Unit Corporation (UNT) reported net income of $46.6 million, or $0.97 per diluted share, for the three months ended September 30, 2012, compared to net income of $53.4 million, or $1.11 per diluted share for the third quarter of 2011. Total revenues for the third quarter of 2012 were $317.8 million (42% contract drilling, 41% oil and natural gas, and 17% mid-stream), compared to $323.8 million (39% contract drilling, 42% oil and natural gas, and 19% mid-stream) for the third quarter of 2011.
Rock solid company. $0.97 EPS was 1 cent below my forecast.
I will post an updated forecast model shortly.
Unit Corp.
Unit Corp.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Unit Corp.
Note that Unit's Q4 production is going to get a big boost from the Noble acquisition.
On September 18, 2012, Unit closed on the previously announced agreement to acquire certain oil and natural gas assets from Noble Energy, Inc. The amount paid at closing was $594.5 million. The properties included approximately 84,000 net acres primarily in the Granite Wash, Cleveland, and various other plays in western Oklahoma and the Texas Panhandle. The effective date of this acquisition was April 1, 2012. As of the effective date, the estimated proved reserves of the subject properties was 44.0 MMBoe, and the estimated average daily net production was 10.0 MBoe. The acquisition adds approximately 25,000 net acres to Unit’s Granite Wash core area in the Texas Panhandle with significant resource potential, including approximately 600 potential horizontal drilling locations. The acreage is characterized by high working interest and operatorship, and 95% of the acreage is held by production. Unit also received four natural gas gathering systems as part of the transaction.
On September 28, 2012, Unit closed on its previously announced agreement to sell its interest in certain of its Bakken properties to QEP Energy, a wholly owned subsidiary of QEP Resources, Inc. The proceeds at closing were $226.6 million. As of the effective date of July 1, 2012, the estimated proved reserves of the divested properties were 5.7 MMBoe, while the second quarter average daily production for these properties was 1,044 Boe per day. The properties total 4,756 net acres, representing approximately 35% of Unit’s total acreage in the Bakken play.
Pinkston said: “We are excited about the Noble acquisition and the growth opportunities that it will provide us. This acquisition will more than double our acreage in our Granite Wash Texas Panhandle core area. It will also provide us with additional inventory of drilling opportunities that will allow us to significantly grow our production in the Anadarko Basin focused on oil- and liquids-rich gas targets. Our recent divestiture of non-core properties was a strategic move to enhance our overall liquidity for future growth opportunities. Unit’s annual production guidance for 2012, including the impact of the Noble acquisition, is approximately 13.9 to 14.2 MMBoe, an increase of 15% to 17% over 2011.”
On September 18, 2012, Unit closed on the previously announced agreement to acquire certain oil and natural gas assets from Noble Energy, Inc. The amount paid at closing was $594.5 million. The properties included approximately 84,000 net acres primarily in the Granite Wash, Cleveland, and various other plays in western Oklahoma and the Texas Panhandle. The effective date of this acquisition was April 1, 2012. As of the effective date, the estimated proved reserves of the subject properties was 44.0 MMBoe, and the estimated average daily net production was 10.0 MBoe. The acquisition adds approximately 25,000 net acres to Unit’s Granite Wash core area in the Texas Panhandle with significant resource potential, including approximately 600 potential horizontal drilling locations. The acreage is characterized by high working interest and operatorship, and 95% of the acreage is held by production. Unit also received four natural gas gathering systems as part of the transaction.
On September 28, 2012, Unit closed on its previously announced agreement to sell its interest in certain of its Bakken properties to QEP Energy, a wholly owned subsidiary of QEP Resources, Inc. The proceeds at closing were $226.6 million. As of the effective date of July 1, 2012, the estimated proved reserves of the divested properties were 5.7 MMBoe, while the second quarter average daily production for these properties was 1,044 Boe per day. The properties total 4,756 net acres, representing approximately 35% of Unit’s total acreage in the Bakken play.
Pinkston said: “We are excited about the Noble acquisition and the growth opportunities that it will provide us. This acquisition will more than double our acreage in our Granite Wash Texas Panhandle core area. It will also provide us with additional inventory of drilling opportunities that will allow us to significantly grow our production in the Anadarko Basin focused on oil- and liquids-rich gas targets. Our recent divestiture of non-core properties was a strategic move to enhance our overall liquidity for future growth opportunities. Unit’s annual production guidance for 2012, including the impact of the Noble acquisition, is approximately 13.9 to 14.2 MMBoe, an increase of 15% to 17% over 2011.”
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Unit Corp.
Sweet 16 Growth Portfolio: An updated Net Income & Cash Flow Forecast model for Unit Corp. (UNT) has been posted under the Sweet 16 Tab.
From now on I will leave the previous forecast on the website for Sweet 16 companies, so you can see the changes.
The reason I post the Excel model is so you can play with commodity prices at the bottom to see the impact on earnings and cash flows. Keep in mind that commodity prices include the effect of hedges.
From now on I will leave the previous forecast on the website for Sweet 16 companies, so you can see the changes.
The reason I post the Excel model is so you can play with commodity prices at the bottom to see the impact on earnings and cash flows. Keep in mind that commodity prices include the effect of hedges.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group