Unit Corporation Reports First Quarter Results; 430 Percent Increase In Earnings Per Share

Apr 24, 2001, 01:00 ET from Unit Corporation

    TULSA, Okla., April 24 /PRNewswire Interactive News Release/ -- Unit
 Corporation (NYSE:   UNT) today announced record financial and operating results
 for the three months ended March 31, 2001.  Consolidated net income for the
 first quarter was $19.2 million, or 53 cents per share, on revenue of
 $70.4 million, compared to 2000's first quarter net income of $3.6 million, or
 10 cents per share, on revenue of $37.2 million.  This is a 23 percent
 increase over the fourth quarter of 2000 earnings per share, the fourth
 consecutive quarter Unit has reported higher earnings per share.  Revenue
 increased 89 percent while net income increased 436 percent between the
 comparative first quarters.  The dramatic improvement in net income was
 attributable to significantly higher natural gas prices, increased dayrates
 and drilling rig utilization, as well as strong growth in oil and natural gas
 production.  Consolidated cash flow from operations before changes in working
 capital for the first quarter of 2001 was $35.2 million versus $12.2 million
 for 2000's corresponding period
 
     UNIT PETROLEUM RESULTS
     Revenues from Unit's oil and natural gas operations increased 136 percent
 in the first quarter to $34.7 million.  The increase was due to higher oil and
 natural gas prices and an increase in oil and natural gas production.  Natural
 gas production for the first quarter of 2001 increased to 4,638 million cubic
 feet (MMcf), compared to 4,425 MMcf for the same quarter of 2000.  Oil
 production for the same period of 2001 was 124,000 barrels compared to
 115,000 barrels during the first quarter of 2000.  Average natural gas prices
 received during the first quarter of 2001 rose 177 percent to $6.59 per
 thousand cubic feet (Mcf) compared to $2.38 per Mcf during the first quarter
 of 2000.  The average oil price received was $27.11 per barrel in the first
 quarter of 2001 compared to $26.95 per barrel in the first quarter of 2000.
 During the first quarter of 2001, Unit completed 29 wells with a success rate
 of 86 percent.  Unit plans to drill approximately 130 wells during 2001, up
 29 percent from 2000.
 
     UNIT DRILLING RESULTS
     Contract drilling revenues increased 63 percent between the comparative
 first quarters to $35.5 million, due to a significant increase in the number
 of rigs utilized and higher dayrates.  The average rig utilization rate was a
 record 45.9 rigs in the first quarter of 2001, up 32 percent from 2000's first
 quarter.  Unit has all 52 of its rigs under contract.  Currently, 50 rigs are
 operating, while the remaining two rigs will be available for operations in
 May.  Rig rates for the first quarter averaged $8,665 per day, 38 percent
 higher than the comparable quarter of 2000.  Contract drilling cash operating
 margins per rig averaged $3,250 per day in the first quarter of 2001 as
 compared to $1,160 for the same period in 2000.  Unit exited the first quarter
 receiving an average of approximately $4,000 per day cash margin.
 
     MANAGEMENT COMMENTS
     "The first quarter of 2001 saw a continuation of the highly favorable
 conditions we were seeing in the oil and natural gas industry during 2000, and
 our operating results reflect these improved conditions," said John Nikkel,
 President and Chief Operating Officer.
     "Since the beginning of the year, we increased our drilling rig fleet from
 50 to 52 rigs.  This is the largest fleet in Unit's history, and it is focused
 on the drilling of natural gas wells.  Currently, our rig utilization is near
 capacity, while dayrates continue to press upward.  We are still seeing an
 average natural gas price above the $5.00 per Mcf level, a significant factor
 in keeping our drilling rigs fully utilized and keeping us in-step to drill
 130 or more wells in our exploration and production operations during 2001."
 
