TULSA — Unit Corp. announced Tuesday it earned a net income of about $21.1 million during the third quarter of 2018, compared to about $3.7 million during the same period the year before.
After backing out net income attributable to a noncontrolling interest, the corporation said its 2018 third-quarter earnings were about $18.9 million, or 36 cents a share.
Total revenues for the quarter were $220 million, with 51 percent of that coming through its oil and natural gas exploration and production activities.
The company is engaged in exploration and production operations throughout Oklahoma, including both the Anadarko and Arkoma basins.
Unit’s quarterly report highlighted results from two wells drilled in the Southern Oklahoma Hoxbar Oil Trend in Grady County. Unit said it had completed the Schenk Trust #2-17HXL well and the #3-17HXL well in August.
Each well had an initial production for the first 30 days of about 1,500 barrels of oil equivalent per day, with 75 percent of that being oil.
Unit continues to pursue opportunities to expand its position in the oily areas of the play, officials said.
Unit also is active in the Mississippian Basin, the Permian Basin, the Gulf Coast Basin and the East Texas/Northern Louisiana Basin.
“Our oil and natural gas segment generated solid production growth for the quarter during which we increased activity levels to six operated rigs for a brief period,” Unit CEO Larry D. Pinkston said. “We have now reduced our operated rig count to three rigs to keep annual capital expenditures in line with our anticipated cash flows.”
Officials said 23 percent of Unit’s third-quarter revenue came from contract drilling work, while the remainder was provided through its midstream operations.
The company stated its total production for the quarter was 4.4 million barrels of oil equivalent, up 3 percent compared to the second quarter of 2018 and up 7 percent compared to the third quarter one year ago.
Officials said 45 percent of the third-quarter 2018 production consisted of oil and natural gas liquids.
Unit’s oil production averaged 7,521 barrels per day, while its production of natural gas liquids averaged 13,889 barrels per day.
Natural gas production averaged about 156 million cubic feet per day.
Unit’s average realized per-barrel equivalent price for the quarter was $24.15, up 6 percent, compared to the second quarter of 2018.
Its average prices for the third quarter of 2018 (with effects of derivative contracts factored in) were $57.72 for a barrel of oil, $25.66 for a barrel of natural gas liquids and $2.27 per thousand cubic feet of natural gas.
Its midstream segment gas gathered and liquids sold volumes per day increased 6 percent and 4 percent, respectively, compared to the second quarter of 2018.
The company’s drilling arm, meanwhile, put an 11th BOSS drilling rig into service during the quarter, officials said.
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