unit corporation corporate presentation · 2017. 9. 25. · this presentation contains...
TRANSCRIPT
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September 26, 2017
Unit CorporationCorporate Presentation
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Forward Looking Statement
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This presentation contains forward‐looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this presentation that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward‐looking statements. The words “believe,” “expect,” “anticipate,” “plan,” “intend,” “foresee,” “should,” “would,” “could,” or other similar expressions are intended to identify forward‐looking statements, which are generally not historical in nature. However, the absence of these words does not mean that the statements are not forward‐looking. Without limiting the generality of the foregoing, forward‐looking statements contained in this presentation specifically include the expectations of plans, strategies, objectives and anticipated financial and operating results of the Company, including as to the Company’s drilling program, production, hedging activities, capital expenditure levels and other guidance included in this presentation. These statements are based on certain assumptions made by the Company based on management’s expectations and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or expressed by the forward‐looking statements. These include risks relating to financial performance and results, current economic conditions and resulting capital restraints, prices and demand for oil and natural gas, availability of drilling equipment and personnel, availability of sufficient capital to execute the Company’s business plan, the Company’s ability to replace reserves and efficiently develop and exploit its current reserves and other important factors that could cause actual results to differ materially from those projected. Any forward‐looking statement speaks only as of the date on which such statement is made and the Company undertakes no obligation to correct or update any forward‐looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law. The SEC generally permits oil and gas companies, in filings made with the SEC, to disclose only proved reserves, which are reserve estimates that geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions. In this communication, the Company uses the term “unproved reserves” which the SEC guidelines prohibit from being included in filings with the SEC. “Unproved reserves” refers to the Company’s internal estimates of hydrocarbon quantities that may be potentially discovered through exploratory drilling or recovered with additional drilling or recovery techniques. Unproved reserves may not constitute reserves within the meaning of the Society of Petroleum Engineer’s Petroleum Resource Management System or proposed SEC rules and does not include any proved reserves. Actual quantities that may be ultimately recovered from the Company’s interests will differ substantially. Factors affecting ultimate recovery include the scope of the Company’s ongoing drilling program, which will be directly affected by the availability of capital, drilling and production costs, availability of drilling services and equipment, drilling results, lease expirations, transportation constraints, regulatory approvals and other factors; and actual drilling results, including geological and mechanical factors affecting recovery rates. Estimates of unproved reserves may change significantly as development of the Company’s core assets provide additional data. In addition, our production forecasts and expectations for future periods are dependent upon many assumptions, including estimates of production decline rates from existing wells and the undertaking and outcome of future drilling activity, which may be affected by significant commodity price declines or drilling cost increases.
This presentation contains financial measures that have not been prepared in accordance with U.S. Generally Accepted Accounting Principles (“non‐GAAP financial measures”) including LTM EBITDA and certain debt ratios. The non‐GAAP financial measures should not be considered a substitute for financial measures prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”). We urge you to review the reconciliations of the non‐GAAP financial measures to GAAP financial measures in the appendix.
