Unit Corp. (UNT) Misses Q1 EPS by 11c, Revenues Miss

Unit Corp. (NYSE: UNT) reported Q1 EPS of $0.09, $0.11 worse than the analyst estimate of $0.20. Revenue for the quarter came in at $189.69 million versus the consensus estimate of $199.6 million.

• Net loss attributable to Unit for the quarter was $3.5 million, or $0.07 per diluted share, compared to net income attributable to Unit of $7.9 million, or $0.15 per diluted share, for the first quarter of 2018.
• Adjusted net income attributable to Unit (which excludes the effect of non-cash commodity derivatives) for the quarter was $4.5 million, or $0.09 per diluted share, as compared to $0.21 per diluted share for the same quarter for 2018 (see Non-GAAP financial measures below).
• Adjusted net income decreased due to lower oil and gas segment margins, which were primarily reduced by lost production resulting from the plant shut-down and an increase in DD&A, which was partially offset by improved contract drilling margins and derivative settlements received.
• Total revenues for the quarter were $189.7 million (45% oil and natural gas, 27% contract drilling, and 28% mid-stream), compared to $205.1 million (50% oil and natural gas, 23% contract drilling, and 27% mid-stream) for the first quarter of 2018.
• Adjusted EBITDA attributable to Unit was $77.1 million, or $1.47 per diluted share (see Non-GAAP financial measures below).

Pinkston said: “The first quarter production decline was due to the third-party plant shut-down. The 14-day shut-down had a significant impact on both production and revenues. Wilcox production generally receives LLS oil pricing, Mt. Belvieu liquids, and Henry Hub natural gas index pricing, which lately are some of the best price points we are seeing. We are optimistic that the plant turnaround will result in improved recoveries going forward. As we have noted, we are continuing to move our drilling focus to increase our oil content. To that end, we now have two drilling rigs operating in each of the Penn Sands and SOHOT core areas, with both areas having a higher oil content. We are encouraged by our efforts to successfully expand our leasehold position in those areas where we have seen higher oil production."

For earnings history and earnings-related data on Unit Corp. (UNT) click here.

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