Unit Corp. (UNT, Financial) filed Quarterly Report for the period ended 2010-03-31.
Unit Corp. has a market cap of $2.26 billion; its shares were traded at around $47.55 with a P/E ratio of 18.8 and P/S ratio of 3.2. Unit Corp. had an annual average earning growth of 4.2% over the past 10 years.UNT is in the portfolios of Chuck Royce of Royce& Associates, John Buckingham of Al Frank Asset Management, Inc., John Keeley of Keeley Fund Management, Bruce Kovner of Caxton Associates, Steven Cohen of SAC Capital Advisors, Jeremy Grantham of GMO LLC.
First quarter 2010 production from our oil and natural gas segment was 157,000 Mcfe per day, a 1% increase over the fourth quarter of 2009 and a 13% decrease over the first quarter of 2009. The decrease in production from first quarter 2009 is primarily due to the natural declines in production and the reduction in reserve replacement after slowing our development drilling program through most of 2009 due to the downturn in commodity prices.
First quarter 2010 oil and natural gas revenues increased 9% from the fourth quarter of 2009 and increased 11% from the first quarter of 2009. Our oil, natural gas and NGL prices in the first quarter of 2010, increased 9%, 3% and 64%, respectively, from the fourth quarter of 2009 and our oil, natural gas and NGL prices increased 33%, 9% and 129%, respectively, from the first quarter of 2009. Direct profit (oil and natural gas revenues less oil and natural gas operating expense) increased 13% from the fourth quarter of 2009 and increased 15% from the first quarter of 2009. The increases from the fourth quarter 2009 and the first quarter 2009 were primarily attributable to increases in oil and liquids prices and to a lesser extent natural gas prices. Operating cost per Mcfe produced increased 2% from the fourth quarter of 2009 and 16% from the first quarter of 2009 due to the increase in production taxes due to increased commodity prices.
For 2010, we hedged 74% of our average daily oil production (based on our first quarter 2010 production) and approximately 74% of our average natural gas production (based on our first quarter 2010 production) to help manage our cash flow and capital expenditure requirements. Currently for 2011 and 2012, we have hedged 13% for each year of our average natural gas production (based on our first quarter 2010 production) and currently do not have any oil hedges in place for these years.
First quarter 2010 liquids sold per day decreased 4% from the fourth quarter of 2009 and increased 16% from the first quarter of 2009. Liquids sold per day decreased from the fourth quarter of 2009 primarily due to reduced liquid recoveries on wells within the system and for down time maintenance at one of our plants, and increased from the first quarter of 2009 primarily as the result of upgrades and expansions to existing plants and the connection of new wells. Gas processed per day was essentially unchanged from the fourth quarter of 2009 and increased 5% over the first quarter of 2009. In 2009, we upgraded several of our existing processing facilities and added three processing plants which was the primary reason for increased volumes. Gas gathered per day increased 2% from the fourth quarter of 2009 due to additional well connects and decreased 6% from the first quarter of 2009 primarily from our gathering systems experiencing natural production declines associated with connected wells.
Direct profit (mid-stream revenues less mid-stream operating expense) decreased 7% from the fourth quarter of 2009 and increased 474% from the first quarter of 2009. The decrease from the fourth quarter 2009 was due to lower volumes and the increase from the first quarter 2009 resulted primarily from increased commodity prices. Total operating cost for our mid-stream segment increased 17% from the fourth quarter of 2009 and increased 58% from the first quarter of 2009 due primarily to the increase in the price paid for the purchase of natural gas.
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Unit Corp. has a market cap of $2.26 billion; its shares were traded at around $47.55 with a P/E ratio of 18.8 and P/S ratio of 3.2. Unit Corp. had an annual average earning growth of 4.2% over the past 10 years.UNT is in the portfolios of Chuck Royce of Royce& Associates, John Buckingham of Al Frank Asset Management, Inc., John Keeley of Keeley Fund Management, Bruce Kovner of Caxton Associates, Steven Cohen of SAC Capital Advisors, Jeremy Grantham of GMO LLC.
