Unit Corp - UNTC stock
Introduction[edit]
Unit Corporation (OTC: UNTC) is an integrated US-based oil and gas company. Through its subsidiaries, the company engages in the exploration, acquisition, development, and production of oil and natural gas properties in the United States. Its subsidiaries include Unit Drilling Company, Unit Petroleum Company, and Superior Pipeline Company, L.L.C. The firm operates in three distinct segments: Oil and Natural Gas; Contract Drilling; Mid-Stream; and Other. Unit was founded by James Donald Bodard and King P. Kirchner in 1963. It has its headquarters in Tulsa, Oklahoma. The company’s common stock is traded on the OTC Pink Market under the ‘UNTC’ ticker symbol.[1]
Company Operations[edit]
Unit employs a value accretion strategy through free cash flow by optimizing production in the existing wells, strategic and capital efficient development of its assets, and continually evaluating and capitalizing on new opportunities. It is determined to create value for all stakeholders by optimizing its operational and HSE performance.[2]
The company’s segments individually carry out unique roles to ensure success and profitability. The Oil and Natural Gas segment explores for, acquires, develops, and produces oil and natural gas properties. The oil and natural gas unproved properties and related assets are distributed across Oklahoma, Texas, Colorado, Louisiana, Kansas, Montana, New Mexico, Utah, North Dakota, and Wyoming. With a pack of 21 drilling rigs, the contract drilling segment engages in drilling activities on the onshore oil and natural gas wells for a myriad of oil and natural gas companies primarily in Texas, Oklahoma, Wyoming, New Mexico, and North Dakota. The Mid-Stream segment gathers, purchases, sells, processes, and treats natural gas for third parties. It is in charge of three natural gas treatment plants, 18 gathering systems, 12 processing plants, and approximately 3,822 miles of pipeline in Texas, Oklahoma, Kansas, West Virginia, and Pennsylvania.[3]
Subsidiaries[edit]
Unit Corporation oversees its operations via three wholly-owned subsidiaries: Unit Petroleum, Unit Drilling Company, and Superior Pipeline Company. Unit Petroleum Company “UPC” was incorporated in1979. It owns and operates wells in Mid-Continent and Gulf Coast areas. It currently operates wells in critical areas of Oklahoma and Texas with a well-diversified mix of oil and natural gas.
Unit Drilling Company was founded in 1963 and has tremendously developed from operating three rigs to the current 21 onshore drilling rigs. It operates core basins in Texas, Oklahoma, Louisiana, New Mexico, North Dakota, and Wyoming. In 2014, the company launched its purpose-built 1,500-horsepower, AC, super-spec rig (BOSS drilling rig) that combines the best technological advancements into a single rig to meet trending market demands.
Superior Pipeline operates as a full-service midstream company dedicated to delivering top services for gas gathering, compression, processing, treating, dehydration, and marketing of natural gas and natural gas liquids. Its operations are distributed across Texas/Oklahoma panhandle, Central/Western Oklahoma, Southeastern Oklahoma, Southeast Texas, Kansas, and Appalachia.[4]
A summary of Unit’s Early History[edit]
King Pouder Kirchner and Don Bodard cofounded Unit Corporation in 1963. Kirchner joined Unit Drilling as a petroleum engineer in 1954 where he met and became partners with Bodard. The duo co-signed bank notes and borrowed $150,000 needed to buy Unit Drilling Company from Woolaroc Oil Company and transferred its operations from Bristow, Oklahoma, to Tulsa. Kirchner collections indicate that the company drilled around 30 wells and took in less than $10,000 in the first year. Constantly surging demand pushed for the purchase of four more rigs in 1964 and an additional four in 1974. The company moved into production, which was less volatile in 1979, and formed Unit Petroleum Company to oversee production. Unit has massively benefited and continues to reap profits from steep increases in natural gas prices over the years.[5]
News[edit]
Unit totaled $1.9 million and $2.7 million net proceeds in the sale of other non-core oil and natural gas assets during the second quarter ended June 30, 2022, and 2021, respectively, and d $2.3 million and $4.4 million during the six months ended June 30, 2022, and 2021, respectively. The profits were used to reduce the net book value of our full cost pool with no gain or loss recognized.[6]
On July 22, 2022, the company reported its preliminary and unaudited selected financial and operational highlights for the three months ended June 30, 2022, as follows:
- Net income (loss) attributable to Unit Corporation was expected to be $80.1 million, or $7.82 per diluted share, compared to $(13.0) million, or $(1.09) per diluted share, in the same quarter of 2021
- Total revenues were expected to be $134.6 million, versus $134.1 million for the same period in 2021
- Net income (loss) attributable to Unit Corporation for the first six months of 2022 was expected to be $33.2 million, or $3.25 per diluted share, compared to $(14.9) million, or $(1.25) per diluted share, for the similar months 2021
- Total revenues were expected to be $322.9 million, for the first six months of 2022 versus $255.0 million for 2021[7]
Management[edit]
Executive Officers[8][edit]
Philip Smith, President, and CEO
- Named President and Chief Executive Office in October 2020
- Former Chief Executive Officer of Prize Energy Corp. and Tide West Oil Company
- Captained Tide West Oil Company from less than $10 million to more than $200 million in assets before it was sold to HS Resources in 1997
- Received a B.S. in Mechanical Engineering from Oklahoma State University and a Master of Business Administration from the University of Tulsa.
