Document
Document - shares | 6 Months Ended | |
Jun. 30, 2020 | Sep. 02, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 1-9260 | |
Entity Registrant Name | UNIT CORPORATION | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 73-1283193 | |
Entity Address, Address Line One | 8200 South Unit Drive, | |
Entity Address, City or Town | Tulsa, | |
Entity Address, State or Province | OK | |
Entity Address, Postal Zip Code | 74132 | |
City Area Code | (918) | |
Local Phone Number | 493-7700 | |
Title of 12(b) Security | N/A | |
Trading Symbol | N/A | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 54,504,879 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 | |
Entity Central Index Key | 0000798949 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | |
Current assets: | |||
Cash and cash equivalents | $ 36,994 | $ 571 | |
Accounts receivable, net of allowance for doubtful accounts of $3,961 and $2,332 at June 30, 2020 and December 31, 2019, respectively | 54,146 | 82,656 | |
Materials and supplies | 110 | 449 | |
Current derivative asset (Note 12) | 0 | 633 | |
Current income taxes receivable | 850 | 1,756 | |
Assets held for sale (Note 5) | 0 | 5,908 | |
Prepaid expenses and other | 16,659 | 13,078 | |
Total current assets | 108,759 | 105,051 | |
Oil and natural gas properties on the full cost method: | |||
Proved properties | 6,566,669 | 6,341,582 | |
Unproved properties not being amortized | 30,342 | 252,874 | |
Drilling equipment | 1,296,319 | 1,295,713 | |
Gas gathering and processing equipment | 833,402 | 824,699 | |
Saltwater disposal systems | 43,843 | 69,692 | |
Land and building | 59,080 | 59,080 | |
Transportation equipment | 16,780 | 29,723 | |
Other | 58,036 | 57,992 | |
Property, plant, and equipment, gross | 8,904,471 | 8,931,355 | |
Less accumulated depreciation, depletion, amortization, and impairment | 7,903,051 | 6,978,669 | |
Net property and equipment | 1,001,420 | 1,952,686 | |
Right of use asset (Note 14) | 7,828 | 5,673 | |
Other assets | 22,371 | 26,642 | |
Total assets | [1] | 1,140,378 | 2,090,052 |
Current liabilities: | |||
Accounts payable | 26,808 | 84,481 | |
Accrued liabilities (Note 7) | 31,384 | 46,562 | |
Current operating lease liability (Note 14) | 4,666 | 3,430 | |
Current portion of long-term debt (Note 8) | 124,000 | 108,200 | |
Debtor-in-possession financing (Note 8) | 8,000 | 0 | |
Current derivative liabilities (Note 12) | 5,011 | 0 | |
Current portion of other long-term liabilities (Note 8) | 13,628 | 17,376 | |
Total current liabilities | 213,497 | 260,049 | |
Long-term debt less debt issuance costs (Note 8) | 34,000 | 663,216 | |
Non-current derivative liabilities (Note 12) | 145 | 27 | |
Operating lease liability (Note 14) | 3,012 | 2,071 | |
Other long-term liabilities (Note 8) | 84,722 | 95,341 | |
Liabilities subject to compromise (Note 2) | 759,720 | 0 | |
Deferred income taxes | 4,750 | 13,713 | |
Commitments and contingencies (Note 15) | |||
Shareholders' equity: | |||
Preferred stock, $1.00 par value, 5,000,000 shares authorized, none issued | 0 | 0 | |
Common stock, $0.20 par value, 175,000,000 shares authorized, 54,617,677 and 55,443,393 shares issued as of June 30, 2020 and December 31, 2019, respectively | 10,704 | 10,591 | |
Capital in excess of par value | 648,128 | 644,152 | |
Retained earnings (deficit) | (787,008) | 199,135 | |
Total shareholders’ equity attributable to Unit Corporation | (128,176) | 853,878 | |
Non-controlling interests in consolidated subsidiaries | 168,708 | 201,757 | |
Total shareholders' equity | 40,532 | 1,055,635 | |
Total liabilities and shareholders' equity | [1] | $ 1,140,378 | $ 2,090,052 |
[1] | Unit Corporation's consolidated total assets as of June 30, 2020 include total current and long-term assets of its variable interest entity (VIE) (Superior Pipeline Company, L.L.C.) of $49.8 million and $354.0 million, respectively, which can only settle obligations of the VIE. Unit Corporation's consolidated total liabilities as of June 30, 2020 include total current and long-term liabilities of the VIE of $25.2 million and $39.7 million, respectively, for which the creditors of the VIE have no recourse to Unit Corporation. Unit Corporation's consolidated total assets as of December 31, 2019 include total current and long-term assets of the VIE of $28.8 million and $434.3 million, respectively, which can only settle obligations of the VIE. Unit Corporation's consolidated total liabilities as of December 31, 2019 include total current and long-term liabilities of the VIE of $32.2 million and $26.0 million, respectively, for which the creditors of the VIE have no recourse to Unit Corporation. See Note 16 – Variable Interest Entity Arrangements. |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 3,961 | $ 2,332 |
Preferred stock, par value | $ 1 | $ 1 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $ 0.20 | $ 0.20 |
Common stock, shares authorized | 175,000,000 | 175,000,000 |
Common stock, shares issued | 54,617,677 | 55,443,393 |
VIE Current Assets Pledged | $ 49,800 | $ 28,800 |
VIE Non-current Assets Pledged | 354,000 | 434,300 |
VIE Current Liabilities, No Recourse | 25,200 | 32,200 |
VIE Non-current Liabilities, No Recourse | $ 39,700 | $ 26,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Revenues: | ||||
Revenues | $ 89,007 | $ 165,146 | $ 211,383 | $ 354,837 |
Operating costs: | ||||
Operating costs | 115,103 | 98,041 | 198,826 | 201,511 |
Depreciation, depletion, and amortization | 35,960 | 66,292 | 97,577 | 128,418 |
Impairments (Note 3) | 109,318 | 0 | 851,242 | 0 |
Loss on abandonment of assets (Note 3) | 0 | 0 | 17,554 | 0 |
General and administrative | 25,814 | 10,064 | 37,367 | 19,805 |
(Gain) loss on disposition of assets | 877 | (422) | 1,267 | 1,193 |
Total operating expenses | 287,072 | 173,975 | 1,203,833 | 350,927 |
Income (loss) from operations | (198,065) | (8,829) | (992,450) | 3,910 |
Other income (expense): | ||||
Interest, net (excludes interest expense of $5.4 million on senior subordinated notes subject to compromise, for the three and six months ended June 30, 2020) | (7,608) | (8,995) | (20,865) | (17,533) |
Write-off of debt issuance costs (Note 8) | (2,426) | 0 | (2,426) | 0 |
Gain (loss) on derivatives (Note 12) | (6,937) | 7,927 | (6,454) | 995 |
Reorganization items, net (Note 2) | (7,027) | 0 | (7,027) | 0 |
Other, net | 43 | 6 | 103 | 11 |
Total other income (expense) | (23,955) | (1,062) | (36,669) | (16,527) |
Loss before income taxes | (222,020) | (9,891) | (1,029,119) | (12,617) |
Income tax benefit: | ||||
Current | 0 | 0 | (917) | 0 |
Deferred | (6,455) | (1,874) | (8,963) | (2,318) |
Total income taxes | (6,455) | (1,874) | (9,880) | (2,318) |
Net loss | (215,565) | (8,017) | (1,019,239) | (10,299) |
Net income (loss) attributable to non-controlling interest | 84 | 492 | (33,096) | 1,714 |
Net loss attributable to Unit Corporation | $ (215,649) | $ (8,509) | $ (986,143) | $ (12,013) |
Net loss attributable to Unit Corporation per common share (Note 6): | ||||
Basic | $ (4.03) | $ (0.16) | $ (18.50) | $ (0.23) |
Diluted | $ (4.03) | $ (0.16) | $ (18.50) | $ (0.23) |
Contractual Interest Expense on Prepetition Liabilities Not Recognized in Statement of Operations | $ 5,400 | $ 5,400 | ||
Oil and natural gas | ||||
Revenues: | ||||
Revenues | 26,956 | $ 77,815 | 75,478 | $ 163,910 |
Operating costs: | ||||
Operating costs | 71,540 | 36,242 | 102,203 | 68,956 |
Contract drilling | ||||
Revenues: | ||||
Revenues | 29,202 | 43,037 | 65,834 | 94,192 |
Operating costs: | ||||
Operating costs | 20,951 | 29,308 | 46,400 | 60,709 |
Gas gathering and processing | ||||
Revenues: | ||||
Revenues | 32,849 | 44,294 | 70,071 | 96,735 |
Operating costs: | ||||
Operating costs | $ 22,612 | $ 32,491 | $ 50,223 | $ 71,846 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (215,565) | $ (8,017) | $ (1,019,239) | $ (10,299) |
Other comprehensive income (loss), net of taxes: | ||||
Unrealized loss on securities, net of tax of $0, ($9), $0, and ($2) | 0 | (30) | 0 | (6) |
Comprehensive loss | (215,565) | (8,047) | (1,019,239) | (10,305) |
Less: Comprehensive income (loss) attributable to non-controlling interest | 84 | 492 | (33,096) | 1,714 |
Comprehensive loss attributable to Unit Corporation | $ (215,649) | $ (8,539) | $ (986,143) | $ (12,019) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Unrealized income (loss) on securities, tax | $ 0 | $ (9) | $ 0 | $ (2) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Capital In Excess of Par Value [Member] | Accumulated other comprehensive income (loss) [Member] | Retained earnings (deficit) [Member] | Non-controlling interests in consolidated subsidiaries [Member] |
Cumulative effect adjustment for adoption of ASUs | $ 174 | $ 0 | $ 0 | $ 0 | $ 174 | $ 0 |
Stockholders' equity, beginning balance at Dec. 31, 2018 | 1,593,444 | 10,414 | 628,108 | (481) | 752,840 | 202,563 |
Net Income (loss) | (10,299) | 0 | 0 | 0 | (12,013) | 1,714 |
Other comprehensive income (loss) | (6) | 0 | 0 | (6) | 0 | 0 |
Total comprehensive loss | (10,305) | |||||
Distributions to non-controlling interest | (918) | 0 | 0 | 0 | 0 | (918) |
Activity in employee compensation plans | 10,837 | 176 | 10,661 | 0 | 0 | 0 |
Stockholders' equity, ending balance at Jun. 30, 2019 | 1,593,232 | 10,590 | 638,769 | (487) | 741,001 | 203,359 |
Stockholders' equity, beginning balance at Mar. 31, 2019 | 1,595,859 | 10,578 | 633,361 | (457) | 749,510 | 202,867 |
Net Income (loss) | (8,017) | 0 | 0 | 0 | (8,509) | 492 |
Other comprehensive income (loss) | (30) | 0 | 0 | (30) | 0 | 0 |
Total comprehensive loss | (8,047) | |||||
Activity in employee compensation plans | 5,420 | 12 | 5,408 | 0 | 0 | 0 |
Stockholders' equity, ending balance at Jun. 30, 2019 | 1,593,232 | 10,590 | 638,769 | (487) | 741,001 | 203,359 |
Stockholders' equity, beginning balance at Dec. 31, 2019 | 1,055,635 | 10,591 | 644,152 | 0 | 199,135 | 201,757 |
Net Income (loss) | (1,019,239) | 0 | 0 | 0 | (986,143) | (33,096) |
Other comprehensive income (loss) | 0 | |||||
Total comprehensive loss | (1,019,239) | |||||
Activity in employee compensation plans | 4,136 | 113 | 3,976 | 0 | 0 | 47 |
Stockholders' equity, ending balance at Jun. 30, 2020 | 40,532 | 10,704 | 648,128 | 0 | (787,008) | 168,708 |
Stockholders' equity, beginning balance at Mar. 31, 2020 | 254,486 | 10,694 | 646,543 | 0 | (571,359) | 168,608 |
Net Income (loss) | (215,565) | 0 | 0 | 0 | (215,649) | 84 |
Other comprehensive income (loss) | 0 | |||||
Total comprehensive loss | (215,565) | |||||
Activity in employee compensation plans | 1,611 | 10 | 1,585 | 0 | 0 | 16 |
Stockholders' equity, ending balance at Jun. 30, 2020 | $ 40,532 | $ 10,704 | $ 648,128 | $ 0 | $ (787,008) | $ 168,708 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Changes in Shareholders' Equity (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement of Financial Position [Abstract] | ||||
Unrealized income (loss) on securities, tax | $ 0 | $ (9) | $ 0 | $ (2) |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
OPERATING ACTIVITIES: | ||
Net loss | $ (1,019,239) | $ (10,299) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation, depletion, and amortization | 97,577 | 128,418 |
Impairments (Note 3) | 851,242 | 0 |
Loss on abandonment of assets (Note 3) | 17,554 | 0 |
Amortization of debt issuance costs and debt discount (Note 8) | 1,079 | 1,115 |
(Gain) loss on derivatives (Note 12) | 6,454 | (995) |
Cash receipts (payments) on derivatives settled (Note 12) | (691) | 5,314 |
Loss on disposition of assets | 1,267 | 1,193 |
Write-off of debt issuance costs | (2,426) | 0 |
Deferred tax benefit | (8,963) | (2,318) |
Employee stock compensation plans | 4,179 | 11,187 |
Bad debt expense | 1,923 | 0 |
ARO liability accretion (Note 9) | 1,169 | 1,168 |
Contract assets and liabilities, net (Note 4) | 1,790 | (1,283) |
Noncash reorganization items | 7,027 | 0 |
Other, net | 11,493 | (51) |
Changes in operating assets and liabilities increasing (decreasing) cash: | ||
Accounts receivable | 26,587 | 26,939 |
Material and supplies | 43 | (43) |
Prepaid expenses and other | (2,703) | (377) |
Accounts payable | (22,876) | (30,374) |
Accrued liabilities | 48,244 | (1,245) |
Income taxes | 906 | 0 |
Contract advances | (21) | (848) |
Net cash provided by operating activities | 26,467 | 127,501 |
INVESTING ACTIVITIES: | ||
Capital expenditures | (23,804) | (246,638) |
Producing properties and other acquisitions | (210) | (3,313) |
Proceeds from disposition of property and equipment | 4,497 | 7,340 |
Net cash used in investing activities | (19,517) | (242,611) |
FINANCING ACTIVITIES: | ||
Borrowings under line of credit, including borrowings under DIP credit facility | 79,400 | 271,200 |
Payments under line of credit | (38,100) | (160,200) |
DIP financing costs | (990) | 0 |
Net payments on finance leases | (2,061) | (1,980) |
Employee taxes paid by withholding shares | (43) | (4,073) |
Distributions to non-controlling interest | 0 | (918) |
Bank overdrafts | 8,733 | (5,298) |
Net cash provided by financing activities | 29,473 | 109,327 |
Net increase (decrease) in cash and cash equivalents | 36,423 | (5,783) |
Cash and cash equivalents, beginning of period | 571 | 6,452 |
Cash and cash equivalents, end of period | 36,994 | 669 |
Cash paid during the year for: | ||
Interest paid (net of capitalized) | 4,795 | 15,748 |
Income taxes | 0 | 0 |
Changes in accounts payable and accrued liabilities related to purchases of property, plant, and equipment | 5,974 | (6,260) |
Non-cash (additions) reductions to oil and natural gas properties related to asset retirement obligations | 3,548 | (2,057) |
Non-cash trade of property, plant, and equipment | $ 548 | $ 0 |
Basis of Preparation and Presen
Basis of Preparation and Presentation | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Preparation and Presentation | BASIS OF PREPARATION AND PRESENTATION The unaudited condensed consolidated financial statements in this report include the accounts of Unit Corporation and all its subsidiaries and affiliates and have been prepared under the rules and regulations of the SEC. The terms “company,” “Unit,” “we,” “our,” “us,” or like terms refer to Unit Corporation, a Delaware corporation, and one or more of its subsidiaries and affiliates, except as otherwise indicated or as the context otherwise requires. We consolidate the activities of Superior Pipeline Company, L.L.C. (Superior), a 50/50 joint venture between Unit Corporation and SP Investor Holdings, LLC, (SP Investor) which qualifies as a Variable Interest Entity (VIE) under generally accepted accounting principles in the United States (GAAP). We have concluded that we are the primary beneficiary of the VIE, as defined in the accounting standards, since we have the power, through 50% ownership, to direct those activities that most significantly affect the economic performance of Superior as further described in Note 16 – Variable Interest Entity Arrangements. The condensed consolidated financial statements are unaudited and do not include all the notes in our annual financial statements. This report should be read in conjunction with the audited consolidated financial statements and notes in our Annual Report on Form 10-K for the year ended December 31, 2019, filed with the SEC March 16, 2020. The following unaudited condensed consolidated financial statements have been prepared in accordance with FASB ASC Topic 852, Reorganizations . This guidance requires that transactions and events directly associated with a Chapter 11 reorganization be distinguished from the ongoing operations of the business. In addition, the guidance provides for changes in the accounting for and presentation of liabilities. See Note 2 – Chapter 11 Proceedings, Liquidity, and Ability to Continue as a Going Concern. In the opinion of our management, the unaudited condensed consolidated financial statements contain all normal recurring adjustments (including the elimination of all intercompany transactions) necessary to fairly state: • Balance Sheets as of June 30, 2020 and December 31, 2019; • Statements of Operations for the three and six months ended June 30, 2020 and 2019; • Statements of Comprehensive Loss for the three and six months ended June 30, 2020 and 2019; • Statements of Changes in Shareholders' Equity for the three and six months ended June 30, 2020 and 2019; and • Statements of Cash Flows for the six months ended June 30, 2020 and 2019. Our financial statements are prepared in conformity with GAAP, which requires us to make certain estimates and assumptions that may affect the amounts reported in our unaudited condensed consolidated financial statements and notes. Actual results may differ from those estimates. Results for the six months ended June 30, 2020 and 2019 are not necessarily indicative of the results we may realize for the full year of 2020, or that we realized for the full year of 2019. Certain amounts in this report for prior periods have been reclassified to conform to current year presentation. The reclassification had no impact to consolidated net loss or shareholders' equity. |
Chapter 11 Proceeds, Liquidity,
Chapter 11 Proceeds, Liquidity, and Ability to Continue as a Going Concern | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Chapter 11 Proceedings, Liquidity, and Ability to Continue as a Going Concern | CHAPTER 11 PROCEEDINGS, LIQUIDITY, AND ABILITY TO CONTINUE AS A GOING CONCERN Voluntary Reorganization Under Chapter 11 of the Bankruptcy Code On May 22, 2020 (Petition Date), Unit and its wholly owned subsidiaries Unit Drilling Company (UDC) Unit Petroleum Company (UPC), 8200 Unit Drive, L.L.C. (8200 Unit), Unit Drilling Colombia, L.L.C. (Unit Drilling Colombia) and Unit Drilling USA Colombia, L.L.C. (Unit Drilling USA, together with Unit, UPC, UDC, 8200 Unit and Unit Drilling Colombia, the Debtors) filed voluntary petitions (Bankruptcy Petitions) for reorganization under Chapter 11 of Title 11 of the United States Code (Bankruptcy Code) in the United States Bankruptcy Court for the Southern District of Texas, Houston Division (Bankruptcy Court). The Chapter 11 proceedings were jointly administered under the caption In re Unit Corporation, et al. , Case No. 20-32740 (DRJ) (Chapter 11 Cases). During the pendency of the Chapter 11 Cases, the Debtors operated their business as "debtors-in-possession" under the jurisdiction of the Bankruptcy Court and under the provisions of the Bankruptcy Code and orders of the Bankruptcy Court. On May 22, 2020, the Debtors entered into a Restructuring Support Agreement (RSA) with (i) holders of 100% of the aggregate principal amount of loans outstanding under the Senior Credit Agreement, dated as of September 13, 2011 (as amended, the Unit credit agreement, together with the loan facility, the Unit credit facility), by and among the company, UPC and UDC, as borrowers, the institutions named as lenders (RBL Lenders) and BOKF, NA dba Bank of Oklahoma, as administrative agent (RBL Agent) and (ii) holders of over 70% of the aggregate outstanding principal amount of the company’s 6.625% senior subordinated notes due 2021 (Notes). In accordance with the RSA, the Debtors filed a Chapter 11 plan of reorganization (including all exhibits and schedules, and as may be amended, supplemented, or modified from time to time, the Plan) and the related disclosure statement with the Bankruptcy Court on June 9, 2020. On August 6, 2020, the Bankruptcy Court entered the “Findings of Fact, Conclusions of Law, and Order (I) Approving the Disclosure Statement on a Final Basis and (II) Confirming the Debtors’ Amended Joint Chapter 11 Plan of Reorganization” [Docket No. 340] (Confirmation Order) confirming the Plan and approving the disclosure statement on a final basis. As contemplated by the RSA, the Debtors entered into a Superpriority Senior Secured Debtor-in-Possession Credit Agreement dated May 27, 2020 (DIP credit agreement), by and among the Debtors, the RBL Lenders (in such capacity, the DIP Lenders) and BOKF, NA dba Bank of Oklahoma, as administrative agent, under which the DIP Lenders agreed to provide the company with a $36.0 million new money multi-draw loan facility (DIP credit facility). Under the Bankruptcy Code, subject to certain exceptions, filing the Bankruptcy Petitions automatically enjoined, or stayed, the continuation of most judicial or administrative proceedings or filing of other actions against the Debtors or their property to recover, collect or secure a claim arising before the Petition Date. Accordingly, although filing the Bankruptcy Petitions triggered defaults on the Debtors’ debt obligations, creditors were stayed from taking any actions against the Debtors because of such defaults, subject to certain limited exceptions permitted by the Bankruptcy Code. As described below, substantially all of the Debtors’ pre-petition liabilities were subject to settlement under the Bankruptcy Code (except for payments to UDC’s vendors and suppliers, which were not affected by the Chapter 11 Cases). Superior and its subsidiaries were not parties to the RSA and were not Debtors in the Chapter 11 Cases. Under the Bankruptcy Code, subject to certain exceptions, the Debtors assumed, assigned or rejected certain executory contracts and unexpired leases subject to the approval of the Bankruptcy Court and certain other conditions. Generally, the rejection of an executory contract or unexpired lease is treated as a pre-petition breach of such executory contract or unexpired lease and, subject to certain exceptions, relieved the Debtors of performing their future obligations under such executory contract or unexpired lease but entitled the contract counterparty or lessor to a pre-petition general unsecured claim for damages caused by such deemed breach. Counterparties to such rejected contracts or leases were able to assert unsecured claims in the Bankruptcy Court against the applicable Debtors’ estate for such damages. Generally, the assumption of an executory contract or unexpired lease required the Debtors to cure existing monetary defaults under such executory contract or unexpired lease and adequately assure future performance. Any description of an executory contract or unexpired lease with the Debtors in this report, including where applicable a quantification of a Debtor’s obligations under any such executory contract or unexpired lease with the Debtor is qualified by any rejection rights the Debtor had under the Bankruptcy Code. Further, nothing herein is or will be deemed an admission regarding any claim amounts or calculations arising from the rejection of any executory contract or unexpired lease and the Debtors expressly preserve all of their rights with respect thereto. On July 22, 2020, the Debtors filed the Supplement to the Debtors' First Revised Proposed Joint Chapter 11 Plan [Docket No. 249], which included as Exhibit G the Schedule of Assumed Executory Contracts and Unexpired Leases, listing executory contracts and unexpired leases to be assumed under the Plan, and included as Exhibit H the Schedule of Rejected Executory Contracts and Unexpired Leases, which listed all executory contracts and unexpired leases to be rejected under the Plan. On July 31, 2020 and September 2, 2020, the Debtors filed the Notice of Filing Second Supplement to the Debtors’ First Revised Proposed Joint Chapter 11 Plan [Docket No. 307] and the Notice of Filing Fourth Plan Supplement [Docket No. 385], respectively, which included modifications to the Schedule of Assumed Executory Contracts and Unexpired Leases and the Schedule of Rejected Executory Contracts and Unexpired Leases. On September 3, 2020 (Effective Date), the Debtors emerged from the Chapter 11 Cases and the various claims and interests in the Debtors received the following treatment: • Each lender under the Unit credit facility and the DIP credit facility described below received its pro rata share of revolving longs, term loans and letter of credit participations under the Exit Facility described below, in exchange for that lender’s allowed claims under the Unit credit facility or DIP credit facility and each lender under the DIP facility was issued (or will be issued promptly following the Effective Date) its pro rata share of an equity fee under the Equity Facility equal to 5% of the new common shares of reorganized Unit (New Common Stock) (subject to dilution by shares reserved for issuance under a management incentive plan and upon exercise of the warrants described below); • Each holder of the Notes will receive its pro rata share of New Common Stock based on equity allocations at each of Unit, UDC and UPC in exchange for the holder’s allowed Notes claim; • Each holder of an allowed general unsecured claim against Unit or UPC will receive its pro rata share of New Common Stock based on equity allocations at each of Unit and UPC, respectively; • Each retained or former employee with a claim for vested severance benefits may opt in to a settlement to receive a cash payment for the claim in lieu of an allocation of New Common Stock otherwise provided to holders of general unsecured claims; • Each holder of an allowed unsecured claim against UDC, 8200 Unit, Unit Drilling Colombia and Unit Drilling USA will receive payment in full of that claim in the ordinary course of business; and • Each holder of the company’s common stock outstanding prior to the Effective Date (Old Common Stock) that did not opt out of the release under the Plan will receive its pro rata share of seven-year warrants (Warrants) to purchase an aggregate of 12.5% of the shares of New Common Stock at an aggregate exercise price equal to the $650.0 million principal amount of the Notes plus interest thereon to the May 15, 2021 maturity date of the Notes. (References in this report to our “common stock” refer to our Old Common Stock outstanding prior to the Effective Date.) Under the Plan, the company will issue shares of New Common Stock to holders of the Notes and to holders of certain allowed general unsecured claims against the Debtors, and will issue the Warrants to holders of Unit’s Old Common Stock that did not opt out of the releases under the Plan. The company is currently seeking to facilitate trading of the New Common Stock on one of the OTC markets. The company expects to complete this process and issue the New Common Stock and the Warrants during the fourth quarter of 2020. On the Effective Date, the company entered into a Warrant Agreement (Warrant Agreement) with American Stock Transfer & Trust Company, LLC. Under the Plan, the Warrants will be issued to holders of shares of Unit’s Old Common Stock outstanding prior to the Effective Date (including holders of certain equity awards), exercisable for up to an aggregate of approximately 1.8 million shares of New Common Stock. The exercise price of the Warrants will be determined and the Warrants will become exercisable once all general unsecured claims asserted against the Debtors are resolved. The company will calculate the initial exercise price per share for the Warrants, which will be set at an amount that implies a recovery by holders of the Notes of the $650 million principal amount of the Notes plus interest thereon to the May 15, 2021 maturity date of the Notes. The Warrants will expire on the earliest of (i) September 3, 2027, (ii) the consummation of a Cash Sale (as defined in the Warrant Agreement) and (iii) the consummation of a liquidation, dissolutions or winding up of the company (such earliest date, the Expiration Date). Each Warrant that is not exercised on or before the Expiration Date will expire, and all rights under such Warrant and the Warrant Agreement will cease on the Expiration Date. Events of Default The Debtors’ filing of the Bankruptcy Petitions constituted an event of default that accelerated the Debtors' obligations under the Unit credit agreement and the indenture governing the Notes. Additionally, other events of default, including cross-defaults, existed or occurred under these debt agreements. As a result, the amount owed under the Unit credit facility has been classified as current as of June 30, 2020. The amount owed in respect of the Notes has been classified as liabilities subject to compromise. Under the Bankruptcy Code, the creditors under these debt agreements were stayed from taking any action against the Debtors. Superior and its subsidiaries were not parties to the Chapter 11 Cases, and the Chapter 11 Cases did not result in an event of default under the Superior credit agreement (as defined below). In addition, the Debtors’ filing of the Bankruptcy Petitions constituted a termination event regarding their hedge agreements, which allowed the counterparties to those hedge agreements to terminate the outstanding hedges, and those termination events were not stayed under the Chapter 11 Cases. On the Petition Date, the Debtors entered into a Continuation Agreement (Continuation Agreement) with Superior, SPC Midstream Operating, L.L.C. and SP Investor to continue the parties' contractual relationships during the course of the Chapter 11 Cases under the governance, operational and related agreements entered into by those parties in connection with the formation of Superior (the company’s midstream joint venture with SP Investor), notwithstanding certain provisions triggered by the filing of the Chapter 11 Cases. Liquidity, Unit Credit Facility, and Debtor-in-Possession Credit Agreement We had incurred significant losses and were in a negative working capital position as of June 30, 2020. Our cash balance as of June 30, 2020 was $37.0 million (including $23.8 million relating to Superior) and we had $124.0 million outstanding on our Unit credit agreement as of June 30, 2020. The Unit credit agreement had a scheduled maturity date of October 18, 2023 that, absent the filing of the Chapter 11 Cases, would have accelerated to November 16, 2020 if, by that date, all the Notes were not repurchased, redeemed, or refinanced with indebtedness having a maturity date at least six months following October 18, 2023 (Credit Agreement Extension Condition). In addition, filing the Chapter 11 Cases resulted in events of default under the Unit credit agreement and accelerated the Debtors' obligations under the Unit credit agreement. Because of these circumstances, our debt associated with the Unit credit agreement is reflected as a current liability in our consolidated balance sheet as of June 30, 2020 and December 31, 2019. In addition, on May 22, 2020, the RBL Lenders' remaining commitments under the Unit credit facility were terminated. To provide liquidity to fund our operations and the Chapter 11 Cases, the Debtors entered into the DIP credit agreement. Prior to repayment and termination on the Effective Date, borrowings under the DIP credit facility matured on the earliest of (i) September 22, 2020 (subject to a two-month extension to be approved by the DIP Lenders), (ii) the sale of all or substantially all of the assets of the Debtors under Section 363 of the Bankruptcy Code or otherwise, (iii) the effective date of a plan of reorganization or liquidation in the Chapter 11 Cases, (iv) the entry of an order by the Bankruptcy Court dismissing any of the Chapter 11 Cases or converting such Chapter 11 Cases to a case under Chapter 7 of the Bankruptcy Code, and (v) the date of termination of the DIP Lenders’ commitments and the acceleration of any outstanding extensions of credit, in each case, under the DIP credit agreement and subject to the Bankruptcy Court’s orders. As of June 30, 2020, we had borrowed $8.0 million under the DIP credit facility. On the Effective Date, the DIP credit agreement was paid in full and terminated. Following the Debtors’ emergence from the Chapter 11 Cases, each holder of an allowed claim under the DIP credit facility received its pro rata share of revolving loans, term loans and letter-of-credit participations under the exit facility (as defined below). In addition, each such holder was issued on the Effective Date (or will be issued promptly following the Effective Date) its pro rata share of an equity fee under the exit facility equal to 5% of the New Common Stock (subject to dilution by shares reserved for issuance under a management incentive plan and upon exercise of the Warrants). Exit Credit Agreement On the Effective Date, under the terms of the Plan, the company entered into an amended and restated credit agreement (exit credit agreement), providing for a $140.0 million senior secured revolving credit facility (new RBL facility) and a $40.0 million senior secured term loan facility (new term