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Unit Corporation: A Diversified Energy Company
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10
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6
55
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Casper Casper
Houston Houston
Oklahoma City
Oklahoma City
PittsburghPittsburgh
Tulsa HeadquartersTulsa HeadquartersArkoma Basin
Marcellus
North La/ East Texas Basin
Gulf Coast Basin
Anadarko Basin
Permian Basin95 Unit Rigs
E&P Operations
Mid‐Stream Operations
Office Location
• Tulsa based, incorporated in 1963
• Integrated approach to business allows Unit to capture margin from each business segment
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Company Highlights
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• Highly economic opportunities for our E&P segment
• Contract drilling segment growing with industry rebound
• Midstream segment EBITDA poised for growth
• Fiscally conservative• Capital spending in line with cash flow
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Core Upstream Producing Areas
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Gas52%
29%NGLs
Q2 2017 Daily Production: 42.3 MBoe/d
Key focus areas include:Gulf Coast: Wilcox (Southeast Texas)
Mid‐Continent: Granite Wash (Texas Panhandle) Hoxbar (Western Oklahoma) STACK (Western Oklahoma)
Mid Continent Region
Upper Gulf Coast Region
Wilcox
Hoxbar/STACKGranite Wash
0102030405060
2013 2014 2015 2016 2017 estNatural Gas Oil / NGLs
91 121 10
Average Production (MBoe/d)
44‐4546 4750 55
35Net Wells Drilled:
19%Oil
2016 year end total proves reserves: 707 Bcfe or 118 MMBoe
~25
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OilCondensate
Dry Gas
STACK 10,000+ acres 100% HBP 80% in Over Pressured Window Upper, Middle and Lower
Meramec also Woodford and Osage targets
Operators are testing 15‐20 wells per section in Meramec
* 90‐130 operated locations * 450‐650 non‐op locations
STACK Extension 5,000+ Acres 90% HBP Osage and Meramec targets Well density not tested yet 20‐50 Operated Locations 100‐200 Non‐Op Locations
Unit’s STACK and STACK Extension Positions
STACK Extension
STACK
* Assumes 4‐6 Wells/Section Assumes 2‐4 Wells/Section
Unit Acreage
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STACK Acreage Proven Across Multiple Targets
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Anderson Half 1‐30‐19XH (CLR)IP30: 17.1 Mmcfepd(99% Gas) (7.1% WI)
Edith Mae 1‐24‐25XH (CLR)IP30: 23.6 Mmcfepd(99% Gas)
Jordan 10_15‐14N‐9W (DVN)Currently Completing (10.8% WI
Yocum 1‐35‐26XH (CLR)IP30: 14.1 Mmcfepd (99% Gas)
Hicks BIA 1‐13‐12XH (MRO)Currently Drilling (4.2% WI)
Reece Jane 1‐33‐4XH (CLR)IP30: 16.6 Mmcfepd(100% Gas)
Mogg 1‐6‐7XH (CLR)Waiting on Spud (7.8% WI)
Jameson 1‐16H (DVN)IP30: 5.7 Mmcfepd (99% Gas)
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2
3
4
5
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Wyatt 1‐5‐8XH (CLR)IP30: 16.5 Mmcfepd(100% Gas)
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8
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ML 6‐14N‐9W 1H (DVN)IP30: 1,766 Boepd (48% Oil)(9.3% WI)
Angus Trust 1‐4‐33XH (CLR)IP30: 4,642 Boepd (45% Oil)
Privott 17_20‐16N‐9W 1H (CLR)IP30: 4,308 Boepd (57% Oil) (2.2% WI)
Wehmuller 1307 2‐19MH (MRO)IP30: 1,086 Boepd (40%Oil)
Bone 32‐12‐6 1H (Jones)Waiting on Spud (8.5% WI)
1410 11 13
67
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914
10
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Unit’s Acreage
Meramec
Woodford
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3
4
5
Denotes Unit WI in Well
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12
OilCondensate
Dry Gas
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STACK Extension Pushing Boundary of STACK
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Howard 5‐19‐17 1H (Tapstone)IP30: 2,494 Boepd (62% Oil)
Russell 17‐19‐17 (Tapstone)IP30: 1,059 Boepd (50% Oil)
Stephen 26‐18‐17 1H (CHK)IP30: 646 Boepd (3% Oil)
Drinnon 32‐18‐17 1H (Tapstone)IP30: 793 Boepd (22% Oil)
Big Hunk 7‐1H (Carrera)IP30: 777 Boepd (10% Oil)
Lau 1‐4H (Council Oak)IP30: 1,500 Boepd (20% Oil)
Walters 1915 1H‐22X (NFX)Currently Drilling (10.8% WI)
Olive Lee 1H‐22 (Tapstone)IP30: 1,755 Boepd (19% Oil)
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5
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Brown Farm 1H‐19 (NFX)IP30: 822 Boepd ( 86% Oil)
Ward 21‐1H (Commanche)IP30: 627 Boepd (75% Oil)
McConnell 19‐1H (Comanche)IP30: 532 Boepd (46% Oil)
Moss 30‐1H (Corlena)IP30: 491 Boepd (9% Oil)
Schoeppel 16‐20‐12 (CHK)IP30: 865 Boepd (54%Oil)
Medrill 2015 1‐27H (SD)IP30: 1,164 Boepd (85% Oil)
1410 11 12 13
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Unit’s Acreage
