news UNIT CORPORATION
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7130 South Lewis Avenue, Tulsa, Oklahoma 74136
Telephone 918 493-7700, Fax 918 493-7711
Contact: Larry D. Pinkston
President and Chief Operating Officer
(918) 493-7700
For Immediate Release...
December 22, 2004
UNIT CORPORATION ANNOUNCES ITS
CAPITAL EXPENDITURE BUDGET FOR 2005
Tulsa, Oklahoma . . . Unit Corporation (NYSE - UNT) announced today its
consolidated capital expenditure budget for 2005 of $205 million, allocated
between its three primary subsidiaries, Unit Drilling Company, Unit Petroleum
Company and Superior Pipeline Company LLC. This is an increase of 30% over
estimated 2004 capital expenditures, excluding acquisitions.
Unit's wholly-owned contract drilling subsidiary, Unit Drilling Company,
will receive $60 million, a 20% increase over estimated 2004 capital
expenditures, excluding acquisitions. Of this, $17 million will be budgeted for
drill pipe and $43 million will be used primarily for rig maintenance and
additions.
Unit Petroleum Company, Unit's wholly-owned exploration and production
subsidiary, will receive $125 million, a 20% increase over estimated 2004
capital expenditures, excluding acquisitions. Of this amount, $105 million is
designated to be spent on drilling, $20 million will go to the purchase of
acreage and seismic.
Superior Pipeline Company LLC, Unit's wholly-owned natural gas gathering
and processing subsidiary, will receive $20 million. The budget reflects Unit's
focus on growing this segment through the construction of new facilities or
acquisitions.
Mr. John Nikkel, Unit's Chairman and Chief Executive Officer, said, "During
2005, we plan to drill approximately 220 to 230 wells, up 35% over 2004. Our
drilling will be focused primarily in the Anadarko and Arkoma Basins of Oklahoma
and Texas and the Permian Basin and Gulf Coast area of Texas. We believe 2005
will see a continuation of the strong demand for our contract drilling services
and improving conditions for the energy industry.
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Unit Corporation is a Tulsa-based, publicly held energy company engaged
through its subsidiaries in oil and gas exploration, production, contract
drilling and natural gas gathering and processing. Unit's Common Stock is listed
on the New York Stock Exchange under the symbol UNT. For more information about
Unit Corporation, visit its website at http://www.unitcorp.com.
This news release contains forward-looking statements within the meaning of
the Securities Litigation Reform Act that involve risks and uncertainties,
including the estimated budget for the company's operations, future demand for
oil and natural gas, future rig utilization and dayrates, the prospective
capabilities of offset acreage, anticipated oil and natural gas prices, the
number of wells to be drilled by the company, development, operational,
implementation and opportunity risks, and other factors described from time to
time in the company's publicly available SEC reports, which could cause actual
results to differ materially from those expected.