loan facility and together with the new RBL facility, the exit facility), among (i) the company, UDC and UPC (together, the Borrowers), (ii) the guarantors party thereto, including the company and all of its subsidiaries existing as of the Effective Date (other than Superior and its subsidiaries)(the Guarantors), (iii) the lenders party thereto from time to time and (iv) BOKF, NA dba Bank of Oklahoma as administrative agent and collateral agent. Borrowings under the exit credit agreement mature on March 1, 2024. Revolving Loans and Term Loans (each as defined in the exit credit agreement) under the exit credit agreement may be Eurodollar Loans or ABR Loans (each as defined in the exit credit agreement). Revolving Loans that are Eurodollar Loans will bear interest at a rate per annum equal to the Adjusted LIBO Rate (as defined in the exit credit agreement) for the applicable interest period plus 525 basis points. Revolving Loans that are ABR Loans will bear interest at a rate per annum equal to the Alternate Base Rate (as defined in the exit credit agreement) plus 425 basis points. Term Loans that are Eurodollar Loans will bear interest at a rate per annum equal to the Adjusted LIBO Rate for the applicable interest period plus 625 basis points. Term Loans that are ABR Loans will bear interest at a rate per annum equal to the Alternate Base Rate plus 525 basis points. The exit credit agreement requires the company to comply with certain financial ratios, including a covenant that it not permit the Net Leverage Ratio (as defined in the exit credit agreement) as of the last day of the fiscal quarters ending (i) December 31, 2020 and March 31, 2021, to be greater than 4.00 to 1.00, (ii) June 30, 2021, September 30, 2021, December 31, 2021, March 31, 2022 and June 30, 2022, to be greater than 3.75 to 1.00 and (iii) September 30, 2022 and any fiscal quarter thereafter, to be greater than 3.50 to 1.00. In addition, beginning with the fiscal quarter ending December 31, 2020, the company may not (a) permit the Current Ratio (as defined in the exit credit agreement) as of the last day of any fiscal quarter to be less than 0.50 to 1.00 or (b) permit the Interest Coverage Ratio (as defined in the exit credit agreement) as of the last day of any fiscal quarter to be less than 2.50 to 1.00. The exit credit agreement is secured by first-priority liens on substantially all of the personal and real property assets of the Borrowers and the Guarantors, including without limitation the company’s ownership interests in Superior. The initial borrowing base under the exit credit agreement is $140.0 million. On the Effective Date, the Borrowers had (i) $40.0 million in principal amount of Term Loans outstanding under the new term loan facility, (ii) $92.0 million in principal amount of Revolving Loans outstanding under the new RBL facility and (iii) approximately $6.7 million of outstanding letters of credit. Going Concern In addition to reorganizing our capital structure in the Chapter 11 Cases, we have taken several actions to alleviate the conditions that cause substantial doubt about our ability to continue as a going concern, including (i) minimizing capital expenditures, (ii) aggressively managing working capital, (iii) further reducing recurring operating expenses, and (iv) exploring potential business transactions. However, the significant risks and uncertainties related to our liquidity and Chapter 11 Cases at June 30, 2020 raised substantial doubt about our ability to continue as a going concern. We therefore concluded as of such date there continued to be substantial doubt about our ability to continue as a going concern. We prepared our condensed consolidated financial statements on a going concern basis of accounting, which contemplates continuity of operations, realization of assets, and satisfaction of liabilities and commitments in the normal course of business. The condensed consolidated financial statements include no adjustments that might result from the outcome of the going concern uncertainty. If we cannot continue as a going concern, adjustments to the carrying values and classification of our assets and liabilities and the reported amounts of income and expenses could be required and could be material. Fresh Start Accounting Our consolidated financial statements will be required to be prepared with the application of fresh start accounting following the Effective Date. Under the principles of fresh start accounting, a new reporting entity is considered to be created and we will allocate the aggregate value of the reorganized company to its individual assets and liabilities based on their estimated fair values as of the Effective Date. The enterprise value of the new reporting entity was estimated to be approximately $270.0 million to $380.0 million, with a midpoint of $325.0 million, based on an assumed effective date of the Plan of August 31, 2020. As a result of the anticipated application of fresh start accounting and the effects of the reorganization of our capital structure under the Plan, the consolidated financial statements on or after the Effective Date will not be comparable with the consolidated financial statements before that date. Among other items, lack of comparability before the Effective Date in our financial statements may exist with regard to our deferred tax positions. The Internal Revenue Service Code (IRC) of 1986, as amended, provides that a debtor in a Chapter 11 bankruptcy case may exclude cancellation of debt income (CODI) from taxable income but must reduce certain of its tax attributes by the amount of any CODI realized as a result of the consummation of a plan of reorganization. The amount of CODI realized by a taxpayer is determined based on the fair market value of the consideration received by the creditors in settlement of outstanding indebtedness. Following the Effective Date, the CODI may reduce some or all of the amount of prior U.S. tax attributes, which can include net operating losses, capital losses, and tax basis in assets. The amount of the remaining U.S. deferred tax assets, against which a full valuation exists, will be limited under IRC Section 382 due to the change in control resulting from the Plan. Financial Statement Classification of Liabilities Subject to Compromise Liabilities subject to compromise represent liabilities incurred before the commencement of the bankruptcy proceedings which may be affected by the Chapter 11 Cases. These amounts represent allowed claims and our best estimate of claims expected to be allowed which will be resolved as part of the bankruptcy proceedings. These claims remain subject to future adjustments. Adjustments may result from negotiations, actions of the Bankruptcy Court, determination as to the value of any collateral securing claims, or other various events. A difference between liability amounts estimated by us and claims filed by creditors will be investigated and the Bankruptcy Court will make a final determination of the amount of allowable claims. Our credit facility is fully secured and is not considered a liability subject to compromise. Liabilities subject to compromise include the following: June 30, 2020 (In thousands) 6.625% senior subordinated notes due 2021 (including accrued interest as of the Petition Date) 671,724 Accounts payable 735 Employee separation benefit plan obligations 22,624 Litigation settlements 45,000 Royalty suspense accounts payable 19,637 Total liabilities subject to compromise $ 759,720 During the three months ended June 30, 2020, we had a reduction in force and incurred additional expenses of $15.4 million for benefits to be paid under our Separation Benefit Plan. These expenses were recorded as operating costs in our consolidated statements of operations. Because these amounts are unsecured, the total amount owed to separated employees is subject to compromise. Interest Expense The Debtors have discontinued recording interest on liabilities subject to compromise as of the Petition Date. Contractual interest on liabilities subject to compromise not reflected in the condensed consolidated statements of operations for the three and six months ended June 30, 2020 was approximately $5.4 million, representing interest expense from the Petition Date through June 30, 2020. In addition, the Debtors did not make the required interest payment on the Notes of $21.5 million on May 15, 2020. Reorganization Items Reorganization items represent the direct and incremental costs of the Chapter 11 Cases, like professional fees, pre-petition liability claim adjustments, and losses related to terminated contracts that are probable and can be estimated. Reorganization items consisted of the following for the three and six months ended June 30, 2020: Amount (In thousands) Professional fees incurred $ 4,822 Adjustment to unamortized debt issuance costs associated with the 6.625% senior subordinated notes due 2021 2,205 Total reorganization items $ 7,027 Financial Statements of the Debtors The financial statements below represent condensed combined financial statements of the Debtors, which excludes non-debtor entities. Intercompany transactions among the Debtors have been eliminated in the financial statements contained below. Intercompany transactions among the Debtors and the non-debtor subsidiaries have not been eliminated in the Debtors' financial statements below. UNIT CORPORATION (DEBTOR-IN-POSSESSION) Condensed Combined Balance Sheets (Unaudited) June 30, (In thousands) ASSETS Current assets: Cash and cash equivalents $ 13,214 Accounts receivable 33,628 Intercompany accounts receivable 5,290 Materials and supplies 110 Current income tax receivable 850 Prepaid expenses and other 9,338 Total current assets 62,430 Intercompany investment 338,809 Net property and equipment 658,041 Right of use asset 3,337 Other assets 16,626 Total assets $ 1,079,243 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable $ 16,828 Intercompany accounts payable 4,364 Accrued liabilities 25,355 Current operating lease liability 2,154 Current portion of long-term debt 124,000 Debtor-in-possession financing 8,000 Current derivative liability 5,011 Current portion of other long-term liabilities 5,615 Total current liabilities 191,327 Non-current derivative liabilities 145 Operating lease liability 1,146 Other long-term liabilities 81,623 Liabilities subject to compromise 759,720 Deferred income taxes 4,750 Shareholders’ equity: Total shareholders’ equity attributable to Unit Corporation (128,176) Non-controlling interests in consolidated subsidiaries 168,708 Total shareholders' equity 40,532 Total liabilities and shareholders’ equity $ 1,079,243 UNIT CORPORATION (DEBTOR-IN-POSSESSION) Condensed Combined Statements of Operations (Unaudited) Three Months Ended June 30, 2020 Six Months Ended June 30, 2020 (In thousands) Revenues $ 56,159 $ 141,315 Expenses: Operating costs 93,305 150,169 Depreciation, depletion and amortization 25,612 74,956 Impairment 109,318 787,280 Loss on abandonment of assets — 17,554 General and administrative 25,814 37,367 Loss on disposition of assets 886 1,282 Total operating costs 254,935 1,068,608 Loss from operations (198,776) (927,293) Other income (expense): Interest, net (7,066) (19,805) Write-off of debt issuance costs (2,426) (2,426) Loss on derivatives (6,937) (6,454) Reorganization items (7,027) (7,027) Other, net 22 64 Total other income (expense) (23,434) (35,648) Loss before income taxes (222,210) (962,941) Income tax benefit (6,455) (9,880) Equity in net earnings (losses) from investment 188 (66,178) Net loss (215,567) (1,019,239) Net income (loss) attributable to non-controlling interest 84 (33,096) Net loss attributable to Unit Corp $ (215,651) $ (986,143) UNIT CORPORATION (DEBTOR-IN-POSSESSION) Condensed Combined Statements of Cash Flows (Unaudited) Six Months Ended June 30, 2020 (In thousands) OPERATING ACTIVITIES: Net loss $ (1,019,239) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation, depletion and amortization 74,956 Impairments 787,280 Loss on abandonment of assets 17,554 Amortization of debt issuance costs and debt discount 1,079 Equity investment in non-debtor subsidiaries 66,086 Loss on derivatives 6,454 Cash receipts on derivatives settled (691) Loss on disposition of assets 1,282 Write-off of debt issuance costs 2,426 Deferred tax benefit (8,963) Employee stock compensation plans 4,179 Bad debt expense 1,923 ARO liability accretion 1,169 Noncash reorganization items 7,027 Other, net 11,621 Changes in operating assets and liabilities increasing (decreasing) cash: Accounts receivable 26,609 Material and supplies 43 Prepaid expenses and other (3,158) Accounts payable (20,958) Accrued liabilities 49,661 Net cash provided by operating activities 6,340 INVESTING ACTIVITIES: Capital expenditures (14,188) Producing properties and other acquisitions (210) Proceeds from disposition of property and equipment 4,422 Net cash used in investing activities (9,976) FINANCING ACTIVITIES: Borrowings under line of credit, including borrowings under DIP credit facility 47,300 Payments under line of credit (23,500) DIP financing costs (990) Intercompany borrowings 781 Employee taxes paid by withholding shares (43) Bank overdrafts (7,269) Net cash provided by financing activities 16,279 Net increase in cash and cash equivalents 12,643 Cash and cash equivalents, beginning of year 571 Cash and cash equivalents, end of year $ 13,214 |
Impairments
Impairments | 6 Months Ended |
Jun. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Impairments | IMPAIRMENTS We review and evaluate our long-lived assets, including intangible assets, for impairment when events or changes in circumstances indicate that the related carrying amount of such assets may not be recoverable, and changes to our estimates could affect our assessment of asset recoverability. During the first quarter of 2020, global commodity prices declined due to factors that significantly impacted both demand and supply. As the COVID-19 pandemic spread, causing travel and other restrictions to be implemented globally, the demand for crude oil declined. Additionally, the supply shock late in the first quarter from certain major oil producing nations increasing production further contributed to the sharp drop in crude oil prices. The sharp drop in crude oil prices resulted in prompt reactions from a number of domestic producers, including significantly reducing capital budgets and resultant drilling activity and shutting-in production. The above circumstances are a triggering event that requires our long-lived assets to be evaluated for impairment. At March 31, 2020, we determined that indicators of impairment existed for certain asset groups within our operating segments. For each asset group for which undiscounted future net cash flows could not recover the net book value, fair value was determined using discounted estimated cash flows to measure the impairment loss. The estimated cash flows used to assess recoverability of our long-lived assets and measure fair value of our asset groups are derived from current business plans, which are developed using near-term price and volume projections reflective of the current environment and estimated drilling rig utilization. Other key assumptions include volume projections, operating costs, timing of incurring those costs and using an appropriate discount rate. These key assumptions could change in the future and could result in additional impairment expense recorded on these asset groups. We believe our estimates and models used to determine fair value are similar to what a market participant would use and are appropriate under the circumstances. However, given the rate of change impacting the energy industry, it is reasonably possible that these estimates and models may change in the near term potentially resulting in material impairment expense in the future interim periods. The fair value measurement of our long-lived assets was based, in part, on significant inputs not observable in the market (as discussed above) and thus represents a Level 3 measurement. The significant unobservable inputs used include forecasted revenues, gross margins, discount rates, and terminal value exit multiples. The weighted average discount rate and exit multiples reflect management’s best estimate of inputs a market participant would use. No triggering events were identified during the second quarter of 2020. Due to the recording of these impairments, we adjusted the valuation allowance we had recorded as of December 31, 2019 to reflect the expected realizability of deferred tax assets. The valuation allowance, in addition to state income taxes and the impact of permanent differences between book and taxable income, results in a difference between amounts computed by applying the federal statutory rate to pre-tax loss for the three and six months ended June 30, 2020. Oil and Natural Gas Properties Under full cost accounting rules we must review the carrying value of our oil and natural gas properties at the end of each quarter. Under those rules, the maximum amount allowed as the carrying value is called the ceiling. The ceiling is the sum of the present value (using a 10% discount rate) of the estimated future net revenues from our proved reserves (using the unescalated 12-month average price of our oil, NGLs, and natural gas), plus the cost of properties not being amortized, plus the lower of cost or estimated fair value of unproved properties in the costs being amortized, less related income taxes. If the net book value of the oil, NGLs, and natural gas properties being amortized exceeds the full cost ceiling, the excess amount is charged to expense in the period during which the excess occurs, even if prices are depressed for only a short while. Once incurred, a write-down of oil and natural gas properties is not reversible. During the first quarter of 2020, we determined that, because of the increased uncertainty in our business our undeveloped acreage would not be fully developed and thus certain unproved oil and gas properties carrying values were not recoverable resulted in an impairment of $226.5 million, which had a corresponding increase to our depletion base and contributed to our full cost ceiling impairment recorded during the first quarter of 2020. We recorded a non-cash full cost ceiling test write-down of $267.8 million pre-tax in the first quarter of 2020 due to the reduction for the 12-month average commodity prices and the impairment of our unproved oil and gas properties described above. During the second quarter of 2020, the 12-month average commodity prices decreased further, resulting in a non-cash ceiling test write-down of $109.3 million pre-tax. We had no non-cash ceiling test write-downs in the first six months of 2019. In addition to the impairment evaluations of our proved and unproved oil and gas properties in the first quarter of 2020, we also evaluated the carrying value of our salt water disposal assets. Based on our revised forecast of asset utilization, we determined certain assets were no longer expected to be used and wrote off certain salt water disposal assets that we now consider abandoned. We recorded expense of $17.6 million related to the write-down of our salt water disposal asset in the first quarter of 2020. Contract Drilling At March 31, 2020, due to market conditions, we performed impairment testing on two asset groups which were comprised of the SCR diesel-electric drilling rigs and the BOSS drilling rigs. We concluded that the net book value of the SCR drilling rigs asset group was not recoverable through estimated undiscounted cash flows and recorded a non-cash impairment charge of $407.1 million in the first quarter of 2020. We also recorded an additional non-cash impairment charges of $3.0 million for other drilling equipment. These charges are included within impairment charges in our Unaudited Condensed Consolidated Statements of Operations. We concluded that no impairment was needed on the BOSS drilling rigs asset group as the undiscounted cash flows exceeded the carrying value of the asset group. The carrying value of the asset group was approximately $242.5 million at March 31, 2020. The estimated undiscounted cash flows of the BOSS drilling rigs asset group exceeded the carrying value by a relatively minor margin, which means minor changes in certain key assumptions in future periods may result in material impairment charges in future periods. Some of the more sensitive assumptions used in evaluating the contract drilling rigs asset groups for potential impairment include forecasted utilization, gross margins, salvage values, discount rates, and terminal values. Mid-stream |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 6 Months Ended |
Jun. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer | REVENUE FROM CONTRACTS WITH CUSTOMERS Our revenue streams are reported under three segments: oil and natural gas, contract drilling, and mid-stream. This is how we disaggregate our revenue and report our segment revenue (as reflected in Note 17 – Industry Segment Information). Revenue from the oil and natural gas segment is from sales of our oil and natural gas production. Revenue from the contract drilling segment comes from contracting with upstream companies to drill an agreed-on number of wells or provide drilling rigs and services over an agreed-on period. Revenue from the mid-stream segment is derived from gathering, transporting, and processing natural gas and NGLs and selling those commodities. Oil and Natural Gas Revenues Certain costs—as either a deduction from revenue or as an expense—are determined based on when control of the commodity is transferred to our customer, which would affect our total revenue recognized, but will not affect gross profit. For example, gathering, processing, and transportation costs included as part of the contract price with the customer on transfer of control of the commodity are included in the transaction price, while costs incurred while we are in control of the commodity represent operating costs. Contract Drilling Revenues The impact from the mobilization and de-mobilization charges due under our outstanding drilling contracts to our financial statements was immaterial. As of June 30, 2020, we had three contract drilling contracts with terms ranging from two months to almost two years. Most of our drilling contracts have an original term of less than one year. The remaining performance obligations under the contracts with a longer duration are not material. Mid-stream Contracts Revenues Revenues are generated from fees earned for gas gathering and processing services provided to a customer. The typical revenue contracts used by this segment are gas gathering and processing agreements. These tables show the changes in our mid-stream contract asset and contract liability balances during the six months ended June 30, 2020: June 30, December 31, Change (In thousands) Contract assets $ 9,695 $ 12,921 $ (3,226) Contract liabilities 5,625 7,061 (1,436) Contract assets (liabilities), net $ 4,070 $ 5,860 $ (1,790) The amounts above are reported in prepaid expenses and other, other assets (long-term), current portion of other long-term liabilities and other long-term liabilities in our Unaudited Condensed Consolidated Balance Sheets. Included below is the fixed revenue we will earn over the remaining term of the contracts and excludes all variable consideration to be earned with the associated contract. Contract Remaining Term of Contract July - December 2021 2022 2023 and beyond Total Remaining Impact to Revenue (In thousands) Demand fee contracts 2-8 years $ (1,985) $ (3,501) $ 1,380 $ 36 $ (4,070) |
Divestitures
Divestitures | 6 Months Ended |
Jun. 30, 2020 | |
Property, Plant and Equipment Impairment or Disposal [Abstract] | |
Divestitures | DIVESTITURES Oil and Natural Gas We sold $0.9 million of non-core oil and natural gas assets, net of related expenses, during the first six months of 2020, compared to $2.1 million during the first six months of 2019. These proceeds reduced the net book value of our full cost pool with no gain or loss recognized. Contract Drilling As of December 31, 2019, we had seven drilling rigs and other drilling equipment to be marketed for sale throughout the next twelve months, which we classified as assets held for sale with a fair value of $5.9 million. During the first quarter of 2020, due to market conditions, it was determined these assets would not be sold in the next twelve months and were reclassified to long-lived assets. We no longer have assets that meet the criteria to be classified as held for sale. |
Loss Per Share
Loss Per Share | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Loss Per Share | LOSS PER SHARE Information related to the calculation of loss per share attributable to Unit Corporation is as follows: Earnings (Loss) Weighted Per-Share (In thousands except per share amounts) For the three months ended June 30, 2020 Basic loss attributable to Unit Corporation per common share $ (215,649) 53,503 $ (4.03) Effect of dilutive stock options and restricted stock — — — Diluted loss attributable to Unit Corporation per common share $ (215,649) 53,503 $ (4.03) For the three months ended June 30, 2019 Basic loss attributable to Unit Corporation per common share $ (8,509) 52,930 $ (0.16) Effect of dilutive stock options and restricted stock — — — Diluted loss attributable to Unit Corporation per common share $ (8,509) 52,930 $ (0.16) The following table shows the number of stock options (and their average exercise price) excluded because their option exercise prices were greater than the average market price of our common stock: Three Months Ended June 30, 2020 2019 Stock options 28,000 42,000 Average exercise price $ 52.24 $ 48.56 Earnings (Loss) (Numerator) Weighted Shares (Denominator) Per-Share Amount (In thousands except per share amounts) For the six months ended June 30, 2020 Basic loss attributable to Unit Corporation per common share $ (986,143) 53,317 $ (18.50) Effect of dilutive stock options and restricted stock — — — Diluted loss attributable to Unit Corporation per common share $ (986,143) 53,317 $ (18.50) For the six months ended June 30, 2019 Basic loss attributable to Unit Corporation per common share $ (12,013) 52,744 $ (0.23) Effect of dilutive stock options and restricted stock — — — Diluted loss attributable to Unit Corporation per common share $ (12,013) 52,744 $ (0.23) The following table shows the number of stock options (and their average exercise price) excluded because their option exercise prices were greater than the average market price of our common stock: Six Months Ended June 30, 2020 2019 Stock options 28,000 42,000 Average exercise price $ 52.24 $ 48.56 |
Accrued Liabilities
Accrued Liabilities | 6 Months Ended |
Jun. 30, 2020 | |
Accrued Liabilities [Abstract] | |
Accrued Liabilities | ACCRUED LIABILITIES Accrued liabilities consisted of: June 30, December 31, (In thousands) Employee costs $ 7,016 $ 17,832 Lease operating expenses 6,651 9,200 Taxes 6,343 3,450 Third-party credits 2,167 3,691 Derivative settlements 1,323 — Interest payable 760 6,562 Other 7,124 5,827 Total accrued liabilities $ 31,384 $ 46,562 |
Long-Term Debt And Other Long-T
Long-Term Debt And Other Long-Term Liabilities | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Long-Term Debt And Other Long-Term Liabilities | LONG-TERM DEBT AND OTHER LONG-TERM LIABILITIES Long-Term Debt The company's filing of the Bankruptcy Petitions constituted an event of default that accelerated the company's obligations under the Unit credit agreement and the Notes. As a result of the filing of the Bankruptcy Petitions, subject to certain limited exceptions, the lenders under the Unit credit agreement and the holders of the Notes were stayed from taking any actions against the company. As of the date indicated, our long-term debt, not including debt instruments classified as liabilities subject to compromise, consisted of the following: June 30, December 31, (In thousands) Current portion of long-term debt: Unit credit agreement with an average interest rate of 2.3% and 4.0% at June 30, 2020 and December 31, 2019, respectively $ 124,000 $ 108,200 DIP credit agreement with an average interest rate of 7.5% at June 30, 2020 8,000 — Total current portion of long-term debt 132,000 108,200 Long-term debt: Superior credit agreement with an average interest rate of 2.2% and 3.9% at June 30, 2020 and December 31, 2019, respectively 34,000 16,500 6.625% senior subordinated notes due 2021 — 650,000 Total principal amount 34,000 666,500 Less: unamortized discount — (971) Less: debt issuance costs, net — (2,313) Total long-term debt $ 34,000 $ 663,216 Unit Credit Agreement. Before the filing of the Chapter 11 Cases, the Unit credit facility had a scheduled maturity date of October 18, 2023 that would have accelerated to November 16, 2020 if, by that date, all the Notes were not repurchased, redeemed, or refinanced with indebtedness having a maturity date at least six months following October 18, 2023 (Credit Agreement Extension Condition). The Debtors' filing of the Bankruptcy Petitions constituted an event of default that accelerated the Debtors' obligations under the Unit credit agreement and the indenture governing the Notes. Due to the Credit Agreement Extension Condition and the acceleration of debt obligations resulting from filing the Chapter 11 Cases, the company's debt associated with the Unit credit agreement is reflected as a current liability in its consolidated balance sheet as of June 30, 2020 and December 31, 2019. The classification as a current liability due to the Credit Agreement Extension Condition was based on the filing of the Chapter 11 Cases and the uncertainty regarding the company's ability to repay or refinance the Notes before November 16, 2020. In addition, on May 22, 2020, the RBL Lenders' remaining commitments under the Unit credit facility were terminated. Before filing the Chapter 11 Cases, we were charged a commitment fee of 0.375% on the amount available but not borrowed. That fee varied based on the amount borrowed as a percentage of the total borrowing base. Total amendment fees of $3.3 million in origination, agency, syndication, and other related fees were being amortized over the life of the Unit credit agreement. Due to the remaining commitments of the Unit credit agreement being terminated by the RBL Lenders', the unamortized debt issuance costs of $2.4 million were written off during the second quarter of 2020. Under the Unit credit agreement, we pledged as collateral 80% of the proved developed producing (discounted as present worth at 8%) total value of our oil and gas properties. Under the mortgages covering such oil and gas properties, UPC also pledged as collateral certain items of its personal property. On May 2, 2018, we entered into a Pledge Agreement with BOKF, NA (dba Bank of Oklahoma), as administrative agent to benefit the secured parties, under which we granted a security interest in the limited liability membership interests and other equity interests we own in Superior as additional collateral for our obligations under the Unit credit agreement. Before filing the Chapter 11 Cases, any part of the outstanding debt under the Unit credit agreement could be fixed at a London Interbank Offered Rate (LIBOR). LIBOR interest is computed as the LIBOR base for the term plus 1.50% to 2.50% depending on the level of debt as a percentage of the borrowing base and is payable at the end of each term, or every 90 days, whichever is less. Borrowings not under LIBOR bear interest equal to the higher of the prime rate specified in the Unit credit agreement and the sum of the Federal Funds Effective Rate (as defined in the Unit credit agreement) plus 0.50%, but in no event shall the interest on such borrowings be less than LIBOR plus 1.00% plus a margin. The Unit credit agreement provides that if ICE Benchmark Administration no longer reports the LIBOR or Administrative Agent determines in good faith that the rate so reported no longer accurately reflects the rate available in the London Interbank Market or if such index no longer exists or accurately reflects the rate available to the Administrative Agent in the London Interbank Market, Administrative Agent may select a replacement index. Interest is payable at the end of each month or at the end of each LIBOR contract and the principal may be repaid in whole or in part at any time, without a premium or penalty. Filing the Bankruptcy Petitions on May 22, 2020 constituted an event of default that accelerated the company’s obligations under the Unit credit agreement, and the lenders’ rights of enforcement regarding the Unit credit agreement were automatically stayed because of the Chapter 11 Cases. On the Effective Date, each lender under the Unit credit facility and the DIP credit facility received its pro rata share of revolving loans, term loans and letter-of-credit participations under the exit facility, in exchange for that lender’s allowed claims under the Unit credit facility or the DIP credit facility. Superior Credit Agreement. On May 10, 2018, Superior signed a five Superior is charged a commitment fee of 0.375% on the amount available but not borrowed which varies based on the amount borrowed as a percentage of the total borrowing base. Superior paid $1.7 million in origination, agency, syndication, and other related fees. These fees are being amortized over the life of the Superior credit agreement. The Superior credit agreement requires that Superior maintain a Consolidated EBITDA to interest expense ratio for the most-recently ended rolling four quarters of at least 2.50 to 1.00, and a funded debt to Consolidated EBITDA ratio of not greater than 4.00 to 1.00. The agreement also contains several customary covenants that restrict (subject to certain exceptions) Superior’s ability to incur additional indebtedness, create additional liens on its assets, make investments, pay distributions, sign sale and leaseback transactions, engage in certain transactions with affiliates, engage in mergers or consolidations, sign hedging arrangements, and acquire or dispose of assets. As of June 30, 2020, Superior complied with these covenants. The Superior credit agreement is utilized to fund capital expenditures and acquisitions, provide general working capital, and provide letters of credit. Superior's credit agreement is not guaranteed by Unit. Superior and its subsidiaries were not parties to the RSA and are not Debtors in the Chapter 11 Cases. 