Delaware | 73-1283193 |
(State or other jurisdiction of incorporation) | (I.R.S. Employer Identification No.) |
8200 South Unit Drive, Tulsa, Oklahoma | 74132 |
(Address of principal executive offices) | (Zip Code) |
Page Number | ||
Item 1. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Item 1. | ||
Item 1A. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Item 5. | ||
Item 6. | ||
• | the amount and nature of our future capital expenditures and how we expect to fund our capital expenditures; |
• | prices for oil, natural gas liquids (NGLs), and natural gas; |
• | demand for oil, NGLs, and natural gas; |
• | our exploration and drilling prospects; |
• | the estimates of our proved oil, NGLs, and natural gas reserves; |
• | oil, NGLs, and natural gas reserve potential; |
• | development and infill drilling potential; |
• | expansion and other development trends of the oil and natural gas industry; |
• | our business strategy; |
• | our plans to maintain or increase production of oil, NGLs, and natural gas; |
• | the number of gathering systems and processing plants we plan to construct or acquire; |
• | volumes and prices for natural gas gathered and processed; |
• | expansion and growth of our business and operations; |
• | demand for our drilling rigs and drilling rig rates; |
• | our belief that the final outcome of legal proceedings involving us will not materially affect our financial results; |
• | our ability to timely secure third-party services used in completing our wells; |
• | our ability to transport or convey our oil or natural gas production to established pipeline systems; |
• | impact of federal and state legislative and regulatory actions affecting our costs and increasing operating restrictions or delays and other adverse impacts on our business; |
• | our projected production guidelines for the year; |
• | our anticipated capital budgets; |
• | our financial condition and liquidity; |
• | the number of wells our oil and natural gas segment plans to drill or rework during the year; |
• | our intended use of the proceeds from the sale of 50% of the interest we owned in our mid-stream segment; and |
• | our estimates of the amounts of any ceiling test write-downs or other potential asset impairments we may have to record in future periods. |
• | the risk factors discussed in this document and in the documents (if any) we incorporate by reference; |
• | general economic, market, or business conditions; |
• | the availability of and nature of (or lack of) business opportunities we pursue; |
• | demand for our land drilling services; |
• | changes in laws or regulations; |
• | changes in the current geopolitical situation; |
• | risks relating to financing, including restrictions in our debt agreements and availability and cost of credit; |
• | risks associated with future weather conditions; |
• | decreases or increases in commodity prices; |
• | putative class action lawsuits that may cause substantial expenditures and divert management's attention; and |
• | other factors, most of which are beyond our control. |
June 30, 2018 | December 31, 2017 | |||||||
(In thousands except share amounts) | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 104,308 | $ | 701 | ||||
Accounts receivable, net of allowance for doubtful accounts of $2,450 at both June 30, 2018 and December 31, 2017, respectively | 113,377 | 111,512 | ||||||
Materials and supplies | 501 | 505 | ||||||
Current derivative asset (Note 10) | 127 | 721 | ||||||
Prepaid expenses and other | 8,731 | 6,233 | ||||||
Total current assets | 227,044 | 119,672 | ||||||
Property and equipment: | ||||||||
Oil and natural gas properties on the full cost method: | ||||||||
Proved properties | 5,809,850 | 5,712,813 | ||||||
Unproved properties not being amortized | 325,595 | 296,764 | ||||||
Drilling equipment | 1,612,817 | 1,593,611 | ||||||
Gas gathering and processing equipment | 736,488 | 726,236 | ||||||
Saltwater disposal systems | 65,218 | 62,618 | ||||||
Corporate land and building | 59,081 | 59,080 | ||||||
Transportation equipment | 29,918 | 29,631 | ||||||
Other | 56,381 | 53,439 | ||||||
8,695,348 | 8,534,192 | |||||||
Less accumulated depreciation, depletion, amortization, and impairment | 6,263,504 | 6,151,450 | ||||||
Net property and equipment | 2,431,844 | 2,382,742 | ||||||
Goodwill | 62,808 | 62,808 | ||||||
Other assets | 28,113 | 16,230 | ||||||
Total assets (1) | $ | 2,749,809 | $ | 2,581,452 |
June 30, 2018 | December 31, 2017 | |||||||
(In thousands except share amounts) | ||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 114,411 | $ | 112,648 | ||||
Accrued liabilities (Note 5) | 49,064 | 48,523 | ||||||
Income taxes payable | 4,648 | — | ||||||
Current derivative liability (Note 10) | 18,555 | 7,763 | ||||||
Current portion of other long-term liabilities (Note 6) | 14,036 | 13,002 | ||||||
Total current liabilities | 200,714 | 181,936 | ||||||
Long-term debt less debt issuance costs (Note 6) | 643,371 | 820,276 | ||||||
Non-current derivative liability (Note 10) | 910 | — | ||||||
Other long-term liabilities (Note 6) | 102,928 | 100,203 | ||||||
Deferred income taxes | 158,232 | 133,477 | ||||||
Commitments and contingencies (Note 12) | — | — | ||||||
Shareholders’ equity: | ||||||||
Preferred stock, $1.00 par value, 5,000,000 shares authorized, none issued | — | — | ||||||
Common stock, $.20 par value, 175,000,000 shares authorized, 54,089,366 and 52,880,134 shares issued as of June 30, 2018 and December 31, 2017, respectively | 10,414 | 10,280 | ||||||
Capital in excess of par value | 622,120 | 535,815 | ||||||
Accumulated other comprehensive income (loss) (Note 14) | (65 | ) | 63 | |||||
Retained earnings | 811,781 | 799,402 | ||||||
Total shareholders’ equity attributable to Unit Corporation | 1,444,250 | 1,345,560 | ||||||
Non-controlling interests in consolidated subsidiaries | 199,404 | — | ||||||
Total shareholders' equity | 1,643,654 | 1,345,560 | ||||||
Total liabilities(1) and shareholders’ equity | $ | 2,749,809 | $ | 2,581,452 |
(1) | Unit Corporation's consolidated total assets as of June 30, 2018 include total current and long-term assets of the variable interest entity (VIE) of $38.4 million and $412.2 million, respectively, which can only be used to settle obligations of the VIE. Unit Corporation's consolidated total liabilities as of June 30, 2018 include total current and long-term liabilities of the VIE of $33.7 million and $17.9 million, respectively, for which the creditors of the VIE have no recourse to Unit Corporation. See Note 13, "Variable Interest Entity Arrangements." |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
(In thousands except per share amounts) | ||||||||||||||||
Revenues: | ||||||||||||||||
Oil and natural gas | $ | 102,318 | $ | 83,173 | $ | 205,417 | $ | 170,771 | ||||||||
Contract drilling | 46,926 | 39,255 | 92,915 | 76,440 | ||||||||||||
Gas gathering and processing | 54,059 | 48,153 | 110,103 | 99,094 | ||||||||||||
Total revenues | 203,303 | 170,581 | 408,435 | 346,305 | ||||||||||||
Expenses: | ||||||||||||||||
Operating costs: | ||||||||||||||||
Oil and natural gas | 32,418 | 32,758 | 68,380 | 61,962 | ||||||||||||
Contract drilling | 31,894 | 27,239 | 63,561 | 56,466 | ||||||||||||
Gas gathering and processing | 39,703 | 36,042 | 81,307 | 73,746 | ||||||||||||
Total operating costs | 104,015 | 96,039 | 213,248 | 192,174 | ||||||||||||
Depreciation, depletion, and amortization | 58,373 | 50,080 | 115,439 | 97,012 | ||||||||||||
General and administrative | 8,712 | 8,713 | 19,474 | 17,667 | ||||||||||||
Gain on disposition of assets | (161 | ) | (248 | ) | (322 | ) | (1,072 | ) | ||||||||
Total operating expenses | 170,939 | 154,584 | 347,839 | 305,781 | ||||||||||||
Income from operations | 32,364 | 15,997 | 60,596 | 40,524 | ||||||||||||
Other income (expense): | ||||||||||||||||
Interest, net | (7,729 | ) | (9,467 | ) | (17,733 | ) | (18,863 | ) | ||||||||
Gain (loss) on derivatives | (14,461 | ) | 8,902 | (21,223 | ) | 23,633 | ||||||||||
Other, net | 5 | 6 | 11 | 9 | ||||||||||||
Total other income (expense) | (22,185 | ) | (559 | ) | (38,945 | ) | 4,779 | |||||||||
Income before income taxes | 10,179 | 15,438 | 21,651 | 45,303 | ||||||||||||
Income tax expense: | ||||||||||||||||
Deferred | 2,029 | 6,379 | 5,636 | 20,315 | ||||||||||||
Total income taxes | 2,029 | 6,379 | 5,636 | 20,315 | ||||||||||||
Net income | 8,150 | 9,059 | 16,015 | 24,988 | ||||||||||||
Net income attributable to non-controlling interest | 2,362 | — | 2,362 | — | ||||||||||||
Net income attributable to Unit Corporation | 5,788 | 9,059 | 13,653 | 24,988 | ||||||||||||
Net income attributable to Unit Corporation per common share: | ||||||||||||||||
Basic | $ | 0.11 | $ | 0.18 | $ | 0.26 | $ | 0.49 | ||||||||
Diluted | $ | 0.11 | $ | 0.17 | $ | 0.26 | $ | 0.49 |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
(In thousands) | |||||||||||||||
Net income | $ | 8,150 | $ | 9,059 | $ | 16,015 | $ | 24,988 | |||||||
Other comprehensive income (loss), net of taxes: | |||||||||||||||
Unrealized gain (loss) on securities, net of tax of $11, $12, ($47) and $12 | 35 | 20 | (141 | ) | 20 | ||||||||||
Comprehensive income | 8,185 | 9,079 | 15,874 | 25,008 | |||||||||||
Less: Comprehensive income attributable to non-controlling interest | 2,362 | — | 2,362 | — | |||||||||||
Comprehensive income attributable to Unit Corporation | $ | 5,823 | $ | 9,079 | $ | 13,512 | $ | 25,008 |
Shareholders' Equity Attributable to Unit Corporation | |||||||||||||||||||||||
Common Stock | Capital In Excess of Par Value | Accumulated Other Comprehensive Income | Retained Earnings | Non-controlling Interest in Consolidated Subsidiaries | Total | ||||||||||||||||||
(In thousands except per share amounts) | |||||||||||||||||||||||
Balances, January 1, 2018 | $ | 10,280 | $ | 535,815 | $ | 63 | $ | 799,402 | $ | — | $ | 1,345,560 | |||||||||||
Cumulative effect adjustment for adoption of ASUs (Notes 1 and 2) | — | — | 13 | (1,274 | ) | — | (1,261 | ) | |||||||||||||||
Net income | — | — | — | 13,653 | 2,362 | 16,015 | |||||||||||||||||
Other comprehensive loss (net of tax ($47)) | — | — | (141 | ) | — | — | (141 | ) | |||||||||||||||
Total comprehensive income | 15,874 | ||||||||||||||||||||||
Contributions | — | 102,958 | — | — | 197,042 | 300,000 | |||||||||||||||||
Transaction costs associated with sale of non-controlling interest | — | (2,254 | ) | — | — | — | (2,254 | ) | |||||||||||||||
Tax effect of the sale of non-controlling interest | — | (24,300 | ) | — | — | — | (24,300 | ) | |||||||||||||||
Activity in employee compensation plans (1,209,232 shares) | 134 | 9,901 | — | — | — | 10,035 | |||||||||||||||||
Balances, June 30, 2018 | $ | 10,414 | $ | 622,120 | $ | (65 | ) | $ | 811,781 | $ | 199,404 | $ | 1,643,654 |
Shareholders' Equity Attributable to Unit Corporation | |||||||||||||||||||||||