     WEBCAST
     Unit also announced that it will webcast its first quarter earnings
 conference call live over the Internet on April 24, 2001 at 10:00 a.m. Eastern
 Time.  To listen to the live call, please go to www.unitcorp.com at least
 fifteen minutes prior to the start of the call to download and install any
 necessary audio software.  For those who are not available to listen to the
 live webcast, a replay will be available shortly after the call and will
 remain on the site for 90 days.
 
 
                                Unit Corporation
                  Selected Financial and Operations Highlights
                    (In thousands except per share amounts)
 
                                                       Three Months Ended
                                                             March 31,
                                                        2000          2001
 
     Statement of Operations:
       Revenues:
         Contract drilling                           $   21,748    $   35,500
         Oil and natural gas                             14,729        34,720
         Other                                              750           223
 
           Total revenues                                37,227        70,443
 
       Expenses:
         Contract drilling:
           Operating costs                               18,069        22,430
           Depreciation and amortization                  2,541         3,219
         Oil and natural gas:
           Operating costs                                3,976         6,479
           Depreciation, depletion and amortization       4,172         4,678
         General and administrative                       1,479         1,803
         Interest                                         1,342           972
 
             Total expenses                              31,579        39,581
 
       Income Before Income Taxes                         5,648        30,862
 
       Income Tax Expense:
         Current                                             32         4,397
         Deferred                                         2,038         7,293
 
             Total income taxes                           2,070        11,690
 
       Net Income                                      $  3,578      $ 19,172
 
       Net Income Per Common Share
         Basic                                         $    .10      $    .53
         Diluted                                       $    .10      $    .53
       Weighted Average Common Shares Outstanding
         Basic                                           35,689        35,912
         Diluted                                         36,025        36,310
 
 
                                                    December 31,   March 31,
                                                        2000          2001
     Balance Sheet Data:
       Current assets                                $   46,017    $   57,625
       Total assets                                  $  346,288    $  375,367
       Current liabilities                           $   32,672    $   39,535
       Long-term debt                                $   54,000    $   48,600
       Other long-term liabilities                   $    3,597    $    3,836
       Deferred income taxes                         $   41,479    $   48,772
       Shareholders' equity                          $  214,540    $  234,624
 
                                                       Three Months Ended
                                                             March 31,
                                                        2000          2001
     Statement of Cash Flows Data:
       Cash Flow From Operations Before
        Working Capital Changes                      $   12,237    $   35,158
       Net Cash Used in Investing Activities         $    7,525    $   24,220
 
                                                       Three Months Ended
                                                             March 31,
                                                        2000          2001
     Contract Drilling Operations Data:
 
       Rigs Utilized                                       34.8          45.9
       Operating Margins                                    17%           37%
       Operating Profit Before Depreciation ($MM)    $      3.7    $     13.1
 
     Oil and Natural Gas Operations Data:
       Production
         Oil - MBbls                                        115           124
         Natural Gas - MMcf                               4,425         4,638
       Average Prices
         Oil - Bbl                                   $    26.95    $    27.11
         Natural Gas - Mcf                           $     2.38    $     6.59
       Operating Profit Before DD&A ($MM)            $     10.8    $     28.2
 
 
     Unit Corporation is a Tulsa-based, publicly held energy company engaged
 through its subsidiaries in oil and gas exploration, production and contract
 drilling.  Unit's Common Stock is listed on the New York Stock Exchange under
 the symbol UNT.  For more information about Unit Corporation, visit our
 website at http://www.unitcorp.com.
 
