TULSA, Okla. – On March 14, 2024, Unit Corporation (OTCQX: UNTC) (Company) filed consolidated financial statements for the twelve months ended December 31, 2023 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/.

Fourth Quarter and Year End Results

Net income attributable to Unit Corporation for the three months ended December 31, 2023 was $57.4 million, or $5.79 per diluted share, compared to $59.3 million, or $6.07 per diluted share, for the three months ended December 31, 2022. Total revenues for the three months ended December 31, 2023 was $74.6 million, compared to $102.3 million for the three months ended December 31, 2022.

For the twelve months ended December 31, 2023, net income attributable to Unit Corporation was $248.9 million, or $25.32 per diluted share, compared to $148.4 million, or $14.78 per diluted share, for the twelve months ended December 31, 2022. Total revenues for the twelve months ended December 31, 2023 was $327.3 million, compared to $545.5 million for the twelve months ended December 31, 2022.

“This was an important year for Unit as we paid a total of $37.50 per share in cash dividends during 2023, returning cash to shareholders that had been generated from our past operations as well as from divestitures of certain non-core assets,” stated Phil Frohlich, the Company’s Chief Executive Officer. “Looking forward, we expect to continue to return value to shareholders through future quarterly cash dividends, as well as through additional future special cash dividends if deemed appropriate based on future results and circumstances.”

The Company announced on March 7, 2024 that a quarterly cash dividend of $1.25 per share had been declared for the first quarter of 2024, to be paid on March 28, 2024 to shareholders of record as of the close of business on March 18, 2024. The Company also announced that it plans on approving a quarterly cash dividend of $1.25 per share for the second, third, and fourth quarters of 2024.

Operational highlights for the oil and natural gas and contract drilling segments during the twelve months ended December 31, 2023 and 2022 include:

Three Months Ended December 31,

Twelve Months Ended December 31,

2023

2022

% Change

2023

2022

% Change

Oil and Natural Gas:

Avg. oil price ($/Bbl)

$

57.12

$

56.31

1

%

$

60.61

$

57.48

5

%

Avg. oil price excl. derivatives ($/Bbl)

$

76.98

$

82.48

(7

)%

$

75.57

$

94.28

(20

)%

Avg. NGLs price ($/Bbl)

$

18.25

$

18.07

1

%

$

18.02

$

30.00

(40

)%

Avg. NGLs price excl. derivatives ($/Bbl)

$

18.25

$

18.07

1

%

$

18.02

$

30.00

(40

)%

Avg. natural gas price ($/Mcf)

$

1.72

$

3.42

(50

)%

$

2.28

$

3.65

(38

)%

Avg. natural gas price excl. derivatives ($/Mcf)

$

2.04

$

4.98

(59

)%

$

2.07

$

5.79

(64

)%

Oil production (MBbls)

209

290

(28

)%

984

1,281

(23

)%

NGL production (MBbls)

360

368

(2

)%

1,636

2,148

(24

)%

Natural gas production (MMcf)

4,453

5,424

(18

)%

20,195

24,211

(17

)%

Total production (Mboe)

1,310

1,562

(16

)%

5,986

7,464

(20

)%

Contract Drilling:

Drilling rigs available (end of the period)

14

18

(22

)%

14

18

(22

)%

Average drilling rigs in use

13.9

17.0

(18

)%

15.1

16.4

(8

)%

Average dayrate on daywork contracts ($/day)

$

31,245

$

27,579

13

%

$

31,225

$

23,132

35

%

BOSS rigs average dayrate ($/day)

$

31,245

$

28,385

10

%

$

31,690

$

23,963

32

%

SCR rigs average dayrate ($/day)

$

$

23,861

(100

)%

$

22,944

$

19,422

18

%

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

2023

(In thousands)

