Unit Corporation (NYSE: UNT) announced today that the estimated year-end
2012 proved oil and natural gas reserves for its wholly owned
subsidiary, Unit Petroleum Company, were 150 million barrels of oil
equivalents (MMBoe), or 899 billion cubic feet of natural gas
equivalents (Bcfe), as compared with 116 MMBoe, or 696 Bcfe, at year-end
2011, a 29% increase in its estimated proved reserves. From all sources,
Unit replaced approximately 337% of its 2012 production. Estimated
reserves were 15% oil, 23% natural gas liquids (NGLs), and 62% natural

The following details the changes to Unit’s proved oil, NGLs, and
natural gas reserves during 2012:









Natural Gas





Proved Reserves, at December 31, 2011 20.2 22.1 442.1 116.0
Revisions of previous estimates (1.8 ) (2.6 ) (55.1 ) (13.6 )
Extensions, discoveries, and other additions 9.2 7.8 79.8 30.3
Purchases of minerals in place 2.8 11.1 141.5 37.5
Production (3.2 ) (2.8 ) (48.9 ) (14.2 )
Sales (5.2 )     (0.4 )     (3.8 )     (6.2 )
Proved Reserves, at December 31, 2012 22.0       35.2       555.6       149.8  

The estimated 2012 year-end proved reserves included proved developed
reserves of 118 MMBoe, or 706 Bcfe, (split 14% oil, 22% NGLs and 64%
natural gas) and proved undeveloped reserves of 32 MMBoe, or 193 Bcfe,
(split 17% oil, 30% NGLs and 53% natural gas). Overall, 79% of Unit’s
estimated proved reserves are proved developed.

The present value of the estimated future net cash flows from the 2012
estimated proved reserves (before income taxes and using a 10% discount
rate (PV-10)), was approximately $1.5 billion. The present value was
determined using the 12 month 2012 average price received. The aggregate
price used for all future reserves was $91.57 per barrel of oil, $30.57
per barrel of NGLs, and $2.58 per thousand cubic feet (Mcf) of natural
gas. Unit’s 2012 year-end proved reserves were independently audited by
Ryder Scott Company, L.P. Their audit covered properties which accounted
for 82% of the discounted future net cash flow (PV-10). See below for
the reconciliation of PV-10 to the standardized measure of discounted
future net cash flows as defined by GAAP.

2012 Production Information and 2013 Production Guidance

Production during the fourth quarter 2012 was 912,000 barrels of oil,
782,000 barrels of NGLs, and 14.5 Bcf of natural gas, or 4.1 MMBoe, an
increase of 18% and 26% over the third quarter 2012 and the fourth
quarter 2011, respectively. Production for 2012 was 14.2 MMBoe, an
increase of 18% from 12.1 MMBoe produced in 2011. 2012 production
included a 28% increase in oil and NGLs.

For 2013, Unit’s preliminary annual production guidance is 16.0 MMBoe to
16.5 MMBoe, an increase of 13% to 16% over 2012.

Non-Cash Ceiling Test Write Down

Unit anticipates it will incur a non-cash ceiling test write down
between $165 million to $180 million ($103 million to $112 million,
after tax) in the fourth quarter of 2012. The ceiling test write down is
required to reduce the carrying value of the company’s oil and natural
gas properties because of the impact of significantly lower net 12-month
commodity prices. From December 31, 2011 to December 31, 2012, the net
12-month average prices received decreased $0.43 per barrel of oil (1%),
$15.58 per barrel of NGLs (34%), and $1.25 per Mcf of natural gas (33%).
The depreciation, depletion and amortization rate for the fourth quarter
of 2012 is estimated to be $13.80 per Boe, a 10% increase over the third
quarter of 2012 and a 12% reduction over the fourth quarter of 2011.

2013 Capital Expenditure Budget

The 2013 capital expenditures budget for all three of Unit’s business
segments is $789 million, a 6% increase over 2012 capital expenditures,
excluding, in both cases, acquisitions. This amount includes $586
million for its oil and natural gas segment, $98 million for its
contract drilling segment, and $105 million for its midstream segment.

