Unit Corporation Reports Year End and Fourth Quarter Results

On March 13, 2025, Unit Corporation (OTCQX: UNTC) (Company) filed consolidated financial statements for the twelve months ended December 31, 2024 with OTC Markets Group Inc. (OTC). The Company’s quarterly and annual reports may be accessed on the OTC’s website at https://www.otcmarkets.com/stock/UNTC/disclosure, as well as the Company’s website at https://unitcorp.com/investor-relations/otc-sec-filings/.

Fourth Quarter and Year End Results

Net income for the three months ended December 31, 2024 was $10.7 million, or $1.07 per diluted share, compared to $57.4 million, or $5.79 per diluted share, for the three months ended December 31, 2023. Total revenue for the three months ended December 31, 2024 was $59.9 million, compared to $74.6 million for the three months ended December 31, 2023.

For the twelve months ended December 31, 2024, net income was $47.2 million, or $4.75 per diluted share, compared to $248.9 million, or $25.32 per diluted share, for the twelve months ended December 31, 2023. Total revenue for the twelve months ended December 31, 2024 was $237.6 million, compared to $327.3 million for the twelve months ended December 31, 2023.

Prior year results reflect the impact of the December 13, 2023 sale of certain non-core wells and related leases in the Texas Panhandle for cash proceeds of $50.7 million, and a corresponding gain of $37.2 million which was recognized in the fourth quarter of 2023. Additionally, during 2023 the Company recognized a net change in its valuation allowance of $115.1 million which resulted in an income tax benefit of $45.5 million for the twelve months ended December 31, 2023.

Phil Frohlich, the Company's Chief Executive Officer, commented, “We are pleased with our 2024 year-end results, reflecting our disciplined approach to capital allocation and operational efficiencies in a complex economic landscape. We remain committed to maximizing the value of our assets and returning value to our shareholders."

The Company announced on March 7, 2025 that a quarterly cash dividend of $1.25 per share had been declared for the first quarter of 2025, to be paid on March 28, 2025 to shareholders of record as of the close of business on March 18, 2025.

The declaration and payment of any future dividend, whether fixed, special, or variable, are at the sole discretion of the Company’s Board of Directors. This decision will depend upon several factors, including the Company’s financial position, results of operations, cash flows, capital requirements, business conditions, future expectations, legal requirements, and other relevant factors at the time of consideration. Future dividends are expected to be funded by cash on the Company's balance sheet.

Operational highlights for the oil and natural gas and contract drilling segments during the three and twelve months ended December 31, 2024 and 2023 include:

The results for our oil and natural gas segment reflect the sale of certain non-core properties in the Texas Panhandle which was completed in December 2023.

In March 2025, we entered into NYMEX (HH) natural gas - swap agreements averaging 15,000 MMBtu/day for April 2025 through December 2025 at a weighted average fixed price of $4.69 per MMBtu. In addition, we entered into NYMEX (HH) natural gas - swap agreements averaging 5,000 MMBtu/day for January 2026 through December 2026 at a weighted average fixed price of $4.22 per MMBtu.

Common Stock Dividends

The table below presents information about the dividends paid during the periods indicated:

The Company's preliminary 2024 Form 8937 (Report of Organizational Actions Affecting Basis of Securities) can be found on its website at https://unitcorp.com/investor-relations/tax-reporting/.

Common Stock Repurchases

During the year ended December 31, 2024, the Company repurchased 97,354 shares under its share repurchase program at an average share price of $33.94 (unadjusted for dividends paid) for an aggregate purchase price of $3.3 million.

As of December 31, 2024, we had repurchased a total of 2,569,746 shares of common stock since emergence from bankruptcy at an average share price of $32.16 (unadjusted for dividends paid) for an aggregate purchase cost of $82.7 million.

About Unit Corporation

Unit Corporation is a Tulsa-based, publicly held energy company engaged through its wholly-owned subsidiaries in oil and gas production and contract drilling. For more information about Unit Corporation, visit its website at http://www.unitcorp.com.

Forward-Looking Statements

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act. All statements, other than statements of historical facts, included in this release that address activities, events, or developments that the Company expects, believes, or anticipates will or may occur are forward-looking statements. Several risks and uncertainties could cause actual results to differ materially from these statements, including changes in commodity prices, the productive capabilities of the Company’s wells, future demand for oil and natural gas, future drilling rig utilization and dayrates, projected rate of the Company’s oil and natural gas production, the amount available to the Company for borrowings, its anticipated borrowing needs under its credit agreement, the number of wells to be drilled by the Company’s oil and natural gas segment, the potential productive capability of its prospective plays, and other factors described occasionally in the Company’s publicly available OTC reports. The Company assumes no obligation to update publicly such forward-looking statements, whether because of new information, future events, or otherwise.

The standardized measure of discounted future net cash flows relating to proved oil, NGLs, and natural gas reserves (Standardized Measure) is calculated in accordance with US GAAP as the after-tax estimated future cash flows from proved reserves discounted at an annual rate of 10 percent. The benchmark price used for all future reserves was $75.48 per barrel of oil and $2.13 per Mcf of natural gas, then adjusted for price differentials, based on the 12-month historical average of the beginning-of-month prices in accordance with SEC rules. NGL pricing was estimated as a percentage of the pricing per barrel of oil.

Pre-tax PV-10 value under SEC pricing is consistent with the Standardized Measure calculation, but excludes the effects of future income taxes. We view pre-tax PV-10 under SEC pricing as a useful measure of the value of our proved reserves relative to the values of proved reserves held by other companies as it excludes future income tax expenses which may vary based on the characteristics of the owner of the reserves rather than on the nature, location, and quality of the reserves themselves. We also believe that securities analysts and rating agencies use pre-tax PV-10 under SEC pricing in a similar manner.

Pre-tax PV-10 value under forward strip pricing is consistent with the calculation of pre-tax PV-10 value under SEC pricing, but uses forward strip product pricing instead of average historical pricing as required by SEC rules. We view pre-tax PV-10 value under forward strip pricing as a useful measure of the value of our proved reserves both because it excludes future income tax expenses (as discussed above) and because forward strip pricing provides a more current, forward-looking indicator of value. The pricing used is $67.90 per barrel of oil and $3.77 per Mcf of natural gas based on strip pricing as of 1/2/2025. NGL pricing was estimated as a percentage of the pricing per barrel of oil.

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