Unit Corp. Reports 24% Increase in Net Income for 1994

Strategic Insights -

Unit Corp.'s net income for 1994 saw a significant increase of 24 percent compared to the previous year. The company's 1994 net income was $4.8 million, or $.23 per share, on revenues of $88.0 million. This improvement in net income was largely driven by a gain of $742,000 from the sale of one of the company's gas gathering systems. Additionally, oil and natural gas revenue increased 8 percent, with natural gas production rising by 29 percent and oil production by 2 percent. Contract drilling revenues also saw a 16 percent increase, with the company's average rig utilization rate improving from 8 to 9.5 rigs in 1994. The company's natural gas marketing and processing revenues increased by 38 percent, primarily due to higher volumes marketed in 1994.

Key Takeaways:

  • Unit Corp.'s net income for 1994 increased by 24 percent to $4.8 million, or $.23 per share, compared to the previous year.
  • The company's revenue for 1994 was $88.0 million, an 8 percent increase from the previous year.
  • Natural gas production saw a significant increase of 29 percent, while oil production rose by 2 percent in 1994.
  • Contract drilling revenues increased by 16 percent, with the company's average rig utilization rate rising from 8 to 9.5 rigs.
  • Natural gas marketing and processing revenues increased by 38 percent, primarily due to higher volumes marketed in 1994.
  • Unit Corp. expects to spend around $16 million on its capital expenditure program in 1995, with a goal of replacing more than 150 percent of its production.
  • The company replaced 325 percent of 1994 oil and natural gas production, with approximately 160 percent of production replaced through property acquisitions.
  • Unit Corp.'s finding and development costs per equivalent barrel of oil in 1994 was $3.84.

Statistics:

  • Net income for 1994: $4.8 million
  • Net income for 1993: $3.9 million
  • Revenue for 1994: $88.0 million
  • Revenue for 1993: $70.9 million
  • Increase in oil production: 2 percent
  • Increase in natural gas production: 29 percent
  • Increase in contract drilling revenues: 16 percent
  • Increase in natural gas marketing and processing revenues: 38 percent

Sources:

  • PRNewswire, Feb. 22, 1995
  • Unit Corp. financial highlights (in thousands except per share amounts)