Common Stock | Capital In Excess of Par Value | Accumulated Other Comprehensive Income | Retained Earnings | Non-controlling Interest in Consolidated Subsidiaries | Total | ||||||||||||||||||
(In thousands except per share amounts) | |||||||||||||||||||||||
Balances, January 1, 2017 | $ | 10,016 | $ | 502,500 | $ | — | $ | 681,554 | $ | — | $ | 1,194,070 | |||||||||||
Net income | — | — | — | 24,988 | — | 24,988 | |||||||||||||||||
Other comprehensive income (net of tax $12) | — | — | 20 | — | — | 20 | |||||||||||||||||
Total comprehensive income | 25,008 | ||||||||||||||||||||||
Activity in employee compensation plans (1,349,800 shares) | 261 | 25,124 | — | — | — | 25,385 | |||||||||||||||||
Balances, June 30, 2017 | $ | 10,277 | $ | 527,624 | $ | 20 | $ | 706,542 | $ | — | $ | 1,244,463 |
Six Months Ended | ||||||||
June 30, | ||||||||
2018 | 2017 | |||||||
(In thousands) | ||||||||
OPERATING ACTIVITIES: | ||||||||
Net income | $ | 16,015 | $ | 24,988 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation, depletion, and amortization | 115,439 | 97,012 | ||||||
Amortization of debt issuance costs and debt discount (Note 6) | 1,095 | 1,075 | ||||||
(Gain) loss on derivatives (Note 10) | 21,223 | (23,633 | ) | |||||
Cash payments on derivatives settled, net (Note 10) | (8,928 | ) | (1,569 | ) | ||||
Deferred tax expense | 5,636 | 20,315 | ||||||
Gain on disposition of assets | (322 | ) | (1,072 | ) | ||||
Stock compensation plans | 12,073 | 8,066 | ||||||
Contract assets and liabilities, net (Note 2) | (2,371 | ) | — | |||||
Other, net | 1,998 | 299 | ||||||
Changes in operating assets and liabilities increasing (decreasing) cash: | ||||||||
Accounts receivable | (6,812 | ) | (15,087 | ) | ||||
Accounts payable | (403 | ) | 3,724 | |||||
Material and supplies | 4 | 49 | ||||||
Income taxes | — | (15 | ) | |||||
Accrued liabilities | 1,572 | 756 | ||||||
Other, net | (1,526 | ) | 2,147 | |||||
Net cash provided by operating activities | 154,693 | 117,055 | ||||||
INVESTING ACTIVITIES: | ||||||||
Capital expenditures | (189,916 | ) | (107,933 | ) | ||||
Producing properties and other acquisitions | (962 | ) | (52,956 | ) | ||||
Proceeds from disposition of assets | 23,528 | 19,556 | ||||||
Other | — | (1,500 | ) | |||||
Net cash used in investing activities | (167,350 | ) | (142,833 | ) | ||||
FINANCING ACTIVITIES: | ||||||||
Borrowings under credit agreement | 71,200 | 160,600 | ||||||
Payments under credit agreement | (249,200 | ) | (156,500 | ) | ||||
Payments on capitalized leases | (1,901 | ) | (1,901 | ) | ||||
Proceeds from common stock issued, net of issue costs (Note 14) | — | 18,623 | ||||||
Proceeds from investments of non-controlling interest | 300,000 | — | ||||||
Transaction costs associated with sale of non-controlling interest | (2,254 | ) | — | |||||
Book overdrafts | (1,581 | ) | 4,912 | |||||
Net cash provided in financing activities | 116,264 | 25,734 | ||||||
Net increase (decrease) in cash and cash equivalents | 103,607 | (44 | ) | |||||
Cash and cash equivalents, beginning of period | 701 | 893 | ||||||
Cash and cash equivalents, end of period | $ | 104,308 | $ | 849 |
Six Months Ended | ||||||
June 30, | ||||||
2018 | 2017 | |||||
(In thousands) | ||||||
Supplemental disclosure of cash flow information: | ||||||
Cash paid during the year for: | ||||||
Interest paid (net of capitalized) | (17,957 | ) | (16,813 | ) | ||
Income taxes | — | — | ||||
Changes in accounts payable and accrued liabilities related to purchases of property, plant, and equipment | (3,747 | ) | (8,771 | ) | ||
Non-cash (addition) reduction to oil and natural gas properties related to asset retirement obligations | 7,854 | 1,579 |
• | Balance Sheets at June 30, 2018 and December 31, 2017; |
• | Income Statements for the three and six months ended June 30, 2018 and 2017; |
• | Statements of Comprehensive Income for the three and six months ended June 30, 2018 and 2017; |
• | Statements of Changes in Shareholders' Equity for the six months ended June 30, 2018 and 2017; and |
• | Statements of Cash Flows for the six months ended June 30, 2018 and 2017. |
Three Months Ended June 30, 2018 | ||||||||||||
As Reported | Adjustments due to ASC 606 | Amounts without the Adoption of ASC 606 | ||||||||||
(In thousands) | ||||||||||||
Oil and natural gas revenues | $ | 102,318 | $ | (3,732 | ) | $ | 106,050 | |||||
Oil and natural gas operating costs | 32,418 | (3,732 | ) | 36,150 | ||||||||
Gross profit | $ | 69,900 | $ | — | $ | 69,900 |
Six Months Ended June 30, 2018 | ||||||||||||
As Reported | Adjustments due to ASC 606 | Amounts without the Adoption of ASC 606 | ||||||||||
(In thousands) | ||||||||||||
Oil and natural gas revenues | $ | 205,417 | $ | (6,902 | ) | $ | 212,319 | |||||
Oil and natural gas operating costs | 68,380 | (6,902 | ) | 75,282 | ||||||||
Gross profit | $ | 137,037 | $ | — | $ | 137,037 |
Balance at December 31, 2017 | Adjustments due to ASC 606 | Balance at January 1, 2018 | ||||||||||
(In thousands) | ||||||||||||
Assets: | ||||||||||||
Other assets | $ | 16,230 | $ | 10,798 | $ | 27,028 | ||||||
Liabilities and shareholders' equity: | ||||||||||||
Current portion of other long-term liabilities | 13,002 | 2,748 | 15,750 | |||||||||
Other long-term liabilities | 100,203 | 9,737 | 109,940 | |||||||||
Deferred income taxes | 133,477 | (413 | ) | 133,064 | ||||||||
Retained earnings | 799,402 | (1,274 | ) | 798,128 |
As Reported | Adjustments due to ASC 606 | Amounts without the Adoption of ASC 606 | ||||||||||
(In thousands) | ||||||||||||
Assets: | ||||||||||||
Prepaid expenses and other | $ | 8,731 | $ | 128 | $ | 8,603 | ||||||
Other assets | 28,113 | 11,887 | 16,226 | |||||||||
Liabilities and shareholders' equity: | ||||||||||||
Current portion of other long-term liabilities | 14,036 | 2,875 | 11,161 | |||||||||
Other long-term liabilities | 102,928 | 8,456 | 94,472 | |||||||||
Deferred income taxes | 158,232 | 168 | 158,064 | |||||||||
Retained earnings | 811,781 | 516 | 811,265 |
As Reported | Adjustments due to ASC 606 | Amounts without the Adoption of ASC 606 | ||||||||||
(In thousands) | ||||||||||||
Gas gathering and processing revenues | $ | 54,059 | $ | 1,179 | $ | 52,880 | ||||||
Deferred income tax expense | 2,029 | 289 | 1,740 | |||||||||
Net income | 8,150 | 890 | 7,260 |
As Reported | Adjustments due to ASC 606 | Amounts without the Adoption of ASC 606 | ||||||||||
(In thousands) | ||||||||||||
Gas gathering and processing revenues | $ | 110,103 | $ | 2,371 | $ | 107,732 | ||||||
Deferred income tax expense | 5,636 | 581 | 5,055 | |||||||||
Net income | 16,015 | 1,790 | 14,225 |
Contract | Remaining Term of Contract | July - December 2018 | 2019 | 2020 | 2021 | 2022 | Total Remaining Impact to Revenue | ||||||||||||
(In thousands) | |||||||||||||||||||
Demand fee contracts | 4-5 years | $ | 2,598 | $ | 2,632 | $ | (3,781 | ) | $ | (3,507 | ) | $ | 1,374 | $ | (684 | ) |
June 30, 2018 | January 1, 2018 | Change | ||||||||||
(In thousands) | ||||||||||||
Contract assets | $ | 12,015 | $ | 10,798 | $ | 1,217 | ||||||
Contract liabilities | 11,331 | 12,485 | (1,154 | ) | ||||||||
Contract liabilities, net | $ | 684 | $ | (1,687 | ) | $ | 2,371 |
Earnings (Numerator) | Weighted Shares (Denominator) | Per-Share Amount | |||||||||
(In thousands except per share amounts) | |||||||||||
For the three months ended June 30, 2018 | |||||||||||
Basic earnings attributable to Unit Corporation per common share | $ | 5,788 | 52,050 | $ | 0.11 | ||||||
Effect of dilutive stock options and restricted stock | — | 731 | — | ||||||||
Diluted earnings attributable to Unit Corporation per common share | $ | 5,788 | 52,781 | $ | 0.11 | ||||||
For the three months ended June 30, 2017 | |||||||||||
Basic earnings attributable to Unit Corporation per common share | $ | 9,059 | 51,366 | $ | 0.18 | ||||||
Effect of dilutive stock options, restricted stock, and stock appreciation rights (SARs) | — | 578 | (0.01 | ) | |||||||
Diluted earnings attributable to Unit Corporation per common share | $ | 9,059 | 51,944 | $ | 0.17 |
Three Months Ended | ||||||||
June 30, | ||||||||
2018 | 2017 | |||||||
Stock options and SARs | 66,500 | 178,755 | ||||||
Average exercise price | $ | 44.42 | $ | 47.75 |
Earnings (Loss) (Numerator) | Weighted Shares (Denominator) | Per-Share Amount | |||||||||
(In thousands except per share amounts) | |||||||||||
For the six months ended June 30, 2018 | |||||||||||
Basic earnings attributable to Unit Corporation per common share | $ | 13,653 | 51,891 | $ | 0.26 | ||||||
Effect of dilutive stock options and restricted stock | — | 651 | — | ||||||||
Diluted earnings attributable to Unit Corporation per common share | $ | 13,653 | 52,542 | $ | 0.26 | ||||||
For the six months ended June 30, 2017 | |||||||||||
Basic earnings attributable to Unit Corporation per common share | $ | 24,988 | 50,832 | $ | 0.49 | ||||||
Effect of dilutive stock options, restricted stock, and SARs | — | 539 | — | ||||||||
Diluted earnings attributable to Unit Corporation per common share | $ | 24,988 | 51,371 | $ | 0.49 |
Six Months Ended | ||||||||
June 30, | ||||||||
2018 | 2017 | |||||||
Stock options and SARs | 66,500 | 178,755 | ||||||
Average exercise price | $ | 44.42 | $ | 47.75 |
June 30, 2018 | December 31, 2017 | |||||||
(In thousands) | ||||||||
Employee costs | $ | 12,359 | $ | 19,521 | ||||
Lease operating expenses | 12,080 | 11,819 | ||||||
Taxes | 6,997 | 3,404 | ||||||
Interest payable | 6,581 | 6,745 | ||||||
Derivative settlements | 2,550 | — | ||||||
Third-party credits | 2,473 | 2,240 | ||||||
Other | 6,024 | 4,794 | ||||||
Total accrued liabilities | $ | 49,064 | $ | 48,523 |
June 30, 2018 | December 31, 2017 | |||||||
(In thousands) | ||||||||
Unit credit agreement with an average interest rate of 3.4% at December 31, 2017 | $ | — | $ | 178,000 | ||||
Superior credit agreement | — | — | ||||||
6.625% senior subordinated notes due 2021 | 650,000 | 650,000 | ||||||
Total principal amount | 650,000 | 828,000 | ||||||
Less: unamortized discount | (1,933 | ) | (2,234 | ) | ||||
Less: debt issuance costs, net | (4,696 | ) | (5,490 | ) | ||||
Total long-term debt | $ | 643,371 | $ | 820,276 |
• | the payment of dividends (other than stock dividends) during any fiscal year over 30% of our consolidated net income for the preceding fiscal year; |
• | the incurrence of additional debt with certain limited exceptions; |
• | the creation or existence of mortgages or liens, other than those in the ordinary course of business and with certain limited exceptions, on any of our properties, except in favor of our lenders; and |
• | investments in Unrestricted Subsidiaries (as defined in the Unit credit agreement) in excess of $200.0 million. |
• | a current ratio (as defined in the credit agreement) of not less than 1 to 1. |