6.625% Senior Subordinated Notes. As of June 30, 2020, we had an aggregate principal amount of $650.0 million outstanding on the Notes. Interest on the Notes was payable semi-annually (in arrears) on May 15 and November 15 of each year. The Notes were scheduled to mature on May 15, 2021. In issuing the Notes, we incurred fees of $14.7 million that were being amortized as debt issuance cost until maturity. In the second quarter of 2020, we wrote off the remaining debt issuance costs of $2.2 million due to the filing of the Bankruptcy Petitions. The Notes plus accrued interest as of the Petition Date are included in liabilities subject to compromise in the condensed consolidated balance sheet as of June 30, 2020. The Notes were subject to an Indenture dated as of May 18, 2011, between us and Wilmington Trust, National Association (successor to Wilmington Trust FSB), as Trustee (Trustee), as supplemented by the First Supplemental Indenture dated as of May 18, 2011, between us, the Guarantors, and the Trustee, and as further supplemented by the Second Supplemental Indenture dated as of January 7, 2013, between us, the Guarantors, and the Trustee (as supplemented, the 2011 Indenture), establishing the terms of and providing for issuing the Notes. On the Effective Date, by operation of the Plan, all outstanding obligations under the Notes were cancelled. Unit, other than its ownership in its subsidiaries, has no significant independent assets or operations. The guarantees by the Guarantors of the Notes (registered under registration statements) were full and unconditional, joint and several, subject to certain automatic customary releases, are subject to certain restrictions on the sale, disposition, or transfer of the capital stock or substantially all of the assets of a subsidiary guarantor, and other conditions and terms set out in the 2011 Indenture. Superior was not a Guarantor of the Notes as of the Petition Date. Excluding Superior, any of our other subsidiaries that were not Guarantors were minor. There are no significant restrictions on our ability to receive funds from any subsidiary through dividends, loans, advances, or otherwise. The company elected not to make the approximate $21.5 million semi-annual interest payment due on the Notes on May 15, 2020. The company was entitled to a 30-day grace period after the interest payment date before an event of default would occur because of such non-payment. Filing of the Bankruptcy Petitions on May 22, 2020 constituted an event of default that accelerated the company’s obligations under the Notes. However, under the Bankruptcy Code, holders of the Notes were stayed from taking any action against the company or the other Debtors because of the default. Pursuant to the Plan, each holder of the Notes will receive its pro rata share of New Common Stock based on equity allocations at each of Unit, UDC and UPC in exchange for the holder’s allowed Notes claim. On the Effective Date, by operation of the Plan, the Debtors' outstanding obligations under the Notes and the 2011 Indenture were cancelled. DIP Credit Agreement . As contemplated by the RSA, the company and the other Debtors entered into a Superpriority Senior Secured Debtor-in-Possession Credit Agreement dated May 27, 2020 ( DIP credit agreement), by and among the Debtors, the RBL Lenders (in such capacity, the DIP Lenders), and BOKF, NA dba Bank of Oklahoma, as administrative agent, under which the DIP Lenders agreed to provide the company with the $36.0 million new money multiple-draw loan facility (DIP credit facility). The Bankruptcy Court entered an interim order on May 26, 2020 approving the DIP credit facility, permitting the Debtors to borrow up to $18.0 million on an interim basis. On June 19, 2020, the Bankruptcy Court granted final approval of the DIP credit facility. As of June 30, 2020, we had $8.0 million outstanding under the DIP credit facility. Before its repayment and termination on the Effective Date, borrowings under the DIP credit facility matured on the earliest of (i) September 22, 2020 (subject to a two-month extension to be approved by the DIP Lenders), (ii) the sale of all or substantially all of the assets of the Debtors under Section 363 of the Bankruptcy Code or otherwise, (iii) the effective date of a plan of reorganization or liquidation in the Chapter 11 Cases, (iv) the entry of an order by the Bankruptcy Court dismissing any of the Chapter 11 Cases or converting such Chapter 11 Cases to a case under Chapter 7 of the Bankruptcy Code and (v) the date of termination of the DIP Lenders’ commitments and the acceleration of any outstanding extensions of credit, in each case, under the DIP credit facility under and subject to the DIP credit agreement and the Bankruptcy Court’s orders. On the Effective Date, the DIP credit agreement was paid in full and terminated. On the Effective Date, each holder of an allowed claim under the DIP credit facility received its pro rata share of revolving loans, term loans and letter-of-credit participations under the exit facility. In addition, each such holder was issued on the Effective Date (or will be issued promptly following the Effective Date) its pro rata share of an equity fee under the exit facility equal to 5% of the New Common Stock (subject to dilution by shares reserved for issuance under a management incentive plan and upon exercise of the Warrants). For further information about the DIP credit agreement, please see Note 2 – Chapter 11 Proceedings, Liquidity, and Ability to Continue as a Going Concern. Other Long-Term Liabilities Other long-term liabilities consisted of the following: June 30, December 31, (In thousands) Asset retirement obligation (ARO) liability $ 64,248 $ 66,627 Workers’ compensation 12,112 11,510 Finance lease obligations 5,319 7,379 Contract liability 5,625 7,061 Separation benefit plans (1) — 10,122 Deferred compensation plan 6,006 6,180 Gas balancing liability 3,823 3,838 Other long-term liability 1,217 — 98,350 112,717 Less current portion 13,628 17,376 Total other long-term liabilities $ 84,722 $ 95,341 _______________________ 1. The separation benefit plans are part of the liabilities subject to compromise as of June 30, 2020. For further information, please see Note 2 – Chapter 11 Proceedings, Liquidity, and Ability to Continue as a Going Concern. Estimated annual principal payments under the terms of our long-term debt and other long-term liabilities during the five successive twelve-month periods beginning July 1, 2020 (and through 2024) are $145.6 million, $5.6 million, $2.8 million, $36.2 million, and $2.3 million, respectively. The Debtors' filing of the Bankruptcy Petitions constituted an event of default that accelerated the Debtors' obligations under the Unit credit agreement, which are reflected as current liabilities as of June 30, 2020. |
Asset Retirement Obligations
Asset Retirement Obligations | 6 Months Ended |
Jun. 30, 2020 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligations | ASSET RETIREMENT OBLIGATIONS We are required to record the estimated fair value of the liabilities relating to the future retirement of our long-lived assets. Our oil and natural gas wells are plugged and abandoned when the oil and natural gas reserves in those wells are depleted or the wells are no longer able to produce. The plugging and abandonment liability for a well is recorded in the period in which the obligation is incurred (at the time the well is drilled or acquired). None of our assets are restricted for purposes of settling these AROs. All our AROs relate to the plugging costs associated with our oil and gas wells. The following table shows certain information about our estimated AROs for the periods indicated: Six Months Ended June 30, 2020 2019 (In thousands) ARO liability, January 1: $ 66,627 $ 64,208 Accretion of discount 1,169 1,168 Liability incurred 460 3,656 Liability settled (435) (2,316) Liability sold (463) (1,632) Revision of estimates (1) (3,110) 2,349 ARO liability, June 30: 64,248 67,433 Less current portion 1,104 1,784 Total long-term ARO $ 63,144 $ 65,649 _______________________ |
New Accounting Pronouncements
New Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2020 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements | NEW ACCOUNTING PRONOUNCEMENTS Reference Rate Reform (Topic 848)—Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The FASB issued 2020-04 which provides optional expedients and exceptions for applying generally accepted accounting principles to contract modifications, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. The ASU is intended to help stakeholders during the global market-wide reference rate transition period. The amendment will be in effect for a limited time through December 31, 2022. Adopted Standards Measurement of Credit Losses on Financial Instruments (Topic 326). The FASB issued ASU 2016-13 which replaces current methods for evaluating impairment of financial instruments not measured at fair value, including trade accounts receivable and certain debt securities, with a current expected credit loss model. The amendment is effective for reporting periods after December 15, 2019. The adoption of this guidance did not have a material impact on our consolidated financial statements or related disclosures. Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement. The FASB issued ASU 2018-13 to modify the disclosure requirements in Topic 820. Part of the disclosures were removed or modified, and other disclosures were added. The amendment is effective for reporting periods beginning after December 15, 2019. The adoption of this guidance did not have a material impact on our consolidated financial statements or related disclosures. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | STOCK-BASED COMPENSATION On the Effective Date, our equity-based awards outstanding immediately before the Effective Date were cancelled. Under the Plan, Warrants will be issued to holders of the equity-based awards outstanding immediately before the Effective Date if the holder did not opt out of the releases under the Plan. We expect to issue the warrants during the fourth quarter of 2020. The following table summarizes the outstanding equity-based awards, which consisted of restricted stock awards and stock options, for the time periods shown: Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 (In millions) Recognized stock compensation expense $ 1.6 $ 4.7 $ 4.1 $ 8.5 Capitalized stock compensation cost for our oil and natural gas properties — 0.7 — 1.3 Tax benefit on stock-based compensation 0.4 1.2 1.0 2.1 The remaining unrecognized compensation cost related to unvested awards as of June 30, 2020 is approximately $5.7 million. The weighted average period over which this cost will be recognized is 1.1 years. Our Second Amended and Restated Unit Corporation Stock and Incentive Compensation Plan effective May 6, 2015 (the amended plan) allows us to grant stock-based and cash-based compensation to our employees (including employees of subsidiaries) and to non-employee directors. There are 7,230,000 shares of the company's common stock authorized for issuance to eligible participants under the amended plan with 2,000,000 shares being the maximum number of shares that can be issued as "incentive stock options." We did not grant any stock options during either of the three or six month periods ending June 30, 2020 or 2019. We did not grant any restricted stock awards during the three or six month periods ending June 30, 2020. This table shows the fair value of restricted stock awards granted to employees and non-employee directors during the periods indicated: Three Months Ended June 30, 2019 Time Performance Vested Shares granted: Employees 1,500 — Non-employee directors 72,784 — 74,284 — Estimated fair value (in millions): (1) Employees $ — $ — Non-employee directors 0.9 — $ 0.9 $ — Percentage of shares granted expected to be distributed: Employees 95 % N/A Non-employee directors 100 % N/A _______________________ 1. The performance shares represent 100% of the grant date fair value. (We recognize the grant date fair value minus estimated forfeitures.) Six Months Ended June 30, 2019 Time Performance Vested Shares granted: Employees 927,173 424,070 Non-employee directors 72,784 — 999,957 424,070 Estimated fair value (in millions): (1) Employees $ 14.6 $ 7.1 Non-employee directors 0.9 — $ 15.5 $ 7.1 Percentage of shares granted expected to be distributed: Employees 95 % 54 % Non-employee directors 100 % N/A _______________________ 1. The performance shares represent 100% of the grant date fair value. (We recognize the grant date fair value minus estimated forfeitures.) three three three |
Derivatives
Derivatives | 6 Months Ended |
Jun. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | DERIVATIVES Commodity Derivatives We have signed various types of derivative transactions covering some of our projected natural gas and oil production. These transactions are intended to reduce our exposure to market price volatility by setting the price(s) we will receive for that production. Our decisions on the price(s), type, and quantity of our production subject to a derivative contract are based, in part, on our view of current and future market conditions. As of June 30, 2020, these hedges made up our derivative transactions: • Basis/Differential Swaps. We receive or pay the NYMEX settlement value plus or minus a fixed delivery point price for the commodity and pay or receive the published index price at the specified delivery point. We use basis/differential swaps to hedge the price risk between NYMEX and its physical delivery points. • Collars. A collar contains a fixed floor price (put) and a ceiling price (call). If the market price exceeds the call strike price or falls below the put strike price, we receive the fixed price and pay the market price. If the market price is between the call and the put strike price, no payments are due from either party. • Three-way collars. A three-way collar contains a fixed floor price (long put), fixed subfloor price (short put), and a fixed ceiling price (short call). If the market price exceeds the ceiling strike price, we receive the ceiling strike price and pay the market price. If the market price is between the ceiling and the floor strike price, no payments are due from either party. If the market price is below the floor price but above the subfloor price, we receive the floor strike price and pay the market price. If the market price is below the subfloor price, we receive the market price plus the difference between the floor and subfloor strike prices and pay the market price. We have documented policies and procedures to monitor and control the use of derivative transactions. We do not engage in derivative transactions not otherwise tied to our projected production. Any changes in the fair value of our derivative transactions before maturity (i.e., temporary fluctuations in value) are reported in gain (loss) on derivatives in our Unaudited Condensed Consolidated Statements of Operations. As of June 30, 2020, these derivatives were outstanding: Term Commodity Contracted Volume Weighted Average Contracted Market Jul'20 - Dec'20 Natural gas - basis swap 30,000 MMBtu/day $(0.275) NGPL TEXOK Jul'20 - Dec'20 Natural gas - basis swap 20,000 MMBtu/day $(0.455) PEPL Jan'21 - Dec'21 Natural gas - basis swap 30,000 MMBtu/day $(0.215) NGPL TEXOK Jul'20 - Dec'20 Natural gas - three-way collar 30,000 MMBtu/day $2.50 - $2.20 - $2.80 IF - NYMEX (HH) Jul'20 - Sep'20 Crude oil - collar 112,000 Bbl/month $20.00 - $26.50 WTI - NYMEX The following tables present the fair values and locations of the derivative transactions recorded in our Unaudited Condensed Consolidated Balance Sheets: Derivative Assets Fair Value Balance Sheet Location June 30, December 31, (In thousands) Commodity derivatives: Current Current derivative asset $ — $ 633 Long-term Non-current derivative asset — — Total derivative assets $ — $ 633 Derivative Liabilities Fair Value Balance Sheet Location June 30, December 31, (In thousands) Commodity derivatives: Current Current derivative liability $ 5,011 $ — Long-term Non-current derivative liability 145 27 Total derivative liabilities $ 5,156 $ 27 All our counterparties are subject to master netting arrangements. If we have a legal right of set-off, we net the value of the derivative transactions we have with the same counterparty in our Unaudited Condensed Consolidated Balance Sheets. Following is the effect of derivative instruments on the Unaudited Condensed Consolidated Statements of Operations for the periods indicated: Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 (In thousands) Gain (loss) on derivatives: Gain (loss) on derivatives, included are amounts settled during the period of ($1,243), $2,658, ($691), and $5,314, respectively $ (6,937) $ 7,927 $ (6,454) $ 995 $ (6,937) $ 7,927 $ (6,454) $ 995 The commencement of the Chapter 11 Cases constituted a termination event with respect to the company’s derivative instruments, which permits the counterparties to such derivative instruments to terminate their outstanding hedges. Such terminations are not stayed under the Bankruptcy Code. However, none of the company’s counterparties elected to terminate outstanding hedges based on the occurrence of this termination event (or otherwise). |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS Fair value is defined as the amount that would be received from the sale of an asset or paid for transferring a liability in an orderly transaction between market participants (in either case, an exit price). To estimate an exit price, a three-level hierarchy is used prioritizing the valuation techniques used to measure fair value into three levels with the highest priority given to Level 1 and the lowest priority given to Level 3. The levels are summarized as follows: • Level 1—unadjusted quoted prices in active markets for identical assets and liabilities. • Level 2—significant observable pricing inputs other than quoted prices included within level 1 either directly or indirectly observable as of the reporting date. Essentially, inputs (variables used in the pricing models) that are derived principally from or corroborated by observable market data. • Level 3—generally unobservable inputs developed based on the best information available and may include our own internal data. The inputs available to us determine the valuation technique we use to measure the fair values of our financial instruments. The following tables set forth our recurring fair value measurements: June 30, 2020 Level 2 Level 3 Effect Net Amounts Presented Financial assets (liabilities): Commodity derivatives: Assets $ — $ 843 $ (843) $ — Liabilities (5,999) — 843 (5,156) Total commodity derivatives $ (5,999) $ 843 $ — $ (5,156) December 31, 2019 Level 2 Level 3 Effect Net Amounts Presented Financial assets (liabilities): Commodity derivatives: Assets $ 177 $ 1,204 $ (748) $ 633 Liabilities (775) — 748 (27) Total commodity derivatives $ (598) 1,204 — 606 All our counterparties are subject to master netting arrangements. If a legal right of set-off exists, we net the value of the derivative transactions we have with the same counterparty. We are not required to post cash collateral with our counterparties and no collateral has been posted as of June 30, 2020. We used the following methods and assumptions to estimate the fair values of the assets and liabilities in the table above. There were no transfers between Level 2 and Level 3 financial assets (liabilities). Level 2 Fair Value Measurements Commodity Derivatives . We measure the fair values of our crude oil and natural gas swaps and collars using estimated internal discounted cash flow calculations based on the NYMEX futures index. Level 3 Fair Value Measurements Commodity Derivatives . The fair values of our natural gas and crude oil three-way collars are estimated using internal discounted cash flow calculations based on forward price curves, quotes obtained from brokers for contracts with similar terms, or quotes obtained from counterparties to the agreements. The following table is a reconciliation of our Level 3 fair value measurements: Net Derivatives Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 (In thousands) Beginning of period $ 948 $ 3,080 $ 1,204 $ 10,630 Total gains or losses (realized and unrealized): Included in earnings (1) 714 2,060 1,277 (3,374) Settlements (819) (1,195) (1,638) (3,311) End of period $ 843 $ 3,945 $ 843 $ 3,945 Total earnings (losses) for the period included in earnings attributable to the change in unrealized gain (loss) relating to assets still held at end of period $ (105) $ 865 $ (361) $ (6,685) _______________________ 1. Commodity derivatives are reported in the Unaudited Condensed Consolidated Statements of Operations in gain (loss) on derivatives. The following table provides quantitative information about our Level 3 unobservable inputs at June 30, 2020: Commodity (1) Fair Value Valuation Technique Unobservable Input Range (In thousands) Natural gas three-way collars $ 843 Discounted cash flow Forward commodity price curve $0.00 - $0.75 _______________________ 1. The commodity contracts detailed in this category include non-exchange-traded natural gas three-way collars that are valued based on NYMEX. The forward pricing range represents the low and high price expected to be paid or received within the settlement period. Our valuation at June 30, 2020 reflected that the risk of non-performance was immaterial. Fair Value of Other Financial Instruments This disclosure of the estimated fair value of financial instruments is made under accounting guidance for financial instruments. We have determined the estimated fair values by using market information and certain valuation methodologies. Considerable judgment is required in interpreting market data to develop the estimates of fair value. Using different market assumptions or valuation methodologies may have a material effect on our estimated fair value amounts. At June 30, 2020, the carrying values on the Unaudited Condensed Consolidated Balance Sheets for cash and cash equivalents (composed of bank and money market accounts - classified as Level 1), accounts receivable, accounts payable, other current assets, and current liabilities approximate their fair value because of their short-term nature. The carrying amounts of long-term debt associated with the Notes, net of unamortized discount and debt issuance costs, reported in the Unaudited Condensed Consolidated Balance Sheets as of December 31, 2019 were $646.7 million. As of June 30, 2020, the Notes are classified as liabilities subject to compromise in the Unaudited Condensed Consolidated Balance Sheets as of June 30, 2020. The estimated fair value of the Notes using quoted market prices at June 30, 2020 and December 31, 2019 was $100.4 million and $357.5 million, respectively. The Notes would be classified as Level 2. Fair Value of Non-Financial Instruments The initial measurement of AROs at fair value is calculated using discounted cash flow techniques and based on internal estimates of future retirement costs associated with property, plant, and equipment. Significant Level 3 inputs used in the calculation of AROs include plugging costs and remaining reserve lives. A reconciliation of our AROs is presented in Note 9 – Asset Retirement Obligations. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Leases of Lessee Disclosure | LEASESWe lease certain office space, land and equipment, including pipeline equipment and office equipment. Our lease payments are generally straight-line and exercising lease renewal options, which vary in term, is at our sole discretion. We include renewal periods in our lease term if we are reasonably certain to exercise renewal options. Our lease agreements do not include options to purchase the leased property. Related to our oil and natural gas segment, our short-term lease costs include those that are recognized in profit or loss during the period and those that are capitalized as part of the cost of another asset under GAAP. As the costs related to our drilling and production activities are reflected at our net ownership consistent with the principals of proportional consolidation, and lease commitments are generally considered gross as the operator, the costs may not reasonably reflect the company’s short-term lease commitments. As of June 30, 2020, we had an average working interest of 97% in our operated properties. The following table shows supplemental cash flow information related to leases for the periods indicated: Six Months Ended June 30, June 30, (In thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 2,827 $ 1,616 Financing cash flows for finance leases 2,061 1,980 Lease liabilities recognized in exchange for new operating lease right of use assets — 5 The following table shows information about our lease assets and liabilities in our Unaudited Condensed Consolidated Balance Sheets: Classification on the Consolidated Balance Sheets June 30, December 31, (In thousands) Assets Operating right of use assets Right of use assets $ 7,828 $ 5,673 Finance right of use assets Property, plant, and equipment, net 16,455 17,396 Total right of use assets $ 24,283 $ 23,069 Liabilities Current liabilities: Operating lease liabilities Current operating lease liabilities $ 4,666 $ 3,430 Finance lease liabilities Current portion of other long-term liabilities 5,157 4,164 Non-current liabilities: Operating lease liabilities Operating lease liabilities 3,012 2,071 Finance lease liabilities Other long-term liabilities 162 3,215 Total lease liabilities $ 12,997 $ 12,880 The following table shows certain information related to the lease costs for our finance and operating leases for the periods indicated: Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, (In thousands) Components of total lease cost: Amortization of finance leased assets $ 1,036 $ 995 $ 2,061 $ 1,980 Interest on finance lease liabilities 60 100 130 211 Operating lease cost 1,395 1,052 2,639 1,651 Short-term lease cost, included are amounts capitalized related to our oil and natural gas segment of $0.4 million, $9.0 million, $1.4 million, and $14.7 million, respectively 2,751 12,038 6,742 22,012 Variable lease cost 83 84 165 190 Total lease cost $ 5,325 $ 14,269 $ 11,737 $ 26,044 The following table shows certain information related to the weighted average remaining lease terms and the weighted average discount rates for our operating and finance leases: Weighted Average Remaining Lease Term Weighted Average Discount Rate (1) (In years) Operating leases 1.6 4.81% Finance leases 1.2 4.00% _______________________ 1. Our weighted average discount rates represent the rate implicit in the lease or our incremental borrowing rate for a term equal to the remaining term of the lease. The following table sets forth the maturity of our operating lease liabilities as of June 30, 2020: Amount (In thousands) Ending July 1, 2021 $ 4,938 2022 2,786 2023 222 2024 23 2025 12 2025 and beyond 70 Total future payments 8,051 Less: Interest 373 Present value of future minimum operating lease payments 7,678 Less: Current portion 4,666 Total long-term operating lease payments $ 3,012 Finance Leases In 2014, Superior entered into finance lease agreements for 20 compressors with initial terms of seven other long-term liabilities in the Unaudited Condensed Consolidated Balance Sheets as of June 30, 2020. These finance leases are discounted using annual rates of 4.00%. Total maintenance and interest remaining related to these leases are $1.4 million and $0.1 million, respectively, at June 30, 2020. Annual payments, net of maintenance and interest, average $4.6 million annually through 2021. At the end of the term, Superior has the option to purchase the assets at 10% of their then fair market value. The following table sets forth the maturity of our finance lease liabilities as of June 30, 2020: Amount Ending July 1, (In thousands) 2020 $ 6,692 2021 179 Total future payments 6,871 Less payments related to: Maintenance 1,430 Interest 122 Present value of future minimum finance lease payments 5,319 Less: Current portion 5,157 Total long-term finance lease payments $ 162 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES On May 22, 2020, the Debtors filed the Bankruptcy Petitions seeking relief under the Bankruptcy Code. The commencement of the Chapter 11 Cases automatically stayed all of the proceedings and actions against the Debtors (other than certain regulatory enforcement matters). The Debtors emerged from the Chapter 11 Cases on the Effective Date. For further information on the Chapter 11 Cases, please see Note 2 – Chapter 11 Proceedings, Liquidity, and Ability to Continue as a Going Concern. We manage our exposure to environmental liabilities on properties to be acquired by identifying existing problems and assessing the potential liability. We also conduct periodic reviews, on a company-wide basis, to identify changes in our environmental risk profile. These reviews evaluate whether there is a probable liability, its amount, and the likelihood that the liability will be incurred. Any potential liability is determined by considering, among other matters, incremental direct costs of any likely remediation and the proportionate cost of employees expected to devote significant time directly to any possible remediation effort. As it relates to evaluations of purchased properties, depending on the extent of an identified environmental problem, we may exclude a property from the acquisition, require the seller to remediate the property to our satisfaction, or agree to assume liability for the remediation of the property. We have not historically experienced any environmental liability while being a contract driller since the greatest portion of that risk is borne by the operator. Any liabilities we have incurred have been small and were resolved while the drilling rig was on the location. Those costs were in the direct cost of drilling the well. During the second quarter of 2018, as part of the Superior transaction, we entered into a contractual obligation that commits us to spend $150.0 million to drill wells in the Granite Wash/Buffalo Wallow area over three years starting January 1, 2019. For each dollar of the $150.0 million we do not spend (over the three-year period), we would forgo receiving $0.58 of future distributions from our 50% ownership interest in our consolidated mid-stream subsidiary. At June 30, 2020, if we elected not to drill or spend any additional money in the designated area before December 31, 2021, the maximum amount we could forgo from distributions would be $72.6 million. We have no plans to drill in 2020. Total spent towards the $150.0 million as of June 30, 2020 was $24.8 million. We have firm transportation commitments to transport our natural gas from various systems for approximately $1.0 million over the next twelve months and $0.6 million for the 18 months thereafter. The company is subject to litigation and claims arising in the ordinary course of business. The company accrues for such items when a liability is both probable and the amount can be reasonably estimated. The company’s exploration and development subsidiary, Unit Petroleum Company, is a defendant in three royalty class action lawsuits. Below is a summary of two of those lawsuits and the respective treatment of those cases in the Bankruptcy Proceedings. Cockerell Oil Properties, Ltd., v. Unit Petroleum Company , No. 16-cv-135-JHP, United States District Court for the Eastern District of Oklahoma. On March 11, 2016, a putative class action lawsuit was filed against Unit Petroleum Company styled Cockerell Oil Properties, Ltd., v. Unit Petroleum Company in LeFlore County, Oklahoma. We removed the case to federal court in the Eastern District of Oklahoma. The plaintiff alleges that Unit Petroleum wrongfully failed to pay interest with respect to late paid oil and gas proceeds under Oklahoma’s Production Revenue Standards Act. The lawsuit seeks actual and punitive damages, an accounting, disgorgement, injunctive relief, and attorney fees. Plaintiff is seeking relief on behalf of royalty and working interest owners in our Oklahoma wells. Chieftain Royalty Company v. Unit Petroleum Company , No. CJ-16-230, District Court of LeFlore County, Oklahoma. On November 3, 2016, a putative class action lawsuit was filed against Unit Petroleum Company styled Chieftain Royalty Company v. Unit Petroleum Company in LeFlore County, Oklahoma. Plaintiff alleges that Unit Petroleum breached its duty to pay royalties on natural gas used for fuel off the lease premises. The lawsuit seeks actual and punitive damages, an accounting, injunctive relief, and attorney’s fees. Plaintiff is seeking relief on behalf of Oklahoma citizens who are or were royalty owners in our Oklahoma wells. Pending Settlement In August 2020, Unit Petroleum Company reached an agreement to settle two of the three class actions described in Item 1 – Legal Proceedings of Part II of this quarterly report. Under the settlement, Unit Petroleum Company agreed to recognize class proof of claims in the amount of $15.75 million for Cockerell Oil Properties, Ltd. vs. Unit Petroleum Company, and $29.25 million in Chieftain Royalty Company vs. Unit Petroleum Company. This settlement is subject to certain conditions, including approval by the United States Bankruptcy Court for the Southern District of Texas, Houston Division in Case No. 20-32740 under the caption In re Unit Corporation, et al. |
