TULSA, Okla.–(BUSINESS WIRE)–On March 13, 2025, Unit Corporation (OTCQX: UNTC) (Company) filed consolidated financial statements for the twelve months ended December 31, 2024 with OTC Markets Group Inc. (OTC). The Company’s quarterly and annual reports may be accessed on the OTC’s website at https://www.otcmarkets.com/stock/UNTC/disclosure, as well as the Company’s website at https://unitcorp.com/investor-relations/otc-sec-filings/.
Fourth Quarter and Year End Results
Net income for the three months ended December 31, 2024 was $10.7 million, or $1.07 per diluted share, compared to $57.4 million, or $5.79 per diluted share, for the three months ended December 31, 2023. Total revenue for the three months ended December 31, 2024 was $59.9 million, compared to $74.6 million for the three months ended December 31, 2023.
For the twelve months ended December 31, 2024, net income was $47.2 million, or $4.75 per diluted share, compared to $248.9 million, or $25.32 per diluted share, for the twelve months ended December 31, 2023. Total revenue for the twelve months ended December 31, 2024 was $237.6 million, compared to $327.3 million for the twelve months ended December 31, 2023.
Prior year results reflect the impact of the December 13, 2023 sale of certain non-core wells and related leases in the Texas Panhandle for cash proceeds of $50.7 million, and a corresponding gain of $37.2 million which was recognized in the fourth quarter of 2023. Additionally, during 2023 the Company recognized a net change in its valuation allowance of $115.1 million which resulted in an income tax benefit of $45.5 million for the twelve months ended December 31, 2023.
Phil Frohlich, the Company’s Chief Executive Officer, commented, “We are pleased with our 2024 year-end results, reflecting our disciplined approach to capital allocation and operational efficiencies in a complex economic landscape. We remain committed to maximizing the value of our assets and returning value to our shareholders.”
The Company announced on March 7, 2025 that a quarterly cash dividend of $1.25 per share had been declared for the first quarter of 2025, to be paid on March 28, 2025 to shareholders of record as of the close of business on March 18, 2025.
The declaration and payment of any future dividend, whether fixed, special, or variable, are at the sole discretion of the Company’s Board of Directors. This decision will depend upon several factors, including the Company’s financial position, results of operations, cash flows, capital requirements, business conditions, future expectations, legal requirements, and other relevant factors at the time of consideration. Future dividends are expected to be funded by cash on the Company’s balance sheet.
Operational highlights for the oil and natural gas and contract drilling segments during the three and twelve months ended December 31, 2024 and 2023 include:
Three Months Ended
December 31,
Twelve Months Ended
December 31,
2024
2023
% Change
2024
2023
% Change
Oil and Natural Gas:
Avg. oil price ($/Bbl)
$69.44
$57.12
22%
$74.51
$60.61
23%
Avg. oil price excl. derivatives ($/Bbl)
$69.44
$76.98
(10)%
$74.51
$75.57
(1)%
Avg. NGLs price ($/Bbl)
$20.88
$18.25
14%
$19.71
$18.02
9%
Avg. NGLs price excl. derivatives ($/Bbl)
$20.88
$18.25
14%
$19.71
$18.02
9%
Avg. natural gas price ($/Mcf)
$1.99
$1.72
16%
$1.58
$2.28
(31)%
Avg. natural gas price excl. derivatives ($/Mcf)
$1.99
$2.04
(2)%
$1.58
$2.07
(24)%
Oil production (MBbls)
176
209
(16)%
693
984
(30)%
NGL production (MBbls)
244
360
(32)%
1,007
1,636
(38)%
Natural gas production (MMcf)
3,791
4,453
(15)%
13,563
20,195
(33)%
Total production (MBOE)
1,052
1,310
(20)%
3,961
5,986
(34)%
Contract Drilling:
Total rigs available (end of the period)
14
14
—%
14
14
—%
Average number of drilling rigs in use
11.9
13.9
(14)%
12.1
15.1
(20)%
Average dayrate on daywork contracts ($/day)
$29,693
$31,245
(5)%
$30,357
$31,225
(3)%
The results for our oil and natural gas segment reflect the sale of certain non-core properties in the Texas Panhandle which was completed in December 2023.
