Unit Corp. (UNT) Sees FY12 CapEx Up 6% to $801M
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Unit Corporation (NYSE: UNT) announced today its initial 2012 capital expenditure budget, 2012 production guidance and 2011 total proved oil and natural gas reserves, as well as certain operational updates for each of its three business segments. This information is unaudited and preliminary and is subject to change. Audited final results will be reported in Unit’s Schedule 10-K for the year ended December 31, 2011.
2012 Capital Expenditure Budget
The 2012 capital expenditures budget for all of Unit’s business segments is $801 million, an increase of 6% over estimated 2011 capital expenditures, excluding acquisitions. Of this amount, $457 million is budgeted for its oil and natural gas segment, which includes $385 million for drilling and completion activities, an 11% decrease over estimated 2011 capital expenditures, $120 million for its contract drilling segment, a 27% decrease over estimated 2011 capital expenditures, and $224 million for its mid-stream segment, a 182% increase over estimated 2011 capital expenditures.
Unit’s 2012 capital expenditures budget is based on prices for oil and natural gas averaging $90.00 per barrel and $3.50 per thousand cubic feet (Mcf) for the year. This budget is subject to possible adjustments for various reasons including changes in commodity prices and industry conditions. Funding for the 2012 capital expenditures budget will come mainly from internally generated cash flow and, to a lesser extent, from borrowings under the company’s bank credit facility.
Total proved oil and natural gas reserves at December 31, 2011 were 116.0 MMBoe, consisting of 20.3 million barrels (MMbls) of oil, 22.1 MMbls of natural gas liquids (NGLs) and 442.1 billion cubic feet (Bcf) of natural gas. This represents a 12% increase over 2010 year-end total proved reserves. Between 2011 and 2010, Unit’s oil and NGLs reserves increased 16% and 37%, respectively, while its natural gas reserves increased 5%. The significant increase in Unit’s oil and NGLs reserves at December 31, 2011 is the result of the strategy implemented by Unit at the beginning of 2009 to focus on oil or liquids rich prospects. Eighty-one percent of Unit’s proved oil and natural gas reserves are “proved developed,” with the remaining 19% comprising “proved undeveloped” reserves.
Production during the fourth quarter of 2011 was 744,000 barrels of oil, 616,000 barrels of NGLs and 11.4 Bcf of natural gas, or 3.3 MMBoe, an increase of 4% and 21% over the third quarter of 2011 and the fourth quarter of 2010, respectively. Total production for 2011 was 12.1 MMBoe, an increase of 23% from the 9.9 MMBoe produced in 2010, and included an increase in oil and NGLs production of 55%.
For 2012, Unit’s preliminary annual production guidance is 13.2 to 13.5 MMBoe, an increase of 9% to 12% over 2011. This estimate is subject to change depending on a number of factors that may come into play during 2012.
2012 Capital Expenditure Budget
The 2012 capital expenditures budget for all of Unit’s business segments is $801 million, an increase of 6% over estimated 2011 capital expenditures, excluding acquisitions. Of this amount, $457 million is budgeted for its oil and natural gas segment, which includes $385 million for drilling and completion activities, an 11% decrease over estimated 2011 capital expenditures, $120 million for its contract drilling segment, a 27% decrease over estimated 2011 capital expenditures, and $224 million for its mid-stream segment, a 182% increase over estimated 2011 capital expenditures.
Unit’s 2012 capital expenditures budget is based on prices for oil and natural gas averaging $90.00 per barrel and $3.50 per thousand cubic feet (Mcf) for the year. This budget is subject to possible adjustments for various reasons including changes in commodity prices and industry conditions. Funding for the 2012 capital expenditures budget will come mainly from internally generated cash flow and, to a lesser extent, from borrowings under the company’s bank credit facility.
Total proved oil and natural gas reserves at December 31, 2011 were 116.0 MMBoe, consisting of 20.3 million barrels (MMbls) of oil, 22.1 MMbls of natural gas liquids (NGLs) and 442.1 billion cubic feet (Bcf) of natural gas. This represents a 12% increase over 2010 year-end total proved reserves. Between 2011 and 2010, Unit’s oil and NGLs reserves increased 16% and 37%, respectively, while its natural gas reserves increased 5%. The significant increase in Unit’s oil and NGLs reserves at December 31, 2011 is the result of the strategy implemented by Unit at the beginning of 2009 to focus on oil or liquids rich prospects. Eighty-one percent of Unit’s proved oil and natural gas reserves are “proved developed,” with the remaining 19% comprising “proved undeveloped” reserves.
Production during the fourth quarter of 2011 was 744,000 barrels of oil, 616,000 barrels of NGLs and 11.4 Bcf of natural gas, or 3.3 MMBoe, an increase of 4% and 21% over the third quarter of 2011 and the fourth quarter of 2010, respectively. Total production for 2011 was 12.1 MMBoe, an increase of 23% from the 9.9 MMBoe produced in 2010, and included an increase in oil and NGLs production of 55%.
For 2012, Unit’s preliminary annual production guidance is 13.2 to 13.5 MMBoe, an increase of 9% to 12% over 2011. This estimate is subject to change depending on a number of factors that may come into play during 2012.
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