Highlight of Business Operations:
Our first quarter 2010 utilization rate was 40%, compared to 28% and 40% in the fourth quarter of 2009 and the first quarter 2009, respectively. Dayrates for the first quarter of 2010 averaged $14,127, a decrease of 4% from the fourth quarter of 2009 and 24% from the first quarter of 2009. Direct profit (contract drilling revenue less contract drilling operating expense) increased 15% from the fourth quarter of 2009 and decreased 48% from the first quarter of 2009. The increase was primarily due to the increase in utilization over the fourth quarter of 2009 and the decrease from the first quarter of 2009 was primarily due to the decrease in dayrates over the comparative periods. Operating cost per day decreased 1% from the fourth quarter of 2009 and decreased 16% from the first quarter of 2009. The decrease from the fourth quarter 2009 was primarily due to decreases in the per day general and administrative expenses. The decrease from the first quarter of 2009 was primarily due to decreased per day direct cost and decreases in workers compensation costs. While we experienced increased drilling activity and spending by our customers during the first quarter of 2010, the decline in natural gas prices over the first quarter if sustained could limit further increases and result in reduced activity through 2010.First quarter 2010 production from our oil and natural gas segment was 157,000 Mcfe per day, a 1% increase over the fourth quarter of 2009 and a 13% decrease over the first quarter of 2009. The decrease in production from first quarter 2009 is primarily due to the natural declines in production and the reduction in reserve replacement after slowing our development drilling program through most of 2009 due to the downturn in commodity prices.
First quarter 2010 oil and natural gas revenues increased 9% from the fourth quarter of 2009 and increased 11% from the first quarter of 2009. Our oil, natural gas and NGL prices in the first quarter of 2010, increased 9%, 3% and 64%, respectively, from the fourth quarter of 2009 and our oil, natural gas and NGL prices increased 33%, 9% and 129%, respectively, from the first quarter of 2009. Direct profit (oil and natural gas revenues less oil and natural gas operating expense) increased 13% from the fourth quarter of 2009 and increased 15% from the first quarter of 2009. The increases from the fourth quarter 2009 and the first quarter 2009 were primarily attributable to increases in oil and liquids prices and to a lesser extent natural gas prices. Operating cost per Mcfe produced increased 2% from the fourth quarter of 2009 and 16% from the first quarter of 2009 due to the increase in production taxes due to increased commodity prices.
For 2010, we hedged 74% of our average daily oil production (based on our first quarter 2010 production) and approximately 74% of our average natural gas production (based on our first quarter 2010 production) to help manage our cash flow and capital expenditure requirements. Currently for 2011 and 2012, we have hedged 13% for each year of our average natural gas production (based on our first quarter 2010 production) and currently do not have any oil hedges in place for these years.
First quarter 2010 liquids sold per day decreased 4% from the fourth quarter of 2009 and increased 16% from the first quarter of 2009. Liquids sold per day decreased from the fourth quarter of 2009 primarily due to reduced liquid recoveries on wells within the system and for down time maintenance at one of our plants, and increased from the first quarter of 2009 primarily as the result of upgrades and expansions to existing plants and the connection of new wells. Gas processed per day was essentially unchanged from the fourth quarter of 2009 and increased 5% over the first quarter of 2009. In 2009, we upgraded several of our existing processing facilities and added three processing plants which was the primary reason for increased volumes. Gas gathered per day increased 2% from the fourth quarter of 2009 due to additional well connects and decreased 6% from the first quarter of 2009 primarily from our gathering systems experiencing natural production declines associated with connected wells.
Direct profit (mid-stream revenues less mid-stream operating expense) decreased 7% from the fourth quarter of 2009 and increased 474% from the first quarter of 2009. The decrease from the fourth quarter 2009 was due to lower volumes and the increase from the first quarter 2009 resulted primarily from increased commodity prices. Total operating cost for our mid-stream segment increased 17% from the fourth quarter of 2009 and increased 58% from the first quarter of 2009 due primarily to the increase in the price paid for the purchase of natural gas.
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