First quarter

Special

$

10.00

$

96,179

January 20, 2023

January 31, 2023

Second quarter

Quarterly

$

2.50

$

24,071

June 16, 2023

June 26, 2023

Third quarter

Quarterly

$

2.50

$

24,113

September 15, 2023

September 26, 2023

Fourth quarter

Quarterly

$

2.50

$

24,226

December 18, 2023

December 27, 2023

Fourth quarter

Special

$

15.00

$

145,353

December 18, 2023

December 27, 2023

Fourth quarter

Special

$

5.00

$

48,451

December 18, 2023

December 27, 2023

The declaration and payment of any future dividend, whether fixed, special, or variable, will remain at the full discretion of the Company’s Board of Directors and will depend upon the Company’s financial position, results of operations, cash flows, capital requirements, business conditions, future expectations, the requirements of applicable law, and other factors that the Company’s Board of Directors finds relevant at the time of considering any potential dividend declaration. Future dividends are expected to be funded by cash on the Company’s balance sheet.

Oil and Natural Gas Divestiture

On December 13, 2023, the Company closed on the sale of certain non-core wells and related leases in the Texas Panhandle for cash proceeds of $50.0 million, subject to customary post-closing adjustments based on an effective date of October 1, 2023. The sale represented a significant alteration to the full cost pool as reserves in excess of 25% were divested. To determine the gain, the Company allocated the net book value of the full cost pool based on the relative fair value of the properties retained versus those divested. A gain of $37.2 million was recognized within gain on disposition of assets in the consolidated statements of operations. Proceeds from the sale were used to fund the special dividend of $5.00 per share paid December 27, 2023.

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 agreements, 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 and SEC 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 December 31,

Twelve Months Ended December 31,

2023

2022

2023

2022

(In thousands except per share amounts)

Revenues:

Oil and natural gas

$

31,830

$

57,734

$

146,237

$

315,482

Contract drilling

42,797

44,590

181,056

147,370

Gas gathering and processing

82,673

Total revenues

74,627

102,324

327,293

545,525

Expenses:

Operating costs:

Oil and natural gas

16,528

21,021

65,739

93,350

Contract drilling

26,652

27,564

108,035

105,387

Gas gathering and processing

62,388

Total operating costs

43,180

48,585

173,774

261,125

Depreciation, depletion, and amortization

5,231

3,691

17,724

24,143

General and administrative

7,726

5,096

22,577

24,644

Gain on disposition of assets

(36,372

)

(1,968

)

(49,950

)

(8,367

)

Total operating expenses

19,765

55,404

164,125

301,545

Income from operations

54,862

46,920

163,168

243,980

Other income (expense):

Interest income

2,679

9,734

2,642

Interest expense

(43

)

(164

)

(447

)

Gain (loss) on derivatives, net

1,119

10,238

12,975

(63,610

)

Gain (loss) on change in fair value of warrants

(29,323

)

Loss on deconsolidation of Superior

(13,141

)

Gain on sale of Superior investment

17,812

Reorganization items, net

(136

)

(37

)

(299

)

(127

)

Other, net

190

(56

)

203

2,900

Total other income (expense)

3,809

12,748

40,261

(101,106

)

Income before income taxes

58,671

59,668

203,429

142,874

Income tax expense (benefit), net:

Current

694

333

1,575

333

Deferred

540

(47,085

)

Total income tax expense (benefit), net

1,234

333

(45,510

)

333

Net income

57,437

59,335

248,939

142,541

Net loss attributable to non-controlling interests

(5,828

)

Net income attributable to Unit Corporation

$

57,437

$

59,335

$

248,939

$

148,369

Net income attributable to Unit Corporation per common share:

Basic

$

5.89

$

6.16

$

25.68

$

15.03

Diluted

$

5.79

$

6.07

$

25.32

$

14.78

Unit Corporation

Selected Financial Highlights – Continued

December 31,

2023

December 31,

2022

Balance Sheet Data:

(In thousands)

Cash and cash equivalents

$

60,779

$

213,975

Current assets

$

118,296

$

275,469

Total assets

$

322,720

$

469,255

Current liabilities

$

42,399

$

68,232

Long-term debt

$

$

Other long-term liabilities

$

22,803

$

33,362

Total shareholders’ equity attributable to Unit Corporation

$

254,126

$

362,626

Rene Punch

Investor Relations

(918) 493-7700

www.unitcorp.com