• | a senior indebtedness ratio of senior indebtedness to consolidated EBITDA (as defined in the Unit credit agreement) for the most recently ended rolling four quarters of no greater than 2.75 to 1. |
• | a leverage ratio of funded debt to consolidated EBITDA (as defined in the Unit credit agreement) for the most recently ended rolling four fiscal quarters of no greater than 4 to 1. |
June 30, 2018 | December 31, 2017 | |||||||
(In thousands) | ||||||||
Asset retirement obligation (ARO) liability | $ | 62,838 | $ | 69,444 | ||||
Capital lease obligations | 13,321 | 15,224 | ||||||
Workers’ compensation | 12,963 | 13,340 | ||||||
Contract liability | 11,331 | — | ||||||
Separation benefit plans | 7,607 | 6,524 | ||||||
Deferred compensation plan | 5,621 | 5,390 | ||||||
Gas balancing liability | 3,283 | 3,283 | ||||||
116,964 | 113,205 | |||||||
Less current portion | 14,036 | 13,002 | ||||||
Total other long-term liabilities | $ | 102,928 | $ | 100,203 |
Amount | ||||
Beginning July 1, | (In thousands) | |||
2018 | $ | 6,168 | ||
2019 | 6,168 | |||
2020 | 6,673 | |||
2021 | 179 | |||
Total future payments | 19,188 | |||
Less payments related to: | ||||
Maintenance | 4,981 | |||
Interest | 886 | |||
Present value of future minimum payments | $ | 13,321 |
Six Months Ended | ||||||||
June 30, | ||||||||
2018 | 2017 | |||||||
(In thousands) | ||||||||
ARO liability, January 1: | $ | 69,444 | $ | 70,170 | ||||
Accretion of discount | 1,248 | 1,458 | ||||||
Liability incurred | 211 | 1,018 | ||||||
Liability settled | (3,142 | ) | (1,224 | ) | ||||
Liability sold | (94 | ) | (1,412 | ) | ||||
Revision of estimates (1) | (4,829 | ) | 39 | |||||
ARO liability, June 30: | 62,838 | 70,049 | ||||||
Less current portion | 1,451 | 2,825 | ||||||
Total long-term ARO | $ | 61,387 | $ | 67,224 |
(1) | Plugging liability estimates were revised in both 2018 and 2017 for updates in the cost of services used to plug wells over the preceding year. We had various upward and downward adjustments. |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
(In millions) | ||||||||||||||||
Recognized stock compensation expense | $ | 4.0 | $ | 3.2 | $ | 9.5 | $ | 5.8 | ||||||||
Capitalized stock compensation cost for our oil and natural gas properties | 0.6 | 0.4 | 1.0 | 0.8 | ||||||||||||
Tax benefit on stock-based compensation | 1.0 | 1.2 | 2.3 | 2.2 |
Three Months Ended | Three Months Ended | |||||||||||||||
June 30, 2018 | June 30, 2017 | |||||||||||||||
Time Vested | Performance Vested | Time Vested | Performance Vested | |||||||||||||
Shares granted: | ||||||||||||||||
Employees | 5,000 | — | 14,000 | 21,000 | ||||||||||||
Non-employee directors | 44,312 | — | 49,104 | — | ||||||||||||
49,312 | — | 63,104 | 21,000 | |||||||||||||
Estimated fair value (in millions):(1) | ||||||||||||||||
Employees | $ | 0.1 | $ | — | $ | 0.4 | $ | 0.5 | ||||||||
Non-employee directors | 0.9 | — | 0.9 | — | ||||||||||||
$ | 1.0 | $ | — | $ | 1.3 | $ | 0.5 | |||||||||
Percentage of shares granted expected to be distributed: | ||||||||||||||||
Employees | 95 | % | N/A | 100 | % | 87 | % | |||||||||
Non-employee directors | 100 | % | N/A | 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 | Six Months Ended | |||||||||||||||
June 30, 2018 | June 30, 2017 | |||||||||||||||
Time Vested | Performance Vested | Time Vested | Performance Vested | |||||||||||||
Shares granted: | ||||||||||||||||
Employees | 844,498 | 362,070 | 475,799 | 173,373 | ||||||||||||
Non-employee directors | 44,312 | — | 49,104 | — | ||||||||||||
888,810 | 362,070 | 524,903 | 173,373 | |||||||||||||
Estimated fair value (in millions):(1) | ||||||||||||||||
Employees | $ | 16.2 | $ | 7.3 | $ | 11.8 | $ | 4.5 | ||||||||
Non-employee directors | 0.9 | — | 0.9 | — | ||||||||||||
$ | 17.1 | $ | 7.3 | $ | 12.7 | $ | 4.5 | |||||||||
Percentage of shares granted expected to be distributed: | ||||||||||||||||
Employees | 95 | % | 62 | % | 95 | % | 87 | % | ||||||||
Non-employee directors | 100 | % | N/A | 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.) |
• | Swaps. We receive or pay a fixed price for the commodity and pay or receive a floating market price to the counterparty. The fixed-price payment and the floating-price payment are netted, resulting in a net amount due to or from the counterparty. |
• | 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. |
Term | Commodity | Contracted Volume | Weighted Average Fixed Price | Contracted Market | ||||
Jul'18 – Sep'18 | Natural gas – swap | 40,000 MMBtu/day | $2.985 | IF – NYMEX (HH) | ||||
Oct'18 | Natural gas – swap | 30,000 MMBtu/day | $3.005 | IF – NYMEX (HH) | ||||
Nov’18 – Dec'18 | Natural gas – swap | 20,000 MMBtu/day | $3.013 | IF – NYMEX (HH) | ||||
Jan'19 – Dec'19 | Natural gas – swap | 10,000 MMBtu/day | $2.810 | IF – NYMEX (HH) | ||||
Jul'18 – Oct'18 | Natural gas – basis swap | 10,000 MMBtu/day | $(0.190) | NGPL TEXOK | ||||
Jul'18 – Dec'18 | Natural gas – basis swap | 10,000 MMBtu/day | $(0.678) | PEPL | ||||
Jul'18 – Dec'18 | Natural gas – basis swap | 10,000 MMBtu/day | $(0.568) | NGPL MIDCON | ||||
Nov’18 – Dec'18 | Natural gas – basis swap | 10,000 MMBtu/day | $(0.208) | IF – NYMEX (HH) | ||||
Jan'19 – Dec'19 | Natural gas – basis swap | 10,000 MMBtu/day | $(0.728) | PEPL | ||||
Jan'19 – Dec'19 | Natural gas – basis swap | 10,000 MMBtu/day | $(0.625) | NGL MIDCON | ||||
Jan'19 – Dec'19 | Natural gas – basis swap | 30,000 MMBtu/day | $(0.265) | NGPL TEXOK | ||||
Jan'20 – Dec'20 | Natural gas – basis swap | 30,000 MMBtu/day | $(0.275) | NGPL TEXOK | ||||
Jul'18 – Sep'18 | Natural gas – collar | 30,000 MMBtu/day | $2.67 - $2.97 | IF – NYMEX (HH) | ||||
Jul'18 – Dec'18 | Natural gas – three-way collar | 20,000 MMBtu/day | $3.00 - $2.50 - $3.51 | IF – NYMEX (HH) | ||||
Jul'18 – Dec'18 | Crude oil – swap | 4,000 Bbl/day | $53.52 | WTI – NYMEX | ||||
Jul'18 – Dec'18 | Crude oil – price differential risk | 500 Bbl/day | $7.00 | LLS/WTI | ||||
Jul'18 – Dec'18 | Crude oil – three-way collar | 2,000 Bbl/day | $47.50 - $37.50 - $56.08 | WTI – NYMEX | ||||
Jan'19 – Dec'19 | Crude oil – three-way collar | 2,000 Bbl/day | $57.50 - $47.50 - $71.90 | WTI – NYMEX | ||||
Jul'18 – Sep'18 | NGLs – swap (1) | 1,500 Bbl/day | $32.14 | OPIS – Mont Belvieu |
(1) | Type of NGLs involved is propane. |
Term | Commodity | Contracted Volume | Weighted Average Fixed Price | Contracted Market | ||||
Jan'19 – Dec'19 | Natural gas – basis swap | 10,000 MMBtu/day | $(0.590) | PEPL |
Derivative Assets | ||||||||||
Fair Value | ||||||||||
Balance Sheet Location | June 30, 2018 | December 31, 2017 | ||||||||
(In thousands) | ||||||||||
Commodity derivatives: | ||||||||||
Current | Current derivative asset | $ | 127 | $ | 721 | |||||
Long-term | Non-current derivative asset | — | — | |||||||
Total derivative assets | $ | 127 | $ | 721 |
Derivative Liabilities | ||||||||||
Fair Value | ||||||||||
Balance Sheet Location | June 30, 2018 | December 31, 2017 | ||||||||
(In thousands) | ||||||||||
Commodity derivatives: | ||||||||||
Current | Current derivative liability | $ | 18,555 | $ | 7,763 | |||||
Long-term | Non-current derivative liability | 910 | — | |||||||
Total derivative liabilities | $ | 19,465 | $ | 7,763 |
Derivatives Instruments | Location of Gain (Loss) Recognized in Income on Derivative | Amount of Gain (Loss) Recognized in Income on Derivative | ||||||||
2018 | 2017 | |||||||||
(In thousands) | ||||||||||
Commodity derivatives | Gain (loss) on derivatives (1) | $ | (14,461 | ) | $ | 8,902 | ||||
Total | $ | (14,461 | ) | $ | 8,902 |
(1) | Amounts settled during the 2018 and 2017 periods include net payments of $6.9 million and $0.4 million, respectively. |
Derivatives Instruments | Location of Gain (Loss) Recognized in Income on Derivative | Amount of Gain (Loss) Recognized in Income on Derivative | ||||||||
2018 | 2017 | |||||||||
(In thousands) | ||||||||||
Commodity derivatives | Gain (loss) on derivatives (1) | $ | (21,223 | ) | $ | 23,633 | ||||
Total | $ | (21,223 | ) | $ | 23,633 |
(1) | Amounts settled during the 2018 and 2017 periods include payments of $8.9 million and $1.6 million, respectively. |
Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | |||||||||||||
(In thousands) | ||||||||||||||||
Equity Securities: | ||||||||||||||||
June 30, 2018 | $ | 830 | $ | — | $ | 86 | $ | 744 | ||||||||
December 31, 2017 | $ | 830 | $ | 102 | $ | — | $ | 932 |
• | 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. |
June 30, 2018 | ||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Effect of Netting | Net Amounts Presented | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Financial assets (liabilities): | ||||||||||||||||||||
Commodity derivatives: | ||||||||||||||||||||
Assets | $ | — | $ | 1,196 | $ | 390 | $ | (1,459 | ) | $ | 127 | |||||||||
Liabilities | — | (14,399 | ) | (6,525 | ) | 1,459 | (19,465 | ) | ||||||||||||
Total commodity derivatives | — | (13,203 | ) | (6,135 | ) | — | (19,338 | ) | ||||||||||||
Equity securities | 744 | — | — | — | 744 | |||||||||||||||
$ | 744 | $ | (13,203 | ) | $ | (6,135 | ) | $ | — | $ | (18,594 | ) |
December 31, 2017 | ||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Effect of Netting | Net Amounts Presented | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Financial assets (liabilities): | ||||||||||||||||||||
Commodity derivatives: | ||||||||||||||||||||
Assets | $ | — | $ | 2,137 | $ | 3,344 | $ | (4,760 | ) | $ | 721 | |||||||||
Liabilities | — | (8,973 | ) | (3,550 | ) | 4,760 | (7,763 | ) | ||||||||||||
Total commodity derivatives | $ | — | $ | (6,836 | ) | $ | (206 | ) | $ | — | $ | (7,042 | ) | |||||||
Equity securities | 932 | — | — | — | 932 | |||||||||||||||
$ | 932 | $ | (6,836 | ) | $ | (206 | ) | $ | — | $ | (6,110 | ) |
Net Derivatives | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
(In thousands) | ||||||||||||||||
Beginning of period | $ | (3,206 | ) | $ | (602 | ) | $ | (206 | ) | $ | (7,122 | ) | ||||
Total gains or losses (realized and unrealized): | ||||||||||||||||
Included in earnings (1) | (4,704 | ) | 5,214 | (8,624 | ) | 11,117 | ||||||||||
Settlements | 1,775 | (519 | ) | 2,695 | 98 | |||||||||||
End of period | $ | (6,135 | ) | $ | 4,093 | $ | (6,135 | ) | $ | 4,093 | ||||||
Total gains (losses) for the period included in earnings attributable to the change in unrealized gain relating to assets still held at end of period | $ | (2,929 | ) | $ | 4,695 | $ | (5,929 | ) | $ | 11,215 |
(1) | Commodity derivatives are reported in the Unaudited Condensed Consolidated Income Statements in gain (loss) on derivatives. |
Commodity (1) | Fair Value | Valuation Technique | Unobservable Input | Range | ||||||
(In thousands) | ||||||||||
Oil three-way collars | $ | (6,420 | ) | Discounted cash flow | Forward commodity price curve | $0 - $18.05 | ||||
Natural gas collar | $ | (105 | ) | Discounted cash flow | Forward commodity price curve | $0 - $0.08 | ||||
