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Raymond James Institutional Investors Conference – Unit Corp.

Unit Corp. · Mar 4, 2015 · 29 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 Investors Conference – Unit Corp. – slide 1
    Raymond James Institutional Investors Conference March 4, 2015
  2. Raymond James Institutional Investors Conference – Unit Corp. – slide 2
    Overview of Operations Tulsa based diversified energy company incorporated in 1963 Integrated approach to business allows Unit to balance its capital deployment through the various stages of the energy cycle 12 8 Casper…
  3. Raymond James Institutional Investors Conference – Unit Corp. – slide 3
    Key Growth Points Exploration & Production 203% average production replacement since 2005 Liquids production has grown 258% since the fourth quarter of 2009 Proved reserves: 179 MMBoe (1) Drilling Four BOSS rigs operating; four…
  4. Raymond James Institutional Investors Conference – Unit Corp. – slide 4
    2014 Accomplishments Unit Corporation Revenue increased 16% Adjusted EBITDA increased 17% (1) Oil and Natural Gas Segment Production has increased 9% Liquids production (oil and NGLs) have increased 16% Contract Drilling…
  5. Raymond James Institutional Investors Conference – Unit Corp. – slide 5
    Strong Capital Discipline Debt to market capitalization of 26% Strong access to capital No near-term maturities Consistent growth profile for all segments Oil and natural gas exploration not driven by lease expirations 6
  6. Raymond James Institutional Investors Conference – Unit Corp. – slide 6
    Track Record of Reserve Growth Proved Reserves (MMBoe) 179 180 160 Stable and consistent economic growth 150 150 of oil and natural gas reserves of at 116 120 95 96 104 least 150% of each years production 86 90 79 69 60…
  7. Raymond James Institutional Investors Conference – Unit Corp. – slide 7
    Increasing Production While Improving Commodity Mix Annual Production (MBoe/d) 60 50 2%-4% growth 50 46 40 39 33 30 27 20 10 0 2010 2011 2012 2013 2014 2015E Net Wells Drilled: 88 82 80 91 121 Oil / NGLs…
  8. Raymond James Institutional Investors Conference – Unit Corp. – slide 8
    Core Upstream Producing Areas Key focus areas include: Mid Continent Region Gulf Coast: Wilcox (Southeast Texas) Mississippian Mid-Continent: SOHOT Hoxbar (Western Oklahoma) Granite Granite Wash (Texas Panhandle) Wash…
  9. Raymond James Institutional Investors Conference – Unit Corp. – slide 9
    Wilcox (Liquids) Overall Highlights: Drilled 133 operated vertical wells since 2003 (12 years) 92% average WI TYLER JASPER NEWTON Q4 14 avg. production: POLK 70 MMcfe/d 43% liquids (11% oil) Historical ROR: 112% 3D AREA…
  10. Raymond James Institutional Investors Conference – Unit Corp. – slide 10
    Wilcox (Southeast Texas) 2015 Activity: Upside Resource Potential: 1-2 rigs 135 wells (110 horizontal) 12-14 gross wells 870 Bcfe (6 horizontal) 95% average WI 2015 projected 18% growth 43% Liquids (11% oil, 32% NGLs) Wilcox…
  11. Raymond James Institutional Investors Conference – Unit Corp. – slide 11
    Hoxbar (Liquids) SOHOT Medrano Sand Medrano Single Well Parameters: Claiborne 14H Discovery 2011 EUR: 5.8 Bcfe (larger frac) Extensional Area Well cost: 4.8 million HOXBAR 3,000 ROR: 44%* Ellen 120H IP30: 14,898 Mcfe/d 33%…
  12. Raymond James Institutional Investors Conference – Unit Corp. – slide 12
    Hoxbar (Oil) SOHOT Marchand Sand Marchand Single Well Parameters: Earl 230H Rosey Havenstrite 1H IP30: 1,772 Boe/d IP30: 1,457 Boe/d EUR: 447 MBoe Extensional Area Well cost: 6.0 million HOXBAR 3,000 ROR: 92%* 89% liquids…
  13. Raymond James Institutional Investors Conference – Unit Corp. – slide 13
    Significant Drilling Presence in Attractive Producing Regions Bakken 90 rig fleet Fleet average 1,250 HP rating; Almost all of contracted rigs drilling horizontal wells 68% utilization rate for Q4 2014 Pinedale Anticline 51% of…