Meramec
Osage
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Denotes Unit WI in Well
Oil
Condensate
Dry Gas
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Wilcox (Southeast Texas)
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Wilcox Strategy for Future Growth Over 100 stacked pay recompletion andworkover opportunities in existing wells(e.g. Gilly Field)
Drill exploratory prospects with large upside (e.g. Cherry Creek prospect)
Build horizontal well inventory in existing fields (e.g. Village Mills Field)
Overall Wilcox Highlights Drilled 164 operated wells since 2003(155 vertical, 9 horizontal)
Program ROR > 100% Operated with working interest ~ 92% Production: ~ 100 MMcfe/d (42% liquids) Running one rig
Gilly Field – World Class Gas Reservoir 500 Bcfe stacked pay gas resource Cumulative production ~ 100 Bcfe Average EUR of 10‐20 Bcfe per well Typical well ~ $6 MM cost, ROR > 100%
JASPER
POLK
3D AREA494 mi.²
HARDIN
Prior Years DrillingHorizontal Wells
TYLER
Gilly Field
0.40
0.80
1.20
1.60
2.00
0
10
20
30
40
2012 2013 2014 2015 2016 2017Projected
Gas Oil NGLs LOEX ($/MCFE)
Wilcox Annual ProductionBCFE $/MCFE
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Wilcox Activity Map for 2017
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POLK
HARDIN
TYLER
LIBERTY
CHERRY CREEK
GILLY VILLAGE MILLS
SEGNO NE
WING
Drilled and completedScheduled for 2017
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2016 Wilcox Recompletions& Workover Results
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Composite Gross Production from Recompletions and Workovers20 Recompletions & 7 Workovers Total Cost: $10MM
Start of Year3,360 mcfd80 bopd
End of Year40,000 mcfd1,100 bopd
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2017 (YTD) Wilcox Recompletions& Workover Results
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Composite Gross Production from Recompletions and Workovers13 Recompletions & 10 Workovers Total Cost: $6.6MM
Start of Year6,230 mcfd220 bopd
End of Q214,520 mcfd370 bopd
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Wilcox Horizontal Upper Dempsey Test –Village Mills Field
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Depth Map on Dempsey Sd
0.23 BCFG2.3 MMCF/D IP48,000# Frac
1.03 BCFG2.6 MMCF/D IP214,000# Frac
1.45 BCFG1.8 MMCF/D IP72,000# Frac
West Univ. #1H5,800’ LateralIP60: 8 MMCF/D, 180 BO/D2,000# Flowing Pressure22 Stage, 5,300,000# Frac
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Wilcox Horizontal Targets – Village Mills FieldPotential for 30 horizontal wells
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UPPER DEMPSEY SAND – Target in West University #1H – 4‐6 Additional Laterals Possible
LOWER DEMPSEY SAND – Target in BP America Fee #2H – Additional Laterals 4‐6
10600’ Sd – 4‐6 Laterals Possible
West Univ. #1H5,800’ LateralIP30: 9 MMCF/D, 240 BO/D3,000# Flowing Pressure22 Stage, 5,300,000# Frac
BP America #2H1500’ LateralIP30: 8.6 MMCF/D, 212 BO/D6000# Flowing Casing Pressure6 Stage, 1,300,000# Frac
OUTPOST SERIES– Target in West University #2H – 8‐12 Laterals Possible (contingent upon reservoir and frac analysis)
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Buffalo Wallow Field – Economic Advantages
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Geology 11 Granite Wash lenses Sands present across acreage
Land ~9,000 net acres Operated and ~90% HBP Average working interest ~ 90% 220 ‐ 270 potential XL locations Working to expand position
Operations Running one rig Will test 9,500’ laterals in Q3
Infrastructure SWD network lowers disposal costs 80% and allows for water recycling Electricity throughout field Superior Pipeline gathers and processes the gas
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Granite Wash Extended Lateral (~7,500’) Potential Reserve Range
5 BCFE ROR: 13%
8 BCFE ROR: 47%
11 BCFEROR: 104%
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200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
0 20 40 60 80 100 120 140 160 180 200
Cumulative Prod
uctio
n (M
MCFE)
Days
2nd C1
1st C1
1st A2
3rd C1
4th C1
ROR assumes well cost of $6.3MM
ROR uses the 9/19/2017 Strip Price Deck with 1st Production Starting 9/1/2017 and includes the midstream margin.See Q3 2017 Economic Prices in Appendix (also available at www.unitcorp.com/investor/reports/html)
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Hoxbar (Marchand Sand)
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H O X B A R 3 , 0 0 0 ’
Hoxbar Marchand Core Area EUR ~ 540 MBoe Well cost $5.2 MM 80% liquids (63% oil) ~24,000 net acres (64% HBP) 50 ‐ 60 locations Working interest of 50‐60% ROR1 ~ 79% Running one rig