Natural gas three-way collars | $ | 390 | Discounted cash flow | Forward commodity price curve | $0 - $0.18 |
(1) | The commodity contracts detailed in this category include non-exchange-traded crude oil and natural gas collars and 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. |
June 30, 2018 | ||||
(In thousands) | ||||
Current assets: | ||||
Cash and cash equivalents | $ | 7,002 | ||
Accounts receivable | 28,378 | |||
Prepaid expenses and other | 3,009 | |||
Total current assets | 38,389 | |||
Property and equipment: | ||||
Gas gathering and processing equipment | 736,488 | |||
Transportation equipment | 3,102 | |||
739,590 | ||||
Less accumulated depreciation, depletion, amortization, and impairment | 342,269 | |||
Net property and equipment | 397,321 | |||
Other assets | 14,916 | |||
Total assets | $ | 450,626 | ||
Current liabilities: | ||||
Accounts payable | $ | 24,898 | ||
Accrued liabilities | 2,005 | |||
Current portion of other long-term liabilities | 6,796 | |||
Total current liabilities | 33,699 | |||
Long-term debt less debt issuance costs | — | |||
Other long-term liabilities | 17,856 | |||
Total liabilities | $ | 51,555 |
2018 | 2017 | |||||||
(In thousands) | ||||||||
Unrealized appreciation on securities, before tax | $ | 46 | $ | 32 | ||||
Tax expense | (11 | ) | (1) | (12 | ) | |||
Unrealized appreciation on securities, net of tax | $ | 35 | $ | 20 |
(1) | Due to the implementation of ASU 2018-02, the tax rate changed from 37.75% to 24.5%. |
Net Gains on Equity Securities | ||||||||
2018 | 2017 | |||||||
(In thousands) | ||||||||
Balance at March 31: | $ | (100 | ) | $ | — | |||
Unrealized appreciation before reclassifications | 35 | (1) | 20 | |||||
Amounts reclassified from accumulated other comprehensive income | — | — | ||||||
Net current-period other comprehensive income | 35 | 20 | ||||||
Balance at June 30: | $ | (65 | ) | $ | 20 |
(1) | Due to the implementation of ASU 2018-02, the tax rate changed from 37.75% to 24.5%. |
2018 | 2017 | |||||||
(In thousands) | ||||||||
Unrealized appreciation (loss) on securities, before tax | $ | (188 | ) | $ | 32 | |||
Tax benefit (expense) | 47 | (1) | (12 | ) | ||||
Unrealized appreciation (loss) on securities, net of tax | $ | (141 | ) | $ | 20 |
(1) | Due to the implementation of ASU 2018-02, the tax rate changed from 37.75% to 24.5%. |
Net Gains on Equity Securities | ||||||||
2018 | 2017 | |||||||
(In thousands) | ||||||||
Balance at December 31, 2017 | $ | 63 | $ | — | ||||
Adjustment due to ASU 2018-02 | 13 | (1) | — | |||||
Balance at January 1: | 76 | — | ||||||
Unrealized appreciation (loss) before reclassifications | (141 | ) | (1) | 20 | ||||
Amounts reclassified from accumulated other comprehensive income | — | — | ||||||
Net current-period other comprehensive income (loss) | (141 | ) | 20 | |||||
Balance at June 30: | $ | (65 | ) | $ | 20 |
(1) | Due to the implementation of ASU 2018-02, the tax rate changed from 37.75% to 24.5%. |
• | Oil and natural gas, |
• | Contract drilling, and |
• | Mid-stream |
Three Months Ended June 30, 2018 | ||||||||||||||||||||||||
Oil and Natural Gas | Contract Drilling | Mid-stream | Other | Eliminations | Total Consolidated | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Revenues: (1) | ||||||||||||||||||||||||
Oil and natural gas | $ | 102,318 | $ | — | $ | — | $ | — | $ | — | $ | 102,318 | ||||||||||||
Contract drilling | — | 52,767 | — | — | (5,841 | ) | 46,926 | |||||||||||||||||
Gas gathering and processing | — | — | 75,406 | — | (21,347 | ) | 54,059 | |||||||||||||||||
Total revenues | 102,318 | 52,767 | 75,406 | — | (27,188 | ) | 203,303 | |||||||||||||||||
Expenses: | ||||||||||||||||||||||||
Operating costs: | ||||||||||||||||||||||||
Oil and natural gas | 33,682 | — | — | — | (1,264 | ) | 32,418 | |||||||||||||||||
Contract drilling | — | 36,921 | — | — | (5,027 | ) | 31,894 | |||||||||||||||||
Gas gathering and processing | — | — | 59,786 | 3,576 | (23,659 | ) | 39,703 | |||||||||||||||||
Total operating costs | 33,682 | 36,921 | 59,786 | 3,576 | (29,950 | ) | 104,015 | |||||||||||||||||
Depreciation, depletion, and amortization | 31,554 | 13,726 | 11,175 | 1,918 | — | 58,373 | ||||||||||||||||||
Total expenses | 65,236 | 50,647 | 70,961 | 5,494 | (29,950 | ) | 162,388 | |||||||||||||||||
Total operating income (loss) (2) | 37,082 | 2,120 | 4,445 | (5,494 | ) | 2,762 | ||||||||||||||||||
General and administrative expense | — | — | — | (8,712 | ) | — | (8,712 | ) | ||||||||||||||||
Gain on disposition of assets | 59 | 57 | 45 | — | — | 161 | ||||||||||||||||||
Loss on derivatives | — | — | — | (14,461 | ) | — | (14,461 | ) | ||||||||||||||||
Interest, net | — | — | (304 | ) | (7,425 | ) | — | (7,729 | ) | |||||||||||||||
Other | — | — | — | 3,581 | (3,576 | ) | 5 | |||||||||||||||||
Income (loss) before income taxes | $ | 37,141 | $ | 2,177 | $ | 4,186 | $ | (32,511 | ) | $ | (814 | ) | $ | 10,179 |
(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. |
(2) | Operating income (loss) is total operating revenues less operating expenses, depreciation, depletion, and amortization and does not include general corporate expenses, gain on disposition of assets, loss on derivatives, interest, net, other income, or income taxes. |
Three Months Ended June 30, 2017 | ||||||||||||||||||||||||
Oil and Natural Gas | Contract Drilling | Mid-stream | Other | Eliminations | Total Consolidated | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Oil and natural gas | $ | 83,173 | $ | — | $ | — | $ | — | $ | — | $ | 83,173 | ||||||||||||
Contract drilling | — | 44,844 | — | — | (5,589 | ) | 39,255 | |||||||||||||||||
Gas gathering and processing | — | — | 63,111 | — | (14,958 | ) | 48,153 | |||||||||||||||||
Total revenues | 83,173 | 44,844 | 63,111 | — | (20,547 | ) | 170,581 | |||||||||||||||||
Expenses: | ||||||||||||||||||||||||
Operating costs: | ||||||||||||||||||||||||
Oil and natural gas | 33,941 | — | — | — | (1,183 | ) | 32,758 | |||||||||||||||||
Contract drilling | — | 32,452 | — | — | (5,213 | ) | 27,239 | |||||||||||||||||
Gas gathering and processing | — | — | 49,817 | — | (13,775 | ) | 36,042 | |||||||||||||||||
Total operating costs | 33,941 | 32,452 | 49,817 | — | (20,171 | ) | 96,039 | |||||||||||||||||
Depreciation, depletion, and amortization | 23,558 | 13,769 | 10,849 | 1,904 | — | 50,080 | ||||||||||||||||||
Total expenses | 57,499 | 46,221 | 60,666 | 1,904 | (20,171 | ) | 146,119 | |||||||||||||||||
Total operating income (loss)(1) | 25,674 | (1,377 | ) | 2,445 | (1,904 | ) | (376 | ) | ||||||||||||||||
General and administrative expense | — | — | — | (8,713 | ) | — | (8,713 | ) | ||||||||||||||||
Gain on disposition of assets | 168 | 31 | 44 | 5 | — | 248 | ||||||||||||||||||
Gain on derivatives | — | — | — | 8,902 | — | 8,902 | ||||||||||||||||||
Interest, net | — | — | — | (9,467 | ) | — | (9,467 | ) | ||||||||||||||||
Other | — | — | — | 6 | — | 6 | ||||||||||||||||||
Income (loss) before income taxes | $ | 25,842 | $ | (1,346 | ) | $ | 2,489 | $ | (11,171 | ) | $ | (376 | ) | $ | 15,438 |
(1) | Operating income (loss) is total operating revenues less operating expenses, depreciation, depletion, and amortization and does not include general corporate expenses, gain on disposition of assets, gain on derivatives, interest, net, other income, or income taxes. |
Six Months Ended June 30, 2018 | ||||||||||||||||||||||||
Oil and Natural Gas | Contract Drilling | Mid-stream | Other | Eliminations | Total Consolidated | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Revenues: (1) | ||||||||||||||||||||||||
Oil and natural gas | $ | 205,417 | $ | — | $ | — | $ | — | $ | — | $ | 205,417 | ||||||||||||
Contract drilling | — | 103,477 | — | — | (10,562 | ) | 92,915 | |||||||||||||||||
Gas gathering and processing | — | — | 150,056 | — | (39,953 | ) | 110,103 | |||||||||||||||||
Total revenues | 205,417 | 103,477 | 150,056 | — | (50,515 | ) | 408,435 | |||||||||||||||||
Expenses: | ||||||||||||||||||||||||
Operating costs: | ||||||||||||||||||||||||
Oil and natural gas | 70,834 | — | — | — | (2,454 | ) | 68,380 | |||||||||||||||||
Contract drilling | — | 72,875 | — | — | (9,314 | ) | 63,561 | |||||||||||||||||
Gas gathering and processing | — | — | 118,806 | 3,576 | (41,075 | ) | 81,307 | |||||||||||||||||
Total operating costs | 70,834 | 72,875 | 118,806 | 3,576 | (52,843 | ) | 213,248 | |||||||||||||||||
Depreciation, depletion, and amortization | 62,337 | 27,038 | 22,228 | 3,836 | — | 115,439 | ||||||||||||||||||
Total expenses | 133,171 | 99,913 | 141,034 | 7,412 | (52,843 | ) | 328,687 | |||||||||||||||||
Total operating income (loss) (2) | 72,246 | 3,564 | 9,022 | (7,412 | ) | 2,328 | ||||||||||||||||||
General and administrative expense | — | — | — | (19,474 | ) | — | (19,474 | ) | ||||||||||||||||
Gain on disposition of assets | 129 | 84 | 79 | 30 | — | 322 | ||||||||||||||||||
Loss on derivatives | — | — | — | (21,223 | ) | — | (21,223 | ) | ||||||||||||||||
Interest, net | — | — | (453 | ) | (17,280 | ) | — | (17,733 | ) | |||||||||||||||
Other | — | — | — | 3,587 | (3,576 | ) | 11 | |||||||||||||||||
Income (loss) before income taxes | $ | 72,375 | $ | 3,648 | $ | 8,648 | $ | (61,772 | ) | $ | (1,248 | ) | $ | 21,651 |
(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. |
(2) | Operating income (loss) is total operating revenues less operating expenses, depreciation, depletion, and amortization and does not include general corporate expenses, gain on disposition of assets, loss on derivatives, interest, net, other income, or income taxes. |
Six Months Ended June 30, 2017 | ||||||||||||||||||||||||
Oil and Natural Gas | Contract Drilling | Mid-stream | Other | Eliminations | Total Consolidated | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Oil and natural gas | $ | 170,771 | $ | — | $ | — | $ | — | $ | — | $ | 170,771 | ||||||||||||
Contract drilling | — | 82,029 | — | — | (5,589 | ) | 76,440 | |||||||||||||||||
Gas gathering and processing | — | — | 129,575 | — | (30,481 | ) | 99,094 | |||||||||||||||||
Total revenues | 170,771 | 82,029 | 129,575 | — | (36,070 | ) | 346,305 | |||||||||||||||||
Expenses: | ||||||||||||||||||||||||
Operating costs: | ||||||||||||||||||||||||
Oil and natural gas | 64,267 | — | — | — | (2,305 | ) | 61,962 | |||||||||||||||||
Contract drilling | — | 61,679 | — | — | (5,213 | ) | 56,466 | |||||||||||||||||
Gas gathering and processing | — | — | 101,922 | — | (28,176 | ) | 73,746 | |||||||||||||||||
Total operating costs | 64,267 | 61,679 | 101,922 | — | (35,694 | ) | 192,174 | |||||||||||||||||
Depreciation, depletion, and amortization | 45,084 | 26,616 | 21,667 | 3,645 | — | 97,012 | ||||||||||||||||||
Total expenses | 109,351 | 88,295 | 123,589 | 3,645 | (35,694 | ) | 289,186 | |||||||||||||||||
