Unit Corp. (NYSE: UNT) reported its financial and operational results for the fourth quarter and year 2013.
Larry Pinkston, Unit’s CEO and president, stated “During 2013, the company continued to progress on several strategic initiatives. Our production in the fourth quarter increased 5% over the third quarter and overall production increased 18% year over year. Throughout the fourth quarter we increased the number of operated drilling rigs drilling for our oil and natural gas segment under our previously stated plans, and we initiated our pad drilling program in the Granite Wash. In our contract drilling segment, we completed the sale of five idle drilling rigs during the year, and we will place our first BOSS rig into service during the first quarter 2014. Our midstream segment continued to see the benefit of previous capital investments.
“For the oil and natural gas segment, we are very pleased with our fourth quarter production growth. For the full year, we achieved the upper end of our production guidance. Fourth quarter production growth was primarily driven by the Wilcox and Granite Wash plays. During 2013, we completed sales of certain non-core oil and natural gas assets, with total proceeds of $78.8 million with the most significant portion coming from the sale of the majority of our non-operated Bakken assets. We ended 2013 with total proved reserves of 160 million barrels of oil equivalent (MMBoe), a 7% increase, despite the sale of non-core properties with total proved reserves of 3.5 MMBoe. Weather and operational delays will affect first quarter 2014 production; however, we continue to anticipate production growth for 2014 of between 15% and 18%.
Notable items for the company for the quarter include:
- Total production of 4.4 MMBoe, an increase of 8% over the fourth quarter of 2012.
- Total liquids (oil and NGLs) production increased 21% over the comparable quarter of 2012.
- Completed the sale of a 2,000 horsepower drilling rig and a 3,000 horsepower drilling rig, bringing to five the number of drilling rigs sold in 2013.
- Mid-stream segment’s gathered volumes per day, processed volumes per day and liquids sold volumes per day increased by 12%, 13% and 49%, respectively, over the fourth quarter of 2012.
Unit Corp. is based in Tulsa, Okla.
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