Unit Corp.

[dan_s]

Unit Corporation (UNT) today reported results for the fourth quarter of 2012. Those results included a previously announced non-cash ceiling test write down of $167.7 million ($104.5 million after tax, or $2.17 per diluted share). Because of the ceiling test write down, Unit incurred a net loss of $56.5 million, or $1.18 per diluted share, for the fourth quarter of 2012, compared to net income of $51.7 million, or $1.08 per diluted share for the fourth quarter of 2011. The ceiling test write down, which reduced the carrying value of the company’s oil and natural gas properties, resulted from significantly lower commodity prices during the fourth quarter of 2012. Without the ceiling test write down, net income for the fourth quarter of 2012 would have been $47.9 million, or $0.99 per diluted share (my forecast was $0.89/share).

Unit Corp. is lumped into the Onshore Drillers but it has transitioned to an E&P company with a drilling subsidiary. It is the firm's double-digit production and reserve growth that earned it a spot in our Sweet 16.

OIL AND NATURAL GAS SEGMENT INFORMATION
• During 2012, Unit’s oil and natural gas liquids (NGLs) reserves increased 9% and 59%, respectively.
• Replaced 337% of 2012 production with new reserve additions.
• Total production for 2012 was 14.2 MMBoe, an increase of 18% over 2011, and included an increase in oil and NGLs production of 28%.
• Production guidance for 2013 is 16.0 to 16.5 MMBoe, an increase of 13% to 16% over 2012.

[dan_s]

Sweet 16 Growth Portfolio: An updated Net Income & Cash Flow Forecast model for Unit Corp. (UNT) has been posted under the Sweet 16 Tab.

We will be sending out updated company profiles on PTEN and UNT tomorrow.