Total operating income (loss)(1) | 61,420 | (6,266 | ) | 5,986 | (3,645 | ) | (376 | ) | ||||||||||||||||
General and administrative expense | — | — | — | (17,667 | ) | — | (17,667 | ) | ||||||||||||||||
Gain on disposition of assets | 177 | 38 | 44 | 813 | — | 1,072 | ||||||||||||||||||
Gain on derivatives | — | — | — | 23,633 | — | 23,633 | ||||||||||||||||||
Interest, net | — | — | — | (18,863 | ) | — | (18,863 | ) | ||||||||||||||||
Other | — | — | — | 9 | — | 9 | ||||||||||||||||||
Income (loss) before income taxes | $ | 61,597 | $ | (6,228 | ) | $ | 6,030 | $ | (15,720 | ) | $ | (376 | ) | $ | 45,303 |
(1) | Operating income (loss) is total operating revenues less operating expenses, depreciation, depletion, and amortization and does not include general corporate expenses, gain on disposition of assets, gain on derivatives, interest, net, other income, or income taxes. |
• | we are referred to as "Parent", |
• | the direct subsidiaries are 100% owned by the Parent and the guarantee is full and unconditional and joint and several and referred to as "Combined Guarantor Subsidiaries", and |
• | Superior and its subsidiaries and the Operator are referred to as "Non-Guarantor Subsidiaries." |
June 30, 2018 | |||||||||||||||||||
Parent | Combined Guarantor Subsidiaries | Combined Non-Guarantor Subsidiaries | Consolidating Adjustments | Total Consolidated | |||||||||||||||
(In thousands) | |||||||||||||||||||
ASSETS | |||||||||||||||||||
Current assets: | |||||||||||||||||||
Cash and cash equivalents | $ | 97,052 | $ | 254 | $ | 7,002 | $ | — | $ | 104,308 | |||||||||
Accounts receivable, net of allowance for doubtful accounts of $2,450 | 885 | 84,851 | 27,641 | — | 113,377 | ||||||||||||||
Materials and supplies | — | 501 | — | — | 501 | ||||||||||||||
Current derivative asset | 127 | — | — | — | 127 | ||||||||||||||
Prepaid expenses and other | 2,643 | 3,079 | 3,009 | — | 8,731 | ||||||||||||||
Total current assets | 100,707 | 88,685 | 37,652 | — | 227,044 | ||||||||||||||
Property and equipment: | |||||||||||||||||||
Oil and natural gas properties on the full cost method: | |||||||||||||||||||
Proved properties | — | 5,809,850 | — | — | 5,809,850 | ||||||||||||||
Unproved properties not being amortized | — | 325,595 | — | — | 325,595 | ||||||||||||||
Drilling equipment | — | 1,612,817 | — | — | 1,612,817 | ||||||||||||||
Gas gathering and processing equipment | — | — | 736,488 | — | 736,488 | ||||||||||||||
Saltwater disposal systems | — | 65,218 | — | — | 65,218 | ||||||||||||||
Corporate land and building | — | 59,081 | — | — | 59,081 | ||||||||||||||
Transportation equipment | 9,244 | 17,572 | 3,102 | — | 29,918 | ||||||||||||||
Other | 28,246 | 28,135 | — | — | 56,381 | ||||||||||||||
37,490 | 7,918,268 | 739,590 | — | 8,695,348 | |||||||||||||||
Less accumulated depreciation, depletion, amortization, and impairment | 24,335 | 5,896,900 | 342,269 | — | 6,263,504 | ||||||||||||||
Net property and equipment | 13,155 | 2,021,368 | 397,321 | — | 2,431,844 | ||||||||||||||
Intercompany receivable | 877,823 | — | — | (877,823 | ) | — | |||||||||||||
Goodwill | — | 62,808 | — | — | 62,808 | ||||||||||||||
Investments | 1,216,959 | 1,500 | — | (1,216,959 | ) | 1,500 | |||||||||||||
Other assets | 5,472 | 6,225 | 14,916 | — | 26,613 | ||||||||||||||
Total assets | $ | 2,214,116 | $ | 2,180,586 | $ | 449,889 | $ | (2,094,782 | ) | $ | 2,749,809 |
June 30, 2018 | |||||||||||||||||||
Parent | Combined Guarantor Subsidiaries | Combined Non-Guarantor Subsidiaries | Consolidating Adjustments | Total Consolidated | |||||||||||||||
(In thousands) | |||||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||||||
Current liabilities: | |||||||||||||||||||
Accounts payable | $ | 9,669 | $ | 81,827 | $ | 22,915 | $ | — | $ | 114,411 | |||||||||
Accrued liabilities | 21,618 | 24,880 | 2,566 | — | 49,064 | ||||||||||||||
Income taxes payable | 4,648 | — | — | — | 4,648 | ||||||||||||||
Current derivative liability | 18,555 | — | — | — | 18,555 | ||||||||||||||
Current portion of other long-term liabilities | 615 | 6,625 | 6,796 | — | 14,036 | ||||||||||||||
Total current liabilities | 55,105 | 113,332 | 32,277 | — | 200,714 | ||||||||||||||
Intercompany debt | — | 876,277 | 1,546 | (877,823 | ) | — | |||||||||||||
Bonds payable less debt issuance costs | 643,371 | — | — | — | 643,371 | ||||||||||||||
Non-current derivative liabilities | 910 | — | — | — | 910 | ||||||||||||||
Other long-term liabilities | 12,613 | 72,459 | 17,856 | — | 102,928 | ||||||||||||||
Deferred income taxes | 57,802 | 100,430 | — | — | 158,232 | ||||||||||||||
Shareholders’ equity: | |||||||||||||||||||
Preferred stock, $1.00 par value, 5,000,000 shares authorized, none issued | — | — | — | — | — | ||||||||||||||
Common stock, $.20 par value, 175,000,000 shares authorized, 54,089,366 shares issued | 10,414 | — | — | — | 10,414 | ||||||||||||||
Capital in excess of par value | 622,120 | 45,921 | 197,042 | (242,963 | ) | 622,120 | |||||||||||||
Accumulated other comprehensive loss | — | (65 | ) | — | — | (65 | ) | ||||||||||||
Retained earnings | 811,781 | 972,232 | 1,764 | (973,996 | ) | 811,781 | |||||||||||||
Total shareholders’ equity attributable to Unit Corporation | 1,444,315 | 1,018,088 | 198,806 | (1,216,959 | ) | 1,444,250 | |||||||||||||
Non-controlling interests in consolidated subsidiaries | — | — | 199,404 | — | 199,404 | ||||||||||||||
Total shareholders' equity | 1,444,315 | 1,018,088 | 398,210 | (1,216,959 | ) | 1,643,654 | |||||||||||||
Total liabilities and shareholders’ equity | $ | 2,214,116 | $ | 2,180,586 | $ | 449,889 | $ | (2,094,782 | ) | $ | 2,749,809 |
December 31, 2017 | |||||||||||||||||||
Parent | Combined Guarantor Subsidiaries | Combined Non-Guarantor Subsidiaries | Consolidating Adjustments | Total Consolidated | |||||||||||||||
(In thousands) | |||||||||||||||||||
ASSETS | |||||||||||||||||||
Current assets: | |||||||||||||||||||
Cash and cash equivalents | $ | 510 | $ | 191 | $ | — | $ | — | $ | 701 | |||||||||
Accounts receivable, net of allowance for doubtful accounts of $2,450 | 154 | 83,442 | 27,916 | — | 111,512 | ||||||||||||||
Materials and supplies | — | 505 | — | — | 505 | ||||||||||||||
Current derivative asset | 721 | — | — | — | 721 | ||||||||||||||
Prepaid expenses and other | 2,986 | 2,370 | 877 | — | 6,233 | ||||||||||||||
Total current assets | 4,371 | 86,508 | 28,793 | — | 119,672 | ||||||||||||||
Property and equipment: | |||||||||||||||||||
Oil and natural gas properties on the full cost method: | |||||||||||||||||||
Proved properties | — | 5,712,813 | — | — | 5,712,813 | ||||||||||||||
Unproved properties not being amortized | — | 296,764 | — | — | 296,764 | ||||||||||||||
Drilling equipment | — | 1,593,611 | — | — | 1,593,611 | ||||||||||||||
Gas gathering and processing equipment | — | — | 726,236 | — | 726,236 | ||||||||||||||
Saltwater disposal systems | — | 62,618 | — | — | 62,618 | ||||||||||||||
Corporate land and building | — | 59,080 | — | — | 59,080 | ||||||||||||||
Transportation equipment | 9,270 | 17,423 | 2,938 | — | 29,631 | ||||||||||||||
Other | 28,039 | 25,400 | — | — | 53,439 | ||||||||||||||
37,309 | 7,767,709 | 729,174 | — | 8,534,192 | |||||||||||||||
Less accumulated depreciation, depletion, amortization, and impairment | 21,268 | 5,807,757 | 322,425 | — | 6,151,450 | ||||||||||||||
Net property and equipment | 16,041 | 1,959,952 | 406,749 | — | 2,382,742 | ||||||||||||||
Intercompany receivable | 1,155,725 | — | — | (1,155,725 | ) | — | |||||||||||||
Goodwill | — | 62,808 | — | — | 62,808 | ||||||||||||||
Investments | 1,044,709 | 1,500 | — | (1,044,709 | ) | 1,500 | |||||||||||||
Other assets | 5,373 | 6,328 | 3,029 | — | 14,730 | ||||||||||||||
Total assets | $ | 2,226,219 | $ | 2,117,096 | $ | 438,571 | $ | (2,200,434 | ) | $ | 2,581,452 |
December 31, 2017 | |||||||||||||||||||
Parent | Combined Guarantor Subsidiaries | Combined Non-Guarantor Subsidiaries | Consolidating Adjustments | Total Consolidated | |||||||||||||||
(In thousands) | |||||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||||||
Current liabilities: | |||||||||||||||||||
Accounts payable | $ | 13,124 | $ | 81,334 | $ | 18,190 | $ | — | $ | 112,648 | |||||||||
Accrued liabilities | 26,165 | 19,134 | 3,224 | — | 48,523 | ||||||||||||||
Current derivative liability | 7,763 | — | — | — | 7,763 | ||||||||||||||
Current portion of other long-term liabilities | 657 | 8,501 | 3,844 | — | 13,002 | ||||||||||||||
Total current liabilities | 47,709 | 108,969 | 25,258 | — | 181,936 | ||||||||||||||
Intercompany debt | — | 870,582 | 285,143 | (1,155,725 | ) | — | |||||||||||||
Long-term debt | 178,000 | — | — | — | 178,000 | ||||||||||||||
Bonds payable less debt issuance costs | 642,276 | — | — | — | 642,276 | ||||||||||||||
Other long-term liabilities | 11,257 | 77,566 | 11,380 | — | 100,203 | ||||||||||||||
Deferred income taxes | 1,480 | 85,443 | 46,554 | — | 133,477 | ||||||||||||||
Shareholders’ equity: | |||||||||||||||||||
Preferred stock, $1.00 par value, 5,000,000 shares authorized, none issued | — | — | — | — | — | ||||||||||||||
Common stock, $.20 par value, 175,000,000 shares authorized, 52,880,134 shares issued | 10,280 | — | — | — | 10,280 | ||||||||||||||
Capital in excess of par value | 535,815 | 45,921 | 15,549 | (61,470 | ) | 535,815 | |||||||||||||
Accumulated other comprehensive income | — | 63 | — | — | 63 | ||||||||||||||
Retained earnings | 799,402 | 928,552 | 54,687 | (983,239 | ) | 799,402 | |||||||||||||
Total shareholders’ equity attributable to Unit Corporation | 1,345,497 | 974,536 | 70,236 | (1,044,709 | ) | 1,345,560 | |||||||||||||
Non-controlling interests in consolidated subsidiaries | — | — | — | — | — | ||||||||||||||
Total shareholders' equity | 1,345,497 | 974,536 | 70,236 | (1,044,709 | ) | 1,345,560 | |||||||||||||
Total liabilities and shareholders’ equity | $ | 2,226,219 | $ | 2,117,096 | $ | 438,571 | $ | (2,200,434 | ) | $ | 2,581,452 |
Three Months Ended June 30, 2018 | |||||||||||||||||||
Parent | Combined Guarantor Subsidiaries | Combined Non-Guarantor Subsidiaries | Consolidating Adjustments | Total Consolidated | |||||||||||||||
(In thousands) | |||||||||||||||||||
Revenues | $ | — | $ | 155,085 | $ | 75,406 | $ | (27,188 | ) | $ | 203,303 | ||||||||
Expenses: | |||||||||||||||||||
Operating costs | — | 70,603 | 59,786 | (26,374 | ) | 104,015 | |||||||||||||
Depreciation, depletion, and amortization | 1,918 | 45,280 | 11,175 | — | 58,373 | ||||||||||||||
General and administrative | — | 8,655 | 57 | — | 8,712 | ||||||||||||||
Gain on disposition of assets | — | (116 | ) | (45 | ) | — | (161 | ) | |||||||||||
Total operating costs | 1,918 | 124,422 | 70,973 | (26,374 | ) | 170,939 | |||||||||||||
Income from operations | (1,918 | ) | 30,663 | 4,433 | (814 | ) | 32,364 | ||||||||||||
Interest, net | (7,425 | ) | — | (304 | ) | — | (7,729 | ) | |||||||||||