Thomas Sell, Chief Financial Officer, Chief Accounting Officer, and Controller
- Joined Unit in October 2020 as Interim Chief Financial Officer and was named Chief Accounting Officer in December 2020
- Named controller in June 2021
- Spent four years as the Chief Accounting Officer and Controller for SemGroup Corporation before Joining Montereau, Inc. as CFO from 2020
- Received his Bachelor of Science in Accounting from Oral Roberts University, where he graduated Magna Cum Laude
- He is also a Certified Public Accountant in the state of Oklahoma
Drew Harding, Vice President, Secretary, & General Counsel
- Joined Unit in August 2004 as a Staff Attorney
- Promoted to the position of Associate General Counsel in March 2005
- Installed as the Vice President, General Counsel, and Secretary in October 2020
- Received his Bachelor of Business Administration from Baylor University in 2001 and his Juris Doctorate from the University of Tulsa College of Law in 2004
Unit Corporation ESG[9][edit]
The company recognizes the importance of integrating environmental, social, and governance initiatives in its operations. It has in place different ESG plans designed to grasp the unique metrics of each of its subsidiaries.
Environmental Health and Safety (EHS)[edit]
Its EHS objectives include:
- Identify and eliminate risks to employees, contractors, and the environment, and manage those impossible to eliminate
- Design and maintain facilities to ensure proper safeguards are in place to protect people, the environment, and the asset
- Educate all employees and contractors about the hazards and risks associated with operations
- Carry out environmental, safety, and operational evaluations to measure compliance with the EHS management system programs and standards, etcetera
Community Support[edit]
- The firm has continually donated to the Oklahoma Energy Resources Board (OERB), a private agency that cleans up orphaned and abandoned well-sites in Oklahoma since 1997
- Annually contribute to multiple charitable organizations, including museums and educational organizations
- Donated $250,000 to facilitate the construction of a new baseball stadium for Tulsa
- Unit donated $3 million to the construction of Tulsa’s Gathering Place, where school groups gather before exploring the park and families picnic in the playground
Corporate Values[edit]
Unit champions for quality relationships, integrity, excellence, diversity, safety, and environmental protection.
- ↑ wsj.com/market-data/quotes/UNTC/company-people – UNTC Profile. Accessed on 9/30/2022
- ↑ unitcorp.com/about/#Strategy – Unit Corporation Official Website
- ↑ finance.yahoo.com/quote/UNTC/profile?p=UNTC – UNTC Description – Yahoo Finance. Retrieved on 9/30/2022
- ↑ unitcorp.com/subsidiaries/ - Unit Corporation Official Website
- ↑ Unit Corporation - Company Profile, Information, Business Description, History, Background Information on Unit Corporation – Reference for Business. Retrieved on 9/30/2022
- ↑ Unit Corporation (UNTC) - FORM 10-Q | Quarterly Report (pdf)- DIVESTITURES, page 13 – Seeking Alpha
- ↑ Unit reports preliminary Q2 earnings – Seeking Alpha. Retrieved on 10/1/2022
- ↑ Unit Corporation Management – Executive Officers – Unit website. Accessed on 10/1/2022
- ↑ Unit Corporation Sustainability – Unit Corporation Official Website
OTC Symbol: UNTC | OTC Tier: OTCQX U.S.