Variable Interest Entity Arrang
Variable Interest Entity Arrangements | 6 Months Ended |
Jun. 30, 2020 | |
Variable Interest Entity Arrangements [Abstract] | |
Variable Interest Entity Arrangements | VARIABLE INTEREST ENTITY ARRANGEMENTS On April 3, 2018 we sold 50% of the ownership interest in Superior. The 50% interest in Superior we sold was acquired by SP Investor Holdings, LLC, a holding company jointly owned by OPTrust and funds managed and/or advised by Partners Group, a global private markets investment manager. Superior will be governed and managed under the Amended and Restated Limited Liability Company Agreement ("Agreement") and a Management Services Agreement ("MSA"). The MSA is between our affiliate, SPC Midstream Operating, L.L.C. (Operator) and Superior. The Operator is a wholly owned subsidiary of Unit. Under the guidance in ASC 810, Consolidation, we have determined that Superior is a VIE. The two variable interests applicable to Unit include the 50% equity investment in Superior and the MSA. The MSA gives us the power to direct the activities that most significantly affect Superior's operating performance. The MSA is a separate variable interest. Unit through the MSA has the power to direct Superior’s most significant activities; reciprocally the equity investors lack the power to direct the activities that most affect the entity’s economic performance. Because of this, Unit is considered the primary beneficiary. There have been no changes to the primary beneficiary during the quarter ended June 30, 2020. As the primary beneficiary of this VIE, we consolidate in our financial statements the financial position, results of operations, and cash flows of this VIE, and all intercompany balances and transactions between us and the VIE are eliminated in our consolidated financial statements. Cash distributions of income, net of agreed on expenses, and estimated expenses are allocated to the equity owners as specified in the relevant agreements. On the sale or liquidation of Superior, distributions would occur in the order and priority specified in the relevant agreements. The Agreement specifies how future distributions are to be allocated among the Members. Future distributions may be from available cash or made in conjunction with a sale event (both as defined in the Agreement). In certain circumstances, future distributions could result in Unit receiving distributions that are disproportionately lower than its ownership percentage. Circumstances that could result in Unit receiving less than a proportionate share of future distributions include, but may not be limited to, Unit does not fulfil the drilling commitment described in Note 15 – Commitments and Contingencies or a cumulative return to SP Investor Holdings, LLC of less than the 7% Liquidation IRR Hurdle provided for SP Investor Holdings, LLC in the Agreement. Generally, 7% Liquidation IRR Hurdle calculation requires cumulative distributions to SP Investor Holdings, LLC in excess of its original $300.0 million investment sufficient to provide SP Investor Holdings, LLC a 7% IRR on its capital contributions to Superior before any liquidation distribution is made to Unit . At June 30, 2020, if Superior were to be liquidated for its carrying value of assets and liabilities disclosed below and the liquidating distribution made to the partners, we estimate approximately 100% of that liquidating distribution would be distributed to SP Investor Holdings, LLC and nothing would be distributed to Unit based upon the 7% Liquidation IRR Hurdle. At June 30, 2020, a Sales Event resulting in proceeds of approximately $696.6 million would be required to result in equal liquidation distributions being made to SP Investor Holdings, LLC and Unit after application of the 7% Liquidation IRR Hurdle. As the Operator, we provide services, like operations and maintenance support, accounting, legal, and human resources to Superior for a monthly service fee of $260,560. Superior's creditors have no recourse to our general credit. Superior's credit agreement is not guaranteed by Unit. The obligations under Superior's credit agreement are secured by, among other things, mortgage liens on certain of Superior’s processing plants and gathering systems. The carrying value of Superior's assets and liabilities, after eliminations of any intercompany transactions and balances, in the consolidated balance sheets were as follows: June 30, December 31, (In thousands) Current assets: Cash and cash equivalents $ 23,780 $ — Accounts receivable 18,718 21,073 Prepaid expenses and other 7,321 7,686 Total current assets 49,819 28,759 Property and equipment: Gas gathering and processing equipment 833,402 824,699 Transportation equipment 3,363 3,390 836,765 828,089 Less accumulated depreciation, depletion, amortization, and impairment 493,386 407,144 Net property and equipment 343,379 420,945 Right of use asset 4,542 3,948 Other assets 6,054 9,442 Total assets $ 403,794 $ 463,094 Current liabilities: Accounts payable $ 9,980 $ 18,511 Accrued liabilities 4,648 4,198 Current operating lease liability 2,518 2,407 Current portion of other long-term liabilities 8,059 7,060 Total current liabilities 25,205 32,176 Long-term debt 34,000 16,500 Operating lease liability 1,911 1,404 Other long-term liabilities 3,811 8,126 Total liabilities $ 64,927 $ 58,206 |
Industry Segment Information
Industry Segment Information | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Industry Segment Information | INDUSTRY SEGMENT INFORMATION We have three main business segments offering different products and services within the energy industry: • Oil and natural gas, • Contract drilling, and • Mid-stream. Our oil and natural gas segment is engaged in the acquisition, development, and production of oil, NGLs, and natural gas properties. The contract drilling segment is engaged in the land contract drilling of oil and natural gas wells and the mid-stream segment is engaged in the buying, selling, gathering, processing, and treating of natural gas and NGLs. We evaluate each segment’s performance based on its operating income, which is defined as operating revenues less operating expenses and depreciation, depletion, amortization, and impairment. We have no oil and natural gas production outside the United States. The following tables provide certain information about the operations of each of our segments: Three Months Ended June 30, 2020 Oil and Natural Gas Contract Drilling Mid-stream Corporate and Other Eliminations Total Consolidated (In thousands) Revenues: (1) Oil and natural gas $ 26,957 $ — $ — $ — $ (1) $ 26,956 Contract drilling — 29,202 — — — 29,202 Gas gathering and processing — — 37,719 — (4,870) 32,849 Total revenues 26,957 29,202 37,719 — (4,871) 89,007 Expenses: Operating costs: Oil and natural gas 72,354 — — — (814) 71,540 Contract drilling — 20,951 — — — 20,951 Gas gathering and processing — — 26,669 — (4,057) 22,612 Total operating costs 72,354 20,951 26,669 — (4,871) 115,103 Depreciation, depletion, and amortization 22,059 2,946 10,348 607 35,960 Impairments 109,318 — — — — 109,318 Total expenses 203,731 23,897 37,017 607 (4,871) 260,381 General and administrative — — — 25,814 — 25,814 (Gain) loss on disposition of assets (45) (548) (9) 1,479 — 877 Income (loss) from operations (176,729) 5,853 711 (27,900) — (198,065) Loss on derivatives — — — (6,937) — (6,937) Write-off of debt issuance costs — — — (2,426) — (2,426) Reorganization items — — — (7,027) — (7,027) Interest, net — — (542) (7,066) — (7,608) Other 9 6 22 6 — 43 Income (loss) before income taxes $ (176,720) $ 5,859 $ 191 $ (51,350) $ — $ (222,020) _______________________ 1. The revenues for oil and natural gas occur at a point in time. The revenues for contract drilling and gas gathering and processing occur over time. Three Months Ended June 30, 2019 Oil and Natural Gas Contract Drilling Mid-stream Corporate and Other Eliminations Total Consolidated (In thousands) Revenues: (1) Oil and natural gas $ 77,815 $ — $ — $ — $ — $ 77,815 Contract drilling — 50,773 — — (7,736) 43,037 Gas gathering and processing — — 54,630 — (10,336) 44,294 Total revenues 77,815 50,773 54,630 — (18,072) 165,146 Expenses: Operating costs: Oil and natural gas 37,519 — — — (1,277) 36,242 Contract drilling — 36,390 — — (7,082) 29,308 Gas gathering and processing — — 41,550 — (9,059) 32,491 Total operating costs 37,519 36,390 41,550 — (17,418) 98,041 Depreciation, depletion, and amortization 38,751 13,504 12,102 1,935 — 66,292 Total expenses 76,270 49,894 53,652 1,935 (17,418) 164,333 General and administrative — — — 10,064 — 10,064 Gain on disposition of assets (60) (296) (66) — — (422) Income (loss) from operations 1,605 1,175 1,044 (11,999) (654) (8,829) Gain on derivatives — — — 7,927 — 7,927 Interest, net — — (345) (8,650) — (8,995) Other — — — 6 — 6 Income (loss) before income taxes $ 1,605 $ 1,175 $ 699 $ (12,716) (654) $ (9,891) _______________________ 1. The revenues for oil and natural gas occur at a point in time. The revenues for contract drilling and gas gathering and processing occur over time. Six Months Ended June 30, 2020 Oil and Natural Gas Contract Drilling Mid-stream Corporate and Other Eliminations Total Consolidated (In thousands) Revenues: (1) Oil and natural gas $ 75,481 $ — $ — $ — $ (3) $ 75,478 Contract drilling — 65,834 — — — 65,834 Gas gathering and processing — — 80,399 — (10,328) 70,071 Total revenues 75,481 65,834 80,399 — (10,331) 211,383 Expenses: Operating costs: Oil and natural gas 103,769 — — — (1,566) 102,203 Contract drilling — 46,400 — — — 46,400 Gas gathering and processing — — 58,988 — (8,765) 50,223 Total operating costs 103,769 46,400 58,988 — (10,331) 198,826 Depreciation, depletion, and amortization 58,787 14,691 22,621 1,478 — 97,577 Impairments 377,154 410,126 63,962 — — 851,242 Total expenses 539,710 471,217 145,571 1,478 (10,331) 1,147,645 Loss on abandonment of assets 17,554 — — — — 17,554 General and administrative — — — 37,367 — 37,367 (Gain) loss on disposition of assets (58) (139) (15) 1,479 — 1,267 Loss from operations (481,725) (405,244) (65,157) (40,324) — (992,450) Loss on derivatives — — — (6,454) — (6,454) Write-off of debt issuance costs — — — (2,426) — (2,426) Reorganization items — — — (7,027) — (7,027) Interest, net — — (1,060) (19,805) — (20,865) Other 30 23 39 11 — 103 Loss before income taxes $ (481,695) $ (405,221) $ (66,178) $ (76,025) $ — $ (1,029,119) _______________________ ____________________ 1. The revenues for oil and natural gas occur at a point in time. The revenues for contract drilling and gas gathering and processing occur over time. Six Months Ended June 30, 2019 Oil and Natural Gas Contract Drilling Mid-stream Corporate and Other Eliminations Total Consolidated (In thousands) Revenues: (1) Oil and natural gas $ 163,910 $ — $ — $ — $ — $ 163,910 Contract drilling — 108,972 — — (14,780) 94,192 Gas gathering and processing — — 125,139 — (28,404) 96,735 Total revenues 163,910 108,972 125,139 — (43,184) 354,837 Expenses: Operating costs: Oil and natural gas 71,527 — — — (2,571) 68,956 Contract drilling — 73,775 — — (13,066) 60,709 Gas gathering and processing — — 97,679 — (25,833) 71,846 Total operating costs 71,527 73,775 97,679 — (41,470) 201,511 Depreciation, depletion, and amortization 74,518 26,203 23,828 3,869 — 128,418 Total expenses 146,045 99,978 121,507 3,869 (41,470) 329,929 General and administrative — — — 19,805 — 19,805 (Gain) loss on disposition of assets (138) -84 1,449 (108) (10) — 1,193 Income (loss) from operations 18,003 7,545 3,740 (23,664) (1,714) 3,910 Gain on derivatives — — — 995 — 995 Interest, net — — (681) (16,852) — (17,533) Other — — — 11 — 11 Income (loss) before income taxes $ 18,003 $ 7,545 $ 3,059 (39,510) $ (1,714) $ (12,617) _______________________ 1. The revenues for oil and natural gas occur at a point in time. The revenues for contract drilling and gas gathering and processing occur over time. |
Supplemental Condensed Consolid
Supplemental Condensed Consolidated Financial Information | 6 Months Ended |
Jun. 30, 2020 | |
Supplemental Condensed Consolidated Financial Information [Abstract] | |
Condensed Consolidated Financial Statements | SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL INFORMATION We have no significant assets or operations other than our investments in our subsidiaries. Our wholly owned subsidiaries are the guarantors of our Notes. On April 3, 2018, we sold 50% of the ownership interest in our mid-stream segment, Superior and that company and its subsidiaries are no longer guarantors of the Notes. Instead of providing separate financial statements for each subsidiary issuer and guarantor, we have included the unaudited condensed consolidating financial statements based on Rule 3-10 of the SEC's Regulation S-X. For the following footnote: • we are called "Parent", • the direct subsidiaries are 100% owned by the Parent and the guarantee is full and unconditional and joint and several and called "Combined Guarantor Subsidiaries", and • Superior and its subsidiaries and the Operator are called "Non-Guarantor Subsidiaries." The following unaudited supplemental condensed consolidating financial information reflects the Parent's separate accounts, the combined accounts of the Combined Guarantor Subsidiaries', the combined accounts of the Non-Guarantor Subsidiaries', the combined consolidating adjustments and eliminations, and the Parent's consolidated amounts for the periods indicated. Condensed Consolidating Balance Sheets (Unaudited) June 30, 2020 Parent Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Consolidating Adjustments Total Consolidated (In thousands) ASSETS Current assets: Cash and cash equivalents $ 13,214 $ — $ 23,780 $ — $ 36,994 Accounts receivable, net of allowance for doubtful accounts of $3,961 (Guarantor of $2,745 and Parent of $1,216) 1,702 37,216 20,518 (5,290) 54,146 Materials and supplies — 110 — — 110 Income taxes receivable 850 — — — 850 Prepaid expenses and other 6,575 2,763 7,321 — 16,659 Total current assets 22,341 40,089 51,619 (5,290) 108,759 Property and equipment: Oil and natural gas properties on the full cost method: Proved properties — 6,566,669 — — 6,566,669 Unproved properties not being amortized — 30,342 — — 30,342 Drilling equipment — 1,296,319 — — 1,296,319 Gas gathering and processing equipment — — 833,402 — 833,402 Saltwater disposal systems — 43,843 — — 43,843 Corporate land and building — 59,080 — — 59,080 Transportation equipment 362 13,055 3,363 — 16,780 Other 29,005 29,031 — — 58,036 29,367 8,038,339 836,765 — 8,904,471 Less accumulated depreciation, depletion, amortization, and impairment 27,888 7,381,777 493,386 — 7,903,051 Net property and equipment 1,479 656,562 343,379 — 1,001,420 Intercompany receivable 853,800 — — (853,800) — Investments 15,106 — — (15,106) — Right of use asset 34 3,303 4,542 (51) 7,828 Other assets 6,001 10,316 6,054 — 22,371 Total assets $ 898,761 $ 710,270 $ 405,594 $ (874,247) $ 1,140,378 June 30, 2020 Parent Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Consolidating Adjustments Total Consolidated (In thousands) LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable $ 1,386 $ 18,018 $ 9,980 $ (2,576) $ 26,808 Accrued liabilities 14,267 12,876 6,029 (1,788) 31,384 Current operating lease liability 18 2,136 2,518 (6) 4,666 Current portion of long-term debt 124,000 — — — 124,000 Debtor-in-possession financing 8,000 — — — 8,000 Current derivative liability 5,011 — — — 5,011 Current portion of other long-term liabilities — 5,615 8,059 (46) 13,628 Total current liabilities 152,682 38,645 26,586 (4,416) 213,497 Intercompany debt — 853,491 309 (853,800) — Long-term debt — — 34,000 — 34,000 Non-current derivative liability 145 — — — 145 Operating lease liability 16 1,130 1,911 (45) 3,012 Other long-term liabilities 6,124 75,499 3,979 (880) 84,722 Liabilities subject to compromise 694,512 65,208 — — 759,720 Deferred income taxes 4,750 — — — 4,750 Total shareholders’ equity 40,532 (323,703) 338,809 (15,106) 40,532 Total liabilities and shareholders’ equity $ 898,761 $ 710,270 $ 405,594 $ (874,247) $ 1,140,378 December 31, 2019 Parent Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Consolidating Adjustments Total Consolidated (In thousands) ASSETS Current assets: Cash and cash equivalents $ 503 $ 68 $ — $ — $ 571 Accounts receivable, net of allowance for doubtful accounts of $2,332 (Guarantor of $1,116 and Parent of $1,216) 2,645 64,805 24,653 (9,447) 82,656 Materials and supplies — 449 — — 449 Current derivative asset 633 — — — 633 Income tax receivable 1,756 — — — 1,756 Assets held for sale — 5,908 — — 5,908 Prepaid expenses and other 2,019 3,373 7,686 — 13,078 Total current assets 7,556 74,603 32,339 (9,447) 105,051 Property and equipment: Oil and natural gas properties on the full cost method: Proved properties — 6,341,582 — — 6,341,582 Unproved properties not being amortized — 252,874 — — 252,874 Drilling equipment — 1,295,713 — — 1,295,713 Gas gathering and processing equipment — — 824,699 — 824,699 Saltwater disposal systems — 69,692 — — 69,692 Corporate land and building — 59,080 — — 59,080 Transportation equipment 9,712 16,621 3,390 — 29,723 Other 28,927 29,065 — — 57,992 38,639 8,064,627 828,089 — 8,931,355 Less accumulated depreciation, depletion, amortization, and impairment 33,794 6,537,731 407,144 — 6,978,669 Net property and equipment 4,845 1,526,896 420,945 — 1,952,686 Intercompany receivable 1,048,785 — — (1,048,785) — Investments 865,252 — — (865,252) — Right of use asset 46 1,733 3,948 (54) 5,673 Other assets 8,107 9,094 9,441 — 26,642 Total assets $ 1,934,591 $ 1,612,326 $ 466,673 $ (1,923,538) $ 2,090,052 December 31, 2019 Parent Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Consolidating Adjustments Total Consolidated (In thousands) LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable $ 12,259 $ 61,002 $ 18,511 $ (7,291) $ 84,481 Accrued liabilities 28,003 14,024 6,691 (2,156) 46,562 Current operating lease liability 20 1,009 2,407 (6) 3,430 Current portion of long-term debt 108,200 — — — 108,200 Current portion of other long-term liabilities 3,003 7,313 7,060 — 17,376 Total current liabilities 151,485 83,348 34,669 (9,453) 260,049 Intercompany debt — 1,047,599 1,186 (1,048,785) — Long-term debt less debt issuance costs 646,716 — 16,500 — 663,216 Non-current derivative liability 27 — — — 27 Operating lease liability 25 690 1,404 (48) 2,071 Other long-term liabilities 12,553 74,662 8,126 — 95,341 Deferred income taxes 68,150 (54,437) — — 13,713 Total shareholders' equity 1,055,635 460,464 404,788 (865,252) 1,055,635 Total liabilities and shareholders’ equity $ 1,934,591 $ 1,612,326 $ 466,673 $ (1,923,538) $ 2,090,052 Condensed Consolidating Statements of Operations (Unaudited) Three Months Ended June 30, 2020 Parent Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Consolidating Adjustments Total Consolidated (In thousands) Revenues $ — $ 56,159 $ 37,719 $ (4,871) $ 89,007 Expenses: Operating costs — 93,305 26,671 (4,873) 115,103 Depreciation, depletion, and amortization 607 25,005 10,348 — 35,960 Impairments — 109,318 — — 109,318 General and administrative — 25,814 — — 25,814 (Gain) loss on disposition of assets 1,479 (593) (9) — 877 Total operating costs 2,086 252,849 37,010 (4,873) 287,072 Income (loss) from operations (2,086) (196,690) 709 2 (198,065) Interest, net (7,066) — (542) — (7,608) Write off of debt issuance costs (2,426) — — — (2,426) Loss on derivatives (6,937) — — — (6,937) Reorganization items (2,205) (4,822) — — (7,027) Other, net 4 18 21 — 43 Income (loss) before income taxes (20,716) (201,494) 188 2 (222,020) Income tax benefit (6,455) — — — (6,455) Equity in net earnings from investment in subsidiaries, net of taxes (201,304) — — 201,304 — Net income (loss) (215,565) (201,494) 188 201,306 (215,565) Less: net income attributable to non-controlling interest 84 — 84 (84) 84 Net income (loss) attributable to Unit Corporation $ (215,649) $ (201,494) $ 104 $ 201,390 $ (215,649) Three Months Ended June 30, 2019 Parent Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Consolidating Adjustments Total Consolidated (In thousands) Revenues $ — $ 128,588 $ 54,630 $ (18,072) $ 165,146 Expenses: Operating costs — 73,909 41,550 (17,418) 98,041 Depreciation, depletion, and amortization 1,935 52,255 12,102 — 66,292 General and administrative — 10,064 — — 10,064 Gain on disposition of assets — (356) (66) — (422) Total operating costs 1,935 135,872 53,586 (17,418) 173,975 Income (loss) from operations (1,935) (7,284) 1,044 (654) (8,829) Interest, net (8,650) — (345) — (8,995) Gain on derivatives 7,927 — — — 7,927 Other, net 6 — — — 6 Income (loss) before income taxes (2,652) (7,284) 699 (654) (9,891) Income tax benefit (848) (1,026) — — (1,874) Equity in net earnings from investment in subsidiaries, net of taxes (6,705) — — 6,705 — Net income (loss) (8,509) (6,258) 699 6,051 (8,017) Less: net income attributable to non-controlling interest — — 492 — 492 Net income (loss) attributable to Unit Corporation $ (8,509) $ (6,258) $ 207 $ 6,051 $ (8,509) Six Months Ended June 30, 2020 Parent Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Consolidating Adjustments Total Consolidated (In thousands) Revenues $ — $ 141,315 $ 80,399 $ (10,331) $ 211,383 Expenses: Operating costs — 150,169 58,988 (10,331) 198,826 Depreciation, depletion, and amortization 1,478 73,478 22,621 — 97,577 Impairments — 787,280 63,962 — 851,242 Loss on abandonment of assets — 17,554 — — 17,554 General and administrative — 37,367 — — 37,367 (Gain) loss on disposition of assets 1,479 (197) (15) — 1,267 Total operating costs 2,957 1,065,651 145,556 (10,331) 1,203,833 Loss from operations (2,957) (924,336) (65,157) — (992,450) Interest, net (19,805) — (1,060) — (20,865) Write-off of debt issuance costs (2,426) — — — (2,426) Loss on derivatives (6,454) — — — (6,454) Reorganization items (2,205) (4,822) — — (7,027) Other, net 11 53 39 — 103 Loss before income taxes (33,836) (929,105) (66,178) — (1,029,119) Income tax benefit (9,880) — — — (9,880) Equity in net earnings from investment in subsidiaries, net of taxes (995,283) — — 995,283 — Net loss (1,019,239) (929,105) (66,178) 995,283 (1,019,239) Less: net loss attributable to non-controlling interest (33,096) — (33,096) 33,096 (33,096) Net loss attributable to Unit Corporation $ (986,143) $ (929,105) $ (33,082) $ 962,187 $ (986,143) Six Months Ended June 30, 2019 Parent Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Consolidating Adjustments Total Consolidated (In thousands) Revenues $ — $ 272,882 $ 125,139 $ (43,184) $ 354,837 Expenses: Operating costs — 145,302 97,679 (41,470) 201,511 Depreciation, depletion, and amortization 3,869 100,721 23,828 — 128,418 General and administrative — 19,805 — — 19,805 (Gain) loss on disposition of assets (10) 1,311 (108) — 1,193 Total operating costs 3,859 267,139 121,399 (41,470) 350,927 Income (loss) from operations (3,859) 5,743 3,740 (1,714) 3,910 Interest, net (16,852) — (681) — (17,533) Gain on derivatives 995 — — — 995 Other, net 11 — — — 11 Income (loss) before income taxes (19,705) 5,743 3,059 (1,714) (12,617) Income tax expense (benefit) (4,547) 2,229 — — (2,318) Equity in net earnings from investment in subsidiaries, net of taxes 3,145 — — (3,145) — Net income (loss) (12,013) 3,514 3,059 (4,859) (10,299) Less: net income attributable to non-controlling interest — — 1,714 — 1,714 Net income (loss) attributable to Unit Corporation $ (12,013) $ 3,514 $ 1,345 $ (4,859) $ (12,013) Condensed Consolidating Statements of Comprehensive Income (Loss) (Unaudited) Three Months Ended June 30, 2020 Parent Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Consolidating Adjustments Total Consolidated (In thousands) Net income (loss) $ (215,565) $ (201,494) $ 188 $ 201,306 $ (215,565) Other comprehensive income (loss), net of taxes: Unrealized gain on securities, net of tax of $0 — — — — — Comprehensive income (loss) (215,565) (201,494) 188 201,306 (215,565) Less: Comprehensive income attributable to non-controlling interests 84 — 84 (84) 84 Comprehensive income (loss) attributable to Unit Corporation $ (215,649) $ (201,494) $ 104 $ 201,390 $ (215,649) Three Months Ended June 30, 2019 Parent Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Consolidating Adjustments Total Consolidated (In thousands) Net income (loss) $ (8,509) $ (6,258) $ 699 $ 6,051 $ (8,017) Other comprehensive income (loss), net of taxes: Unrealized loss on securities, net of tax of ($9) — (30) — — (30) Comprehensive income (loss) (8,509) (6,288) 699 6,051 (8,047) Less: Comprehensive income attributable to non-controlling interests — — 492 — 492 Comprehensive income (loss) attributable to Unit Corporation $ (8,509) $ (6,288) $ 207 $ 6,051 $ (8,539) Six Months Ended June 30, 2020 Parent Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Consolidating Adjustments Total Consolidated (In thousands) Net loss $ (1,019,239) $ (929,105) $ (66,178) $ 995,283 $ (1,019,239) Other comprehensive loss, net of taxes: Unrealized gain on securities, net of tax of $0 — — — — — Comprehensive loss (1,019,239) (929,105) (66,178) 995,283 (1,019,239) Less: Comprehensive loss attributable to non-controlling interests (33,096) — (33,096) 33,096 (33,096) Comprehensive loss attributable to Unit Corporation $ (986,143) $ (929,105) $ (33,082) $ 962,187 $ (986,143) Six Months Ended June 30, 2019 Parent Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Consolidating Adjustments Total Consolidated (In thousands) Net income (loss) $ (12,013) $ 3,514 $ 3,059 $ (4,859) $ (10,299) Other comprehensive income (loss), net of taxes: Unrealized loss on securities, net of tax of ($2) — (6) — — (6) Comprehensive income (loss) (12,013) 3,508 3,059 (4,859) (10,305) Less: Comprehensive income attributable to non-controlling interests — — 1,714 — 1,714 Comprehensive income (loss) attributable to Unit Corporation $ (12,013) $ 3,508 $ 1,345 $ (4,859) $ (12,019) Condensed Consolidating Statements of Cash Flows (Unaudited) Six Months Ended June 30, 2020 Parent Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Consolidating Adjustments Total Consolidated (In thousands) OPERATING ACTIVITIES: Net cash provided by (used in) operating activities $ (201,699) $ 59,486 $ 20,117 $ 148,563 $ 26,467 INVESTING ACTIVITIES: Capital expenditures (760) (13,428) (9,616) — (23,804) Producing properties and other acquisitions — (210) — — (210) Proceeds from disposition of assets 1,169 3,253 75 — 4,497 Net cash provided by (used in) investing activities 409 (10,385) (9,541) — (19,517) FINANCING ACTIVITIES: Borrowings under credit agreement, including borrowings under DIP credit facility 47,300 — 32,100 — 79,400 Payments under credit agreement (23,500) — (14,600) — (38,100) DIP financing costs (990) — — — (990) Intercompany borrowings (advances), net 198,503 (49,169) (771) (148,563) — Payments on finance leases — — (2,061) — (2,061) Employee taxes paid by withholding shares (43) — — — (43) Bank overdrafts (7,269) — (1,464) — (8,733) Net cash provided by (used in) financing activities 214,001 (49,169) 13,204 (148,563) 29,473 Net increase (decrease) in cash and cash equivalents 12,711 (68) 23,780 — 36,423 Cash and cash equivalents, beginning of period 503 68 — — 571 Cash and cash equivalents, end of period $ 13,214 $ — $ 23,780 $ — $ 36,994 Six Months Ended June 30, 2019 Parent Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Consolidating Adjustments Total Consolidated (In thousands) OPERATING ACTIVITIES: Net cash provided by (used in) operating activities $ (8,023) $ 111,615 $ 23,943 $ (34) $ 127,501 INVESTING ACTIVITIES: Capital expenditures (100) (212,982) (33,556) — (246,638) Producing properties and other acquisitions — (3,313) — — (3,313) Proceeds from disposition of assets 10 7,247 83 — 7,340 Net cash used in investing activities (90) (209,048) (33,473) — (242,611) FINANCING ACTIVITIES: Borrowings under credit agreement 238,800 — 32,400 — 271,200 Payments under credit agreement (135,300) — (24,900) — (160,200) Intercompany borrowings (advances), net (96,311) 97,384 (1,107) 34 — Payments on finance leases — — (1,980) — (1,980) Employee taxes paid by withholding shares (4,073) — — — (4,073) Distributions to non-controlling interest 919 — (1,837) — (918) Bank overdrafts 4,183 — 1,115 — 5,298 Net cash provided by financing activities 8,218 97,384 3,691 34 109,327 Net increase (decrease) in cash and cash equivalents 105 (49) (5,839) — (5,783) Cash and cash equivalents, beginning of period 403 208 5,841 — 6,452 Cash and cash equivalents, end of period $ 508 $ 159 $ 2 $ — $ 669 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS Emergence from Bankruptcy On May 22, 2020, the Debtors filed the Bankruptcy Petitions seeking relief under the Bankruptcy Code. In accordance with the RSA, the Debtors filed the Plan and the related disclosure statement with the Bankruptcy Court on June 9, 2020. On August 6, 2020, the Bankruptcy Court entered the Confirmation Order confirming the Plan and approving the disclosure statement on a final basis. On the Effective Date, the company emerged from the Chapter 11 Cases after satisfying or waiving the remaining conditions to effectiveness contemplated under the Plan. On August 21, 2020, the Debtors agreed, subject to Bankruptcy Court approval, to settle the claims asserted in two class action lawsuits that are stayed as a result of the Chapter 11 Cases. For the lawsuit styled as Cockerell Oil Properties, Ltd. v. Unit Petroleum Company , the Debtors agreed to settle for an allowed claim amount of $15.75 million and for the lawsuit styled as Chieftain Royalty Company v. Unit Petroleum Company , the Debtors agreed to settle for an allowed claim amount of $29.25 million. Both settled claims will be treated as general unsecured claims and the holders will receive their pro rata share of the common stock of reorganized Unit (New Common Stock) allocated to holders of general unsecured claims against UPC, as set forth in the Plan. Termination of Deferred Compensation Plan On August 7, 2020, we elected to terminate our salary deferral plan effective on emergence from bankruptcy. We reported these obligations in other long-term liabilities and the underlying investment accounts as other long-term assets in our Unaudited Condensed Consolidated Balance Sheets. The total amount due to plan participants as of June 30, 2020 was $6.0 million. These amounts were subsequently distributed to the plan participants. |
