Unit Corporation Reports First Quarter Results

TULSA, Okla.--(BUSINESS WIRE)-- On May 8, 2025, Unit Corporation (OTCQX: UNTC) (Company) filed unaudited condensed consolidated financial statements for the three months ended March 31, 2025 with OTC Markets Group Inc. (OTC). The Company’s current, 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/.

First Quarter Results

Net income for the three months ended March 31, 2025 was $17.9 million, or $1.80 per diluted share, compared to $16.1 million, or $1.61 per diluted share, for the three months ended March 31, 2024. Total revenues for the three months ended March 31, 2025 were $63.5 million, compared to $67.2 million for the three months ended March 31, 2024.

Phil Frohlich, the Company's Chief Executive Officer, commented, “While the current environment contains its share of economic uncertainties and challenges, I'm encouraged by our current drilling activities and the results from recently completed wells. Additionally, our recent natural gas hedges are helping to stabilize cash flows amid price fluctuations. With a solid balance sheet and strong operational performance, we remain well-positioned to execute our long-term strategy of delivering value to our shareholders."

Operational highlights for the oil and natural gas and contract drilling segments during the three months ended March 31, 2025 and 2024 include:

	Three Months Ended March 31,
	2025		2024		% Change
Oil and Natural Gas:
Avg. oil price ($/Bbl)	$69.90		$75.28		(7)%
Avg. oil price excl. derivatives ($/Bbl)	$69.90		$75.28		(7)%
Avg. NGLs price ($/Bbl)	$23.03		$20.74		11%
Avg. NGLs price excl. derivatives ($/Bbl)	$23.03		$20.74		11%
Avg. natural gas price ($/Mcf)	$2.94		$1.79		64%
Avg. natural gas price excl. derivatives ($/Mcf)	$3.09		$1.79		73%
Oil production (MBbls)	190		187		2%
NGL production (MBbls)	236		298		(21)%
Natural gas production (MMcf)	3,089		3,501		(12)%
Total production (MBOE)	941		1,069		(12)%
Contract Drilling:
Total rigs available (end of the period)	14		14		—%
Average number of drilling rigs in use	12.7		13.7		(7)%
Average dayrate on daywork contracts ($/day)	$29,355		$30,891		(5)%

Derivatives

The following non-designated commodity hedges were outstanding as of March 31, 2025:

Remaining Term		Commodity		Hedged Volume		Weighted Average Fixed Price for Swaps		Hedged Market
Apr'25 - Dec'25		Natural gas - basis swap Floating to fixed		10,000 MMBtu/day		$(0.30)		IF - PEPL - TX-OK
Apr'25 - Dec'25		Natural gas - basis swap Floating to fixed		7,500 MMBtu/day		$(0.25)		IF - PEPL - TX-OK
Apr'25 - Dec'25		Natural gas - basis swap Floating to fixed		5,000 MMBtu/day		$(0.25)		IF - PEPL - TX-OK
Apr'25 - Dec'25		Natural gas - swap Floating to fixed		15,000 MMBtu/day		$4.69		IF - NYMEX (HH)
Jan'26 - Dec'26		Natural gas - swap Floating to fixed		5,000 MMBtu/day		$4.22		IF - NYMEX (HH)

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
2024
First quarter	Quarterly	$	1.25	$	12,269	March 18, 2024	March 28, 2024
2025
First quarter	Quarterly	$	1.25	$	12,317	March 18, 2025	March 28, 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.

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 March 31,
	2025				2024
	(In thousands except per share amounts)
Revenues:
Oil and natural gas	$	28,387			$	26,572
Contract drilling		35,085				40,632
Total revenues		63,472				67,204
Expenses:
Operating costs:
Oil and natural gas		10,063				11,979
Contract drilling		24,531				25,725
Total operating costs		34,594				37,704
Depreciation, depletion, and amortization		4,136				3,901
General and administrative		5,296				4,978
(Gain) loss on disposition of assets		(84	)			65
Total operating expenses		43,942				46,648
Income from operations		19,530				20,556
Other income (expense):
Interest income		547				954
Interest expense		(10	)			(30	)
Gain on derivatives, net		2,302				—
Reorganization items, net		—				(22	)
Other, net		95				(377	)
Total other income (expense)		2,934				525
Income before income taxes		22,464				21,081
Income tax expense, net:
Current		138				75
Deferred		4,390				4,902
Total income tax expense, net		4,528				4,977
Net income	$	17,936			$	16,104
Net income per common share:
Basic	$	1.81			$	1.64
Diluted	$	1.80			$	1.61

Unit Corporation
Selected Financial Highlights - Continued
	March 31, 2025			December 31, 2024
Balance Sheet Data:	(In thousands)
Cash and cash equivalents	$	49,676		$	48,884
Current assets	$	90,871		$	90,250
Total assets	$	291,608		$	289,243
Current liabilities	$	30,520		$	32,468
Long-term debt	$	—		$	—
Other long-term liabilities	$	22,976		$	22,665
Total shareholders’ equity	$	237,049		$	232,521

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250508455371/en/

Rene Punch

Investor Relations

(918) 493-7700

www.unitcorp.com

Source: Unit Corporation