Future Growth Extended laterals in both Marchand and Medrano Secondary recovery in Marchand provides upside potential
1 9/19/2017 Strip Price Deck with 1st Production Starting 9/1/2017;See Q3 2017 Economic Prices in Appendix (also available at www.unitcorp.com/investor/reports/html)
Marchand VerticalMarchand Horizontal
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Rig Fleet Presence in Key Regions
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Area # of RigsMid‐Continent 16
Bakken 4Niobrara 1Permian 8Pinedale 2East Texas 2
Total 33
Current Rigs Operating(1)
95 rig fleet
69% electric 54% 1,500 HP or greater 34 equipped with skidding or walking systems 27 additional can be skidded
35% total fleet utilization at present All ten BOSS rigs operating
20 ≤800 HP: 21%71 1,000‐1,700 HP: 75%4 ≥2,000 HP: 4%
(1) As of September 22, 2017.
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SCR Rigs Continue to Make anImportant Contribution
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0
5
10
15
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25
30
35
40
May 5, 2016 Aug. 4, 2016 Dec. 31, 2016 Sep. 22, 2017
A/C SCR
• At industry trough – 13 drilling rigs operating
• Currently, 33 drilling rigs operating
• All BOSS rigs operating
• 23 SCR rigs operating̶ 16 SCR rigs required
no modifications̶ 7 SCR rigs required
some upgrade
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12
23
6 79 10
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Average Dayrates and Margins (1)
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Average Rig Utilization
Margins and
Dayrates
$0
$5,000
$10,000
$15,000
$20,000
2008 2009 2010 2011 2012 2013 2014 2015 2016 6 mos.'17
Margins Dayrates Average Rig Utilization
100%
75%
50%
25%
0%
(1) See Reconciliation of Average Daily Operating Margin Before Elimination of Intercompany Rig Profit and Bad Debt Expense in Appendix(also available at www.unitcorp.com/investor/reports.html).
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The BOSS Drilling Rig
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Optimized for Pad Drilling Multi‐direction walking system
Faster Between Locations Quick assembly substructure 32‐34 truck loads
More Hydraulic Horsepower (2) 2,200 horsepower
mud pumps 1,500 gpm available
with one pump
Environmentally Conscious Dual‐fuel capable
engines Compact location
footprint
All ten BOSS rigs currently under contract
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Midstream Core Operations
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Appalachia 66,000+ dedicated acres 54 miles of gathering pipeline Connected 24 new wells in2016
TulsaHeadquarters
PittsburghRegional office
Hemphill
Reno
Bellmon
Segno
Pittsburgh Mills
Processing facilities
Gathering systems
Panola
Key Metrics
• 25 active systems• Three natural gas treatment plants• 340 MMcf/d processing capacity• Q2’17 processing volume 135 MMcf/d• Approx. 1,470 miles of pipeline
East Texas 66 Miles of gathering pipeline 120 MMcf/d dehycapacity
Texas Panhandle 52,000 dedicated acres 135 MMcf/d processing capacity 345 miles of gathering pipeline
Northern Oklahoma and Kansas 2,064,000+ dedicated acres 193 MMcf/d processing capacity 579 miles of gathering pipeline
Central & Eastern OK 57,000+ dedicated acres 12 MMcf/d processing capacity 428 miles of gathering pipeline
Brook Field
Snow Shoe
Bruceton Mills
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Midstream Segment Contract Mix
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Contract Mix Based on Margin
Fee BasedCommodity Based
85%35%
65%
15%
Contract Mix Based on Volume
Fee BasedCommodity Based
49%28%
72%51%
2010 Q2 2017
Unit vs. 3rd Party Margin Contribution
3rd PartyUnit
41% 33%67%59%
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Midstream Historical Volumes
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‐
20,000,000
40,000,000
60,000,000
80,000,000
100,000,000
120,000,000
140,000,000
160,000,000
180,000,000
200,000,000
2009 2010 2011 2012 2013 2014 2015 2016
Gas Gathered (MMbtu) Gas Processed (MMbtu)
MMBtu
Gathe
red & Processed
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Midstream SegmentCommodity Price Sensitivity (1)
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$0
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
2009 2010 2011 2012 2013 2014 2015 2016 2016Adjusted
$29.40 $38.64 $43.26 $31.50 $35.70 $30.24 $15.96 $15.96 $21.07$54.89 $75.07 $88.47 $89.93 $87.46 $81.25 $37.03 $32.56 $47.33
Realized Price*NGL/Barrel:
Condensate/Bbl:
*Net realized prices – prices received after transportation, fuel, and fees paid.(1) See Superior Pipeline Company Reconciliation of EBITDA in Appendix (also available at www.unitcorp.com/investor/reports.html).