Chapter 11 Proceedings, Liquidi
Chapter 11 Proceedings, Liquidity, and Ability to Continue as a Going Concern (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Liabilities Subject to Compromise | Liabilities subject to compromise include the following: June 30, 2020 (In thousands) 6.625% senior subordinated notes due 2021 (including accrued interest as of the Petition Date) 671,724 Accounts payable 735 Employee separation benefit plan obligations 22,624 Litigation settlements 45,000 Royalty suspense accounts payable 19,637 Total liabilities subject to compromise $ 759,720 During the three months ended June 30, 2020, we had a reduction in force and incurred additional expenses of $15.4 million for benefits to be paid under our Separation Benefit Plan. These expenses were recorded as operating costs in our consolidated statements of operations. Because these amounts are unsecured, the total amount owed to separated employees is subject to compromise. |
Schedule of reorganization items | Reorganization items consisted of the following for the three and six months ended June 30, 2020: Amount (In thousands) Professional fees incurred $ 4,822 Adjustment to unamortized debt issuance costs associated with the 6.625% senior subordinated notes due 2021 2,205 Total reorganization items $ 7,027 |
Debtor-in-Possession Condensed Balance Sheet | UNIT CORPORATION (DEBTOR-IN-POSSESSION) Condensed Combined Balance Sheets (Unaudited) June 30, (In thousands) ASSETS Current assets: Cash and cash equivalents $ 13,214 Accounts receivable 33,628 Intercompany accounts receivable 5,290 Materials and supplies 110 Current income tax receivable 850 Prepaid expenses and other 9,338 Total current assets 62,430 Intercompany investment 338,809 Net property and equipment 658,041 Right of use asset 3,337 Other assets 16,626 Total assets $ 1,079,243 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable $ 16,828 Intercompany accounts payable 4,364 Accrued liabilities 25,355 Current operating lease liability 2,154 Current portion of long-term debt 124,000 Debtor-in-possession financing 8,000 Current derivative liability 5,011 Current portion of other long-term liabilities 5,615 Total current liabilities 191,327 Non-current derivative liabilities 145 Operating lease liability 1,146 Other long-term liabilities 81,623 Liabilities subject to compromise 759,720 Deferred income taxes 4,750 Shareholders’ equity: Total shareholders’ equity attributable to Unit Corporation (128,176) Non-controlling interests in consolidated subsidiaries 168,708 Total shareholders' equity 40,532 Total liabilities and shareholders’ equity $ 1,079,243 |
Debtor-in-Possession Condensed Income Statement | UNIT CORPORATION (DEBTOR-IN-POSSESSION) Condensed Combined Statements of Operations (Unaudited) Three Months Ended June 30, 2020 Six Months Ended June 30, 2020 (In thousands) Revenues $ 56,159 $ 141,315 Expenses: Operating costs 93,305 150,169 Depreciation, depletion and amortization 25,612 74,956 Impairment 109,318 787,280 Loss on abandonment of assets — 17,554 General and administrative 25,814 37,367 Loss on disposition of assets 886 1,282 Total operating costs 254,935 1,068,608 Loss from operations (198,776) (927,293) Other income (expense): Interest, net (7,066) (19,805) Write-off of debt issuance costs (2,426) (2,426) Loss on derivatives (6,937) (6,454) Reorganization items (7,027) (7,027) Other, net 22 64 Total other income (expense) (23,434) (35,648) Loss before income taxes (222,210) (962,941) Income tax benefit (6,455) (9,880) Equity in net earnings (losses) from investment 188 (66,178) Net loss (215,567) (1,019,239) Net income (loss) attributable to non-controlling interest 84 (33,096) Net loss attributable to Unit Corp $ (215,651) $ (986,143) |
Debtor-in-Possession Condensed Cash Flow Statement | UNIT CORPORATION (DEBTOR-IN-POSSESSION) Condensed Combined Statements of Cash Flows (Unaudited) Six Months Ended June 30, 2020 (In thousands) OPERATING ACTIVITIES: Net loss $ (1,019,239) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation, depletion and amortization 74,956 Impairments 787,280 Loss on abandonment of assets 17,554 Amortization of debt issuance costs and debt discount 1,079 Equity investment in non-debtor subsidiaries 66,086 Loss on derivatives 6,454 Cash receipts on derivatives settled (691) Loss on disposition of assets 1,282 Write-off of debt issuance costs 2,426 Deferred tax benefit (8,963) Employee stock compensation plans 4,179 Bad debt expense 1,923 ARO liability accretion 1,169 Noncash reorganization items 7,027 Other, net 11,621 Changes in operating assets and liabilities increasing (decreasing) cash: Accounts receivable 26,609 Material and supplies 43 Prepaid expenses and other (3,158) Accounts payable (20,958) Accrued liabilities 49,661 Net cash provided by operating activities 6,340 INVESTING ACTIVITIES: Capital expenditures (14,188) Producing properties and other acquisitions (210) Proceeds from disposition of property and equipment 4,422 Net cash used in investing activities (9,976) FINANCING ACTIVITIES: Borrowings under line of credit, including borrowings under DIP credit facility 47,300 Payments under line of credit (23,500) DIP financing costs (990) Intercompany borrowings 781 Employee taxes paid by withholding shares (43) Bank overdrafts (7,269) Net cash provided by financing activities 16,279 Net increase in cash and cash equivalents 12,643 Cash and cash equivalents, beginning of year 571 Cash and cash equivalents, end of year $ 13,214 |
Revenues from Contracts with Cu
Revenues from Contracts with Customers (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Revenue From Contracts with Customers [Abstract] | |
Contract with Customer, Asset and Liability | These tables show the changes in our mid-stream contract asset and contract liability balances during the six months ended June 30, 2020: June 30, December 31, Change (In thousands) Contract assets $ 9,695 $ 12,921 $ (3,226) Contract liabilities 5,625 7,061 (1,436) Contract assets (liabilities), net $ 4,070 $ 5,860 $ (1,790) The amounts above are reported in prepaid expenses and other, other assets (long-term), current portion of other long-term liabilities and other long-term liabilities in our Unaudited Condensed Consolidated Balance Sheets. |
Revenue, Remaining Performance Obligation | Included below is the fixed revenue we will earn over the remaining term of the contracts and excludes all variable consideration to be earned with the associated contract. Contract Remaining Term of Contract July - December 2021 2022 2023 and beyond Total Remaining Impact to Revenue (In thousands) Demand fee contracts 2-8 years $ (1,985) $ (3,501) $ 1,380 $ 36 $ (4,070) |
Loss Per Share (Tables)
Loss Per Share (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Loss Per Share | Information related to the calculation of loss per share attributable to Unit Corporation is as follows: Earnings (Loss) Weighted Per-Share (In thousands except per share amounts) For the three months ended June 30, 2020 Basic loss attributable to Unit Corporation per common share $ (215,649) 53,503 $ (4.03) Effect of dilutive stock options and restricted stock — — — Diluted loss attributable to Unit Corporation per common share $ (215,649) 53,503 $ (4.03) For the three months ended June 30, 2019 Basic loss attributable to Unit Corporation per common share $ (8,509) 52,930 $ (0.16) Effect of dilutive stock options and restricted stock — — — Diluted loss attributable to Unit Corporation per common share $ (8,509) 52,930 $ (0.16) |
Schedule of Antidilutive Securities Excluded From Computation of Earnings Per Share | The following table shows the number of stock options (and their average exercise price) excluded because their option exercise prices were greater than the average market price of our common stock: Three Months Ended June 30, 2020 2019 Stock options 28,000 42,000 Average exercise price $ 52.24 $ 48.56 |
Schedule of Earnings Per Share, Basic and Diluted 1 | Earnings (Loss) (Numerator) Weighted Shares (Denominator) Per-Share Amount (In thousands except per share amounts) For the six months ended June 30, 2020 Basic loss attributable to Unit Corporation per common share $ (986,143) 53,317 $ (18.50) Effect of dilutive stock options and restricted stock — — — Diluted loss attributable to Unit Corporation per common share $ (986,143) 53,317 $ (18.50) For the six months ended June 30, 2019 Basic loss attributable to Unit Corporation per common share $ (12,013) 52,744 $ (0.23) Effect of dilutive stock options and restricted stock — — — Diluted loss attributable to Unit Corporation per common share $ (12,013) 52,744 $ (0.23) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share 1 | The following table shows the number of stock options (and their average exercise price) excluded because their option exercise prices were greater than the average market price of our common stock: Six Months Ended June 30, 2020 2019 Stock options 28,000 42,000 Average exercise price $ 52.24 $ 48.56 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Accrued Liabilities [Abstract] | |
Accrued Liabilities [Table Text Block] | Accrued liabilities consisted of: June 30, December 31, (In thousands) Employee costs $ 7,016 $ 17,832 Lease operating expenses 6,651 9,200 Taxes 6,343 3,450 Third-party credits 2,167 3,691 Derivative settlements 1,323 — Interest payable 760 6,562 Other 7,124 5,827 Total accrued liabilities $ 31,384 $ 46,562 |
Long-Term Debt And Other Long_2
Long-Term Debt And Other Long-Term Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | As of the date indicated, our long-term debt, not including debt instruments classified as liabilities subject to compromise, consisted of the following: June 30, December 31, (In thousands) Current portion of long-term debt: Unit credit agreement with an average interest rate of 2.3% and 4.0% at June 30, 2020 and December 31, 2019, respectively $ 124,000 $ 108,200 DIP credit agreement with an average interest rate of 7.5% at June 30, 2020 8,000 — Total current portion of long-term debt 132,000 108,200 Long-term debt: Superior credit agreement with an average interest rate of 2.2% and 3.9% at June 30, 2020 and December 31, 2019, respectively 34,000 16,500 6.625% senior subordinated notes due 2021 — 650,000 Total principal amount 34,000 666,500 Less: unamortized discount — (971) Less: debt issuance costs, net — (2,313) Total long-term debt $ 34,000 $ 663,216 |
Other Long-Term Liabilities | Other long-term liabilities consisted of the following: June 30, December 31, (In thousands) Asset retirement obligation (ARO) liability $ 64,248 $ 66,627 Workers’ compensation 12,112 11,510 Finance lease obligations 5,319 7,379 Contract liability 5,625 7,061 Separation benefit plans (1) — 10,122 Deferred compensation plan 6,006 6,180 Gas balancing liability 3,823 3,838 Other long-term liability 1,217 — 98,350 112,717 Less current portion 13,628 17,376 Total other long-term liabilities $ 84,722 $ 95,341 _______________________ 1. The separation benefit plans are part of the liabilities subject to compromise as of June 30, 2020. For further information, please see Note 2 – Chapter 11 Proceedings, Liquidity, and Ability to Continue as a Going Concern. |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of Asset Retirement Obligations | The following table shows certain information about our estimated AROs for the periods indicated: Six Months Ended June 30, 2020 2019 (In thousands) ARO liability, January 1: $ 66,627 $ 64,208 Accretion of discount 1,169 1,168 Liability incurred 460 3,656 Liability settled (435) (2,316) Liability sold (463) (1,632) Revision of estimates (1) (3,110) 2,349 ARO liability, June 30: 64,248 67,433 Less current portion 1,104 1,784 Total long-term ARO $ 63,144 $ 65,649 _______________________ |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Restricted Stock Awards and Stock Options | The following table summarizes the outstanding equity-based awards, which consisted of restricted stock awards and stock options, for the time periods shown: Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 (In millions) Recognized stock compensation expense $ 1.6 $ 4.7 $ 4.1 $ 8.5 Capitalized stock compensation cost for our oil and natural gas properties — 0.7 — 1.3 Tax benefit on stock-based compensation 0.4 1.2 1.0 2.1 |
Schedule of Fair Value of the Restricted Stock Awards Granted During the Periods | This table shows the fair value of restricted stock awards granted to employees and non-employee directors during the periods indicated: Three Months Ended June 30, 2019 Time Performance Vested Shares granted: Employees 1,500 — Non-employee directors 72,784 — 74,284 — Estimated fair value (in millions): (1) Employees $ — $ — Non-employee directors 0.9 — $ 0.9 $ — Percentage of shares granted expected to be distributed: Employees 95 % N/A Non-employee directors 100 % N/A _______________________ 1. The performance shares represent 100% of the grant date fair value. (We recognize the grant date fair value minus estimated forfeitures.) Six Months Ended June 30, 2019 Time Performance Vested Shares granted: Employees 927,173 424,070 Non-employee directors 72,784 — 999,957 424,070 Estimated fair value (in millions): (1) Employees $ 14.6 $ 7.1 Non-employee directors 0.9 — $ 15.5 $ 7.1 Percentage of shares granted expected to be distributed: Employees 95 % 54 % Non-employee directors 100 % N/A _______________________ 1. The performance shares represent 100% of the grant date fair value. (We recognize the grant date fair value minus estimated forfeitures.) |
Derivatives (Tables)
Derivatives (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives outstanding | As of June 30, 2020, these derivatives were outstanding: Term Commodity Contracted Volume Weighted Average Contracted Market Jul'20 - Dec'20 Natural gas - basis swap 30,000 MMBtu/day $(0.275) NGPL TEXOK Jul'20 - Dec'20 Natural gas - basis swap 20,000 MMBtu/day $(0.455) PEPL Jan'21 - Dec'21 Natural gas - basis swap 30,000 MMBtu/day $(0.215) NGPL TEXOK Jul'20 - Dec'20 Natural gas - three-way collar 30,000 MMBtu/day $2.50 - $2.20 - $2.80 IF - NYMEX (HH) Jul'20 - Sep'20 Crude oil - collar 112,000 Bbl/month $20.00 - $26.50 WTI - NYMEX |
Fair Value of Derivative Instruments and Locations in Balance Sheets | The following tables present the fair values and locations of the derivative transactions recorded in our Unaudited Condensed Consolidated Balance Sheets: Derivative Assets Fair Value Balance Sheet Location June 30, December 31, (In thousands) Commodity derivatives: Current Current derivative asset $ — $ 633 Long-term Non-current derivative asset — — Total derivative assets $ — $ 633 Derivative Liabilities Fair Value Balance Sheet Location June 30, December 31, (In thousands) Commodity derivatives: Current Current derivative liability $ 5,011 $ — Long-term Non-current derivative liability 145 27 Total derivative liabilities $ 5,156 $ 27 |
Effect of Derivative Instruments Recognized in Income Statements, Derivative Instruments | Following is the effect of derivative instruments on the Unaudited Condensed Consolidated Statements of Operations for the periods indicated: Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 (In thousands) Gain (loss) on derivatives: Gain (loss) on derivatives, included are amounts settled during the period of ($1,243), $2,658, ($691), and $5,314, respectively $ (6,937) $ 7,927 $ (6,454) $ 995 $ (6,937) $ 7,927 $ (6,454) $ 995 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Recurring Fair Value Measurements | The following tables set forth our recurring fair value measurements: June 30, 2020 Level 2 Level 3 Effect Net Amounts Presented Financial assets (liabilities): Commodity derivatives: Assets $ — $ 843 $ (843) $ — Liabilities (5,999) — 843 (5,156) Total commodity derivatives $ (5,999) $ 843 $ — $ (5,156) December 31, 2019 Level 2 Level 3 Effect Net Amounts Presented Financial assets (liabilities): Commodity derivatives: Assets $ 177 $ 1,204 $ (748) $ 633 Liabilities (775) — 748 (27) Total commodity derivatives $ (598) 1,204 — 606 |
Reconciliations Of Level 3 Fair Value Measurements | The following table is a reconciliation of our Level 3 fair value measurements: Net Derivatives Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 (In thousands) Beginning of period $ 948 $ 3,080 $ 1,204 $ 10,630 Total gains or losses (realized and unrealized): Included in earnings (1) 714 2,060 1,277 (3,374) Settlements (819) (1,195) (1,638) (3,311) End of period $ 843 $ 3,945 $ 843 $ 3,945 Total earnings (losses) for the period included in earnings attributable to the change in unrealized gain (loss) relating to assets still held at end of period $ (105) $ 865 $ (361) $ (6,685) _______________________ 1. Commodity derivatives are reported in the Unaudited Condensed Consolidated Statements of Operations in gain (loss) on derivatives. |
Schedule Of Quantitative Information About Unobservable Inputs | The following table provides quantitative information about our Level 3 unobservable inputs at June 30, 2020: Commodity (1) Fair Value Valuation Technique Unobservable Input Range (In thousands) Natural gas three-way collars $ 843 Discounted cash flow Forward commodity price curve $0.00 - $0.75 _______________________ 1. The commodity contracts detailed in this category include non-exchange-traded natural gas three-way collars that are valued based on NYMEX. The forward pricing range represents the low and high price expected to be paid or received within the settlement period. |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Supplemental cash flow information related to leases | The following table shows supplemental cash flow information related to leases for the periods indicated: Six Months Ended June 30, June 30, (In thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 2,827 $ 1,616 Financing cash flows for finance leases 2,061 1,980 Lease liabilities recognized in exchange for new operating lease right of use assets — 5 |
Schedule of lease assets and liabilities | The following table shows information about our lease assets and liabilities in our Unaudited Condensed Consolidated Balance Sheets: Classification on the Consolidated Balance Sheets June 30, December 31, (In thousands) Assets Operating right of use assets Right of use assets $ 7,828 $ 5,673 Finance right of use assets Property, plant, and equipment, net 16,455 17,396 Total right of use assets $ 24,283 $ 23,069 Liabilities Current liabilities: Operating lease liabilities Current operating lease liabilities $ 4,666 $ 3,430 Finance lease liabilities Current portion of other long-term liabilities 5,157 4,164 Non-current liabilities: Operating lease liabilities Operating lease liabilities 3,012 2,071 Finance lease liabilities Other long-term liabilities 162 3,215 Total lease liabilities $ 12,997 $ 12,880 |
Schedule of lease costs | The following table shows certain information related to the lease costs for our finance and operating leases for the periods indicated: Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, (In thousands) Components of total lease cost: Amortization of finance leased assets $ 1,036 $ 995 $ 2,061 $ 1,980 Interest on finance lease liabilities 60 100 130 211 Operating lease cost 1,395 1,052 2,639 1,651 Short-term lease cost, included are amounts capitalized related to our oil and natural gas segment of $0.4 million, $9.0 million, $1.4 million, and $14.7 million, respectively 2,751 12,038 6,742 22,012 Variable lease cost 83 84 165 190 Total lease cost $ 5,325 $ 14,269 $ 11,737 $ 26,044 |
Schedule of weighted average discount rate for leases | The following table shows certain information related to the weighted average remaining lease terms and the weighted average discount rates for our operating and finance leases: Weighted Average Remaining Lease Term Weighted Average Discount Rate (1) (In years) Operating leases 1.6 4.81% Finance leases 1.2 4.00% _______________________ 1. Our weighted average discount rates represent the rate implicit in the lease or our incremental borrowing rate for a term equal to the remaining term of the lease. |
Operating leases | The following table sets forth the maturity of our operating lease liabilities as of June 30, 2020: Amount (In thousands) Ending July 1, 2021 $ 4,938 2022 2,786 2023 222 2024 23 2025 12 2025 and beyond 70 Total future payments 8,051 Less: Interest 373 Present value of future minimum operating lease payments 7,678 Less: Current portion 4,666 Total long-term operating lease payments $ 3,012 |
Finance leases | The following table sets forth the maturity of our finance lease liabilities as of June 30, 2020: Amount Ending July 1, (In thousands) 2020 $ 6,692 2021 179 Total future payments 6,871 Less payments related to: Maintenance 1,430 Interest 122 Present value of future minimum finance lease payments 5,319 Less: Current portion 5,157 Total long-term finance lease payments $ 162 |
Variable Interest Entity Arra_2
Variable Interest Entity Arrangements (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Variable Interest Entity Arrangements [Abstract] | |
Schedule of Assets and Liabilities | The carrying value of Superior's assets and liabilities, after eliminations of any intercompany transactions and balances, in the consolidated balance sheets were as follows: June 30, December 31, (In thousands) Current assets: Cash and cash equivalents $ 23,780 $ — Accounts receivable 18,718 21,073 Prepaid expenses and other 7,321 7,686 Total current assets 49,819 28,759 Property and equipment: Gas gathering and processing equipment 833,402 824,699 Transportation equipment 3,363 3,390 836,765 828,089 Less accumulated depreciation, depletion, amortization, and impairment 493,386 407,144 Net property and equipment 343,379 420,945 Right of use asset 4,542 3,948 Other assets 6,054 9,442 Total assets $ 403,794 $ 463,094 Current liabilities: Accounts payable $ 9,980 $ 18,511 Accrued liabilities 4,648 4,198 Current operating lease liability 2,518 2,407 Current portion of other long-term liabilities 8,059 7,060 Total current liabilities 25,205 32,176 Long-term debt 34,000 16,500 Operating lease liability 1,911 1,404 Other long-term liabilities 3,811 8,126 Total liabilities $ 64,927 $ 58,206 |
Industry Segment Information (T
Industry Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Industry segment information | The following tables provide certain information about the operations of each of our segments: Three Months Ended June 30, 2020 Oil and Natural Gas Contract Drilling Mid-stream Corporate and Other Eliminations Total Consolidated (In thousands) Revenues: (1) Oil and natural gas $ 26,957 $ — $ — $ — $ (1) $ 26,956 Contract drilling — 29,202 — — — 29,202 Gas gathering and processing — — 37,719 — (4,870) 32,849 Total revenues 26,957 29,202 37,719 — (4,871) 89,007 Expenses: Operating costs: Oil and natural gas 72,354 — — — (814) 71,540 Contract drilling — 20,951 — — — 20,951 Gas gathering and processing — — 26,669 — (4,057) 22,612 Total operating costs 72,354 20,951 26,669 — (4,871) 115,103 Depreciation, depletion, and amortization 22,059 2,946 10,348 607 35,960 Impairments 109,318 — — — — 109,318 Total expenses 203,731 23,897 37,017 607 (4,871) 260,381 General and administrative — — — 25,814 — 25,814 (Gain) loss on disposition of assets (45) (548) (9) 1,479 — 877 Income (loss) from operations (176,729) 5,853 711 (27,900) — (198,065) Loss on derivatives — — — (6,937) — (6,937) Write-off of debt issuance costs — — — (2,426) — (2,426) Reorganization items — — — (7,027) — (7,027) Interest, net — — (542) (7,066) — (7,608) Other 9 6 22 6 — 43 Income (loss) before income taxes $ (176,720) $ 5,859 $ 191 $ (51,350) $ — $ (222,020) _______________________ 1. The revenues for oil and natural gas occur at a point in time. The revenues for contract drilling and gas gathering and processing occur over time. Three Months Ended June 30, 2019 Oil and Natural Gas Contract Drilling Mid-stream Corporate and Other Eliminations Total Consolidated (In thousands) Revenues: (1) Oil and natural gas $ 77,815 $ — $ — $ — $ — $ 77,815 Contract drilling — 50,773 — — (7,736) 43,037 Gas gathering and processing — — 54,630 — (10,336) 44,294 Total revenues 77,815 50,773 54,630 — (18,072) 165,146 Expenses: Operating costs: Oil and natural gas 37,519 — — — (1,277) 36,242 Contract drilling — 36,390 — — (7,082) 29,308 Gas gathering and processing — — 41,550 — (9,059) 32,491 Total operating costs 37,519 36,390 41,550 — (17,418) 98,041 Depreciation, depletion, and amortization 38,751 13,504 12,102 1,935 — 66,292 Total expenses 76,270 49,894 53,652 1,935 (17,418) 164,333 General and administrative — — — 10,064 — 10,064 Gain on disposition of assets (60) (296) (66) — — (422) Income (loss) from operations 1,605 1,175 1,044 (11,999) (654) (8,829) Gain on derivatives — — — 7,927 — 7,927 Interest, net — — (345) (8,650) — (8,995) Other — — — 6 — 6 Income (loss) before income taxes $ 1,605 $ 1,175 $ 699 $ (12,716) (654) $ (9,891) _______________________ 1. The revenues for oil and natural gas occur at a point in time. The revenues for contract drilling and gas gathering and processing occur over time. Six Months Ended June 30, 2020 Oil and Natural Gas Contract Drilling Mid-stream Corporate and Other Eliminations Total Consolidated (In thousands) Revenues: (1) Oil and natural gas $ 75,481 $ — $ — $ — $ (3) $ 75,478 Contract drilling — 65,834 — — — 65,834 Gas gathering and processing — — 80,399 — (10,328) 70,071 Total revenues 75,481 65,834 80,399 — (10,331) 211,383 Expenses: Operating costs: Oil and natural gas 103,769 — — — (1,566) 102,203 Contract drilling — 46,400 — — — 46,400 Gas gathering and processing — — 58,988 — (8,765) 50,223 Total operating costs 103,769 46,400 58,988 — (10,331) 198,826 Depreciation, depletion, and amortization 58,787 14,691 22,621 1,478 — 97,577 Impairments 377,154 410,126 63,962 — — 851,242 Total expenses 539,710 471,217 145,571 1,478 (10,331) 1,147,645 Loss on abandonment of assets 17,554 — — — — 17,554 General and administrative — — — 37,367 — 37,367 (Gain) loss on disposition of assets (58) (139) (15) 1,479 — 1,267 Loss from operations (481,725) (405,244) (65,157) (40,324) — (992,450) Loss on derivatives — — — (6,454) — (6,454) Write-off of debt issuance costs — — — (2,426) — (2,426) Reorganization items — — — (7,027) — (7,027) Interest, net — — (1,060) (19,805) — (20,865) Other 30 23 39 11 — 103 Loss before income taxes $ (481,695) $ (405,221) $ (66,178) $ (76,025) $ — $ (1,029,119) _______________________ ____________________ 1. The revenues for oil and natural gas occur at a point in time. The revenues for contract drilling and gas gathering and processing occur over time. Six Months Ended June 30, 2019 Oil and Natural Gas Contract Drilling Mid-stream Corporate and Other Eliminations Total Consolidated (In thousands) Revenues: (1) Oil and natural gas $ 163,910 $ — $ — $ — $ — $ 163,910 Contract drilling — 108,972 — — (14,780) 94,192 Gas gathering and processing — — 125,139 — (28,404) 96,735 Total revenues 163,910 108,972 125,139 — (43,184) 354,837 Expenses: Operating costs: Oil and natural gas 71,527 — — — (2,571) 68,956 Contract drilling — 73,775 — — (13,066) 60,709 Gas gathering and processing — — 97,679 — (25,833) 71,846 Total operating costs 71,527 73,775 97,679 — (41,470) 201,511 Depreciation, depletion, and amortization 74,518 26,203 23,828 3,869 — 128,418 Total expenses 146,045 99,978 121,507 3,869 (41,470) 329,929 General and administrative — — — 19,805 — 19,805 (Gain) loss on disposition of assets (138) -84 1,449 (108) (10) — 1,193 Income (loss) from operations 18,003 7,545 3,740 (23,664) (1,714) 3,910 Gain on derivatives — — — 995 — 995 Interest, net — — (681) (16,852) — (17,533) Other — — — 11 — 11 Income (loss) before income taxes $ 18,003 $ 7,545 $ 3,059 (39,510) $ (1,714) $ (12,617) _______________________ 1. The revenues for oil and natural gas occur at a point in time. The revenues for contract drilling and gas gathering and processing occur over time. |
Supplemental Condensed Consol_2
Supplemental Condensed Consolidating Financial Information (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Supplemental Condensed Consolidated Financial Information [Abstract] | |
Condensed Consolidating Balance Sheets (Unaudited) | Condensed Consolidating Balance Sheets (Unaudited) June 30, 2020 Parent Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Consolidating Adjustments Total Consolidated (In thousands) ASSETS Current assets: Cash and cash equivalents $ 13,214 $ — $ 23,780 $ — $ 36,994 Accounts receivable, net of allowance for doubtful accounts of $3,961 (Guarantor of $2,745 and Parent of $1,216) 1,702 37,216 20,518 (5,290) 54,146 Materials and supplies — 110 — — 110 Income taxes receivable 850 — — — 850 Prepaid expenses and other 6,575 2,763 7,321 — 16,659 Total current assets 22,341 40,089 51,619 (5,290) 108,759 Property and equipment: Oil and natural gas properties on the full cost method: Proved properties — 6,566,669 — — 6,566,669 Unproved properties not being amortized — 30,342 — — 30,342 Drilling equipment — 1,296,319 — — 1,296,319 Gas gathering and processing equipment — — 833,402 — 833,402 Saltwater disposal systems — 43,843 — — 43,843 Corporate land and building — 59,080 — — 59,080 Transportation equipment 362 13,055 3,363 — 16,780 Other 29,005 29,031 — — 58,036 29,367 8,038,339 836,765 — 8,904,471 Less accumulated depreciation, depletion, amortization, and impairment 27,888 7,381,777 493,386 — 7,903,051 Net property and equipment 1,479 656,562 343,379 — 1,001,420 Intercompany receivable 853,800 — — (853,800) — Investments 15,106 — — (15,106) — Right of use asset 34 3,303 4,542 (51) 7,828 Other assets 6,001 10,316 6,054 — 22,371 Total assets $ 898,761 $ 710,270 $ 405,594 $ (874,247) $ 1,140,378 June 30, 2020 Parent Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Consolidating Adjustments Total Consolidated (In thousands) LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable $ 1,386 $ 18,018 $ 9,980 $ (2,576) $ 26,808 Accrued liabilities 14,267 12,876 6,029 (1,788) 31,384 Current operating lease liability 18 2,136 2,518 (6) 4,666 Current portion of long-term debt 124,000 — — — 124,000 Debtor-in-possession financing 8,000 — — — 8,000 Current derivative liability 5,011 — — — 5,011 Current portion of other long-term liabilities — 5,615 8,059 (46) 13,628 Total current liabilities 152,682 38,645 26,586 (4,416) 213,497 Intercompany debt — 853,491 309 (853,800) — Long-term debt — — 34,000 — 34,000 Non-current derivative liability 145 — — — 145 Operating lease liability 16 1,130 1,911 (45) 3,012 Other long-term liabilities 6,124 75,499 3,979 (880) 84,722 Liabilities subject to compromise 694,512 65,208 — — 759,720 Deferred income taxes 4,750 — — — 4,750 Total shareholders’ equity 40,532 (323,703) 338,809 (15,106) 40,532 Total liabilities and shareholders’ equity $ 898,761 $ 710,270 $ 405,594 $ (874,247) $ 1,140,378 December 31, 2019 Parent Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Consolidating Adjustments Total Consolidated (In thousands) ASSETS Current assets: Cash and cash equivalents $ 503 $ 68 $ — $ — $ 571 Accounts receivable, net of allowance for doubtful accounts of $2,332 (Guarantor of $1,116 and Parent of $1,216) 2,645 64,805 24,653 (9,447) 82,656 Materials and supplies — 449 — — 449 Current derivative asset 633 — — — 633 Income tax receivable 1,756 — — — 1,756 Assets held for sale — 5,908 — — 5,908 Prepaid expenses and other 2,019 3,373 7,686 — 13,078 Total current assets 7,556 74,603 32,339 (9,447) 105,051 Property and equipment: Oil and natural gas properties on the full cost method: Proved properties — 6,341,582 — — 6,341,582 Unproved properties not being amortized — 252,874 — — 252,874 Drilling equipment — 1,295,713 — — 1,295,713 Gas gathering and processing equipment — — 824,699 — 824,699 Saltwater disposal systems — 69,692 — — 69,692 Corporate land and building — 59,080 — — 59,080 Transportation equipment 9,712 16,621 3,390 — 29,723 Other 28,927 29,065 — — 57,992 38,639 8,064,627 828,089 — 8,931,355 Less accumulated depreciation, depletion, amortization, and impairment 33,794 6,537,731 407,144 — 6,978,669 Net property and equipment 4,845 1,526,896 420,945 — 1,952,686 Intercompany receivable 1,048,785 — — (1,048,785) — Investments 865,252 — — (865,252) — Right of use asset 46 1,733 3,948 (54) 5,673 Other assets 8,107 9,094 9,441 — 26,642 Total assets $ 1,934,591 $ 1,612,326 $ 466,673 $ (1,923,538) $ 2,090,052 December 31, 2019 Parent Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Consolidating Adjustments Total Consolidated (In thousands) LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable $ 12,259 $ 61,002 $ 18,511 $ (7,291) $ 84,481 Accrued liabilities 28,003 14,024 6,691 (2,156) 46,562 Current operating lease liability 20 1,009 2,407 (6) 3,430 Current portion of long-term debt 108,200 — — — 108,200 Current portion of other long-term liabilities 3,003 7,313 7,060 — 17,376 Total current liabilities 151,485 83,348 34,669 (9,453) 260,049 Intercompany debt — 1,047,599 1,186 (1,048,785) — Long-term debt less debt issuance costs 646,716 — 16,500 — 663,216 Non-current derivative liability 27 — — — 27 Operating lease liability 25 690 1,404 (48) 2,071 Other long-term liabilities 12,553 74,662 8,126 — 95,341 Deferred income taxes 68,150 (54,437) — — 13,713 Total shareholders' equity 1,055,635 460,464 404,788 (865,252) 1,055,635 Total liabilities and shareholders’ equity $ 1,934,591 $ 1,612,326 $ 466,673 $ (1,923,538) $ 2,090,052 |