Loss on derivatives | (14,461 | ) | — | — | — | (14,461 | ) | ||||||||||||
Other, net | 5 | — | — | — | 5 | ||||||||||||||
Income before income taxes | (23,799 | ) | 30,663 | 4,129 | (814 | ) | 10,179 | ||||||||||||
Income tax expense (benefit) | (6,029 | ) | 7,803 | 255 | — | 2,029 | |||||||||||||
Equity in net earnings from investment in subsidiaries, net of taxes | 23,558 | — | — | (23,558 | ) | — | |||||||||||||
Net income | 5,788 | 22,860 | 3,874 | (24,372 | ) | 8,150 | |||||||||||||
Less: net income attributable to non-controlling interest | — | — | 2,362 | — | 2,362 | ||||||||||||||
Net income attributable to Unit Corporation | $ | 5,788 | $ | 22,860 | $ | 1,512 | $ | (24,372 | ) | $ | 5,788 |
Three Months Ended June 30, 2017 | |||||||||||||||||||
Parent | Combined Guarantor Subsidiaries | Combined Non-Guarantor Subsidiaries | Consolidating Adjustments | Total Consolidated | |||||||||||||||
(In thousands) | |||||||||||||||||||
Revenues | $ | — | $ | 128,017 | $ | 63,111 | $ | (20,547 | ) | $ | 170,581 | ||||||||
Expenses: | |||||||||||||||||||
Operating costs | — | 66,393 | 49,817 | (20,171 | ) | 96,039 | |||||||||||||
Depreciation, depletion, and amortization | 1,904 | 37,327 | 10,849 | — | 50,080 | ||||||||||||||
General and administrative | — | 6,899 | 1,814 | — | 8,713 | ||||||||||||||
Gain on disposition of assets | (5 | ) | (199 | ) | (44 | ) | — | (248 | ) | ||||||||||
Total operating costs | 1,899 | 110,420 | 62,436 | (20,171 | ) | 154,584 | |||||||||||||
Income from operations | (1,899 | ) | 17,597 | 675 | (376 | ) | 15,997 | ||||||||||||
Interest, net | (9,290 | ) | — | (177 | ) | — | (9,467 | ) | |||||||||||
Gain on derivatives | 8,902 | — | — | — | 8,902 | ||||||||||||||
Other, net | 6 | (1 | ) | 1 | — | 6 | |||||||||||||
Income (loss) before income taxes | (2,281 | ) | 17,596 | 499 | (376 | ) | 15,438 | ||||||||||||
Income tax expense (benefit) | (1,002 | ) | 7,054 | 327 | — | 6,379 | |||||||||||||
Equity in net earnings from investment in subsidiaries, net of taxes | 10,338 | — | — | (10,338 | ) | — | |||||||||||||
Net income | 9,059 | 10,542 | 172 | (10,714 | ) | 9,059 | |||||||||||||
Less: net income attributable to non-controlling interest | — | — | — | — | — | ||||||||||||||
Net income attributable to Unit Corporation | $ | 9,059 | $ | 10,542 | $ | 172 | $ | (10,714 | ) | $ | 9,059 |
Six Months Ended June 30, 2018 | |||||||||||||||||||
Parent | Combined Guarantor Subsidiaries | Combined Non-Guarantor Subsidiaries | Consolidating Adjustments | Total Consolidated | |||||||||||||||
(In thousands) | |||||||||||||||||||
Revenues | $ | — | $ | 308,894 | $ | 150,056 | $ | (50,515 | ) | $ | 408,435 | ||||||||
Expenses: | |||||||||||||||||||
Operating costs | — | 143,709 | 118,806 | (49,267 | ) | 213,248 | |||||||||||||
Depreciation, depletion, and amortization | 3,836 | 89,375 | 22,228 | — | 115,439 | ||||||||||||||
General and administrative | — | 16,884 | 2,590 | — | 19,474 | ||||||||||||||
Gain on disposition of assets | (30 | ) | (213 | ) | (79 | ) | — | (322 | ) | ||||||||||
Total operating costs | 3,806 | 249,755 | 143,545 | (49,267 | ) | 347,839 | |||||||||||||
Income from operations | (3,806 | ) | 59,139 | 6,511 | (1,248 | ) | 60,596 | ||||||||||||
Interest, net | (17,280 | ) | — | (453 | ) | — | (17,733 | ) | |||||||||||
Loss on derivatives | (21,223 | ) | — | — | — | (21,223 | ) | ||||||||||||
Other, net | 11 | 1 | (1 | ) | — | 11 | |||||||||||||
Income (loss) before income taxes | (42,298 | ) | 59,140 | 6,057 | (1,248 | ) | 21,651 | ||||||||||||
Income tax expense (benefit) | (10,668 | ) | 15,460 | 844 | — | 5,636 | |||||||||||||
Equity in net earnings from investment in subsidiaries, net of tax | 45,283 | — | — | (45,283 | ) | — | |||||||||||||
Net income | 13,653 | 43,680 | 5,213 | (46,531 | ) | 16,015 | |||||||||||||
Less: net income attributable to non-controlling interest | — | — | 2,362 | — | 2,362 | ||||||||||||||
Net income attributable to Unit Corporation | $ | 13,653 | $ | 43,680 | $ | 2,851 | $ | (46,531 | ) | $ | 13,653 |
Six Months Ended June 30, 2017 | |||||||||||||||||||
Parent | Combined Guarantor Subsidiaries | Combined Non-Guarantor Subsidiaries | Consolidating Adjustments | Total Consolidated | |||||||||||||||
(In thousands) | |||||||||||||||||||
Revenues | $ | — | $ | 252,800 | $ | 129,575 | $ | (36,070 | ) | $ | 346,305 | ||||||||
Expenses: | |||||||||||||||||||
Operating costs | — | 125,946 | 101,922 | (35,694 | ) | 192,174 | |||||||||||||
Depreciation, depletion, and amortization | 3,645 | 71,700 | 21,667 | — | 97,012 | ||||||||||||||
General and administrative | — | 13,797 | 3,870 | — | 17,667 | ||||||||||||||
Gain on disposition of assets | (813 | ) | (215 | ) | (44 | ) | — | (1,072 | ) | ||||||||||
Total operating costs | 2,832 | 211,228 | 127,415 | (35,694 | ) | 305,781 | |||||||||||||
Income (loss) from operations | (2,832 | ) | 41,572 | 2,160 | (376 | ) | 40,524 | ||||||||||||
Interest, net | (18,500 | ) | — | (363 | ) | — | (18,863 | ) | |||||||||||
Gain on derivatives | 23,633 | — | — | — | 23,633 | ||||||||||||||
Other, net | 9 | — | — | — | 9 | ||||||||||||||
Income (loss) before income taxes | 2,310 | 41,572 | 1,797 | (376 | ) | 45,303 | |||||||||||||
Income tax expense (benefit) | 731 | 18,354 | 1,230 | — | 20,315 | ||||||||||||||
Equity in net earnings from investment in subsidiaries, net of tax | 23,409 | — | — | (23,409 | ) | — | |||||||||||||
Net income | 24,988 | 23,218 | 567 | (23,785 | ) | 24,988 | |||||||||||||
Less: net income attributable to non-controlling interest | — | — | — | — | — | ||||||||||||||
Net income attributable to Unit Corporation | $ | 24,988 | $ | 23,218 | $ | 567 | $ | (23,785 | ) | $ | 24,988 |
Three Months Ended June 30, 2018 | |||||||||||||||||||
Parent | Combined Guarantor Subsidiaries | Combined Non-Guarantor Subsidiaries | Consolidating Adjustments | Total Consolidated | |||||||||||||||
(In thousands) | |||||||||||||||||||
Net income | $ | 5,788 | $ | 22,860 | $ | 3,874 | $ | (24,372 | ) | $ | 8,150 | ||||||||
Other comprehensive income, net of taxes: | |||||||||||||||||||
Unrealized gain on securities, net of tax $11 | — | 35 | — | — | 35 | ||||||||||||||
Comprehensive income | 5,788 | 22,895 | 3,874 | (24,372 | ) | 8,185 | |||||||||||||
Less: Comprehensive income attributable to non-controlling interests | — | — | 2,362 | — | 2,362 | ||||||||||||||
Comprehensive income attributable to Unit Corporation | $ | 5,788 | $ | 22,895 | $ | 1,512 | $ | (24,372 | ) | $ | 5,823 |
Three Months Ended June 30, 2017 | |||||||||||||||||||
Parent | Combined Guarantor Subsidiaries | Combined Non-Guarantor Subsidiaries | Consolidating Adjustments | Total Consolidated | |||||||||||||||
(In thousands) | |||||||||||||||||||
Net income (loss) | $ | 9,059 | $ | 10,542 | $ | 172 | $ | (10,714 | ) | $ | 9,059 | ||||||||
Other comprehensive income, net of taxes: | |||||||||||||||||||
Unrealized gain on securities, net of tax of $12 | — | 20 | — | — | 20 | ||||||||||||||
Comprehensive income (loss) | 9,059 | 10,562 | 172 | (10,714 | ) | 9,079 | |||||||||||||
Less: Comprehensive income attributable to non-controlling interests | — | — | — | — | — | ||||||||||||||
Comprehensive income (loss) attributable to Unit Corporation | $ | 9,059 | $ | 10,562 | $ | 172 | $ | (10,714 | ) | $ | 9,079 |
Six Months Ended June 30, 2018 | |||||||||||||||||||
Parent | Combined Guarantor Subsidiaries | Combined Non-Guarantor Subsidiaries | Consolidating Adjustments | Total Consolidated | |||||||||||||||
(In thousands) | |||||||||||||||||||
Net income | $ | 13,653 | $ | 43,680 | $ | 5,213 | $ | (46,531 | ) | $ | 16,015 | ||||||||
Other comprehensive income, net of taxes: | |||||||||||||||||||
Unrealized loss on securities, net of tax of ($47) | — | (141 | ) | — | — | (141 | ) | ||||||||||||
Comprehensive income | 13,653 | 43,539 | 5,213 | (46,531 | ) | 15,874 | |||||||||||||
Less: Comprehensive income attributable to non-controlling interests | — | — | 2,362 | — | 2,362 | ||||||||||||||
Comprehensive income attributable to Unit Corporation | $ | 13,653 | $ | 43,539 | $ | 2,851 | $ | (46,531 | ) | $ | 13,512 |
Six Months Ended June 30, 2017 | |||||||||||||||||||
Parent | Combined Guarantor Subsidiaries | Combined Non-Guarantor Subsidiaries | Consolidating Adjustments | Total Consolidated | |||||||||||||||
(In thousands) | |||||||||||||||||||
Net income (loss) | $ | 24,988 | $ | 23,218 | $ | 567 | $ | (23,785 | ) | $ | 24,988 | ||||||||
Other comprehensive income, net of taxes: | |||||||||||||||||||
Unrealized gain on securities, net of tax of $12 | — | 20 | — | — | 20 | ||||||||||||||
Comprehensive income (loss) | 24,988 | 23,238 | 567 | (23,785 | ) | 25,008 | |||||||||||||
Less: Comprehensive income attributable to non-controlling interests | — | — | — | — | — | ||||||||||||||
Comprehensive income (loss) attributable to Unit Corporation | $ | 24,988 | $ | 23,238 | $ | 567 | $ | (23,785 | ) | $ | 25,008 |
Six Months Ended June 30, 2018 | |||||||||||||||||||
Parent | Combined Guarantor Subsidiaries | Combined Non-Guarantor Subsidiaries | Consolidating Adjustments | Total Consolidated | |||||||||||||||
(In thousands) | |||||||||||||||||||
OPERATING ACTIVITIES: | |||||||||||||||||||
Net cash provided by (used in) operating activities | (102,500 | ) | 145,000 | (14,800 | ) | 126,993 | 154,693 | ||||||||||||
INVESTING ACTIVITIES: | |||||||||||||||||||
Capital expenditures | (13 | ) | (173,097 | ) | (16,806 | ) | — | (189,916 | ) | ||||||||||
Producing properties and other acquisitions | — | (962 | ) | — | — | (962 | ) | ||||||||||||
Proceeds from disposition of assets | 30 | 23,427 | 71 | — | 23,528 | ||||||||||||||
Net cash provided by (used in) investing activities | 17 | (150,632 | ) | (16,735 | ) | — | (167,350 | ) | |||||||||||
FINANCING ACTIVITIES: | |||||||||||||||||||
Borrowings under credit agreement | 71,200 | — | — | — | 71,200 | ||||||||||||||
Payments under credit agreement | (249,200 | ) | — | — | — | (249,200 | ) | ||||||||||||
Intercompany borrowings (advances), net | 277,902 | 5,695 | (156,604 | ) | (126,993 | ) | — | ||||||||||||
Payments on capitalized leases | — | — | (1,901 | ) | — | (1,901 | ) | ||||||||||||
Proceeds from investments of non-controlling interest | 102,958 | — | 197,042 | — | 300,000 | ||||||||||||||
Transaction costs associated with sale of non-controlling interest | (2,254 | ) | — | — | — | (2,254 | ) | ||||||||||||
Book overdrafts | (1,581 | ) | — | — | — | (1,581 | ) | ||||||||||||
Net cash provided by (used in) financing activities | 199,025 | 5,695 | 38,537 | (126,993 | ) | 116,264 | |||||||||||||
Net increase in cash and cash equivalents | 96,542 | 63 | 7,002 | — | 103,607 | ||||||||||||||
Cash and cash equivalents, beginning of period | 510 | 191 | — | — | 701 | ||||||||||||||
Cash and cash equivalents, end of period | $ | 97,052 | $ | 254 | $ | 7,002 | $ | — | $ | 104,308 |
