Unit Corporation (ticker: UNT) attacks its oil and gas business via three distinct subsidiaries: Unit Drilling Company, Unit Petroleum Company, and Superior Pipeline Company.
Unit Petroleum Company
Unit Petroleum Company is active in four basins, the Mississippian, the Hoxbar, the Granite Wash, and the Wilcox. In Q1, 2017, the company averaged 42,000 BOEPD and expects that average production will grow in Q2, based on the recent acquisition of assets within the Hoxbar play. The cumulative expected production for 2017 is between 16.1 MMBOE and 16.7 MMBOE.
In its Wilcox field, Unit Petroleum began drilling and completion activities, with four wells being drilled starting in January, 2017. As of May, three of the four wells had been drilled and were about to begin completion operations. The fourth well has been completed and fracture stimulated. Unit plans on resuming drilling operations in Q3, 2017 with the addition of three to four more wells in the Wilcox area before the end of 2017.
Unit fracture stimulated two of its extended lateral wells in the Granite Wash field, one of which has come on production. In its Hoxbar asset, the company completed two horizontal oil wells during the first quarter and brought a rig online in the area with the intent to drill six to seven wells during the remainder of the year. During April, Unit also acquired approximately 8,300 net acres in its Western Oklahoma Hoxbar trend for $57 million.
Unit Drilling Company
Unit’s drilling subsidiary, Unit Drilling Company, averaged 25.5 operating rigs during Q1, 2017. The company reactivated eight rigs, and increased the average working rig count by 24%, compared to Q1, 2016 and 31% compared to Q4, 2016. During the first quarter, all of Unit’s nine BOSS rigs—those designed for optimal pad drilling—were operational, and the company began construction of its tenth rig.
Superior Pipeline Company
Despite decreased gas prices, Unit’s midstream subsidiary—Superior Pipeline Company—retained strength due to its fee-based cost structure. Larry Pinkston, president and CEO of Unit Corp., noted that the company’s midstream segment had the ability “to take advantage of growth opportunities with minimal capital,” with regards to supply growth for natural gas and natural gas liquids.
Unit Corporation is presenting at EnerCom’s The Oil & Gas Conference® 22
Unit will be a presenting company at the upcoming EnerCom conference in Denver, Colorado—The Oil & Gas Conference® 22.
The conference is EnerCom’s 22nd Denver-based oil and gas focused investor conference, bringing together publicly traded E&Ps and oilfield service and technology companies with institutional investors. The conference will be at the Denver Downtown Westin Hotel, August 13-17, 2017. To register for The Oil & Gas Conference® 22 please visit the conference website.