Condensed Consolidating Statements of Operations (Unaudited) | Condensed Consolidating Statements of Operations (Unaudited) Three Months Ended June 30, 2020 Parent Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Consolidating Adjustments Total Consolidated (In thousands) Revenues $ — $ 56,159 $ 37,719 $ (4,871) $ 89,007 Expenses: Operating costs — 93,305 26,671 (4,873) 115,103 Depreciation, depletion, and amortization 607 25,005 10,348 — 35,960 Impairments — 109,318 — — 109,318 General and administrative — 25,814 — — 25,814 (Gain) loss on disposition of assets 1,479 (593) (9) — 877 Total operating costs 2,086 252,849 37,010 (4,873) 287,072 Income (loss) from operations (2,086) (196,690) 709 2 (198,065) Interest, net (7,066) — (542) — (7,608) Write off of debt issuance costs (2,426) — — — (2,426) Loss on derivatives (6,937) — — — (6,937) Reorganization items (2,205) (4,822) — — (7,027) Other, net 4 18 21 — 43 Income (loss) before income taxes (20,716) (201,494) 188 2 (222,020) Income tax benefit (6,455) — — — (6,455) Equity in net earnings from investment in subsidiaries, net of taxes (201,304) — — 201,304 — Net income (loss) (215,565) (201,494) 188 201,306 (215,565) Less: net income attributable to non-controlling interest 84 — 84 (84) 84 Net income (loss) attributable to Unit Corporation $ (215,649) $ (201,494) $ 104 $ 201,390 $ (215,649) Three Months Ended June 30, 2019 Parent Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Consolidating Adjustments Total Consolidated (In thousands) Revenues $ — $ 128,588 $ 54,630 $ (18,072) $ 165,146 Expenses: Operating costs — 73,909 41,550 (17,418) 98,041 Depreciation, depletion, and amortization 1,935 52,255 12,102 — 66,292 General and administrative — 10,064 — — 10,064 Gain on disposition of assets — (356) (66) — (422) Total operating costs 1,935 135,872 53,586 (17,418) 173,975 Income (loss) from operations (1,935) (7,284) 1,044 (654) (8,829) Interest, net (8,650) — (345) — (8,995) Gain on derivatives 7,927 — — — 7,927 Other, net 6 — — — 6 Income (loss) before income taxes (2,652) (7,284) 699 (654) (9,891) Income tax benefit (848) (1,026) — — (1,874) Equity in net earnings from investment in subsidiaries, net of taxes (6,705) — — 6,705 — Net income (loss) (8,509) (6,258) 699 6,051 (8,017) Less: net income attributable to non-controlling interest — — 492 — 492 Net income (loss) attributable to Unit Corporation $ (8,509) $ (6,258) $ 207 $ 6,051 $ (8,509) Six Months Ended June 30, 2020 Parent Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Consolidating Adjustments Total Consolidated (In thousands) Revenues $ — $ 141,315 $ 80,399 $ (10,331) $ 211,383 Expenses: Operating costs — 150,169 58,988 (10,331) 198,826 Depreciation, depletion, and amortization 1,478 73,478 22,621 — 97,577 Impairments — 787,280 63,962 — 851,242 Loss on abandonment of assets — 17,554 — — 17,554 General and administrative — 37,367 — — 37,367 (Gain) loss on disposition of assets 1,479 (197) (15) — 1,267 Total operating costs 2,957 1,065,651 145,556 (10,331) 1,203,833 Loss from operations (2,957) (924,336) (65,157) — (992,450) Interest, net (19,805) — (1,060) — (20,865) Write-off of debt issuance costs (2,426) — — — (2,426) Loss on derivatives (6,454) — — — (6,454) Reorganization items (2,205) (4,822) — — (7,027) Other, net 11 53 39 — 103 Loss before income taxes (33,836) (929,105) (66,178) — (1,029,119) Income tax benefit (9,880) — — — (9,880) Equity in net earnings from investment in subsidiaries, net of taxes (995,283) — — 995,283 — Net loss (1,019,239) (929,105) (66,178) 995,283 (1,019,239) Less: net loss attributable to non-controlling interest (33,096) — (33,096) 33,096 (33,096) Net loss attributable to Unit Corporation $ (986,143) $ (929,105) $ (33,082) $ 962,187 $ (986,143) Six Months Ended June 30, 2019 Parent Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Consolidating Adjustments Total Consolidated (In thousands) Revenues $ — $ 272,882 $ 125,139 $ (43,184) $ 354,837 Expenses: Operating costs — 145,302 97,679 (41,470) 201,511 Depreciation, depletion, and amortization 3,869 100,721 23,828 — 128,418 General and administrative — 19,805 — — 19,805 (Gain) loss on disposition of assets (10) 1,311 (108) — 1,193 Total operating costs 3,859 267,139 121,399 (41,470) 350,927 Income (loss) from operations (3,859) 5,743 3,740 (1,714) 3,910 Interest, net (16,852) — (681) — (17,533) Gain on derivatives 995 — — — 995 Other, net 11 — — — 11 Income (loss) before income taxes (19,705) 5,743 3,059 (1,714) (12,617) Income tax expense (benefit) (4,547) 2,229 — — (2,318) Equity in net earnings from investment in subsidiaries, net of taxes 3,145 — — (3,145) — Net income (loss) (12,013) 3,514 3,059 (4,859) (10,299) Less: net income attributable to non-controlling interest — — 1,714 — 1,714 Net income (loss) attributable to Unit Corporation $ (12,013) $ 3,514 $ 1,345 $ (4,859) $ (12,013) |
Condensed Consolidating Statements of Comprehensive Income (Loss) (Unaudited) | Condensed Consolidating Statements of Comprehensive Income (Loss) (Unaudited) Three Months Ended June 30, 2020 Parent Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Consolidating Adjustments Total Consolidated (In thousands) Net income (loss) $ (215,565) $ (201,494) $ 188 $ 201,306 $ (215,565) Other comprehensive income (loss), net of taxes: Unrealized gain on securities, net of tax of $0 — — — — — Comprehensive income (loss) (215,565) (201,494) 188 201,306 (215,565) Less: Comprehensive income attributable to non-controlling interests 84 — 84 (84) 84 Comprehensive income (loss) attributable to Unit Corporation $ (215,649) $ (201,494) $ 104 $ 201,390 $ (215,649) Three Months Ended June 30, 2019 Parent Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Consolidating Adjustments Total Consolidated (In thousands) Net income (loss) $ (8,509) $ (6,258) $ 699 $ 6,051 $ (8,017) Other comprehensive income (loss), net of taxes: Unrealized loss on securities, net of tax of ($9) — (30) — — (30) Comprehensive income (loss) (8,509) (6,288) 699 6,051 (8,047) Less: Comprehensive income attributable to non-controlling interests — — 492 — 492 Comprehensive income (loss) attributable to Unit Corporation $ (8,509) $ (6,288) $ 207 $ 6,051 $ (8,539) Six Months Ended June 30, 2020 Parent Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Consolidating Adjustments Total Consolidated (In thousands) Net loss $ (1,019,239) $ (929,105) $ (66,178) $ 995,283 $ (1,019,239) Other comprehensive loss, net of taxes: Unrealized gain on securities, net of tax of $0 — — — — — Comprehensive loss (1,019,239) (929,105) (66,178) 995,283 (1,019,239) Less: Comprehensive loss attributable to non-controlling interests (33,096) — (33,096) 33,096 (33,096) Comprehensive loss attributable to Unit Corporation $ (986,143) $ (929,105) $ (33,082) $ 962,187 $ (986,143) Six Months Ended June 30, 2019 Parent Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Consolidating Adjustments Total Consolidated (In thousands) Net income (loss) $ (12,013) $ 3,514 $ 3,059 $ (4,859) $ (10,299) Other comprehensive income (loss), net of taxes: Unrealized loss on securities, net of tax of ($2) — (6) — — (6) Comprehensive income (loss) (12,013) 3,508 3,059 (4,859) (10,305) Less: Comprehensive income attributable to non-controlling interests — — 1,714 — 1,714 Comprehensive income (loss) attributable to Unit Corporation $ (12,013) $ 3,508 $ 1,345 $ (4,859) $ (12,019) |
Condensed Consolidating Statements of Cash Flows (Unaudited) | Condensed Consolidating Statements of Cash Flows (Unaudited) Six Months Ended June 30, 2020 Parent Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Consolidating Adjustments Total Consolidated (In thousands) OPERATING ACTIVITIES: Net cash provided by (used in) operating activities $ (201,699) $ 59,486 $ 20,117 $ 148,563 $ 26,467 INVESTING ACTIVITIES: Capital expenditures (760) (13,428) (9,616) — (23,804) Producing properties and other acquisitions — (210) — — (210) Proceeds from disposition of assets 1,169 3,253 75 — 4,497 Net cash provided by (used in) investing activities 409 (10,385) (9,541) — (19,517) FINANCING ACTIVITIES: Borrowings under credit agreement, including borrowings under DIP credit facility 47,300 — 32,100 — 79,400 Payments under credit agreement (23,500) — (14,600) — (38,100) DIP financing costs (990) — — — (990) Intercompany borrowings (advances), net 198,503 (49,169) (771) (148,563) — Payments on finance leases — — (2,061) — (2,061) Employee taxes paid by withholding shares (43) — — — (43) Bank overdrafts (7,269) — (1,464) — (8,733) Net cash provided by (used in) financing activities 214,001 (49,169) 13,204 (148,563) 29,473 Net increase (decrease) in cash and cash equivalents 12,711 (68) 23,780 — 36,423 Cash and cash equivalents, beginning of period 503 68 — — 571 Cash and cash equivalents, end of period $ 13,214 $ — $ 23,780 $ — $ 36,994 Six Months Ended June 30, 2019 Parent Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Consolidating Adjustments Total Consolidated (In thousands) OPERATING ACTIVITIES: Net cash provided by (used in) operating activities $ (8,023) $ 111,615 $ 23,943 $ (34) $ 127,501 INVESTING ACTIVITIES: Capital expenditures (100) (212,982) (33,556) — (246,638) Producing properties and other acquisitions — (3,313) — — (3,313) Proceeds from disposition of assets 10 7,247 83 — 7,340 Net cash used in investing activities (90) (209,048) (33,473) — (242,611) FINANCING ACTIVITIES: Borrowings under credit agreement 238,800 — 32,400 — 271,200 Payments under credit agreement (135,300) — (24,900) — (160,200) Intercompany borrowings (advances), net (96,311) 97,384 (1,107) 34 — Payments on finance leases — — (1,980) — (1,980) Employee taxes paid by withholding shares (4,073) — — — (4,073) Distributions to non-controlling interest 919 — (1,837) — (918) Bank overdrafts 4,183 — 1,115 — 5,298 Net cash provided by financing activities 8,218 97,384 3,691 34 109,327 Net increase (decrease) in cash and cash equivalents 105 (49) (5,839) — (5,783) Cash and cash equivalents, beginning of period 403 208 5,841 — 6,452 Cash and cash equivalents, end of period $ 508 $ 159 $ 2 $ — $ 669 |
Chapter 11 Proceeds, Liquidit_2
Chapter 11 Proceeds, Liquidity, and Ability to Continue as a Going Concern (Liabilities Subject to Compromise) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
6.625% senior subordinated notes due 2021 (including accrued interest as of the Petition Date) | $ 671,724 | |
Accounts payable | 735 | |
Employee separation benefit plan obligations | 22,624 | |
Estimated Litigation Liability | 45,000 | |
Royalty suspense accounts payable | 19,637 | |
Liabilities subject to compromise | $ 759,720 | $ 0 |
Chapter 11 Proceeds, Liquidit_3
Chapter 11 Proceeds, Liquidity, and Ability to Continue as a Going Concern (Schedule of Reorganization Items) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Professional fees incurred | $ 4,822 | |||
Adjustment to unamortized debt issuance costs associated with the 6.625% senior subordinated notes due 2021 | $ 2,200 | 2,205 | ||
Reorganization Items | $ (7,027) | $ 0 | $ (7,027) | $ 0 |
Chapter 11 Proceeds, Liquidit_4
Chapter 11 Proceeds, Liquidity, and Ability to Continue as a Going Concern (DIP Condensed Combined Balance Sheets (Unaudited)) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | |
Cash and cash equivalents | $ 36,994 | $ 571 | $ 669 | $ 6,452 | |||
Accounts receivable, net of allowance for doubtful accounts | 54,146 | 82,656 | |||||
Materials and supplies | 110 | 449 | |||||
Current income taxes receivable | 850 | 1,756 | |||||
Prepaid expenses and other | 16,659 | 13,078 | |||||
Total current assets | 108,759 | 105,051 | |||||
Net property and equipment | 1,001,420 | 1,952,686 | |||||
Operating right of use asset | 7,828 | 5,673 | |||||
Other assets | 22,371 | 26,642 | |||||
Total assets | [1] | 1,140,378 | 2,090,052 | ||||
Accounts payable | 26,808 | 84,481 | |||||
Accrued liabilities | 31,384 | 46,562 | |||||
Current operating lease liability | 4,666 | 3,430 | |||||
Current portion of long-term debt | 124,000 | 108,200 | |||||
Debtor-in-possession financing (Note 8) | 8,000 | 0 | |||||
Current derivative liability | 5,011 | 0 | |||||
Current portion of other long-term liabilities | 13,628 | 17,376 | |||||
Total current liabilities | 213,497 | 260,049 | |||||
Non-current derivative liability | 145 | 27 | |||||
Operating lease liability | 3,012 | 2,071 | |||||
Total other long-term liabilities | 84,722 | 95,341 | |||||
Liabilities subject to compromise (Note 2) | 759,720 | 0 | |||||
Deferred income taxes | 4,750 | 13,713 | |||||
Stockholders' Equity Attributable to Parent | (128,176) | 853,878 | |||||
Non-controlling interests in consolidated subsidiaries | 168,708 | 201,757 | |||||
Total shareholders' equity | 40,532 | $ 254,486 | 1,055,635 | $ 1,593,232 | $ 1,595,859 | $ 1,593,444 | |
Total liabilities and shareholders' equity | [1] | 1,140,378 | 2,090,052 | ||||
Debtor-in-possession [Member] | |||||||
Cash and cash equivalents | 13,214 | $ 571 | |||||
Accounts receivable, net of allowance for doubtful accounts | 33,628 | ||||||
Intercompany accounts receivable | 5,290 | ||||||
Materials and supplies | 110 | ||||||
Current income taxes receivable | 850 | ||||||
Prepaid expenses and other | 9,338 | ||||||
Total current assets | 62,430 | ||||||
Intercompany investment | 338,809 | ||||||
Net property and equipment | 658,041 | ||||||
Operating right of use asset | 3,337 | ||||||
Other assets | 16,626 | ||||||
Total assets | 1,079,243 | ||||||
Accounts payable | 16,828 | ||||||
Intercompany accounts payable | 4,364 | ||||||
Accrued liabilities | 25,355 | ||||||
Current operating lease liability | 5,011 | ||||||
Current portion of long-term debt | 2,154 | ||||||
Debtor-in-possession financing (Note 8) | 124,000 | ||||||
Current derivative liability | 8,000 | ||||||
Current portion of other long-term liabilities | 5,615 | ||||||
Total current liabilities | 191,327 | ||||||
Non-current derivative liability | 145 | ||||||
Operating lease liability | 1,146 | ||||||
Total other long-term liabilities | 81,623 | ||||||
Liabilities subject to compromise (Note 2) | 759,720 | ||||||
Deferred income taxes | 4,750 | ||||||
Stockholders' Equity Attributable to Parent | (128,176) | ||||||
Non-controlling interests in consolidated subsidiaries | 168,708 | ||||||
Total shareholders' equity | 40,532 | ||||||
Total liabilities and shareholders' equity | $ 1,079,243 | ||||||
[1] | Unit Corporation's consolidated total assets as of June 30, 2020 include total current and long-term assets of its variable interest entity (VIE) (Superior Pipeline Company, L.L.C.) of $49.8 million and $354.0 million, respectively, which can only settle obligations of the VIE. Unit Corporation's consolidated total liabilities as of June 30, 2020 include total current and long-term liabilities of the VIE of $25.2 million and $39.7 million, respectively, for which the creditors of the VIE have no recourse to Unit Corporation. Unit Corporation's consolidated total assets as of December 31, 2019 include total current and long-term assets of the VIE of $28.8 million and $434.3 million, respectively, which can only settle obligations of the VIE. Unit Corporation's consolidated total liabilities as of December 31, 2019 include total current and long-term liabilities of the VIE of $32.2 million and $26.0 million, respectively, for which the creditors of the VIE have no recourse to Unit Corporation. See Note 16 – Variable Interest Entity Arrangements. |
Chapter 11 Proceeds, Liquidit_5
Chapter 11 Proceeds, Liquidity, and Ability to Continue as a Going Concern (DIP Condensed Combined Statements of Operations (Unaudited)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Revenues | $ 89,007 | $ 165,146 | $ 211,383 | $ 354,837 |
Operating costs | 115,103 | 98,041 | 198,826 | 201,511 |
Depreciation, depletion, and amortization | 35,960 | 66,292 | 97,577 | 128,418 |
Impairments | 109,318 | 0 | 851,242 | 0 |
Loss on abandonment of assets | 0 | 0 | 17,554 | 0 |
General and administrative | 25,814 | 10,064 | 37,367 | 19,805 |
Loss on disposition of assets | 877 | (422) | 1,267 | 1,193 |
Total operating costs | 287,072 | 173,975 | 1,203,833 | 350,927 |
Loss from operations | (198,065) | (8,829) | (992,450) | 3,910 |
Interest, net | (7,608) | (8,995) | (20,865) | (17,533) |
Write off of debt issuance cost | (2,426) | 0 | (2,426) | 0 |
Gain (loss) on derivatives | (6,937) | 7,927 | (6,454) | 995 |
Reorganization Items | (7,027) | 0 | (7,027) | 0 |
Other, net | 43 | 6 | 103 | 11 |
Total other income (expense) | (23,955) | (1,062) | (36,669) | (16,527) |
Loss before income taxes | (222,020) | (9,891) | (1,029,119) | (12,617) |
Income tax benefit | (6,455) | (1,874) | (9,880) | (2,318) |
Net loss | (215,565) | (8,017) | (1,019,239) | (10,299) |
Net income (loss) attributable to non-controlling interest | 84 | 492 | (33,096) | 1,714 |
Net loss attributable to Unit Corporation | (215,649) | $ (8,509) | (986,143) | $ (12,013) |
Debtor-in-possession [Member] | ||||
Revenues | 56,159 | 141,315 | ||
Operating costs | 93,305 | 150,169 | ||
Depreciation, depletion, and amortization | 25,612 | 74,956 | ||
Impairments | 109,318 | 787,280 | ||
Loss on abandonment of assets | 0 | 17,554 | ||
General and administrative | 25,814 | 37,367 | ||
Loss on disposition of assets | (886) | (1,282) | ||
Total operating costs | 254,935 | 1,068,608 | ||
Loss from operations | (198,776) | (927,293) | ||
Interest, net | (7,066) | (19,805) | ||
Write off of debt issuance cost | (2,426) | (2,426) | ||
Gain (loss) on derivatives | (6,937) | (6,454) | ||
Reorganization Items | 7,027 | 7,027 | ||
Other, net | 22 | 64 | ||
Total other income (expense) | (23,434) | (35,648) | ||
Loss before income taxes | (222,210) | (962,941) | ||
Income tax benefit | (6,455) | (9,880) | ||
Equity in net earnings (losses) from investment | 188 | (66,178) | ||
Net loss | (215,567) | (1,019,239) | ||
Net income (loss) attributable to non-controlling interest | 84 | (33,096) | ||
Net loss attributable to Unit Corporation | $ (215,651) | $ (986,143) |
Chapter 11 Proceeds, Liquidit_6
Chapter 11 Proceeds, Liquidity, and Ability to Continue as a Going Concern (DIP Condensed Combined Statements of Cash Flows (Unaudited)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Net loss | $ (215,565) | $ (8,017) | $ (1,019,239) | $ (10,299) |
Depreciation, depletion, and amortization | 35,960 | 66,292 | 97,577 | 128,418 |
Impairments | 109,318 | 0 | 851,242 | 0 |
Loss on abandonment of assets | 0 | 0 | 17,554 | 0 |
Amortization of debt issuance costs and debt discount | 1,079 | 1,115 | ||
Loss on derivatives | 6,454 | (995) | ||
Cash receipts on derivatives settled | 1,243 | (2,658) | 691 | (5,314) |
Loss on disposition of assets | 1,267 | 1,193 | ||
Write-off of debt issuance costs | (2,426) | 0 | ||
Deferred tax benefit | (6,455) | (1,874) | (8,963) | (2,318) |
Employee stock compensation plans | 4,179 | 11,187 | ||
Bad debt expense | 1,923 | 0 | ||
ARO liability accretion | 1,169 | 1,168 | ||
Noncash reorganization items | 7,027 | 0 | ||
Other, net | 11,493 | (51) | ||
Accounts receivable | 26,587 | 26,939 | ||
Material and supplies | 43 | (43) | ||
Prepaid expenses and other | (2,703) | (377) | ||
Accounts payable | (22,876) | (30,374) | ||
Accrued liabilities | 48,244 | (1,245) | ||
Net cash provided by operating activities | 26,467 | 127,501 | ||
Capital expenditures | (23,804) | (246,638) | ||
Producing properties and other acquisitions | (210) | (3,313) | ||
Proceeds from disposition of property and equipment | 4,497 | 7,340 | ||
Net cash used in investing activities | (19,517) | (242,611) | ||
Borrowings under line of credit, including borrowings under DIP credit facility | 79,400 | 271,200 | ||
Payments under line of credit | (38,100) | (160,200) | ||
DIP financing costs | 990 | 0 | ||
Employee taxes paid by withholding shares | 43 | 4,073 | ||
Bank overdrafts | (8,733) | 5,298 | ||
Net cash provided by financing activities | 29,473 | 109,327 | ||
Net increase (decrease) in cash and cash equivalents | 36,423 | (5,783) | ||
Cash and cash equivalents, beginning of period | 571 | 6,452 | ||
Cash and cash equivalents, end of period | 36,994 | $ 669 | 36,994 | $ 669 |
Debtor-in-possession [Member] | ||||
Net loss | (215,567) | (1,019,239) | ||
Depreciation, depletion, and amortization | 25,612 | 74,956 | ||
Impairments | 109,318 | 787,280 | ||
Loss on abandonment of assets | 0 | 17,554 | ||
Amortization of debt issuance costs and debt discount | 1,079 | |||
Equity investment in non-debtor subsidiairies | 66,086 | |||
Loss on derivatives | 6,454 | |||
Cash receipts on derivatives settled | 691 | |||
Loss on disposition of assets | 1,282 | |||
Write-off of debt issuance costs | (2,426) | |||
Deferred tax benefit | (8,963) | |||
Employee stock compensation plans | 4,179 | |||
Bad debt expense | 1,923 | |||
ARO liability accretion | 1,169 | |||
Noncash reorganization items | 7,027 | |||
Other, net | 11,621 | |||
Accounts receivable | 26,609 | |||
Material and supplies | 43 | |||
Prepaid expenses and other | (3,158) | |||
Accounts payable | (20,958) | |||
Accrued liabilities | 49,661 | |||
Net cash provided by operating activities | 6,340 | |||
Capital expenditures | (14,188) | |||
Producing properties and other acquisitions | (210) | |||
Proceeds from disposition of property and equipment | 4,422 | |||
Net cash used in investing activities | (9,976) | |||
Borrowings under line of credit, including borrowings under DIP credit facility | 47,300 | |||
Payments under line of credit | (23,500) | |||
DIP financing costs | 990 | |||
Intercompany borrowings | 781 | |||
Employee taxes paid by withholding shares | 43 | |||
Bank overdrafts | 7,269 | |||
Net cash provided by financing activities | 16,279 | |||
Net increase (decrease) in cash and cash equivalents | 12,643 | |||
Cash and cash equivalents, beginning of period | 571 | |||
Cash and cash equivalents, end of period | $ 13,214 | $ 13,214 |
Liquidity and Ability to Contin
Liquidity and Ability to Continue as a Going Concern (Details) - USD ($) $ in Thousands | Sep. 03, 2020 | May 22, 2020 | May 15, 2020 | Jun. 30, 2020 | Jun. 30, 2020 | May 26, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Petition date | May 22, 2020 | ||||||||
Bankruptcy Proceedings, Court Where Petition Was Filed | United States Bankruptcy Court for the Southern District of Texas, Houston Division | ||||||||
Cash and cash equivalents | $ 36,994 | $ 36,994 | $ 571 | $ 669 | $ 6,452 | ||||
DIP credit agreement with an average interest rate of 7.5% at June 30, 2020 | 8,000 | $ 8,000 | $ 0 | ||||||
Management's plans to alleviate the substantial doubt about going concern | In addition to reorganizing our capital structure in the Chapter 11 Cases, we have taken several actions to alleviate the conditions that cause substantial doubt about our ability to continue as a going concern, including (i) minimizing capital expenditures, (ii) aggressively managing working capital, (iii) further reducing recurring operating expenses, and (iv) exploring potential business transactions. | ||||||||
Payments for Postemployment Benefits | 15,400 | ||||||||
Contractual Interest Expense on Prepetition Liabilities Not Recognized in Statement of Operations | 5,400 | $ 5,400 | |||||||
Debt Instrument, Periodic Payment, Interest | $ 21,500 | ||||||||
Subsequent Event [Member] | |||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 1,800,000 | ||||||||
Common Stock [Member] | Subsequent Event [Member] | |||||||||
Percentage of New Common Shares of the Reorganized Company | 12.50% | ||||||||
6.625% Senior Subordinated Notes Due 2021 [Member] | |||||||||
Percentage of Holders of Debtors Agreed under Restructuring Support Agreement | 70.00% | ||||||||
Debt instrument maturity date | May 15, 2021 | ||||||||
Unit Credit Agreement [Member] | |||||||||
Percentage of Lenders Agreed Under Restructuring Support Agreement | 100.00% | ||||||||
Unit credit agreement | 124,000 | $ 124,000 | |||||||
DIP credit facility [Member] | |||||||||
Debtor-in-Possession Financing, Amount Arranged | $ 36,000 | $ 18,000 | |||||||
DIP credit facility [Member] | Subsequent Event [Member] | |||||||||
Percentage of Equity Allocated to Holders of Debtors | 5.00% | ||||||||
Exit Credit Agreement [Member] | Subsequent Event [Member] | |||||||||
Current Ratio Of Credit Facility | 0.50 | ||||||||
Interest Coverage Ratio | 2.50 | ||||||||
Letters of Credit Outstanding, Amount | $ 6,700 | ||||||||
Exit Credit Agreement [Member] | September 1, 2020 to March 31, 2021 [Member] | Subsequent Event [Member] | |||||||||
Net leverage ratio | 4 | ||||||||
Exit Credit Agreement [Member] | April 1, 2021 to June 30, 2022 [Member] | Subsequent Event [Member] | |||||||||
Net leverage ratio | 3.75 | ||||||||
Exit Credit Agreement [Member] | July 1, 2022 to September 30, 2022 [Member] | Subsequent Event [Member] | |||||||||
Net leverage ratio | 3.50 | ||||||||
Exit Credit Agreement [Member] | Revolving Credit Facility [Member] | Eurodollar [Member] | Subsequent Event [Member] | |||||||||
Debt Instrument, Basis Spread on Variable Rate | 5.25% | ||||||||
Exit Credit Agreement [Member] | Revolving Credit Facility [Member] | Alternate Base Rate [Member] | Subsequent Event [Member] | |||||||||
Debt Instrument, Basis Spread on Variable Rate | 4.25% | ||||||||
Exit Credit Agreement [Member] | Secured Debt [Member] | Subsequent Event [Member] | |||||||||
Credit facility maximum credit amount | $ 40,000 | ||||||||
Line of credit facility, amount outstanding | $ 92,000 | ||||||||
Exit Credit Agreement [Member] | Secured Debt [Member] | Eurodollar [Member] | Subsequent Event [Member] | |||||||||
Debt Instrument, Basis Spread on Variable Rate | 6.25% | ||||||||
Exit Credit Agreement [Member] | Secured Debt [Member] | Alternate Base Rate [Member] | Subsequent Event [Member] | |||||||||
Debt Instrument, Basis Spread on Variable Rate | 5.25% | ||||||||
Exit Credit Agreement [Member] | Secured Debt [Member] | Revolving Credit Facility [Member] | Subsequent Event [Member] | |||||||||
Credit facility maximum credit amount | $ 140,000 | ||||||||
Debt instrument maturity date | Mar. 1, 2024 | ||||||||
Line of credit facility, amount outstanding | $ 40,000 | ||||||||
Minimum [Member] | |||||||||
Reorganization Value | 270,000 | 270,000 | |||||||
Maximum [Member] | |||||||||
Reorganization Value | 380,000 | 380,000 | |||||||
Median [Member] | |||||||||
Reorganization Value | $ 325,000 | $ 325,000 |
Property, Plant, and Equipment
Property, Plant, and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Property, Plant and Equipment [Line Items] | |||||
Future discounted net cash flows discounted | 10.00% | ||||
Capitalized costs of unproved properties included in amortization, cumulative | $ 226,500 | ||||
Loss on abandonment of assets | $ 0 | $ 0 | $ 17,554 | $ 0 | |
Oil and Natural Gas [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Impairment of Oil and Gas Properties | $ 109,300 | 267,800 | $ 0 | ||
Loss on abandonment of assets | $ 17,600 | ||||
Mid-Stream [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Impairment of Long-Lived Assets Held-for-use | 64,000 | ||||
BOSS drilling rigs [Member] | Drilling Equipment [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Carrying value of asset group | 242,500 | ||||
SCR drilling rigs [Member] | Drilling Equipment [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Impairment of Long-Lived Assets Held-for-use | 407,100 | ||||
Other drilling equipment [Member] | Drilling Equipment [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Impairment of Long-Lived Assets Held-for-use | $ 3,000 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Contract with Customer, Asset and Liability) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Contract liability | $ 5,625 | $ 7,061 |
Mid-Stream [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Contract assets | 9,695 | 12,921 |
Change in contract assets | (3,226) | |
Contract liability | 5,625 | 7,061 |
Change in contract liabilities | (1,436) | |
Contract asset (liabilities), net | 4,070 | $ 5,860 |
Change in contract assets (liabilities) | $ (1,790) |
Revenue from Contracts with C_3
Revenue from Contracts with Customers (Revenue, Remaining Performance Obligation) (Details) $ in Thousands | Jun. 30, 2020USD ($) |
Minimum [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining Term of Contract | 2 years |
Maximum [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining Term of Contract | 8 years |
Demand fee contracts [Member] | Mid-Stream [Member] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining Impact to Revenue | $ (4,070) |
Demand fee contracts [Member] | Mid-Stream [Member] | July - December 2020 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining Impact to Revenue | (1,985) |
Demand fee contracts [Member] | Mid-Stream [Member] | 2021 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining Impact to Revenue | (3,501) |
Demand fee contracts [Member] | Mid-Stream [Member] | 2022 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining Impact to Revenue | 1,380 |
Demand fee contracts [Member] | Mid-Stream [Member] | 2023 and beyond | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining Impact to Revenue | $ 36 |
Revenue from Contracts with C_4
Revenue from Contracts with Customer (Narrative) (Details) - Drilling [Member] | 6 Months Ended |
Jun. 30, 2020contract | |
Segment Reporting Information [Line Items] | |
Number of Contracts, Daywork | 3 |
Short-term Contract with Customer [Member] | |
Segment Reporting Information [Line Items] | |
Contract Duration | 2 months |
Long-term Contract with Customer [Member] | |
Segment Reporting Information [Line Items] | |
Contract Duration | 2 years |
Divestitures (Narrative) (Detai
Divestitures (Narrative) (Details) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Dec. 31, 2019USD ($)rig | |
Segment Reporting Information [Line Items] | |||
Assets held for sale | $ 0 | $ 5,908 | |
Oil and Natural Gas [Member] | |||
Segment Reporting Information [Line Items] | |||
Proceeds from non-core oil and natural gas asset sales, net of related expenses | $ 900 | $ 2,100 | |
Drilling [Member] | |||
Segment Reporting Information [Line Items] | |||
Number of drilling rigs in assets held for sale | rig | 7 |
Loss Per Share (Schedule of Los
Loss Per Share (Schedule of Loss Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Earnings Per Share [Abstract] | ||||
Earnings (loss) of basic income (loss) attributable to Unit Corporation per common share | $ (215,649) | $ (8,509) | $ (986,143) | $ (12,013) |
Income of effect of dilutive stock options and restricted stock | 0 | 0 | 0 | 0 |
Earnings (loss) of diluted income (loss) attributable to Unit Corporation per common share | $ (215,649) | $ (8,509) | $ (986,143) | $ (12,013) |
Weighted shares of basic earnings (loss) attributable to Unit Corporation per common share | 53,503 | 52,930 | 53,317 | 52,744 |