Six Months Ended June 30, 2017 | |||||||||||||||||||
Parent | Combined Guarantor Subsidiaries | Combined Non-Guarantor Subsidiaries | Consolidating Adjustments | Total Consolidated | |||||||||||||||
(In thousands) | |||||||||||||||||||
OPERATING ACTIVITIES: | |||||||||||||||||||
Net cash provided by (used in) operating activities | (13,497 | ) | 106,718 | 23,834 | — | 117,055 | |||||||||||||
INVESTING ACTIVITIES: | |||||||||||||||||||
Capital expenditures | (3,380 | ) | (97,337 | ) | (7,216 | ) | — | (107,933 | ) | ||||||||||
Producing properties and other acquisitions | — | (52,956 | ) | — | — | (52,956 | ) | ||||||||||||
Proceeds from disposition of assets | 955 | 18,557 | 44 | — | 19,556 | ||||||||||||||
Other | — | (1,500 | ) | — | — | (1,500 | ) | ||||||||||||
Net cash provided by (used in) investing activities | (2,425 | ) | (133,236 | ) | (7,172 | ) | — | (142,833 | ) | ||||||||||
FINANCING ACTIVITIES: | |||||||||||||||||||
Borrowings under credit agreement | 160,600 | — | — | — | 160,600 | ||||||||||||||
Payments under credit agreement | (156,500 | ) | — | — | — | (156,500 | ) | ||||||||||||
Intercompany borrowings (advances), net | (11,708 | ) | 26,469 | (14,761 | ) | — | — | ||||||||||||
Payments on capitalized leases | — | — | (1,901 | ) | — | (1,901 | ) | ||||||||||||
Proceeds from common stock issued, net of issue costs | 18,623 | — | — | — | 18,623 | ||||||||||||||
Book overdrafts | 4,912 | — | — | — | 4,912 | ||||||||||||||
Net cash provided by (used in) financing activities | 15,927 | 26,469 | (16,662 | ) | — | 25,734 | |||||||||||||
Net increase (decrease) in cash and cash equivalents | 5 | (49 | ) | — | — | (44 | ) | ||||||||||||
Cash and cash equivalents, beginning of period | 517 | 376 | — | — | 893 | ||||||||||||||
Cash and cash equivalents, end of period | $ | 522 | $ | 327 | $ | — | $ | — | $ | 849 |
• | General; |
• | Business Outlook; |
• | Executive Summary; |
• | Financial Condition and Liquidity; |
• | New Accounting Pronouncements; and |
• | Results of Operations. |
• | Oil and Natural Gas – carried out by our subsidiary Unit Petroleum Company. This segment explores, develops, acquires, and produces oil and natural gas properties for our own account. |
• | Contract Drilling – carried out by our subsidiary Unit Drilling Company. This segment contracts to drill onshore oil and natural gas wells for others and for our oil and natural gas segment. |
• | Mid-Stream – carried out by Superior Pipeline Company, L.L.C. and its subsidiaries. This segment buys, sells, gathers, processes, and treats natural gas for third parties and for our oil and natural gas segment. |
• | We have not incurred a non-cash ceiling test write-down since 2016. We had no write-down in the second quarter of 2018 nor the second quarter of 2017. It is hard to predict with any reasonable certainty the need for or amount of any future impairments given the many factors that go into the ceiling test calculation including, future pricing, operating costs, drilling and completion costs, upward or downward oil and gas reserve revisions, oil and gas reserve additions, and tax attributes. Subject to these inherent uncertainties, if we hold these same factors constant as they existed at June 30, 2018, and only adjust the 12-month average price to an estimated third quarter ending average (holding July 2018 prices constant for the remaining two months of the third quarter of 2018), our forward looking expectation is that we will not recognize an impairment in the third quarter of 2018. But commodity prices (and other factors) remain volatile and they could negatively affect the 12-month average price resulting in the potential for a future impairment. |
• | In 2018, our oil and natural gas segment plans to drill 75-85 wells (depending on future commodity prices). In 2017, we drilled 70 wells up from 21 in 2016 due to increased cash flow resulting from improvement in commodity prices. |
Term | Commodity | Contracted Volume | Weighted Average Fixed Price | Contracted Market | ||||
Jul'18 – Sep'18 | Natural gas – swap | 40,000 MMBtu/day | $2.985 | IF – NYMEX (HH) | ||||
Oct'18 | Natural gas – swap | 30,000 MMBtu/day | $3.005 | IF – NYMEX (HH) | ||||
Nov’18 – Dec'18 | Natural gas – swap | 20,000 MMBtu/day | $3.013 | IF – NYMEX (HH) | ||||
Jan'19 – Dec'19 | Natural gas – swap | 10,000 MMBtu/day | $2.810 | IF – NYMEX (HH) | ||||
Jul'18 – Oct'18 | Natural gas – basis swap | 10,000 MMBtu/day | $(0.190) | NGPL TEXOK | ||||
Jul'18 – Dec'18 | Natural gas – basis swap | 10,000 MMBtu/day | $(0.678) | PEPL | ||||
Jul'18 – Dec'18 | Natural gas – basis swap | 10,000 MMBtu/day | $(0.568) | NGPL MIDCON | ||||
Nov’18 – Dec'18 | Natural gas – basis swap | 10,000 MMBtu/day | $(0.208) | IF – NYMEX (HH) | ||||
Jan'19 – Dec'19 | Natural gas – basis swap | 10,000 MMBtu/day | $(0.728) | PEPL | ||||
Jan'19 – Dec'19 | Natural gas – basis swap | 10,000 MMBtu/day | $(0.625) | NGL MIDCON | ||||
Jan'19 – Dec'19 | Natural gas – basis swap | 30,000 MMBtu/day | $(0.265) | NGPL TEXOK | ||||
Jan'20 – Dec'20 | Natural gas – basis swap | 30,000 MMBtu/day | $(0.275) | NGPL TEXOK | ||||
Jul'18 – Sep'18 | Natural gas – collar | 30,000 MMBtu/day | $2.67 - $2.97 | IF – NYMEX (HH) | ||||
Jul'18 – Dec'18 | Natural gas – three-way collar | 20,000 MMBtu/day | $3.00 - $2.50 - $3.51 | IF – NYMEX (HH) | ||||
Jul'18 – Dec'18 | Crude oil – swap | 4,000 Bbl/day | $53.52 | WTI – NYMEX | ||||
Jul'18 – Dec'18 | Crude oil – price differential risk | 500 Bbl/day | $7.00 | LLS/WTI | ||||
Jul'18 – Dec'18 | Crude oil – three-way collar | 2,000 Bbl/day | $47.50 - $37.50 - $56.08 | WTI – NYMEX | ||||
Jan'19 – Dec'19 | Crude oil – three-way collar | 2,000 Bbl/day | $57.50 - $47.50 - $71.90 | WTI – NYMEX | ||||
Jul'18 – Sep'18 | NGLs – swap (1) | 1,500 Bbl/day | $32.14 | OPIS – Mont Belvieu |
Term | Commodity | Contracted Volume | Weighted Average Fixed Price | Contracted Market | ||||
Jan'19 – Dec'19 | Natural gas – basis swap | 10,000 MMBtu/day | $(0.590) | PEPL |
• | the amount of natural gas, oil, and NGLs we produce; |
• | the prices we receive for our natural gas, oil, and NGLs production; |
• | the demand for and the dayrates we receive for our drilling rigs; and |
• | the fees and margins we obtain from our natural gas gathering and processing contracts. |
Six Months Ended June 30, | % Change | ||||||||||
2018 | 2017 | ||||||||||
(In thousands except percentages) | |||||||||||
Net cash provided by operating activities | $ | 154,693 | $ | 117,055 | 32 | % | |||||
Net cash used in investing activities | (167,350 | ) | (142,833 | ) | 17 | % | |||||
Net cash provided by financing activities | 116,264 | 25,734 | NM | ||||||||
Net increase (decrease) in cash and cash equivalents | $ | 103,607 | $ | (44 | ) |
June 30, | % Change | ||||||||||
2018 | 2017 | ||||||||||
(In thousands except percentages) | |||||||||||
Working capital | $ | 26,330 | $ | (51,417 | ) | 151 | % | ||||
Long-term debt less debt issuance costs | $ | 643,371 | $ | 806,092 | (20 | )% | |||||
Unit Corporation's shareholders’ equity | $ | 1,444,250 | $ | 1,244,463 | 16 | % | |||||
Net income attributable to Unit Corporation | $ | 13,653 | $ | 24,988 | (45 | )% |
Six Months Ended | |||||||||||
June 30, | % Change | ||||||||||
2018 | 2017 | ||||||||||
Oil and Natural Gas: | |||||||||||
Oil production (MBbls) | 1,429 | 1,357 | 5 | % | |||||||
NGLs production (MBbls) | 2,425 | 2,233 | 9 | % | |||||||
Natural gas production (MMcf) | 27,237 | 24,232 | 12 | % | |||||||
Average oil price per barrel received | $ | 55.76 | $ | 47.77 | 17 | % | |||||
Average oil price per barrel received excluding derivatives | $ | 64.08 | $ | 47.27 | 36 | % | |||||
Average NGLs price per barrel received | $ | 21.65 | $ | 16.34 | 32 | % | |||||
Average NGLs price per barrel received excluding derivatives | $ | 21.91 | $ | 16.34 | 34 | % | |||||
Average natural gas price per Mcf received | $ | 2.40 | $ | 2.57 | (7 | )% | |||||
Average natural gas price per Mcf received excluding derivatives | $ | 2.27 | $ | 2.66 | (15 | )% | |||||
Contract Drilling: | |||||||||||
Average number of our drilling rigs in use during the period | 31.9 | 27.2 | 17 | % | |||||||
Total number of drilling rigs owned at the end of the period | 95 | 95 | — | % | |||||||
Average dayrate | $ | 17,184 | $ | 15,905 | 8 | % | |||||
Mid-Stream: | |||||||||||
Gas gathered—Mcf/day | 382,005 | 386,893 | (1 | )% | |||||||
Gas processed—Mcf/day | 155,799 | 130,804 | 19 | % | |||||||
Gas liquids sold—gallons/day | 627,305 | 511,969 | 23 | % | |||||||
Number of natural gas gathering systems | 22 | (1) | 25 | (12 | )% | ||||||
Number of processing plants | 14 | 13 | 8 | % |
Lender | Participation Interest | ||
BOK (BOKF, NA, dba Bank of Oklahoma) | 18.04 | % | |
Compass Bank | 17.71 | % | |
BMO Harris Financing, Inc. | 15.63 | % | |
Bank of America, N.A. | 15.63 | % | |
Comerica Bank | 8.33 | % | |
Canadian Imperial Bank of Commerce | 8.33 | % | |
Toronto Dominion (New York), LLC | 8.33 | % | |
Wells Fargo Bank, N.A. | 8.00 | % | |
100.00 | % |
• | the payment of dividends (other than stock dividends) during any fiscal year over 30% of our consolidated net income for the preceding fiscal year; |
• | the incurrence of additional debt with certain limited exceptions; |
• | the creation or existence of mortgages or liens, other than those in the ordinary course of business and with certain limited exceptions, on any of our properties, except in favor of our lenders; |
• | investments in Unrestricted Subsidiaries in excess of $200.0 million. |
• | a current ratio (as defined in the credit agreement) of not less than 1 to 1. |
• | a senior indebtedness ratio of senior indebtedness to consolidated EBITDA (as defined in the Unit credit agreement) for the most recently ended rolling four quarters of no greater than 2.75 to 1. |
• | a leverage ratio of funded debt to consolidated EBITDA (as defined in the Unit credit agreement) for the most recently ended rolling four fiscal quarters of no greater than 4 to 1. |
Lender | Participation Interest | ||
BOK (BOKF, NA, dba Bank of Oklahoma) | 17.50 | % | |
Compass Bank | 17.50 | % | |
BMO Harris Financing, Inc. | 13.75 | % | |
Toronto Dominion (New York), LLC | 13.75 | % | |
Bank of America, N.A. | 10.00 | % | |
Branch Banking and Trust Company | 10.00 | % | |
Comerica Bank | 10.00 | % | |
Canadian Imperial Bank of Commerce | 7.50 | % | |
100.00 | % |
Payments Due by Period | ||||||||||||||||||||
Total | Less Than 1 Year | 2-3 Years | 4-5 Years | After 5 Years | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Long-term debt (1) | $ | 773,878 | $ | 43,063 | $ | 730,815 | $ | — | $ | — | ||||||||||
Operating leases (2) | 6,731 | 4,920 | 1,761 | 50 | — | |||||||||||||||
Capital lease interest and maintenance(3) | 5,867 | 2,247 | 3,603 | 17 | — | |||||||||||||||