In March 2025, we entered into NYMEX (HH) natural gas – swap agreements averaging 15,000 MMBtu/day for April 2025 through December 2025 at a weighted average fixed price of $4.69 per MMBtu. In addition, we entered into NYMEX (HH) natural gas – swap agreements averaging 5,000 MMBtu/day for January 2026 through December 2026 at a weighted average fixed price of $4.22 per MMBtu.
Common Stock Dividends
The table below presents information about the dividends paid during the periods indicated:
Type
Dividend
per share
Total
Amount
Record Date
Payment Date
2023
(In thousands)
First quarter
Special
$
10.00
$
96,179
January 20, 2023
January 31, 2023
Second quarter
Quarterly
$
2.50
$
24,071
June 16, 2023
June 26, 2023
Third quarter
Quarterly
$
2.50
$
24,113
September 15, 2023
September 26, 2023
Fourth quarter
Quarterly
$
2.50
$
24,226
December 18, 2023
December 27, 2023
Fourth quarter
Special
$
15.00
$
145,353
December 18, 2023
December 27, 2023
Fourth quarter
Special
$
5.00
$
48,451
December 18, 2023
December 27, 2023
2024
First quarter
Quarterly
$
1.25
$
12,269
March 18, 2024
March 28, 2024
Second quarter
Quarterly
$
1.25
$
12,961
June 17, 2024
June 27, 2024
Third quarter
Quarterly
$
1.25
$
12,248
September 16, 2024
September 27, 2024
Fourth quarter
Quarterly
$
1.25
$
12,185
December 17, 2024
December 27, 2024
Fourth quarter
Special
$
2.00
$
19,495
December 17, 2024
December 27, 2024
The Company’s preliminary 2024 Form 8937 (Report of Organizational Actions Affecting Basis of Securities) can be found on its website at https://unitcorp.com/investor-relations/tax-reporting/.
Common Stock Repurchases
During the year ended December 31, 2024, the Company repurchased 97,354 shares under its share repurchase program at an average share price of $33.94 (unadjusted for dividends paid) for an aggregate purchase price of $3.3 million.
As of December 31, 2024, we had repurchased a total of 2,569,746 shares of common stock since emergence from bankruptcy at an average share price of $32.16 (unadjusted for dividends paid) for an aggregate purchase cost of $82.7 million.
About Unit Corporation
Unit Corporation is a Tulsa-based, publicly held energy company engaged through its wholly-owned subsidiaries in oil and gas production and contract drilling. For more information about Unit Corporation, visit its website at http://www.unitcorp.com.
Forward-Looking Statements
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act. All statements, other than statements of historical facts, included in this release that address activities, events, or developments that the Company expects, believes, or anticipates will or may occur are forward-looking statements. Several risks and uncertainties could cause actual results to differ materially from these statements, including changes in commodity prices, the productive capabilities of the Company’s wells, future demand for oil and natural gas, future drilling rig utilization and dayrates, projected rate of the Company’s oil and natural gas production, the amount available to the Company for borrowings, its anticipated borrowing needs under its credit agreement, the number of wells to be drilled by the Company’s oil and natural gas segment, the potential productive capability of its prospective plays, and other factors described occasionally in the Company’s publicly available OTC reports. The Company assumes no obligation to update publicly such forward-looking statements, whether because of new information, future events, or otherwise.