Weighted shares of effect of dilutive stock options and restricted stock | 0 | 0 | 0 | 0 |
Weighted shares of diluted earnings (loss) attributable to Unit Corporation per common share | 53,503 | 52,930 | 53,317 | 52,744 |
Per-Share amount of basic earnings (loss) attributable to Unit Corporation per common share | $ (4.03) | $ (0.16) | $ (18.50) | $ (0.23) |
Per-Share amount of effect of dilutive stock options and restricted stock | 0 | 0 | 0 | 0 |
Per-Share amount of diluted earnings (loss) attributable to Unit Corporation per common share | $ (4.03) | $ (0.16) | $ (18.50) | $ (0.23) |
Loss Per Share (Schedule of Ant
Loss Per Share (Schedule of Antidilutive Securities Excluded From Computation of Earnings Per Share) (Details) - Stock options [Member] - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of loss per share | 28,000 | 42,000 | 28,000 | 42,000 |
Average exercise price | $ 52.24 | $ 48.56 | $ 52.24 | $ 48.56 |
Accrued Liabilities (Accrued Li
Accrued Liabilities (Accrued Liabilities) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Accrued Liabilities [Abstract] | ||
Employee costs | $ 7,016 | $ 17,832 |
Lease operating expenses | 6,651 | 9,200 |
Taxes | 6,343 | 3,450 |
Third-party credits | 2,167 | 3,691 |
Derivative settlements | 1,323 | 0 |
Interest payable | 760 | 6,562 |
Other | 7,124 | 5,827 |
Total accrued liabilities | $ 31,384 | $ 46,562 |
Long-Term Debt And Other Long_3
Long-Term Debt And Other Long-Term Liabilities (Long-Term Debt) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Current portion of long-term debt: | ||
DIP credit agreement with an average interest rate of 7.5% at June 30, 2020 | $ 8,000 | $ 0 |
Current portion of long-term debt | 124,000 | 108,200 |
Long-term debt: | ||
Long-term debt | $ 34,000 | 663,216 |
Debtor-in-Possession Financing, Interest Rate on Borrowings Outstanding | 7.50% | |
Current portion of long-term debt | ||
Current portion of long-term debt: | ||
Current portion of long-term debt | $ 132,000 | 108,200 |
Long-term Debt | ||
Long-term debt: | ||
Total principal amount | 34,000 | 666,500 |
Less: unamortized discount | 0 | (971) |
Less: debt issuance costs, net | 0 | (2,313) |
Long-term debt | 34,000 | 663,216 |
Senior Subordinated Notes | Long-term Debt | ||
Long-term debt: | ||
6.625% senior subordinated notes due 2021 | 0 | $ 650,000 |
Unit Credit Agreement [Member] | ||
Current portion of long-term debt: | ||
Unit credit agreement with an average interest rate of 2.3% and 4.0% at June 30, 2020 and December 31, 2019, respectively | $ 124,000 | |
Long-term debt: | ||
Revolving credit facility interest rate | 2.30% | 4.00% |
Unit Credit Agreement [Member] | Current portion of long-term debt | ||
Current portion of long-term debt: | ||
Unit credit agreement with an average interest rate of 2.3% and 4.0% at June 30, 2020 and December 31, 2019, respectively | $ 108,200 | |
Superior Credit Agreement [Member] | ||
Long-term debt: | ||
Revolving credit facility interest rate | 2.20% | 3.90% |
Superior Credit Agreement [Member] | Long-term Debt | ||
Long-term debt: | ||
Superior credit agreement with an average interest rate of 2.2% and 3.9% at June 30, 2020 and December 31, 2019, respectively | $ 34,000 | $ 16,500 |
Long-Term Debt And Other Long_4
Long-Term Debt And Other Long-Term Liabilities (Other Long-Term Liabilities) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |||||
Asset retirement obligation (ARO) liability | $ 64,248 | $ 66,627 | $ 67,433 | $ 64,208 | |
Workers' compensation | 12,112 | 11,510 | |||
Finance lease obligations | 5,319 | 7,379 | |||
Contract liability | 5,625 | 7,061 | |||
Separation benefit plans | [1] | 0 | 10,122 | ||
Deferred compensation plan | 6,006 | 6,180 | |||
Gas balancing liability | 3,823 | 3,838 | |||
Other long-term liability | 1,217 | 0 | |||
Other liabilities | 98,350 | 112,717 | |||
Current portion of other long-term liabilities | 13,628 | 17,376 | |||
Total other long-term liabilities | $ 84,722 | $ 95,341 | |||
[1] | The separation benefit plans are part of the liabilities subject to compromise as of June 30, 2020. For further information, please see Note 2 – Chapter 11 Proceedings, Liquidity, and Ability to Continue as a Going Concern. |
Long-Term Debt And Other Long_5
Long-Term Debt And Other Long-Term Liabilities (Narrative) (Details) - USD ($) $ in Thousands | May 15, 2020 | May 02, 2018 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Sep. 03, 2020 | May 26, 2020 | May 22, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||||||||||
Write off of debt issuance cost | $ (2,426) | $ 0 | $ (2,426) | $ 0 | ||||||
Present worth discounted | 10.00% | |||||||||
Debt Instrument, Periodic Payment, Interest | $ 21,500 | |||||||||
DIP credit agreement with an average interest rate of 7.5% at June 30, 2020 | 8,000 | $ 8,000 | $ 0 | |||||||
Estimated principal payments in year 1 | 145,600 | 145,600 | ||||||||
Estimated principal payments in year 2 | 5,600 | 5,600 | ||||||||
Estimated principal payments in year 3 | 2,800 | 2,800 | ||||||||
Estimated principal payments in year 4 | 36,200 | 36,200 | ||||||||
Estimated principal payments in year 5 | 2,300 | 2,300 | ||||||||
Adjustment to unamortized debt issuance costs associated with the 6.625% senior subordinated notes due 2021 | 2,200 | 2,205 | ||||||||
6.625% Senior Subordinated Notes Due 2021 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate principal amount | 650,000 | $ 650,000 | ||||||||
Debt instrument maturity date | May 15, 2021 | |||||||||
Payment of Financing and Stock Issuance Costs | $ 14,700 | |||||||||
Unit Credit Agreement [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Commitment fee percentage under credit facility | 0.375% | |||||||||
Origination, agency and syndication and other related fees with the credit agreement | $ 3,300 | $ 3,300 | ||||||||
Write off of debt issuance cost | $ (2,400) | |||||||||
Payable assessment term for LIBOR | 90 days | |||||||||
LIBOR interest rate plus one percent | LIBOR plus 1.00% plus a margin | |||||||||
Unit Credit Agreement [Member] | Minimum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
LIBOR plus interest rate | 1.50% | |||||||||
Unit Credit Agreement [Member] | Maximum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
LIBOR plus interest rate | 2.50% | |||||||||
Unit Credit Agreement [Member] | Proved developed producing total value of our oil and gas properties [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Percentage of collateral pledged | 80.00% | 80.00% | ||||||||
Present worth discounted | 8.00% | |||||||||
Superior Credit Agreement [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Commitment fee percentage under credit facility | 0.375% | |||||||||
Origination, agency and syndication and other related fees with the credit agreement | $ 1,700 | $ 1,700 | ||||||||
Superior Credit Agreement, Term | 5 years | |||||||||
Credit facility current credit amount | 200,000 | $ 200,000 | ||||||||
Credit facility maximum credit amount | $ 250,000 | $ 250,000 | ||||||||
Superior Credit Agreement, Interest Rate Description | annual interest at a rate, at Superior’s option, equal to (a) LIBOR plus the applicable margin of 2.00% to 3.25% or (b) the alternate base rate (greater of (i) the federal funds rate plus 0.5%, (ii) the prime rate, and (iii) the Thirty-Day LIBOR Rate (as defined in the Superior credit agreement plus 1.00%) plus the applicable margin of 1.00% to 2.25%. | |||||||||
Covenant Compliance | As of June 30, 2020, Superior complied with these covenants. | |||||||||
Superior Credit Agreement [Member] | Minimum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Consolidated EBITDA to interest expense ratio | 2.50 to 1.00 | |||||||||
Superior Credit Agreement [Member] | Maximum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Funded debt to consolidated EBITDA ratio | 4.00 to 1.00 | |||||||||
DIP credit facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debtor-in-Possession Financing, Amount Arranged | $ 18,000 | $ 36,000 | ||||||||
Percentage of New Common Stock received as an equity fee | 500.00% | |||||||||
Pledge agreement [Member] | Unit Credit Agreement [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of Credit Facility, Collateral | we granted a security interest in the limited liability membership interests and other equity interests we own in Superior |
Asset Retirement Obligations (S
Asset Retirement Obligations (Schedule Of Asset Retirement Obligations) (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | ||
Asset Retirement Obligation Disclosure [Abstract] | |||
ARO liability, January 1: | $ 66,627 | $ 64,208 | |
Accretion of discount | (1,169) | (1,168) | |
Liability incurred | 460 | 3,656 | |
Liability settled | (435) | (2,316) | |
Liability sold | (463) | (1,632) | |
Revision of estimates | [1] | (3,110) | 2,349 |
ARO liability, June 30: | 64,248 | 67,433 | |
Less: current portion | 1,104 | 1,784 | |
Total long-term ARO | $ 63,144 | $ 65,649 | |
[1] | Plugging liability estimates were revised in both 2020 and 2019 for updates in the cost of services used to plug wells over the preceding year. We had various upward and downward adjustments. |
Stock-Based Compensation (Sched
Stock-Based Compensation (Schedule of Restricted Stock Awards and Stock Options) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Abstract] | ||||
Recognized stock compensation expense | $ 1,600 | $ 4,700 | $ 4,100 | $ 8,500 |
Capitalized stock compensation cost for our oil and natural gas properties | 0 | 700 | 0 | 1,300 |
Tax benefit on stock based compensation | $ 400 | $ 1,200 | $ 1,000 | $ 2,100 |
Stock-Based Compensation (Sch_2
Stock-Based Compensation (Schedule of Fair Value of the Restricted Stock Awards Granted During the Periods) (Details) - Restricted Stock [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2019 | ||
Time Vested [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares granted | 74,284 | 999,957 | |
Estimated fair value (in millions) | $ 900 | [1] | $ 15,500 |
Time Vested [Member] | Employees [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares granted | 1,500 | 927,173 | |
Estimated fair value (in millions) | $ 0 | [1] | $ 14,600 |
Percentage of shares granted expected to be distributed | 95.00% | 95.00% | |
Time Vested [Member] | Non-employee Directors [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares granted | 72,784 | 72,784 | |
Estimated fair value (in millions) | $ 900 | [1] | $ 900 |
Percentage of shares granted expected to be distributed | 100.00% | 100.00% | |
Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares granted | 0 | 424,070 | |
Estimated fair value (in millions) | $ 0 | [1] | $ 7,100 |
Performance Shares [Member] | Employees [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares granted | 0 | 424,070 | |
Estimated fair value (in millions) | $ 0 | [1] | $ 7,100 |
Percentage of shares granted expected to be distributed | 54.00% | ||
Performance Shares [Member] | Non-employee Directors [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares granted | 0 | 0 | |
Estimated fair value (in millions) | $ 0 | [1] | $ 0 |
[1] | The performance shares represent 100% of the grant date fair value. (We recognize the grant date fair value minus estimated forfeitures.) |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | May 06, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation cost related to unvested awards | $ 5.7 | $ 5.7 | |||
Weighted average years over which this cost will be recognized | 1 year 1 month 6 days | ||||
Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares authorized | 7,230,000 | ||||
Incentive Stock Options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares authorized | 2,000,000 | ||||
Share-based Payment Arrangement, Option [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock options granted | 0 | 0 | 0 | 0 | |
Stock Performance Measures [Member] | Minimum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance percentage criteria | 0.00% | ||||
Stock Performance Measures [Member] | Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance percentage criteria | 200.00% | ||||
Cash flow to total assets performance [Member] | Minimum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance percentage criteria | 0.00% | ||||
Cash flow to total assets performance [Member] | Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance percentage criteria | 200.00% | ||||
Cash flow to total assets performance [Member] | Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance percentage criteria | 100.00% | ||||
Time Vested [Member] | Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||||
Shares granted | 74,284 | 999,957 | |||
Performance Shares [Member] | Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares granted | 0 | 424,070 | |||
Performance Shares [Member] | Cash flow to total assets performance [Member] | Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||||
Cliff vest [Member] | Performance Shares [Member] | Stock Performance Measures [Member] | Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years |
Derivatives (Schedule of Deriva
Derivatives (Schedule of Derivatives Outstanding) (Details) | 6 Months Ended |
Jun. 30, 2020$ / UnitMMBTUbbl | |
Basis swap [Member] | Jul'20 - Dec'20 [Member] | Natural Gas [Member] | PEPL [Member] | |
Derivative [Line Items] | |
Weighted average price | (0.455) |
Hedged volume (MMBtu/day) | MMBTU | 20,000 |
Basis swap [Member] | Jul'20 - Dec'20 [Member] | Natural Gas [Member] | NGPL Texok [Member] | |
Derivative [Line Items] | |
Weighted average price | (0.275) |
Hedged volume (MMBtu/day) | MMBTU | 30,000 |
Basis swap [Member] | Jan'21 - Dec'21 [Member] | Natural Gas [Member] | NGPL Texok [Member] | |
Derivative [Line Items] | |
Weighted average price | (0.215) |
Hedged volume (MMBtu/day) | MMBTU | 30,000 |
Three-way collar [Member] | Jul'20 - Dec'20 [Member] | Natural Gas [Member] | IF - NYMEX (HH) [Member] | |
Derivative [Line Items] | |
Hedged volume (MMBtu/day) | MMBTU | 30,000 |
Cap Price | 2.80 |
Subfloor price | 2.2 |
Floor Price | 2.5 |
Collar | Jul'20 - Sep'20 [Member] | Crude Oil [Member] | Wti Nymex [Member] | |
Derivative [Line Items] | |
Cap Price | 26.50 |
Floor Price | 20 |
Hedged Volume (Bbl/day) | bbl | 112,000 |
Derivatives (Fair Value of Deri
Derivatives (Fair Value of Derivative Instruments and Locations in Balance Sheets) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Current derivative asset | $ 0 | $ 633 |
Non-current derivative asset | 0 | 0 |
Total derivatives assets | 0 | 633 |
Current derivative liability | 5,011 | 0 |
Non-current derivative liability | 145 | 27 |
Derivative Liability, Total | $ 5,156 | $ 27 |
Derivatives (Effect of Derivati
Derivatives (Effect of Derivative Instruments Recognized in Income Statements, Derivative Instruments) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on derivatives | $ (6,937) | $ 7,927 | $ (6,454) | $ 995 |
Cash receipts on derivatives settled | (1,243) | 2,658 | (691) | 5,314 |
Gain (loss) on derivatives [Member] | Commodity Derivatives [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on derivatives | $ (6,937) | $ 7,927 | $ (6,454) | $ 995 |
Fair Value Measurements (Recurr
Fair Value Measurements (Recurring Fair Value Measurements) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | $ 0 | $ 633 |
Derivative Liability | (5,156) | (27) |
Commodity Derivatives [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | 0 | 633 |
Derivative Liability | (5,156) | (27) |
Financial assets (liabilities) | (5,156) | 606 |
Commodity Derivatives [Member] | Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Gross Assets | 0 | 177 |
Gross Liabilities | (5,999) | (775) |
Financial assets (liabilities) | (5,999) | (598) |
Commodity Derivatives [Member] | Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Gross Assets | 843 | 1,204 |
Gross Liabilities | 0 | 0 |
Financial assets (liabilities) | 843 | 1,204 |
Commodity Derivatives [Member] | Effect of Netting [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Effect of netting on assets | (843) | (748) |
Effect of netting on liabilities | 843 | 748 |
Financial assets (liabilities) | $ 0 | $ 0 |
Fair Value Measurements (Reconc
Fair Value Measurements (Reconciliations Of Level 3 Fair Value Measurements) (Details) - Level 3 [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Beginning of period | $ 948 | $ 3,080 | $ 1,204 | $ 10,630 |
Included in earnings | 714 | 2,060 | 1,277 | (3,374) |
Settlements | (819) | (1,195) | (1,638) | (3,311) |
End of period | 843 | 3,945 | 843 | 3,945 |
Total earnings (losses) for the period included in earnings attributable to the change in unrealized gain (loss) relating to assets still held at end of period | $ (105) | $ 865 | $ (361) | $ (6,685) |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule Of Quantitative Information About Unobservable Inputs) (Details) - Natural Gas [Member] - Level 3 [Member] - Three-way collar [Member] $ in Thousands | 6 Months Ended |
Jun. 30, 2020USD ($)$ / Unit | |
Derivative fair value | $ | $ 843 |
Unobservable Input | Forward commodity price curve |
Minimum [Member] | |
Forward commodity price curve | 0 |
Maximum [Member] | |
Forward commodity price curve | 0.75 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral posted | $ 0 | |
6.625% senior subordinated notes due 2021 | $ 646,700 | |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Estimated fair value of long-term debt | $ 100,400 | $ 357,500 |
Leases (Supplemental cash flow
Leases (Supplemental cash flow information related to leases) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Leases [Abstract] | ||
Operating cash flows for operating leases | $ 2,827 | $ 1,616 |
Financing cash flows for finance leases | 2,061 | 1,980 |
Lease liabilities recognized in exchange for new operating lease right of use assets | $ 0 | $ 5 |
Leases (Schedule of lease asset
Leases (Schedule of lease assets and liabilities) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Operating right of use asset | $ 7,828 | $ 5,673 |
Finance right of use assets | 16,455 | 17,396 |
Total right of use assets | 24,283 | 23,069 |
Current operating lease liability | 4,666 | 3,430 |
Current finance lease liability | 5,157 | 4,164 |
Operating lease liability | 3,012 | 2,071 |
Finance lease liability | 162 | 3,215 |
Total lease liability | $ 12,997 | $ 12,880 |
Leases (Schedule of lease costs
Leases (Schedule of lease costs) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Leases [Abstract] | ||||
Amortization of finance leased assets | $ 1,036 | $ 995 | $ 2,061 | $ 1,980 |
Interest on finance lease liabilities | 60 | 100 | 130 | 211 |
Operating lease cost | 1,395 | 1,052 | 2,639 | 1,651 |
Short-term lease cost | 2,751 | 12,038 | 6,742 | 22,012 |
Variable lease cost | 83 | 84 | 165 | 190 |
Total lease cost | 5,325 | 14,269 | 11,737 | 26,044 |
Capitalized costs included in short-term lease costs | $ 400 | $ 9,000 | $ 1,400 | $ 14,700 |
Leases (Schedule of weighted av
Leases (Schedule of weighted average discount rate for leases) (Details) | Jun. 30, 2020 | |
Leases [Abstract] | ||
Operating Lease, Weighted Average Remaining Lease Term | 1 year 7 months 6 days | |
Operating Lease, Weighted Average Discount Rate, Percent | 4.81% | [1] |
Finance Lease, Weighted Average Remaining Lease Term | 1 year 2 months 12 days | |
Finance Lease, Weighted Average Discount Rate, Percent | 4.00% | [1] |
[1] | Our weighted average discount rates represent the rate implicit in the lease or our incremental borrowing rate for a term equal to the remaining term of the lease. |
Leases (Operating leases) (Deta
Leases (Operating leases) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Ending with July 1, | ||
2021 | $ 4,938 | |
2022 | 2,786 | |
2023 | 222 | |
2024 | 23 | |
2025 | 12 | |
2026 and beyond | 70 | |
Total future payments | 8,051 | |
Less: Interest | 373 | |
Present value of future minimum operating lease payments | 7,678 | |
Less: current portion | (4,666) | $ (3,430) |
Operating lease liability | $ 3,012 | $ 2,071 |
Leases (Finance leases) (Detail
Leases (Finance leases) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Ending July 1, | ||
2021 | $ 6,692 | |
2022 | 179 | |
Total future payments | 6,871 | |
Less payments related to: | ||
Maintenance | 1,430 | |
Interest | 122 | |
Present value of future minimum finance lease payments | 5,319 | $ 7,379 |
Less: Current portion | (5,157) | (4,164) |
Total long-term finance lease payments | $ 162 | $ 3,215 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2020USD ($)rig | |
Leases [Abstract] | |
Average working interest in operated properties | 97.00% |
Number of compressors under finance lease agreement | rig | 20 |
Finance lease term | 7 years |
Finance Lease Obligations, Current | $ 5,200 |
Finance Lease Obligations, Noncurrent | $ 200 |
Discount rate finance leases | 4.00% |
Maintenance | $ 1,430 |
Interest | 122 |
Finance leases, future minimum payments, average annual payment | $ 4,600 |
Finance lease fair market value percentage for purchase | 10.00% |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Mid-Stream [Member] | |
Long-term Purchase Commitment [Line Items] | |
Other Commitment, Due in Next Twelve Months | $ 1,000 |
Other Commitment, Due in Second and Third Year | $ 600 |
Capital Addition Purchase Commitments [Member] | Oil and Natural Gas [Member] | |
Long-term Purchase Commitment [Line Items] | |
Long-term Purchase Commitment, Description | as part of the Superior transaction, we entered into a contractual obligation that commits us to spend $150.0 million to drill wells in the Granite Wash/Buffalo Wallow area over three years starting January 1, 2019. For each dollar of the $150.0 million we do not spend (over the three-year period), we would forgo receiving $0.58 of future distributions from our 50% ownership interest in our consolidated mid-stream subsidiary. At June 30, 2020, if we elected not to drill or spend any additional money in the designated area before December 31, 2021, the maximum amount we could forgo from distributions would be $72.6 million. |
Long-term purchase commitment, purchases made | $ 24,800 |
Variable Interest Entity Arra_3
Variable Interest Entity Arrangements (Schedule of Assets and Liabilities) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | |
Current assets: | |||||
Cash and cash equivalents | $ 36,994 | $ 571 | $ 669 | $ 6,452 | |
Accounts receivable, net of allowance for doubtful accounts | 54,146 | 82,656 | |||
Prepaid expenses and other | 16,659 | 13,078 | |||
Total current assets | 108,759 | 105,051 | |||
Property and equipment: | |||||
Gas gathering and processing equipment | 833,402 | 824,699 | |||
Transportation equipment | 16,780 | 29,723 | |||
Property, plant, and equipment, gross | 8,904,471 | 8,931,355 | |||
Less accumulated depreciation, depletion, amortization, and impairment | 7,903,051 | 6,978,669 | |||
Net property and equipment | 1,001,420 | 1,952,686 | |||
Operating right of use asset | 7,828 | 5,673 | |||
Other assets | 22,371 | 26,642 | |||
Total assets | [1] | 1,140,378 | 2,090,052 | ||
Current liabilities: | |||||
Accounts payable | 26,808 | 84,481 | |||
Accrued liabilities | 31,384 | 46,562 | |||
Current operating lease liability | 4,666 | 3,430 | |||
Current portion of other long-term liabilities | 13,628 | 17,376 | |||
Total current liabilities | 213,497 | 260,049 | |||
Long-term debt | 34,000 | 663,216 | |||
Operating lease liability | 3,012 | 2,071 | |||
VIE [Member] | |||||
Current assets: | |||||
Cash and cash equivalents | 23,780 | 0 | |||
Accounts receivable, net of allowance for doubtful accounts | 18,718 | 21,073 | |||
Prepaid expenses and other | 7,321 | 7,686 | |||
Total current assets | 49,819 | 28,759 | |||
Property and equipment: | |||||
Gas gathering and processing equipment | 833,402 | 824,699 | |||
Transportation equipment | 3,363 | 3,390 | |||
Property, plant, and equipment, gross | 836,765 | 828,089 | |||
Less accumulated depreciation, depletion, amortization, and impairment | 493,386 | 407,144 | |||
Net property and equipment | 343,379 | 420,945 | |||
Operating right of use asset | 4,542 | 3,948 | |||
Other assets | 6,054 | 9,442 | |||
Total assets | 403,794 | 463,094 | |||
Current liabilities: | |||||
Accounts payable | 9,980 | 18,511 | |||
Accrued liabilities | 4,648 | 4,198 | |||
Current operating lease liability | 2,518 | 2,407 | |||
Current portion of other long-term liabilities | 8,059 | 7,060 | |||
Total current liabilities | 25,205 | 32,176 | |||
Long-term debt | 34,000 | 16,500 | |||
Operating lease liability | 1,911 | 1,404 | |||
Other long-term liabilities | 3,811 | 8,126 | |||
Total liabilities | $ 64,927 | $ 58,206 | |||
[1] | Unit Corporation's consolidated total assets as of June 30, 2020 include total current and long-term assets of its variable interest entity (VIE) (Superior Pipeline Company, L.L.C.) of $49.8 million and $354.0 million, respectively, which can only settle obligations of the VIE. Unit Corporation's consolidated total liabilities as of June 30, 2020 include total current and long-term liabilities of the VIE of $25.2 million and $39.7 million, respectively, for which the creditors of the VIE have no recourse to Unit Corporation. Unit Corporation's consolidated total assets as of December 31, 2019 include total current and long-term assets of the VIE of $28.8 million and $434.3 million, respectively, which can only settle obligations of the VIE. Unit Corporation's consolidated total liabilities as of December 31, 2019 include total current and long-term liabilities of the VIE of $32.2 million and $26.0 million, respectively, for which the creditors of the VIE have no recourse to Unit Corporation. See Note 16 – Variable Interest Entity Arrangements. |
Variable Interest Entity Arra_4
Variable Interest Entity Arrangements (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2020 | Apr. 03, 2018 | |
Variable Interest Entity [Line Items] | ||
Methodology for Determining Whether Entity is Primary Beneficiary | The two variable interests applicable to Unit include the 50% equity investment in Superior and the MSA. The MSA gives us the power to direct the activities that most significantly affect Superior's operating performance. The MSA is a separate variable interest. Unit through the MSA has the power to direct Superior’s most significant activities; reciprocally the equity investors lack the power to direct the activities that most affect the entity’s economic performance. Because of this, Unit is considered the primary beneficiary. | |
Liquidation IRR Hurdle | 7.00% | |
Variable Interest Investment | $ 300,000,000 | |
Proceeds needed to have equal liquidation percentage | $ 696,600,000 | |
Superior Pipeline Company, L.L.C. [Member] | ||
Variable Interest Entity [Line Items] | ||
Date Involvement Began | Apr. 3, 2018 | |
SP Investor Holdings, LLC [Member] | ||
Variable Interest Entity [Line Items] | ||
Liquidating distribution percentage | 100.00% | |
SP Investor Holdings, LLC [Member] | Superior Pipeline Company, L.L.C. [Member] | ||
Variable Interest Entity [Line Items] | ||
Ownership Percentage | 50.00% | |
Unit Corporation [Member] | ||
Variable Interest Entity [Line Items] | ||
Liquidating distribution percentage | 0.00% | |
SPC Midstream Operating, L.L.C. [Member] | Superior Pipeline Company, L.L.C. [Member] | ||
Variable Interest Entity [Line Items] | ||
Monthly service fee | $ 260,560 |
Industry Segment Information (I
Industry Segment Information (Industry Segment Information) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)segment | Jun. 30, 2019USD ($) | |
Segment Reporting [Abstract] | ||||
Number of operating segments | segment | 3 | |||
Revenues: | ||||
Revenues | $ 89,007 | $ 165,146 | $ 211,383 | $ 354,837 |
Operating costs: | ||||
Operating costs | 115,103 | 98,041 | 198,826 | 201,511 |
Depreciation, depletion, and amortization | 35,960 | 66,292 | 97,577 | 128,418 |
Impairments | 109,318 | 0 | 851,242 | 0 |
Total expenses | 260,381 | 164,333 | 1,147,645 | 329,929 |
Loss on abandonment of assets | 0 | 0 | 17,554 | 0 |
General and administrative | 25,814 | 10,064 | 37,367 | 19,805 |
(Gain) loss on disposition of assets | 877 | (422) | 1,267 | 1,193 |
Income (loss) from operations | (198,065) | (8,829) | (992,450) | 3,910 |
Gain (loss) on derivatives | (6,937) | 7,927 | (6,454) | 995 |
Write off of debt issuance cost | (2,426) | 0 | (2,426) | 0 |
Reorganization Items | (7,027) | 0 | (7,027) | 0 |
Interest, net | (7,608) | (8,995) | (20,865) | (17,533) |
Other | 43 | 6 | 103 | 11 |
Income (loss) before income taxes | (222,020) | (9,891) | (1,029,119) | (12,617) |
Oil and Natural Gas [Member] | ||||
Revenues: | ||||
Revenues | 26,957 | 77,815 | 75,481 | 163,910 |
Operating costs: | ||||
Operating costs | 72,354 | 37,519 | 103,769 | 71,527 |
Depreciation, depletion, and amortization | 22,059 | 38,751 | 58,787 | 74,518 |
Impairments | 109,318 | 377,154 | ||
Total expenses | 203,731 | 76,270 | 539,710 | 146,045 |
Loss on abandonment of assets | 17,554 | |||
General and administrative | 0 | 0 | 0 | 0 |
(Gain) loss on disposition of assets | (45) | (60) | (58) | (138) |
Income (loss) from operations | (176,729) | 1,605 | (481,725) | 18,003 |
Gain (loss) on derivatives | 0 | 0 | 0 | 0 |
Write off of debt issuance cost | 0 | 0 | ||
Reorganization Items | 0 | 0 | ||
Interest, net | 0 | 0 | 0 | 0 |
Other | 9 | 0 | 30 | 0 |
Income (loss) before income taxes | (176,720) | 1,605 | (481,695) | 18,003 |
Contract drilling [Member] | ||||
Revenues: | ||||
Revenues | 29,202 | 50,773 | 65,834 | 108,972 |
Operating costs: | ||||
Operating costs | 20,951 | 36,390 | 46,400 | 73,775 |
Depreciation, depletion, and amortization | 2,946 | 13,504 | 14,691 | 26,203 |
Impairments | 0 | 410,126 | ||
Total expenses | 23,897 | 49,894 | 471,217 | 99,978 |
Loss on abandonment of assets | 0 | |||
General and administrative | 0 | 0 | 0 | 0 |
(Gain) loss on disposition of assets | (548) | (296) | (139) | 1,449 |
Income (loss) from operations | 5,853 | 1,175 | (405,244) | 7,545 |
Gain (loss) on derivatives | 0 | 0 | 0 | 0 |
Write off of debt issuance cost | 0 | 0 | ||
Reorganization Items | 0 | 0 | ||
Interest, net | 0 | 0 | 0 | 0 |
Other | 6 | 0 | 23 | 0 |
Income (loss) before income taxes | 5,859 | 1,175 | (405,221) | 7,545 |
Mid-Stream [Member] | ||||
Revenues: | ||||
Revenues | 37,719 | 54,630 | 80,399 | 125,139 |
Operating costs: | ||||
Operating costs | 26,669 | 41,550 | 58,988 | 97,679 |
Depreciation, depletion, and amortization | 10,348 | 12,102 | 22,621 | 23,828 |
Impairments | 0 | 63,962 | ||
Total expenses | 37,017 | 53,652 | 145,571 | 121,507 |
Loss on abandonment of assets | 0 | |||
General and administrative | 0 | 0 | 0 | 0 |
(Gain) loss on disposition of assets | (9) | (66) | (15) | (108) |
Income (loss) from operations | 711 | 1,044 | (65,157) | 3,740 |
Gain (loss) on derivatives | 0 | 0 | 0 | 0 |
Write off of debt issuance cost | 0 | 0 | ||
Reorganization Items | 0 | 0 | ||
Interest, net | (542) | (345) | (1,060) | (681) |
Other | 22 | 0 | 39 | 0 |
Income (loss) before income taxes | 191 | 699 | (66,178) | 3,059 |
Corporate and Other [Member] | ||||
Revenues: | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating costs: | ||||
Operating costs | 0 | 0 | 0 | 0 |
Depreciation, depletion, and amortization | 607 | 1,935 | 1,478 | 3,869 |
Impairments | 0 | 0 | ||
Total expenses | 607 | 1,935 | 1,478 | 3,869 |
Loss on abandonment of assets | 0 | |||
General and administrative | 25,814 | 10,064 | 37,367 | 19,805 |
(Gain) loss on disposition of assets | 1,479 | 0 | 1,479 | (10) |
Income (loss) from operations | (27,900) | (11,999) | (40,324) | (23,664) |
Gain (loss) on derivatives | (6,937) | 7,927 | (6,454) | 995 |
Write off of debt issuance cost | (2,426) | (2,426) | ||
Reorganization Items | (7,027) | (7,027) | ||
Interest, net | (7,066) | (8,650) | (19,805) | (16,852) |
Other | 6 | 6 | 11 | 11 |
Income (loss) before income taxes | (51,350) | (12,716) | (76,025) | (39,510) |
Eliminations [Member] | ||||
Revenues: | ||||
Revenues | (4,871) | (18,072) | (10,331) | (43,184) |
Operating costs: | ||||
Operating costs | (4,871) | (17,418) | (10,331) | (41,470) |
Depreciation, depletion, and amortization | 0 | 0 | 0 | |
Impairments | 0 | 0 | ||
Total expenses | (4,871) | (17,418) | (10,331) | (41,470) |
Loss on abandonment of assets | 0 | |||
General and administrative | 0 | 0 | 0 | 0 |
(Gain) loss on disposition of assets | 0 | 0 | 0 | 0 |
Income (loss) from operations | 0 | (654) | 0 | (1,714) |
Gain (loss) on derivatives | 0 | 0 | 0 | 0 |
Write off of debt issuance cost | 0 | 0 | ||
Reorganization Items | 0 | 0 | ||
Interest, net | 0 | 0 | 0 | 0 |
Other | 0 | 0 | 0 | 0 |