     This news release contains forward-looking statements within the meaning
 of the Securities Litigation Reform Act that involve risks and uncertainties,
 including the productive capabilities of the wells, future demand for oil and
 natural gas, future rig utilization and dayrates, oil and gas reserve
 information, anticipated production rates from company wells, the prospective
 capabilities of offset acreage, anticipated oil and natural gas prices,
 development, operational, implementation and opportunity risks, and other
 factors described from time to time in the company's publicly available SEC
 reports, which could cause actual results to differ materially from those
 expected.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X05837535
 
 

SOURCE Unit Corporation
    TULSA, Okla., April 24 /PRNewswire Interactive News Release/ -- Unit
 Corporation (NYSE:   UNT) today announced record financial and operating results
 for the three months ended March 31, 2001.  Consolidated net income for the
 first quarter was $19.2 million, or 53 cents per share, on revenue of
 $70.4 million, compared to 2000's first quarter net income of $3.6 million, or
 10 cents per share, on revenue of $37.2 million.  This is a 23 percent
 increase over the fourth quarter of 2000 earnings per share, the fourth
 consecutive quarter Unit has reported higher earnings per share.  Revenue
 increased 89 percent while net income increased 436 percent between the
 comparative first quarters.  The dramatic improvement in net income was
 attributable to significantly higher natural gas prices, increased dayrates
 and drilling rig utilization, as well as strong growth in oil and natural gas
 production.  Consolidated cash flow from operations before changes in working
 capital for the first quarter of 2001 was $35.2 million versus $12.2 million
 for 2000's corresponding period
 
     UNIT PETROLEUM RESULTS
     Revenues from Unit's oil and natural gas operations increased 136 percent
 in the first quarter to $34.7 million.  The increase was due to higher oil and
 natural gas prices and an increase in oil and natural gas production.  Natural
 gas production for the first quarter of 2001 increased to 4,638 million cubic
 feet (MMcf), compared to 4,425 MMcf for the same quarter of 2000.  Oil
 production for the same period of 2001 was 124,000 barrels compared to
 115,000 barrels during the first quarter of 2000.  Average natural gas prices
 received during the first quarter of 2001 rose 177 percent to $6.59 per
 thousand cubic feet (Mcf) compared to $2.38 per Mcf during the first quarter
 of 2000.  The average oil price received was $27.11 per barrel in the first
 quarter of 2001 compared to $26.95 per barrel in the first quarter of 2000.
 During the first quarter of 2001, Unit completed 29 wells with a success rate
 of 86 percent.  Unit plans to drill approximately 130 wells during 2001, up
 29 percent from 2000.
 
     UNIT DRILLING RESULTS
     Contract drilling revenues increased 63 percent between the comparative
 first quarters to $35.5 million, due to a significant increase in the number
 of rigs utilized and higher dayrates.  The average rig utilization rate was a
 record 45.9 rigs in the first quarter of 2001, up 32 percent from 2000's first
 quarter.  Unit has all 52 of its rigs under contract.  Currently, 50 rigs are
 operating, while the remaining two rigs will be available for operations in
 May.  Rig rates for the first quarter averaged $8,665 per day, 38 percent
 higher than the comparable quarter of 2000.  Contract drilling cash operating
 margins per rig averaged $3,250 per day in the first quarter of 2001 as
 compared to $1,160 for the same period in 2000.  Unit exited the first quarter
 receiving an average of approximately $4,000 per day cash margin.
 
     MANAGEMENT COMMENTS
     "The first quarter of 2001 saw a continuation of the highly favorable
 conditions we were seeing in the oil and natural gas industry during 2000, and
 our operating results reflect these improved conditions," said John Nikkel,
 President and Chief Operating Officer.
     "Since the beginning of the year, we increased our drilling rig fleet from
 50 to 52 rigs.  This is the largest fleet in Unit's history, and it is focused
 on the drilling of natural gas wells.  Currently, our rig utilization is near
 capacity, while dayrates continue to press upward.  We are still seeing an
 average natural gas price above the $5.00 per Mcf level, a significant factor
 in keeping our drilling rigs fully utilized and keeping us in-step to drill
 130 or more wells in our exploration and production operations during 2001."
 