Unit’s 2013 capital expenditures budget is based on realized prices for
the year of $93.05 per barrel of oil, $32.05 per barrel of NGLs, and
$3.56 per Mcf. For 2013, Unit has hedged approximately 80% of its
anticipated oil production and 71% of its anticipated natural gas
production under swap contracts at average prices of $97.94 and $3.63,
respectively. This budget is subject to possible periodic adjustments
for various reasons including changes in commodity prices and industry
conditions. Funding for the budget will come primarily from internally
generated cash flow and, if necessary, borrowings under Unit’s bank
credit facility.

Larry Pinkston, President and Chief Executive Officer of Unit
Corporation, said: “Despite commodity price headwinds, 2012 was a very
good year for Unit. We continued to focus our exploration efforts in oil
and NGLs rich areas like the Granite Wash, Wilcox, and Marmaton plays.
In line with this focus, we completed our acquisition of oil and gas
properties from Noble Energy in the Granite Wash in western Oklahoma.
This acquisition has provided us not only with new production, but also
a substantial drilling inventory for years to come. The acquisition was
particularly beneficial in that it will provide growth opportunity for
all three of our business segments. We were also successful during the
year in beginning a divestiture program of some of our non-core or
non-operated oil and natural gas properties resulting in proceeds of
approximately $270 million. As a result, we were able to complete our
acquisition from Noble Energy for approximately $600 million while
continuing to maintain a very conservative debt profile. Our focus on
capital efficiency will be integral in continuing to deliver strong
shareholder performance.”

Fourth Quarter and Year-End 2012 Webcast

Unit will release its fourth quarter and year-end 2012 earnings and host
a conference call on Tuesday, February 19, 2013. During that call, Unit
will provide a complete operational update on all three business
segments. The webcast will be broadcast live over the Internet at 11:00
a.m. Eastern time at http://www.unitcorp.com/investor/calendar.htm.

Unit Corporation is a Tulsa-based, publicly held energy company engaged
through its subsidiaries in oil and natural gas exploration, production,
contract drilling and natural gas gathering and processing. Unit’s
Common Stock is listed on the New York Stock Exchange under the symbol
UNT. For more information about Unit Corporation, visit its website at http://www.unitcorp.com.

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 or
anticipates will or may occur in the future are forward-looking
statements. A number of risks and uncertainties could cause actual
results to differ materially from these statements, including the impact
that the current decline in wells being drilled will have on production
and drilling rig utilization, productive capabilities of the company’s
wells, future demand for oil and natural gas, future drilling rig
utilization and dayrates, projected growth of the company’s oil and
natural gas production, oil and gas reserve information, projected
capital budgets, as well as the ability to meet its future reserve
replacement goals, anticipated gas gathering and processing rates and
throughput volumes, the prospective capabilities of the reserves
associated with the company’s inventory of future drilling sites,
anticipated oil and natural gas prices, the number of wells to be
drilled by the company’s oil and natural gas segment, development,
operational, implementation and opportunity risks, possibility of future
growth opportunities, and other factors described from time to time in
the company’s publicly available SEC reports. The company assumes no
obligation to update publicly such forward-looking statements, whether
as a result of new information, future events or otherwise.

Non-GAAP Financial Measures

We report our financial results in accordance with generally accepted
accounting principles (GAAP). We believe certain non-GAAP performance
measures provide users of our financial information and our management
additional meaningful information to evaluate the performance of our

Unit Corporation
Unaudited Reconciliation of PV-10 to
Standard Measure

December 31, 2012

PV-10 is the estimated future net cash flows from proved reserves
discounted at an annual rate of 10 percent before giving effect to
income taxes. Standardized Measure is the after-tax estimated future
cash flows from proved reserves discounted at an annual rate of 10
percent, determined in accordance with GAAP. The company uses PV-10 as
one measure of the value of its proved reserves and to compare relative
values of proved reserves among exploration and production companies
without regard to income taxes. The company believes that securities
analysts and rating agencies use PV-10 in similar ways. The company’s
management believes PV-10 is a useful measure for comparison of proved
reserve values among companies because, unlike Standardized Measure, it
excludes future income taxes that often depend principally on the
characteristics of the owner of the reserves rather than on the nature,
location and quality of the reserves themselves. Below is a
reconciliation of PV-10 to Standardized Measure:

($ in billions)
PV-10 at December 31, 2012 $ 1.5
Discounted effect of income taxes  


Standardized Measure at December 31, 2012 $



Unit Corporation
Michael D. Earl, 918-493-7700
Vice President,
Investor Relations