Income (loss) before income taxes | 0 | (654) | 0 | (1,714) |
Oil and natural gas | ||||
Revenues: | ||||
Revenues | 26,956 | 77,815 | 75,478 | 163,910 |
Operating costs: | ||||
Operating costs | 71,540 | 36,242 | 102,203 | 68,956 |
Oil and natural gas | Oil and Natural Gas [Member] | ||||
Revenues: | ||||
Revenues | 26,957 | 77,815 | 75,481 | 163,910 |
Operating costs: | ||||
Operating costs | 72,354 | 37,519 | 103,769 | 71,527 |
Oil and natural gas | Contract drilling [Member] | ||||
Revenues: | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating costs: | ||||
Operating costs | 0 | 0 | 0 | 0 |
Oil and natural gas | Mid-Stream [Member] | ||||
Revenues: | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating costs: | ||||
Operating costs | 0 | 0 | 0 | 0 |
Oil and natural gas | Corporate and Other [Member] | ||||
Revenues: | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating costs: | ||||
Operating costs | 0 | 0 | 0 | 0 |
Oil and natural gas | Eliminations [Member] | ||||
Revenues: | ||||
Revenues | (1) | 0 | (3) | 0 |
Operating costs: | ||||
Operating costs | (814) | (1,277) | (1,566) | (2,571) |
Contract drilling | ||||
Revenues: | ||||
Revenues | 29,202 | 43,037 | 65,834 | 94,192 |
Operating costs: | ||||
Operating costs | 20,951 | 29,308 | 46,400 | 60,709 |
Contract drilling | Oil and Natural Gas [Member] | ||||
Revenues: | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating costs: | ||||
Operating costs | 0 | 0 | 0 | 0 |
Contract drilling | Contract drilling [Member] | ||||
Revenues: | ||||
Revenues | 29,202 | 50,773 | 65,834 | 108,972 |
Operating costs: | ||||
Operating costs | 20,951 | 36,390 | 46,400 | 73,775 |
Contract drilling | Mid-Stream [Member] | ||||
Revenues: | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating costs: | ||||
Operating costs | 0 | 0 | 0 | 0 |
Contract drilling | Corporate and Other [Member] | ||||
Revenues: | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating costs: | ||||
Operating costs | 0 | 0 | 0 | 0 |
Contract drilling | Eliminations [Member] | ||||
Revenues: | ||||
Revenues | 0 | (7,736) | 0 | (14,780) |
Operating costs: | ||||
Operating costs | 0 | (7,082) | 0 | (13,066) |
Gas gathering and processing | ||||
Revenues: | ||||
Revenues | 32,849 | 44,294 | 70,071 | 96,735 |
Operating costs: | ||||
Operating costs | 22,612 | 32,491 | 50,223 | 71,846 |
Gas gathering and processing | Oil and Natural Gas [Member] | ||||
Revenues: | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating costs: | ||||
Operating costs | 0 | 0 | 0 | 0 |
Gas gathering and processing | Contract drilling [Member] | ||||
Revenues: | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating costs: | ||||
Operating costs | 0 | 0 | 0 | 0 |
Gas gathering and processing | Mid-Stream [Member] | ||||
Revenues: | ||||
Revenues | 37,719 | 54,630 | 80,399 | 125,139 |
Operating costs: | ||||
Operating costs | 26,669 | 41,550 | 58,988 | 97,679 |
Gas gathering and processing | Corporate and Other [Member] | ||||
Revenues: | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating costs: | ||||
Operating costs | 0 | 0 | 0 | 0 |
Gas gathering and processing | Eliminations [Member] | ||||
Revenues: | ||||
Revenues | (4,870) | (10,336) | (10,328) | (28,404) |
Operating costs: | ||||
Operating costs | $ (4,057) | $ (9,059) | $ (8,765) | $ (25,833) |
Supplemental Condensed Consol_3
Supplemental Condensed Consolidated Financial Information (Condensed Consolidating Balance Sheets) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | |
Current assets: | |||||||
Cash and cash equivalents | $ 36,994 | $ 571 | $ 669 | $ 6,452 | |||
Accounts receivable, net of allowance for doubtful accounts | 54,146 | 82,656 | |||||
Materials and supplies | 110 | 449 | |||||
Current derivative asset | 0 | 633 | |||||
Current income taxes receivable | 850 | 1,756 | |||||
Assets held for sale | 0 | 5,908 | |||||
Prepaid expenses and other | 16,659 | 13,078 | |||||
Total current assets | 108,759 | 105,051 | |||||
Oil and natural gas properties on the full cost method: | |||||||
Proved properties | 6,566,669 | 6,341,582 | |||||
Unproved properties not being amortized | 30,342 | 252,874 | |||||
Drilling equipment | 1,296,319 | 1,295,713 | |||||
Gas gathering and processing equipment | 833,402 | 824,699 | |||||
Saltwater disposal systems | 43,843 | 69,692 | |||||
Land and building | 59,080 | 59,080 | |||||
Transportation equipment | 16,780 | 29,723 | |||||
Other | 58,036 | 57,992 | |||||
Property, plant, and equipment, gross | 8,904,471 | 8,931,355 | |||||
Less accumulated depreciation, depletion, amortization, and impairment | 7,903,051 | 6,978,669 | |||||
Net property and equipment | 1,001,420 | 1,952,686 | |||||
Intercompany receivable | 0 | 0 | |||||
Investments | 0 | 0 | |||||
Operating right of use asset | 7,828 | 5,673 | |||||
Other assets | 22,371 | 26,642 | |||||
Total assets | [1] | 1,140,378 | 2,090,052 | ||||
Current liabilities: | |||||||
Accounts payable | 26,808 | 84,481 | |||||
Accrued liabilities | 31,384 | 46,562 | |||||
Current operating lease liability | 4,666 | 3,430 | |||||
Current portion of long-term debt | 124,000 | 108,200 | |||||
DIP credit agreement with an average interest rate of 7.5% at June 30, 2020 | 8,000 | 0 | |||||
Current derivative liability | 5,011 | 0 | |||||
Current portion of other long-term liabilities | 13,628 | 17,376 | |||||
Total current liabilities | 213,497 | 260,049 | |||||
Intercompany debt | 0 | 0 | |||||
Long-term debt | 34,000 | 663,216 | |||||
Non-current derivative liability | 145 | 27 | |||||
Operating lease liability | 3,012 | 2,071 | |||||
Liabilities subject to compromise | 759,720 | 0 | |||||
Deferred income taxes | 4,750 | 13,713 | |||||
Total shareholders' equity | 40,532 | $ 254,486 | 1,055,635 | 1,593,232 | $ 1,595,859 | 1,593,444 | |
Total liabilities and shareholders' equity | [1] | 1,140,378 | 2,090,052 | ||||
Total other long-term liabilities | 84,722 | 95,341 | |||||
Consolidating Adjustments [Member] | |||||||
Current assets: | |||||||
Cash and cash equivalents | 0 | 0 | 0 | 0 | |||
Accounts receivable, net of allowance for doubtful accounts | (5,290) | (9,447) | |||||
Materials and supplies | 0 | 0 | |||||
Current derivative asset | 0 | ||||||
Current income taxes receivable | 0 | 0 | |||||
Assets held for sale | 0 | ||||||
Prepaid expenses and other | 0 | 0 | |||||
Total current assets | (5,290) | (9,447) | |||||
Oil and natural gas properties on the full cost method: | |||||||
Proved properties | 0 | 0 | |||||
Unproved properties not being amortized | 0 | 0 | |||||
Drilling equipment | 0 | 0 | |||||
Gas gathering and processing equipment | 0 | 0 | |||||
Saltwater disposal systems | 0 | 0 | |||||
Land and building | 0 | 0 | |||||
Transportation equipment | 0 | 0 | |||||
Other | 0 | 0 | |||||
Property, plant, and equipment, gross | 0 | 0 | |||||
Less accumulated depreciation, depletion, amortization, and impairment | 0 | 0 | |||||
Net property and equipment | 0 | 0 | |||||
Intercompany receivable | (853,800) | (1,048,785) | |||||
Investments | (15,106) | (865,252) | |||||
Operating right of use asset | (51) | (54) | |||||
Other assets | 0 | 0 | |||||
Total assets | (874,247) | (1,923,538) | |||||
Current liabilities: | |||||||
Accounts payable | (2,576) | (7,291) | |||||
Accrued liabilities | (1,788) | (2,156) | |||||
Current operating lease liability | (6) | (6) | |||||
Current portion of long-term debt | 0 | 0 | |||||
DIP credit agreement with an average interest rate of 7.5% at June 30, 2020 | 0 | ||||||
Current derivative liability | 0 | ||||||
Current portion of other long-term liabilities | (46) | 0 | |||||
Total current liabilities | (4,416) | (9,453) | |||||
Intercompany debt | (853,800) | (1,048,785) | |||||
Long-term debt | 0 | 0 | |||||
Non-current derivative liability | 0 | 0 | |||||
Operating lease liability | (45) | (48) | |||||
Liabilities subject to compromise | 0 | ||||||
Deferred income taxes | 0 | 0 | |||||
Total shareholders' equity | (15,106) | (865,252) | |||||
Total liabilities and shareholders' equity | (874,247) | (1,923,538) | |||||
Total other long-term liabilities | (880) | 0 | |||||
Parent [Member] | |||||||
Current assets: | |||||||
Cash and cash equivalents | 13,214 | 503 | 508 | 403 | |||
Accounts receivable, net of allowance for doubtful accounts | 1,702 | 2,645 | |||||
Materials and supplies | 0 | 0 | |||||
Current derivative asset | 633 | ||||||
Current income taxes receivable | 850 | 1,756 | |||||
Assets held for sale | 0 | ||||||
Prepaid expenses and other | 6,575 | 2,019 | |||||
Total current assets | 22,341 | 7,556 | |||||
Oil and natural gas properties on the full cost method: | |||||||
Proved properties | 0 | 0 | |||||
Unproved properties not being amortized | 0 | 0 | |||||
Drilling equipment | 0 | 0 | |||||
Gas gathering and processing equipment | 0 | 0 | |||||
Saltwater disposal systems | 0 | 0 | |||||
Land and building | 0 | 0 | |||||
Transportation equipment | 362 | 9,712 | |||||
Other | 29,005 | 28,927 | |||||
Property, plant, and equipment, gross | 29,367 | 38,639 | |||||
Less accumulated depreciation, depletion, amortization, and impairment | 27,888 | 33,794 | |||||
Net property and equipment | 1,479 | 4,845 | |||||
Intercompany receivable | 853,800 | 1,048,785 | |||||
Investments | 15,106 | 865,252 | |||||
Operating right of use asset | 34 | 46 | |||||
Other assets | 6,001 | 8,107 | |||||
Total assets | 898,761 | 1,934,591 | |||||
Current liabilities: | |||||||
Accounts payable | 1,386 | 12,259 | |||||
Accrued liabilities | 14,267 | 28,003 | |||||
Current operating lease liability | 18 | 20 | |||||
Current portion of long-term debt | 124,000 | 108,200 | |||||
DIP credit agreement with an average interest rate of 7.5% at June 30, 2020 | 8,000 | ||||||
Current derivative liability | 5,011 | ||||||
Current portion of other long-term liabilities | 0 | 3,003 | |||||
Total current liabilities | 152,682 | 151,485 | |||||
Intercompany debt | 0 | 0 | |||||
Long-term debt | 0 | 646,716 | |||||
Non-current derivative liability | 145 | 27 | |||||
Operating lease liability | 16 | 25 | |||||
Liabilities subject to compromise | 694,512 | ||||||
Deferred income taxes | 4,750 | 68,150 | |||||
Total shareholders' equity | 40,532 | 1,055,635 | |||||
Total liabilities and shareholders' equity | 898,761 | 1,934,591 | |||||
Total other long-term liabilities | 6,124 | 12,553 | |||||
Combined Guarantor Subsidiaries [Member] | |||||||
Current assets: | |||||||
Cash and cash equivalents | 0 | 68 | 159 | 208 | |||
Accounts receivable, net of allowance for doubtful accounts | 37,216 | 64,805 | |||||
Materials and supplies | 110 | 449 | |||||
Current derivative asset | 0 | ||||||
Current income taxes receivable | 0 | 0 | |||||
Assets held for sale | 5,908 | ||||||
Prepaid expenses and other | 2,763 | 3,373 | |||||
Total current assets | 40,089 | 74,603 | |||||
Oil and natural gas properties on the full cost method: | |||||||
Proved properties | 6,566,669 | 6,341,582 | |||||
Unproved properties not being amortized | 30,342 | 252,874 | |||||
Drilling equipment | 1,296,319 | 1,295,713 | |||||
Gas gathering and processing equipment | 0 | 0 | |||||
Saltwater disposal systems | 43,843 | 69,692 | |||||
Land and building | 59,080 | 59,080 | |||||
Transportation equipment | 13,055 | 16,621 | |||||
Other | 29,031 | 29,065 | |||||
Property, plant, and equipment, gross | 8,038,339 | 8,064,627 | |||||
Less accumulated depreciation, depletion, amortization, and impairment | 7,381,777 | 6,537,731 | |||||
Net property and equipment | 656,562 | 1,526,896 | |||||
Intercompany receivable | 0 | 0 | |||||
Investments | 0 | 0 | |||||
Operating right of use asset | 3,303 | 1,733 | |||||
Other assets | 10,316 | 9,094 | |||||
Total assets | 710,270 | 1,612,326 | |||||
Current liabilities: | |||||||
Accounts payable | 18,018 | 61,002 | |||||
Accrued liabilities | 12,876 | 14,024 | |||||
Current operating lease liability | 2,136 | 1,009 | |||||
Current portion of long-term debt | 0 | 0 | |||||
DIP credit agreement with an average interest rate of 7.5% at June 30, 2020 | 0 | ||||||
Current derivative liability | 0 | ||||||
Current portion of other long-term liabilities | 5,615 | 7,313 | |||||
Total current liabilities | 38,645 | 83,348 | |||||
Intercompany debt | 853,491 | 1,047,599 | |||||
Long-term debt | 0 | 0 | |||||
Non-current derivative liability | 0 | 0 | |||||
Operating lease liability | 1,130 | 690 | |||||
Liabilities subject to compromise | 65,208 | ||||||
Deferred income taxes | 0 | (54,437) | |||||
Total shareholders' equity | (323,703) | 460,464 | |||||
Total liabilities and shareholders' equity | 710,270 | 1,612,326 | |||||
Total other long-term liabilities | 75,499 | 74,662 | |||||
Combined Non-Guarantor Subsidiaries [Member] | |||||||
Current assets: | |||||||
Cash and cash equivalents | 23,780 | 0 | $ 2 | $ 5,841 | |||
Accounts receivable, net of allowance for doubtful accounts | 20,518 | 24,653 | |||||
Materials and supplies | 0 | 0 | |||||
Current derivative asset | 0 | ||||||
Current income taxes receivable | 0 | 0 | |||||
Assets held for sale | 0 | ||||||
Prepaid expenses and other | 7,321 | 7,686 | |||||
Total current assets | 51,619 | 32,339 | |||||
Oil and natural gas properties on the full cost method: | |||||||
Proved properties | 0 | 0 | |||||
Unproved properties not being amortized | 0 | 0 | |||||
Drilling equipment | 0 | 0 | |||||
Gas gathering and processing equipment | 833,402 | 824,699 | |||||
Saltwater disposal systems | 0 | 0 | |||||
Land and building | 0 | 0 | |||||
Transportation equipment | 3,363 | 3,390 | |||||
Other | 0 | 0 | |||||
Property, plant, and equipment, gross | 836,765 | 828,089 | |||||
Less accumulated depreciation, depletion, amortization, and impairment | 493,386 | 407,144 | |||||
Net property and equipment | 343,379 | 420,945 | |||||
Intercompany receivable | 0 | 0 | |||||
Investments | 0 | 0 | |||||
Operating right of use asset | 4,542 | 3,948 | |||||
Other assets | 6,054 | 9,441 | |||||
Total assets | 405,594 | 466,673 | |||||
Current liabilities: | |||||||
Accounts payable | 9,980 | 18,511 | |||||
Accrued liabilities | 6,029 | 6,691 | |||||
Current operating lease liability | 2,518 | 2,407 | |||||
Current portion of long-term debt | 0 | 0 | |||||
DIP credit agreement with an average interest rate of 7.5% at June 30, 2020 | 0 | ||||||
Current derivative liability | 0 | ||||||
Current portion of other long-term liabilities | 8,059 | 7,060 | |||||
Total current liabilities | 26,586 | 34,669 | |||||
Intercompany debt | 309 | 1,186 | |||||
Long-term debt | 34,000 | 16,500 | |||||
Non-current derivative liability | 0 | 0 | |||||
Operating lease liability | 1,911 | 1,404 | |||||
Liabilities subject to compromise | 0 | ||||||
Deferred income taxes | 0 | 0 | |||||
Total shareholders' equity | 338,809 | 404,788 | |||||
Total liabilities and shareholders' equity | 405,594 | 466,673 | |||||
Total other long-term liabilities | $ 3,979 | $ 8,126 | |||||
[1] | Unit Corporation's consolidated total assets as of June 30, 2020 include total current and long-term assets of its variable interest entity (VIE) (Superior Pipeline Company, L.L.C.) of $49.8 million and $354.0 million, respectively, which can only settle obligations of the VIE. Unit Corporation's consolidated total liabilities as of June 30, 2020 include total current and long-term liabilities of the VIE of $25.2 million and $39.7 million, respectively, for which the creditors of the VIE have no recourse to Unit Corporation. Unit Corporation's consolidated total assets as of December 31, 2019 include total current and long-term assets of the VIE of $28.8 million and $434.3 million, respectively, which can only settle obligations of the VIE. Unit Corporation's consolidated total liabilities as of December 31, 2019 include total current and long-term liabilities of the VIE of $32.2 million and $26.0 million, respectively, for which the creditors of the VIE have no recourse to Unit Corporation. See Note 16 – Variable Interest Entity Arrangements. |
Supplemental Condensed Consol_4
Supplemental Condensed Consolidated Financial Information (Condensed Consolidating Balance Sheets - Parenthetical) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Condensed Financial Statements, Captions [Line Items] | ||
Accounts receivable, allowance for doubtful accounts | $ 3,961 | $ 2,332 |
Common stock, shares issued | 54,617,677 | 55,443,393 |
Consolidating Adjustments [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Accounts receivable, allowance for doubtful accounts | $ 0 | $ 0 |
Common stock, shares issued | 0 | 0 |
Parent [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Accounts receivable, allowance for doubtful accounts | $ 1,216 | $ 1,216 |
Common stock, shares issued | 54,617,677 | 55,443,393 |
Combined Guarantor Subsidiaries [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Accounts receivable, allowance for doubtful accounts | $ 2,745 | $ 1,116 |
Common stock, shares issued | 0 | 0 |
Combined Non-Guarantor Subsidiaries [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Accounts receivable, allowance for doubtful accounts | $ 0 | $ 0 |
Common stock, shares issued | 0 | 0 |
Supplemental Condensed Consol_5
Supplemental Condensed Consolidated Financial Information (Condensed Consolidating Statements of Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Condensed Financial Statements, Captions [Line Items] | ||||
Revenues | $ 89,007 | $ 165,146 | $ 211,383 | $ 354,837 |
Expenses: | ||||
Operating costs | 115,103 | 98,041 | 198,826 | 201,511 |
Depreciation, depletion, and amortization | 35,960 | 66,292 | 97,577 | 128,418 |
Impairments | 109,318 | 0 | 851,242 | 0 |
Loss on abandonment of assets | 0 | 0 | 17,554 | 0 |
General and administrative | 25,814 | 10,064 | 37,367 | 19,805 |
Loss on disposition of assets | 877 | (422) | 1,267 | 1,193 |
Total operating costs | 287,072 | 173,975 | 1,203,833 | 350,927 |
Income (loss) from operations | (198,065) | (8,829) | (992,450) | 3,910 |
Interest, net | (7,608) | (8,995) | (20,865) | (17,533) |
Write off of debt issuance cost | (2,426) | 0 | (2,426) | 0 |
Gain (loss) on derivatives | (6,937) | 7,927 | (6,454) | 995 |
Reorganization Items | (7,027) | 0 | (7,027) | 0 |
Other, net | 43 | 6 | 103 | 11 |
Income (loss) before income taxes | (222,020) | (9,891) | (1,029,119) | (12,617) |
Income tax expense (benefit) | (6,455) | (1,874) | (9,880) | (2,318) |
Equity in net earnings from investment in subsidiaries, net of taxes | 0 | 0 | 0 | 0 |
Net Income (loss) | (215,565) | (8,017) | (1,019,239) | (10,299) |
Less: net income (loss) attributable to non-controlling interest | 84 | 492 | (33,096) | 1,714 |
Net loss attributable to Unit Corporation | (215,649) | (8,509) | (986,143) | (12,013) |
Consolidating Adjustments [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Revenues | (4,871) | (18,072) | (10,331) | (43,184) |
Expenses: | ||||
Operating costs | (4,873) | (17,418) | (10,331) | (41,470) |
Depreciation, depletion, and amortization | 0 | 0 | 0 | 0 |
Impairments | 0 | 0 | ||
Loss on abandonment of assets | 0 | |||
General and administrative | 0 | 0 | 0 | 0 |
Loss on disposition of assets | 0 | 0 | 0 | 0 |
Total operating costs | (4,873) | (17,418) | (10,331) | (41,470) |
Income (loss) from operations | 2 | (654) | 0 | (1,714) |
Interest, net | 0 | 0 | 0 | 0 |
Write off of debt issuance cost | 0 | 0 | ||
Gain (loss) on derivatives | 0 | 0 | 0 | 0 |
Reorganization Items | 0 | 0 | ||
Other, net | 0 | 0 | 0 | 0 |
Income (loss) before income taxes | 2 | (654) | 0 | (1,714) |
Income tax expense (benefit) | 0 | 0 | 0 | 0 |
Equity in net earnings from investment in subsidiaries, net of taxes | 201,304 | 6,705 | 995,283 | (3,145) |
Net Income (loss) | 201,306 | 6,051 | 995,283 | (4,859) |
Less: net income (loss) attributable to non-controlling interest | (84) | 0 | 33,096 | 0 |
Net loss attributable to Unit Corporation | 201,390 | 6,051 | 962,187 | (4,859) |
Parent [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Expenses: | ||||
Operating costs | 0 | 0 | 0 | 0 |
Depreciation, depletion, and amortization | 607 | 1,935 | 1,478 | 3,869 |
Impairments | 0 | 0 | ||
Loss on abandonment of assets | 0 | |||
General and administrative | 0 | 0 | 0 | 0 |
Loss on disposition of assets | 1,479 | 0 | 1,479 | (10) |
Total operating costs | 2,086 | 1,935 | 2,957 | 3,859 |
Income (loss) from operations | (2,086) | (1,935) | (2,957) | (3,859) |
Interest, net | (7,066) | (8,650) | (19,805) | (16,852) |
Write off of debt issuance cost | (2,426) | (2,426) | ||
Gain (loss) on derivatives | (6,937) | 7,927 | (6,454) | 995 |
Reorganization Items | (2,205) | (2,205) | ||
Other, net | 4 | 6 | 11 | 11 |
Income (loss) before income taxes | (20,716) | (2,652) | (33,836) | (19,705) |
Income tax expense (benefit) | (6,455) | (848) | (9,880) | (4,547) |
Equity in net earnings from investment in subsidiaries, net of taxes | (201,304) | (6,705) | (995,283) | 3,145 |
Net Income (loss) | (215,565) | (8,509) | (1,019,239) | (12,013) |
Less: net income (loss) attributable to non-controlling interest | 84 | 0 | (33,096) | 0 |
Net loss attributable to Unit Corporation | (215,649) | (8,509) | (986,143) | (12,013) |
Combined Guarantor Subsidiaries [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Revenues | 56,159 | 128,588 | 141,315 | 272,882 |
Expenses: | ||||
Operating costs | 93,305 | 73,909 | 150,169 | 145,302 |
Depreciation, depletion, and amortization | 25,005 | 52,255 | 73,478 | 100,721 |
Impairments | 109,318 | 787,280 | ||
Loss on abandonment of assets | 17,554 | |||
General and administrative | 25,814 | 10,064 | 37,367 | 19,805 |
Loss on disposition of assets | (593) | (356) | (197) | 1,311 |
Total operating costs | 252,849 | 135,872 | 1,065,651 | 267,139 |
Income (loss) from operations | (196,690) | (7,284) | (924,336) | 5,743 |
Interest, net | 0 | 0 | 0 | 0 |
Write off of debt issuance cost | 0 | 0 | ||
Gain (loss) on derivatives | 0 | 0 | 0 | 0 |
Reorganization Items | (4,822) | (4,822) | ||
Other, net | 18 | 0 | 53 | 0 |
Income (loss) before income taxes | (201,494) | (7,284) | (929,105) | 5,743 |
Income tax expense (benefit) | 0 | (1,026) | 0 | 2,229 |
Equity in net earnings from investment in subsidiaries, net of taxes | 0 | 0 | 0 | 0 |
Net Income (loss) | (201,494) | (6,258) | (929,105) | 3,514 |
Less: net income (loss) attributable to non-controlling interest | 0 | 0 | 0 | 0 |
Net loss attributable to Unit Corporation | (201,494) | (6,258) | (929,105) | 3,514 |
Combined Non-Guarantor Subsidiaries [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Revenues | 37,719 | 54,630 | 80,399 | 125,139 |
Expenses: | ||||
Operating costs | 26,671 | 41,550 | 58,988 | 97,679 |
Depreciation, depletion, and amortization | 10,348 | 12,102 | 22,621 | 23,828 |
Impairments | 0 | 63,962 | ||
Loss on abandonment of assets | 0 | |||
General and administrative | 0 | 0 | 0 | 0 |
Loss on disposition of assets | (9) | (66) | (15) | (108) |
Total operating costs | 37,010 | 53,586 | 145,556 | 121,399 |
Income (loss) from operations | 709 | 1,044 | (65,157) | 3,740 |
Interest, net | (542) | (345) | (1,060) | (681) |
Write off of debt issuance cost | 0 | 0 | ||
Gain (loss) on derivatives | 0 | 0 | 0 | 0 |
Reorganization Items | 0 | 0 | ||
Other, net | 21 | 0 | 39 | 0 |
Income (loss) before income taxes | 188 | 699 | (66,178) | 3,059 |
Income tax expense (benefit) | 0 | 0 | 0 | 0 |
Equity in net earnings from investment in subsidiaries, net of taxes | 0 | 0 | 0 | 0 |
Net Income (loss) | 188 | 699 | (66,178) | 3,059 |
Less: net income (loss) attributable to non-controlling interest | 84 | 492 | (33,096) | 1,714 |
Net loss attributable to Unit Corporation | $ 104 | $ 207 | $ (33,082) | $ 1,345 |
Supplemental Condensed Consol_6
Supplemental Condensed Consolidated Financial Information (Condensed Consolidating Statements of Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Condensed Financial Statements, Captions [Line Items] | ||||
Net Income (loss) | $ (215,565) | $ (8,017) | $ (1,019,239) | $ (10,299) |
Other comprehensive income (loss) | 0 | (30) | 0 | (6) |
Comprehensive income (loss) | (215,565) | (8,047) | (1,019,239) | (10,305) |
Less: Comprehensive income (loss) attributable to non-controlling interest | 84 | 492 | (33,096) | 1,714 |
Comprehensive income (loss) attributable to Unit Corporation | (215,649) | (8,539) | (986,143) | (12,019) |
Unrealized income (loss) on securities, tax | 0 | (9) | 0 | (2) |
Consolidating Adjustments [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net Income (loss) | 201,306 | 6,051 | 995,283 | (4,859) |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Comprehensive income (loss) | 201,306 | 6,051 | 995,283 | (4,859) |
Less: Comprehensive income (loss) attributable to non-controlling interest | (84) | 0 | 33,096 | 0 |
Comprehensive income (loss) attributable to Unit Corporation | 201,390 | 6,051 | 962,187 | (4,859) |
Unrealized income (loss) on securities, tax | 0 | 0 | 0 | 0 |
Parent [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net Income (loss) | (215,565) | (8,509) | (1,019,239) | (12,013) |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Comprehensive income (loss) | (215,565) | (8,509) | (1,019,239) | (12,013) |
Less: Comprehensive income (loss) attributable to non-controlling interest | 84 | 0 | (33,096) | 0 |
Comprehensive income (loss) attributable to Unit Corporation | (215,649) | (8,509) | (986,143) | (12,013) |
Unrealized income (loss) on securities, tax | 0 | 0 | 0 | 0 |
Combined Guarantor Subsidiaries [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net Income (loss) | (201,494) | (6,258) | (929,105) | 3,514 |
Other comprehensive income (loss) | 0 | (30) | 0 | (6) |
Comprehensive income (loss) | (201,494) | (6,288) | (929,105) | 3,508 |
Less: Comprehensive income (loss) attributable to non-controlling interest | 0 | 0 | 0 | 0 |
Comprehensive income (loss) attributable to Unit Corporation | (201,494) | (6,288) | (929,105) | 3,508 |
Unrealized income (loss) on securities, tax | 0 | (9) | 0 | (2) |
Combined Non-Guarantor Subsidiaries [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net Income (loss) | 188 | 699 | (66,178) | 3,059 |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Comprehensive income (loss) | 188 | 699 | (66,178) | 3,059 |
Less: Comprehensive income (loss) attributable to non-controlling interest | 84 | 492 | (33,096) | 1,714 |
Comprehensive income (loss) attributable to Unit Corporation | 104 | 207 | (33,082) | 1,345 |
Unrealized income (loss) on securities, tax | $ 0 | $ 0 | $ 0 | $ 0 |
Supplemental Condensed Consol_7
Supplemental Condensed Consolidated Financial Information (Condensed Consolidating Statements of Cash Flows (Unaudited)) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
OPERATING ACTIVITIES: | ||
Net cash provided by (used in) operating activities | $ 26,467 | $ 127,501 |
INVESTING ACTIVITIES: | ||
Capital expenditures | (23,804) | (246,638) |
Producing properties and other acquisitions | (210) | (3,313) |
Proceeds from disposition of property and equipment | 4,497 | 7,340 |
Net cash provided by (used in) investing activities | (19,517) | (242,611) |
FINANCING ACTIVITIES: | ||
Borrowings under line of credit, including borrowings under DIP credit facility | 79,400 | 271,200 |
Payments under line of credit | (38,100) | (160,200) |
DIP financing costs | 990 | 0 |
Intercompany borrowings (advances), net | 0 | 0 |
Net payments on finance leases | (2,061) | (1,980) |
Employee taxes paid by withholding shares | (43) | (4,073) |
Distributions to non-controlling interest | 0 | (918) |
Bank overdrafts | (8,733) | 5,298 |
Net cash provided by (used in) financing activities | 29,473 | 109,327 |
Net increase (decrease) in cash and cash equivalents | 36,423 | (5,783) |
Cash and cash equivalents, beginning of period | 571 | 6,452 |
Cash and cash equivalents, end of period | 36,994 | 669 |
Consolidating Adjustments [Member] | ||
OPERATING ACTIVITIES: | ||
Net cash provided by (used in) operating activities | 148,563 | (34) |
INVESTING ACTIVITIES: | ||
Capital expenditures | 0 | 0 |
Producing properties and other acquisitions | 0 | 0 |
Proceeds from disposition of property and equipment | 0 | 0 |
Net cash provided by (used in) investing activities | 0 | 0 |
FINANCING ACTIVITIES: | ||
Borrowings under line of credit, including borrowings under DIP credit facility | 0 | 0 |
Payments under line of credit | 0 | 0 |
DIP financing costs | 0 | |
Intercompany borrowings (advances), net | (148,563) | 34 |
Net payments on finance leases | 0 | 0 |
Employee taxes paid by withholding shares | 0 | 0 |
Distributions to non-controlling interest | 0 | |
Bank overdrafts | 0 | 0 |
Net cash provided by (used in) financing activities | (148,563) | 34 |
Net increase (decrease) in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents, beginning of period | 0 | 0 |
Cash and cash equivalents, end of period | 0 | 0 |
Parent [Member] | ||
OPERATING ACTIVITIES: | ||
Net cash provided by (used in) operating activities | (201,699) | (8,023) |
INVESTING ACTIVITIES: | ||
Capital expenditures | (760) | (100) |
Producing properties and other acquisitions | 0 | 0 |
Proceeds from disposition of property and equipment | 1,169 | 10 |
Net cash provided by (used in) investing activities | 409 | (90) |
FINANCING ACTIVITIES: | ||
Borrowings under line of credit, including borrowings under DIP credit facility | 47,300 | 238,800 |
Payments under line of credit | (23,500) | (135,300) |
DIP financing costs | 990 | |
Intercompany borrowings (advances), net | 198,503 | (96,311) |
Net payments on finance leases | 0 | 0 |
Employee taxes paid by withholding shares | (43) | (4,073) |
Distributions to non-controlling interest | 919 | |
Bank overdrafts | (7,269) | 4,183 |
Net cash provided by (used in) financing activities | 214,001 | 8,218 |
Net increase (decrease) in cash and cash equivalents | 12,711 | 105 |
Cash and cash equivalents, beginning of period | 503 | 403 |
Cash and cash equivalents, end of period | 13,214 | 508 |
Combined Guarantor Subsidiaries [Member] | ||
OPERATING ACTIVITIES: | ||
Net cash provided by (used in) operating activities | 59,486 | 111,615 |
INVESTING ACTIVITIES: | ||
Capital expenditures | (13,428) | (212,982) |
Producing properties and other acquisitions | (210) | (3,313) |
Proceeds from disposition of property and equipment | 3,253 | 7,247 |
Net cash provided by (used in) investing activities | (10,385) | (209,048) |
FINANCING ACTIVITIES: | ||
Borrowings under line of credit, including borrowings under DIP credit facility | 0 | 0 |
Payments under line of credit | 0 | 0 |
DIP financing costs | 0 | |
Intercompany borrowings (advances), net | (49,169) | 97,384 |
Net payments on finance leases | 0 | 0 |
Employee taxes paid by withholding shares | 0 | 0 |
Distributions to non-controlling interest | 0 | |
Bank overdrafts | 0 | 0 |
Net cash provided by (used in) financing activities | (49,169) | 97,384 |
Net increase (decrease) in cash and cash equivalents | (68) | (49) |
Cash and cash equivalents, beginning of period | 68 | 208 |
Cash and cash equivalents, end of period | 0 | 159 |
Combined Non-Guarantor Subsidiaries [Member] | ||
OPERATING ACTIVITIES: | ||
Net cash provided by (used in) operating activities | 20,117 | 23,943 |
INVESTING ACTIVITIES: | ||
Capital expenditures | (9,616) | (33,556) |
Producing properties and other acquisitions | 0 | 0 |
Proceeds from disposition of property and equipment | 75 | 83 |
Net cash provided by (used in) investing activities | (9,541) | (33,473) |
FINANCING ACTIVITIES: | ||
Borrowings under line of credit, including borrowings under DIP credit facility | 32,100 | 32,400 |
Payments under line of credit | (14,600) | (24,900) |
DIP financing costs | 0 | |
Intercompany borrowings (advances), net | (771) | (1,107) |
Net payments on finance leases | (2,061) | (1,980) |
Employee taxes paid by withholding shares | 0 | 0 |
Distributions to non-controlling interest | (1,837) | |
Bank overdrafts | (1,464) | 1,115 |
Net cash provided by (used in) financing activities | 13,204 | 3,691 |
Net increase (decrease) in cash and cash equivalents | 23,780 | (5,839) |
Cash and cash equivalents, beginning of period | 0 | 5,841 |
Cash and cash equivalents, end of period | $ 23,780 | $ 2 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Thousands | Aug. 21, 2020 | Jun. 30, 2020 |
Subsequent Event [Line Items] | ||
Estimated Litigation Liability | $ 45,000 | |
Subsequent Event [Member] | Cockerell Oil Properties, Ltd., v. Unit Petroleum Company [Member] | ||
Subsequent Event [Line Items] | ||
Estimated Litigation Liability | $ 15,750 | |
Subsequent Event [Member] | Chieftan Royalty Company v. Unit Petroleum Company [Member] | ||
Subsequent Event [Line Items] | ||
Estimated Litigation Liability | $ 29,250 |