  14. Raymond James Institutional Investors Conference – Unit Corp. – slide 14
    Average Dayrates and Margins (1) 20,000 90 Average Number of Rigs Utilized 15,000 Margins / DayRates () 60 10,000 30 5,000 0 0 2010 2011 2012 2013 2014 Margins(1) Dayrates Rigs Utilized (1) See Reconciliation…
  15. Raymond James Institutional Investors Conference – Unit Corp. – slide 15
    Rig Fleet Snap Shot 81% of Total Fleet
  16. Raymond James Institutional Investors Conference – Unit Corp. – slide 16
    Introducing the New 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…
  17. Raymond James Institutional Investors Conference – Unit Corp. – slide 17
    Midstream Core Operations Brook Field Pittsburgh Mills Snow Shoe Texas Panhandle Northern Oklahoma and Kansas 35,000 dedicated acres 1,800,000+ dedicated acres Pittsburgh Regional office 135 MMcf/d processing capacity 197 MMcf/d…
  18. Raymond James Institutional Investors Conference – Unit Corp. – slide 18
    Midstream Segment Historical Performance 34% compound growth rate in assets since year-end 2004 Operating 14 processing plants at eight different locations with combined processing capacity of 335 MMcf per day Increased from 12 to…
  19. Raymond James Institutional Investors Conference – Unit Corp. – slide 19
    Midstream Segment Contract Mix 2010 Contract Mix Based on Volume 2014 31% 49% 51% Fee Based 69% Commodity Based Contract Mix Based on Margin 15% Fee Based 53% 47% 85% Commodity Based Unit vs. 3rd Party Margin…
  20. Raymond James Institutional Investors Conference – Unit Corp. – slide 20
    Appalachian Growth Opportunities Constructing Snowshoe Gathering System in Centre County, PA Estimated Total Capital: 97 million Initial 2015 Capital: 42 million Expansion of Pittsburgh Mills gathering system into Butler…
  21. Raymond James Institutional Investors Conference – Unit Corp. – slide 21
    Balance Sheet Summary 12/31/14 12/31/13 (In Millions) Total Assets 4,473.7 4,022.4 Long-Term Debt Senior Subordinated Notes 646.2 645.7 Bank Facility 166.0 Total Long-Term Debt 812.2 645.7 Shareholders Equity 2,332.4 2,173.4…
  22. Raymond James Institutional Investors Conference – Unit Corp. – slide 22
    Segment Contribution Revenues ( millions) Adjusted EBITDA ( millions)(1) 1,573 767 1,600 800 1,400 1,352 657 657 1,315 1,208 602 1,200 600 1,000 871 441 800 400 600 400 200 200 0 2010 2011 2012 2013 2014 0 2010 2011…
  23. Raymond James Institutional Investors Conference – Unit Corp. – slide 23
    Capital Expenditures (In Millions) 1,500 1,000 500 0 2010 2011 2012 2013 2014 2015 Forecast Oil and Natural Gas Contract Drilling Midstream Acquisitions 24
  24. Raymond James Institutional Investors Conference – Unit Corp. – slide 24
    Current Debt Structure Senior Subordinated Notes 650 million, 6.625% Ratings S&P Moodys Fitch Corporate BB Ba3 BB 10-year, NC5; maturity 2021 Senior Subordinated Notes BB B1 BB Unsecured Bank Facility Current Borrowing Base…
  25. Raymond James Institutional Investors Conference – Unit Corp. – slide 25
    APPENDIX 26
  26. Raymond James Institutional Investors Conference – Unit Corp. – slide 26
    Non-GAAP Financial Measures Adjusted EBITDA Years ended December 31, ( in Millions) 2010 2011 2012 2013 2014 Net Income 146 196 23 185 136 Income Taxes 91 123 16 117 87 Depreciation, Depletion and Amortization 205 281 319 334 405…
  27. Raymond James Institutional Investors Conference – Unit Corp. – slide 27
    Non-GAAP 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)…
  28. Raymond James Institutional Investors Conference – Unit Corp. – slide 28
    Hedges Natural Gas Weighted Average Price Period Type MMBTU/Day Floor Ceiling Swap Jan Dec 15 Swaps 40,000 3.98 Jan Mar 15 Collars 30,000 4.20 5.03 Apr Jun 15 Swaps 30,000 3.10 Apr Jun 15 Collars 30,000 2.92 3.26 Jul Sep 15…
  29. Raymond James Institutional Investors Conference – Unit Corp. – slide 29
    Raymond James Institutional Investors Conference March 4, 2015

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