Unit Corporation
Selected Financial Highlights
Three Months Ended December 31,
Twelve Months Ended December 31,
2024
2023
2024
2023
(In thousands except per share amounts)
Revenues:
Oil and natural gas
$
24,989
$
31,830
$
93,248
$
146,237
Contract drilling
34,932
42,797
144,364
181,056
Total revenues
59,921
74,627
237,612
327,293
Expenses:
Operating costs:
Oil and natural gas
11,458
16,528
44,420
65,739
Contract drilling
25,762
26,652
99,655
108,035
Total operating costs
37,220
43,180
144,075
173,774
Depreciation, depletion, and amortization
4,152
5,231
15,646
17,724
General and administrative
6,385
7,726
22,497
22,577
Gain on disposition of assets
(342
)
(36,372
)
(1,667
)
(49,950
)
Total operating expenses
47,415
19,765
180,551
164,125
Income from operations
12,506
54,862
57,061
163,168
Other income (expense):
Interest income
908
2,679
4,104
9,734
Interest expense
(9
)
(43
)
(55
)
(164
)
Gain on derivatives, net
644
1,119
534
12,975
Gain on sale of Superior investment
—
—
—
17,812
Reorganization items, net
(28
)
(136
)
(84
)
(299
)
Other, net
132
190
59
203
Total other income (expense)
1,647
3,809
4,558
40,261
Income before income taxes
14,153
58,671
61,619
203,429
Income tax expense (benefit), net:
Current
339
694
267
1,575
Deferred
3,131
540
14,107
(47,085
)
Total income tax expense (benefit), net
3,470
1,234
14,374
(45,510
)
Net income
$
10,683
$
57,437
$
47,245
$
248,939
Net income per common share:
Basic
$
1.09
$
5.89
$
4.82
$
25.68
Diluted
$
1.07
$
5.79
$
4.75
$
25.32
Unit Corporation
Selected Financial Highlights – Continued
December 31,
2024
December 31,
2023
Balance Sheet Data:
(In thousands)
Cash and cash equivalents
$
48,884
$
60,779
Current assets
$
90,250
$
118,296
Total assets
$
289,243
$
322,720
Current liabilities
$
32,468
$
42,399
Long-term debt
$
—
$
—
Other long-term liabilities
$
22,665
$
22,803
Total shareholders’ equity
$
232,521
$
254,126
Oil and Natural Gas Reserves
The following table presents the components of the standardized measure of discounted future net cash flows:
December 31,
2024
(In thousands)
Future cash inflows
$
708,020
Future production costs
(373,337
)
Future development costs
(981
)
Future income tax expenses
(21,583
)
Future net cash flows
$
312,119
10% annual discount for estimated timing of cash flows
(136,943
)
Standardized measure of discounted future net cash flows relating to proved oil, NGLs, and natural gas reserves
$
175,176
December 31,
2024
(In thousands)
Standardized measure
$
175,176
Discounted effect of future income tax expenses
21,583
Pre-tax PV-10 value under SEC pricing
$
196,759
Impact of adjusting SEC pricing to forward strip pricing
48,146
Pre-tax PV-10 value under forward strip pricing
$
244,905
The standardized measure of discounted future net cash flows relating to proved oil, NGLs, and natural gas reserves (Standardized Measure) is calculated in accordance with US GAAP as the after-tax estimated future cash flows from proved reserves discounted at an annual rate of 10 percent. The benchmark price used for all future reserves was $75.48 per barrel of oil and $2.13 per Mcf of natural gas, then adjusted for price differentials, based on the 12-month historical average of the beginning-of-month prices in accordance with SEC rules. NGL pricing was estimated as a percentage of the pricing per barrel of oil.
Pre-tax PV-10 value under SEC pricing is consistent with the Standardized Measure calculation, but excludes the effects of future income taxes. We view pre-tax PV-10 under SEC pricing as a useful measure of the value of our proved reserves relative to the values of proved reserves held by other companies as it excludes future income tax expenses which may vary based on the characteristics of the owner of the reserves rather than on the nature, location, and quality of the reserves themselves. We also believe that securities analysts and rating agencies use pre-tax PV-10 under SEC pricing in a similar manner.
Pre-tax PV-10 value under forward strip pricing is consistent with the calculation of pre-tax PV-10 value under SEC pricing, but uses forward strip product pricing instead of average historical pricing as required by SEC rules. We view pre-tax PV-10 value under forward strip pricing as a useful measure of the value of our proved reserves both because it excludes future income tax expenses (as discussed above) and because forward strip pricing provides a more current, forward-looking indicator of value. The pricing used is $67.90 per barrel of oil and $3.77 per Mcf of natural gas based on strip pricing as of 1/2/2025. NGL pricing was estimated as a percentage of the pricing per barrel of oil.
Rene Punch
Investor Relations
(918) 493-7700
www.unitcorp.com
Rene Punch
Investor Relations
(918) 493-7700
www.unitcorp.com