oil and Gas Conference – Unit Corp. – slide 28
    Midstream Segment Contract Mix 2010 Q2 2019 Contract Mix Based on Volume 23% 49% 51% Fee Based 77% Commodity Based Contract Mix Based on Margin 15% 27% 85% Fee Based 73% Commodity Based Unit vs. 3rd Party Margin…
  29. EnerCom Oil and Gas Conference – Unit Corp. – slide 29
    Debt Structure Senior Subordinated Notes Ratings S&P Moodys Fitch 650 million, 6.625% coupon Corporate B+ B2 B Senior Subordinated Notes BB- B3 B Maturity of May 15, 2021 Standard high yield incurrence covenants only, no financial…
  30. EnerCom Oil and Gas Conference – Unit Corp. – slide 30
    Operating Segment Capital Expenditures (1) (In Millions) 500 400 300 200 100 0 2015 2016 2017 2018 2019 forecast Oil and Natural Gas Contract Drilling Midstream (1) Net of acquisitions and plugging liability…
  31. EnerCom Oil and Gas Conference – Unit Corp. – slide 31
    Financial and Hedging Policy Financial Policy Hedging Policy Capital Stewardship Hedged Volumes Summary(1) Q3 2019 Q4 2019 History of growing production and reserves Oil 3 Way Collars (Mbbl) 368 368 Focus on living within cash flow…
  32. EnerCom Oil and Gas Conference – Unit Corp. – slide 32
    2019 Goals Key Objectives Exploration & Production Increase exposure to oil and liquids basins Focus on low-risk exploration and development drilling Drive reserve growth through drilling internally generated prospects Add new…
  33. EnerCom Oil and Gas Conference – Unit Corp. – slide 33
    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…
  34. EnerCom Oil and Gas Conference – Unit Corp. – slide 34
    Appendix NYSE: UNT 35
  35. EnerCom Oil and Gas Conference – Unit Corp. – slide 35
    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 disposition…
  36. EnerCom Oil and Gas Conference – Unit Corp. – slide 36
    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…
  37. EnerCom Oil and Gas Conference – Unit Corp. – slide 37
    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 &…
  38. EnerCom Oil and Gas Conference – Unit Corp. – slide 38
    Non-GAAP Financial Measures - Corporate Adjusted EBITDA Six months ended June 30, Years ended December 31, ( In millions) 2018 2019 2015 2016 2017 2018* Net Income (Loss) 16 (10) (1,037) (136) 118 (40) Income Taxes 6 (2) (627)…
  39. EnerCom Oil and Gas Conference – Unit Corp. – slide 39
    Non-GAAP Financial Measures - Segments Segment Adjusted EBITDA (with G&A allocated) ( In millions) Six months ended June 30, Years ended December 31, Unit Petroleum 2018 2019 2015 2016 2017 2018 LTM Q219 Income (Loss) Before Income…
  40. EnerCom Oil and Gas Conference – Unit Corp. – slide 40
    Non-GAAP Financial Measures Reconciliation of Average Contract Drilling Daily Operating Margin Before Elimination of Intercompany Rig Profit and Bad Debt Expense Six months ended Years ended (In thousands except for operating days…
  41. EnerCom Oil and Gas Conference – Unit Corp. – slide 41
    Derivative Summary 2019 2020 Q3 Q4 CRUDE: Collars Volume (Bbl) -- -- -- Weighted Avg Floor -- -- -- Weighted Avg Ceiling -- -- -- 3-Way Collars Volume (Bbl) 368,000 368,000 -- Weighted Avg Floor 61.25 61.25 -- Weighted Avg Subfloor…
  42. EnerCom Oil and Gas Conference – Unit Corp. – slide 42
    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…

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