Segment EBITDA Before Intercompany Eliminations
2016 Adjustments
• Utilized 2016 volumes
• Assumed $55.00/Bbl oil price
• Adjusted for average NGL price of $21.07/Bbl
• Adjusted average condensate price of $47.33/Bbl
• Prices are after transportation, fuel, and fees paid.AdjustedPriceRealized Price
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* Drilling rigs are not included in borrowing base.
Debt Structure – No Near‐Term Maturities
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Senior Subordinated Notes
$650 million, 6.625%
10‐year, NC5; maturity 2021
Key Covenants Interest coverage ratio ≥ 2.25x(1)
Secured Bank Facility (Redetermined April 2017) * Elected Commitment
and Current Borrowing Base $475 million
Outstanding(2) $164.9 million
Maturity April 2020
Key Covenants Current ratio ≥ 1.0 to 1.0(1)
Senior Indebtedness ratio ≤ 2.75(1)
(1) As defined in Indenture/Credit Agreement.(2) As of June 30, 2017.
Ratings S&P Moody’s FitchCorporate B+ B2 B+Senior Subordinated Notes BB‐ B3 BB‐
6/30/20175.43x(1,2)
6/30/2017 Actual2.59x(1,2)
0.56x(1,2)
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Segment Contribution
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Oil and Natural Gas Contract Drilling Midstream
Revenues ($ millions) Adjusted EBITDA ($ millions)(1)
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
2013 2014 2015 2016 6 mos. '17
$0
$200
$400
$600
$800
2013 2014 2015 2016 6 mos. '17
$1,352
$1,573
$854
$602
$346
$787
$410
$252
$145
$667
(1) See Non‐GAAP Financial Measures in Appendix (also available at www.unitcorp.com/investor/reports.html).
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Operating Segment Capital Expenditures
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$0
$500
$1,000
$1,500
2013 2014 2015 2016 2017 Forecast
Oil and Natural Gas Contract Drilling Midstream
(In Millions)
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Investment Considerations
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• E&P segment three core areas provide compelling economics
• Contract drilling segment resuming pattern of growth
• Midstream segment positioned to benefit from increased activity levels and liquids price improvement
• We maintain fiscal discipline• Solid balance sheet with ample liquidity
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APPENDIX
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Non‐GAAP Financial Measures ‐ Corporate
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Adjusted EBITDAYears endedDecember 31,
($ In Millions) 2017 2013 2014 2015 2016
Net Income (Loss) ($113) $25 $185 $136 ($1,037) ($136)Income Taxes (59) 20 117 87 (627) (71)Depreciation, Depletion and Amortization 110 98 334 405 355 210
Impairments 112 ‐ ‐ 158 1,635 162 Interest Expense 20 19 15 17 32 40 (Gain) loss on derivatives 12 (24) 8 (30) (26) 23Settlements during the period of matured derivative contracts 12 (2) (2) (6) 47 10
Stock compensation plans 8 8 22 24 21 14 Other non‐cash items 2 2 5 5 3 3 (Gain) loss on disposition of assets (1) (1) (17) (9) 7 (3) Adjusted EBITDA $103 $145 $667 $787 $410 $252
2016
Six months endedJune 30,
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Non‐GAAP Financial Measures ‐ Segments
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Unit PetroleumIncome (Loss) Before Income Taxes (1) $ (113) $ 64 $ 239 $ 199 $ (1,631) $ (102)
Depreciation, Depletion and Amortization 62 45 226 276 252 114Impairment of Oil and Natural Gas Properties 112 ‐ ‐ 77 1,599 162
Adjusted EBITDA $ 61 $ 109 $ 465 $ 552 $ 220 $ 174
Unit DrillingIncome (Loss) Before Income Taxes (1) $ (7) $ (7) $ 96 $ 42 $ 45 $ (13)
Depreciation and Impairment 23 27 71 160 64 47Adjusted EBITDA $ 16 $ 20 $ 167 $ 202 $ 109 $ 34
Superior PipelineIncome (Loss) Before Income Taxes (1) $ (2) $ 3 $ 11 $ 2 $ (30) $ 2
Depreciation, Amortization and Impairment 23 22 33 48 71 46Adjusted EBITDA $ 21 $ 25 $ 44 $ 50 $ 41 $ 48
(1) After intercompany eliminations and does not include allocation of G&A expense.