     WEBCAST
     Unit also announced that it will webcast its first quarter earnings
 conference call live over the Internet on April 24, 2001 at 10:00 a.m. Eastern
 Time.  To listen to the live call, please go to www.unitcorp.com at least
 fifteen minutes prior to the start of the call to download and install any
 necessary audio software.  For those who are not available to listen to the
 live webcast, a replay will be available shortly after the call and will
 remain on the site for 90 days.
 
 
                                Unit Corporation
                  Selected Financial and Operations Highlights
                    (In thousands except per share amounts)
 
                                                       Three Months Ended
                                                             March 31,
                                                        2000          2001
 
     Statement of Operations:
       Revenues:
         Contract drilling                           $   21,748    $   35,500
         Oil and natural gas                             14,729        34,720
         Other                                              750           223
 
           Total revenues                                37,227        70,443
 
       Expenses:
         Contract drilling:
           Operating costs                               18,069        22,430
           Depreciation and amortization                  2,541         3,219
         Oil and natural gas:
           Operating costs                                3,976         6,479
           Depreciation, depletion and amortization       4,172         4,678
         General and administrative                       1,479         1,803
         Interest                                         1,342           972
 
             Total expenses                              31,579        39,581
 
       Income Before Income Taxes                         5,648        30,862
 
       Income Tax Expense:
         Current                                             32         4,397
         Deferred                                         2,038         7,293
 
             Total income taxes                           2,070        11,690
 
       Net Income                                      $  3,578      $ 19,172
 
       Net Income Per Common Share
         Basic                                         $    .10      $    .53
         Diluted                                       $    .10      $    .53
       Weighted Average Common Shares Outstanding
         Basic                                           35,689        35,912
         Diluted                                         36,025        36,310
 
 
                                                    December 31,   March 31,
                                                        2000          2001
     Balance Sheet Data:
       Current assets                                $   46,017    $   57,625
       Total assets                                  $  346,288    $  375,367
       Current liabilities                           $   32,672    $   39,535
       Long-term debt                                $   54,000    $   48,600
       Other long-term liabilities                   $    3,597    $    3,836
       Deferred income taxes                         $   41,479    $   48,772
       Shareholders' equity                          $  214,540    $  234,624
 
                                                       Three Months Ended
                                                             March 31,
                                                        2000          2001
     Statement of Cash Flows Data:
       Cash Flow From Operations Before
        Working Capital Changes                      $   12,237    $   35,158
       Net Cash Used in Investing Activities         $    7,525    $   24,220
 
                                                       Three Months Ended
                                                             March 31,
                                                        2000          2001
     Contract Drilling Operations Data:
 
       Rigs Utilized                                       34.8          45.9
       Operating Margins                                    17%           37%
       Operating Profit Before Depreciation ($MM)    $      3.7    $     13.1
 
     Oil and Natural Gas Operations Data:
       Production
         Oil - MBbls                                        115           124
         Natural Gas - MMcf                               4,425         4,638
       Average Prices
         Oil - Bbl                                   $    26.95    $    27.11
         Natural Gas - Mcf                           $     2.38    $     6.59
       Operating Profit Before DD&A ($MM)            $     10.8    $     28.2
 
 
     Unit Corporation is a Tulsa-based, publicly held energy company engaged
 through its subsidiaries in oil and gas exploration, production and contract
 drilling.  Unit's Common Stock is listed on the New York Stock Exchange under
 the symbol UNT.  For more information about Unit Corporation, visit our
 website at http://www.unitcorp.com.
 
     This news release contains forward-looking statements within the meaning
 of the Securities Litigation Reform Act that involve risks and uncertainties,
 including the productive capabilities of the wells, future demand for oil and
 natural gas, future rig utilization and dayrates, oil and gas reserve
 information, anticipated production rates from company wells, the prospective
 capabilities of offset acreage, anticipated oil and natural gas prices,
 development, operational, implementation and opportunity risks, and other
 factors described from time to time in the company's publicly available SEC
 reports, which could cause actual results to differ materially from those
 expected.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X05837535
 
 SOURCE  Unit Corporation