Adjusted EBITDA
($ In Millions) 2017 2013 2014 2015 20162016
Years endedDecember 31,
Six months endedJune 30,
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Non‐GAAP Financial Measures
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Reconciliation of Average Daily Operating MarginBefore Elimination of Intercompany Rig Profit and Bad Debt Expense
(In thousands except for operating daysand operating margins) 2016 2013 2014 2015 2016
Contract drilling revenue $62,967 $76,440 $414,778 $476,517 $265,668 $122,086
Contract drilling operating cost 47,352 56,466 247,280 274,933 156,408 88,154
Operating profit from contract drilling $15,615 $19,974 $167,498 $201,584 $109,260 $33,932
Add:
Elimination of intercompany rig profit and bad debt expense 235 376 17,416 29,343 3,991 235
Operating profit from contract drilling before elimination of intercompany rig profit and bad debt expense
15,850 20,350 184,914 230,927 113,251 34,167
Contract drilling operating days 3,108 4,916 23,720 27,516 12,681 6,374
Average daily operating margin beforeelimination of intercompany rig profit and bad debt expense
$5,100 $4,139 $7,796 $8,392 $8,931 $5,360
2017
Years endedDecember 31,
Six months endedJune 30,
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Non‐GAAP Financial Measures
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Reconciliation of Average Daily Operating MarginBefore Elimination of Intercompany Rig Profit and Bad Debt Expense
Years ended December 31,2008 2009 2010 2012
(In thousands except for operating daysand operating margins)
Contract drilling revenue $622,727 $236,315 $316,384 $484,651 $529,719
Contract drilling operating cost 312,907 140,080 186,813 269,899 289,524
Operating profit from contractdrilling $309,820 $96,235 $129,571 $214,752 $240,195
Add:
Elimination of intercompany rig profit and bad debt expense 29,381 1,549 9,158 19,900 15,583
Operating profit from contract drilling before elimination of intercompany rig profit and bad debt expense
339,201 97,784 138,729 234,652 255,778
Contract drilling operating days 37,745 14,183 22,367 27,619 26,704
Average daily operating margin before elimination of intercopmany rig profit and bad debt expense
$8,987 $6,894 $6,202 $8,496 $9,578
2011
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Midstream Reconciliation of EBITDA(Before Intercompany Eliminations)
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Total Midstream Income (Loss)Before Intercompany Eliminations $ 7,126 $ 19,267 $ 19,555 $ 8,237 $ 15,636 $ 6,626 $ (24,159) $ 8,799
(Gain) Loss on Disposition of Assets ‐‐‐ ‐‐‐ 81 313 ‐‐‐ (97) (465) 302Depreciation and Amortization 16,104 15,385 16,101 23,110 33,191 40,434 43,676 45,715Impairments ‐‐‐ ‐‐‐ ‐‐‐ 1,278 ‐‐‐ 7,068 26,966 ‐‐‐Segment EBITDA Before Intercompany Eliminations * $ 23,230 $ 34,652 $ 35,737 $ 32,938 $ 48,827 $ 54,031 $ 46,018 $ 54,816
Segment EBITDA Before Intercompany EliminationsYears ended December 31,
($ In Millions) 2009 2010 2011 2012 2013 2014 2015 2016
*Excludes depreciation, allocated interest, and corporate G&A
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Derivative Summary
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Crude 2017 2018Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
CollarsVolume (Bbl) ‐‐ ‐‐ ‐‐ ‐‐ ‐‐ ‐‐ ‐‐ ‐‐Weighted Avg Floor ‐‐ ‐‐ ‐‐ ‐‐ ‐‐ ‐‐ ‐‐ ‐‐Weighted Avg Ceiling ‐‐ ‐‐ ‐‐ ‐‐ ‐‐ ‐‐ ‐‐ ‐‐
3‐Way CollarsVolume (Bbl) 337,500 341,250 345,000 345,000 180,000 182,000 184,000 184,000Weighted Avg Floor $49.79 $49.79 $49.79 $49.79 $47.50 $47.50 $47.50 $47.50Weighted Avg Subfloor $39.58 $39.58 $39.58 $39.58 $37.50 $37.50 $37.50 $37.50Weighted Avg Ceiling $60.98 $60.98 $60.98 $60.98 $56.08 $56.08 $56.08 $56.08
SwapsVolume (Bbl) ‐‐ ‐‐ ‐‐ ‐‐ 180,000 182,000 184,000 184,000Weighted Avg Swap ‐‐ ‐‐ ‐‐ ‐‐ $50.14 $50.14 $50.14 $50.14
Natural Gas 2017 2018Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
CollarsVolume (MMBtu) 1,800,000 1,820,000 1,840,000 620,000 ‐‐ ‐‐ ‐‐ ‐‐Weighted Avg Floor $2.88 $2.88 $2.88 $2.88 ‐‐ ‐‐ ‐‐ ‐‐Weighted Avg Ceiling $3.10 $3.10 $3.10 $3.10 ‐‐ ‐‐ ‐‐ ‐‐
3‐Way CollarsVolume (MMBtu) 1,350,000 1,365,000 1,380,000 1,990,000 5,400,000 1,820,000 1,840,000 1,840,000Weighted Avg Floor $2.50 $2.50 $2.50 $2.81 $3.29 $3.00 $3.00 $3.00Weighted Avg Subfloor $2.00 $2.00 $2.00 $2.23 $2.63 $2.50 $2.50 $2.50Weighted Avg Ceiling $3.32 $3.32 $3.32 $3.53 $4.07 $3.51 $3.51 $3.51
SwapsVolume (MMBtu) 6,300,000 6,370,000 6,440,000 5,830,000 1,800,000 1,820,000 1,840,000 1,840,000 Weighted Avg Swap $3.04 $3.04 $3.04 $2.99 $3.01 $3.01 $3.01 $3.01
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Q3 2017 Economic Prices
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CrudeNatural
Gas MB C2 MB C3BBL MB
C3 MB NC4 MB iC4 MB C5+ CW C2 CW C3 CW NC4 CW iC4 CW C5+
2017 $49.816 $3.168 $0.277 $0.878 $27.168 $1.013 $1.008 $1.155 $0.191 $0.851 $1.026 $1.044 $1.123
2018 $50.980 $3.101 $0.271 $0.899 $27.544 $1.037 $1.032 $1.182 $0.187 $0.871 $1.050 $1.069 $1.149
2019 $50.928 $2.920 $0.255 $0.898 $27.190 $1.036 $1.031 $1.181 $0.176 $0.870 $1.048 $1.068 $1.148
2020 $50.898 $2.863 $0.250 $0.897 $27.072 $1.035 $1.030 $1.180 $0.173 $0.869 $1.048 $1.067 $1.147
2021 $51.141 $2.847 $0.249 $0.902 $27.147 $1.040 $1.035 $1.186 $0.172 $0.874 $1.053 $1.072 $1.153
Thereafter $51.141 $2.847 $0.249 $0.902 $27.147 $1.040 $1.035 $1.186 $0.172 $0.874 $1.053 $1.072 $1.153
Strip Case*
*Strip prices as of 9/19/2017.
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September 26, 2017
Unit CorporationCorporate Presentation