Drill pipe, drilling components, and equipment purchases (4) | 13,992 | 13,992 | — | — | — | |||||||||||||||
Total contractual obligations | $ | 800,468 | $ | 64,222 | $ | 736,179 | $ | 67 | $ | — |
(1) | See previous discussion in MD&A regarding our long-term debt. This obligation is presented in accordance with the terms of the Notes and credit agreement and includes interest calculated using our June 30, 2018 interest rates of 6.625% for the Notes. Our credit agreement has a maturity date of April 10, 2020. The outstanding credit facility balance was paid down on April 3, 2018 and as of June 30, 2018, we did not have any outstanding borrowings. |
(2) | We lease office space or yards in Edmond and Oklahoma City, Oklahoma; Houston, Texas; Englewood, Colorado; Pinedale, Wyoming; and Canonsburg, Pennsylvania under the terms of operating leases expiring through December 2021. Additionally, we have several equipment leases and lease space on short-term commitments to stack excess drilling rig equipment and production inventory. |
(3) | Maintenance and interest payments are included in our capital lease agreements. The capital leases are discounted using annual rates of 4.00%. Total maintenance and interest remaining are $5.0 million and $0.9 million, respectively. |
(4) | We have committed to pay $14.0 million for drilling rig components, drill pipe, and related equipment over the next year. |
Estimated Amount of Commitment Expiration Per Period | ||||||||||||||||||||
Other Commitments | Total Accrued | Less Than 1 Year | 2-3 Years | 4-5 Years | After 5 Years | |||||||||||||||
(In thousands) | ||||||||||||||||||||
Deferred compensation plan (1) | $ | 5,621 | Unknown | Unknown | Unknown | Unknown | ||||||||||||||
Separation benefit plans (2) | $ | 7,607 | $ | 615 | Unknown | Unknown | Unknown | |||||||||||||
Asset retirement liability (3) | $ | 62,838 | $ | 1,451 | $ | 37,055 | $ | 3,653 | $ | 20,679 | ||||||||||
Gas balancing liability (4) | $ | 3,283 | Unknown | Unknown | Unknown | Unknown | ||||||||||||||
Repurchase obligations (5) | $ | — | Unknown | Unknown | Unknown | Unknown | ||||||||||||||
Workers’ compensation liability (6) | $ | 12,963 | $ | 5,174 | $ | 2,359 | $ | 1,075 | $ | 4,355 | ||||||||||
Capital leases obligations (7) | $ | 13,321 | $ | 3,921 | $ | 9,238 | $ | 162 | $ | — | ||||||||||
Contract liability (8) | $ | 11,331 | $ | 2,875 | $ | 5,732 | $ | 2,724 | $ | — |
(1) | We provide a salary deferral plan which allows participants to defer the recognition of salary for income tax purposes until actual distribution of benefits, which occurs at either termination of employment, death, or certain defined unforeseeable emergency hardships. We recognize payroll expense and record a liability, included in other long-term liabilities in our Unaudited Condensed Consolidated Balance Sheets, at the time of deferral. |
(2) | Effective January 1, 1997, we adopted a separation benefit plan (“Separation Plan”). The Separation Plan allows eligible employees whose employment is involuntarily terminated or, in the case of an employee who has completed 20 years of service, voluntarily or involuntarily terminated, to receive benefits equivalent to four weeks salary for every whole year of service completed with the company up to a maximum of 104 weeks. To receive payments the recipient must waive certain claims against us in exchange for receiving the separation benefits. On October 28, 1997, we adopted a Separation Benefit Plan for Senior Management (“Senior Plan”). The Senior Plan provides certain officers and key executives of the company with benefits generally equivalent to the Separation Plan. The Compensation Committee of the Board of Directors has absolute discretion in the selection of the individuals covered in this plan. Currently there are no participants in the Senior Plan. On May 5, 2004 we also adopted the Special Separation Benefit Plan (“Special Plan”). This plan is identical to the Separation Benefit Plan with the exception that the benefits under the plan vest on the earliest of a participant’s reaching the age of 65 or serving 20 years with the company. |
(3) | When a well is drilled or acquired, under ASC 410 “Accounting for Asset Retirement Obligations,” we record the discounted fair value of liabilities associated with the retirement of long-lived assets (mainly plugging and abandonment costs for our depleted wells). |
(4) | We have recorded a liability for those properties we believe do not have sufficient oil, NGLs, and natural gas reserves to allow the under-produced owners to recover their under-production from future production volumes. |
(5) | We formed The Unit 1984 Oil and Gas Limited Partnership and the 1986 Energy Income Limited Partnership along with private limited partnerships (the “Partnerships”) with certain qualified employees, officers and directors from 1984 through 2011. One of our subsidiaries serves as the general partner of each of these programs. Effective December 31, 2014, The Unit 1984 Oil and Gas Limited Partnership dissolved and effective December 31, 2016, the two 1986 partnerships were dissolved. The Partnerships were formed for the purpose of conducting oil and natural gas acquisition, drilling and development operations and serving as co-general partner with us in any additional limited partnerships formed during that year. The Partnerships participated on a proportionate basis with us in most drilling operations and most producing property acquisitions commenced by us for our own account during the period from the formation of the Partnership through December 31 of that year. These partnership agreements require, on the election of a limited partner, that we repurchase the limited partner’s interest at amounts to be determined by appraisal in the future. Repurchases in any one year are limited to 20% of the units outstanding. We had no repurchases in the first six months of 2018 or 2017. |
(6) | We have recorded a liability for future estimated payments related to workers’ compensation claims primarily associated with our contract drilling segment. |
(7) | The amount includes commitments under capital lease arrangements for compressors in Superior. |
(8) | We have recorded a liability related to the timing of revenue recognized on certain demand fees for Superior. |
2018 | 2019 | ||||||||
Q3 | Q4 | ||||||||
Daily oil production | 79 | % | 79 | % | 26 | % | |||
Daily natural gas production | 60 | % | 29 | % | 7 | % | |||
Daily NGLs production | 11 | % | — | % | — | % |
June 30, 2018 | ||||
(In millions) | ||||
Canadian Imperial Bank of Commerce | $ | 0.1 | ||
Bank of America | (3.6 | ) | ||
Bank of Montreal | (15.8 | ) | ||
Total liabilities | $ | (19.3 | ) |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
(In thousands) | ||||||||||||||||
Gain (loss) on derivatives: | ||||||||||||||||
Gain (loss) on derivatives, included are amounts settled during the period of ($6,855), ($410), ($8,928) and ($1,569), respectively | $ | (14,461 | ) | $ | 8,902 | $ | (21,223 | ) | $ | 23,633 | ||||||
$ | (14,461 | ) | $ | 8,902 | $ | (21,223 | ) | $ | 23,633 |
Quarter Ended June 30, | Percent Change (1) | ||||||||||
2018 | 2017 | ||||||||||
(In thousands unless otherwise specified) | |||||||||||
Total revenue | $ | 203,303 | $ | 170,581 | 19 | % | |||||
Net income | $ | 8,150 | $ | 9,059 | (10 | )% | |||||
Net income attributable to non-controlling interest | $ | 2,362 | $ | — | — | % | |||||
Net income attributable to Unit Corporation | $ | 5,788 | $ | 9,059 | (36 | )% | |||||
Oil and Natural Gas: | |||||||||||
Revenue | $ | 102,318 | $ | 83,173 | 23 | % | |||||
Operating costs excluding depreciation, depletion, and amortization | $ | 32,418 | $ | 32,758 | (1 | )% | |||||
Depreciation, depletion, and amortization | $ | 31,554 | $ | 23,558 | 34 | % | |||||
Average oil price received (Bbl) | $ | 56.46 | $ | 46.96 | 20 | % | |||||
Average NGLs price received (Bbl) | $ | 22.18 | $ | 14.91 | 49 | % | |||||
Average natural gas price received (Mcf) | $ | 2.18 | $ | 2.45 | (11 | )% | |||||
Oil production (Bbl) | 693,000 | 714,000 | (3 | )% | |||||||
NGLs production (Bbl) | 1,230,000 | 1,136,000 | 8 | % | |||||||
Natural gas production (Mcf) | 13,738,000 | 12,007,000 | 14 | % | |||||||
Depreciation, depletion, and amortization rate (Boe) | $ | 7.14 | $ | 5.76 | 24 | % | |||||
Contract Drilling: | |||||||||||
Revenue | $ | 46,926 | $ | 39,255 | 20 | % | |||||
Operating costs excluding depreciation | $ | 31,894 | $ | 27,239 | 17 | % | |||||
Depreciation | $ | 13,726 | $ | 13,769 | — | % | |||||
Percentage of revenue from daywork contracts | 100 | % | 100 | % | — | % | |||||
Average number of drilling rigs in use | 32.2 | 28.8 | 12 | % | |||||||
Average dayrate on daywork contracts | $ | 17,330 | $ | 15,962 | 9 | % | |||||
Mid-Stream: | |||||||||||
Revenue | $ | 54,059 | $ | 48,153 | 12 | % | |||||
Operating costs excluding depreciation and amortization | $ | 39,703 | $ | 36,042 | 10 | % | |||||
Depreciation and amortization | $ | 11,175 | $ | 10,849 | 3 | % | |||||
Gas gathered—Mcf/day | 391,047 | 383,440 | 2 | % | |||||||
Gas processed—Mcf/day | 160,506 | 135,002 | 19 | % | |||||||
Gas liquids sold—gallons/day | 676,503 | 525,920 | 29 | % | |||||||
Corporate and other: | |||||||||||
General and administrative expense | $ | 8,712 | $ | 8,713 | — | % | |||||
Other depreciation | $ | 1,918 | $ | 1,904 | 1 | % | |||||
Gain on disposition of assets | $ | 161 | $ | 248 | (35 | )% | |||||
Other income (expense): | |||||||||||
Interest income | $ | 411 | $ | — | — | % | |||||
Interest expense | $ | (8,140 | ) | $ | (9,467 | ) | (14 | )% | |||
Gain (loss) on derivatives | $ | (14,461 | ) | $ | 8,902 | NM | |||||
Other | $ | 5 | $ | 6 | (17 | )% | |||||
Income tax expense | $ | 2,029 | $ | 6,379 | (68 | )% | |||||
Average long-term debt outstanding | $ | 646,123 | $ | 816,649 | (21 | )% | |||||
Average interest rate | 6.7 | % | 6.0 | % | 12 | % |
(1) | NM – A percentage calculation is not meaningful due to a zero-value denominator or a percentage change greater than 200. |
Six Months Ended June 30, | Percent Change | ||||||||||
2018 | 2017 | ||||||||||
(In thousands unless otherwise specified) | |||||||||||
Total revenue | $ | 408,435 | $ | 346,305 | 18 | % | |||||
Net income | $ | 16,015 | $ | 24,988 | (36 | )% | |||||
Net income attributable to non-controlling interest | $ | 2,362 | $ | — | — | % | |||||
Net income attributable to Unit Corporation | $ | 13,653 | $ | 24,988 | (45 | )% | |||||
Oil and Natural Gas: | |||||||||||
Revenue | $ | 205,417 | $ | 170,771 | 20 | % | |||||
Operating costs excluding depreciation, depletion, and amortization | $ | 68,380 | $ | 61,962 | 10 | % | |||||
Depreciation, depletion, and amortization | $ | 62,337 | $ | 45,084 | 38 | % | |||||
Average oil price received (Bbl) | $ | 55.76 | $ | 47.77 | 17 | % | |||||
Average NGLs price received (Bbl) | $ | 21.65 | $ | 16.34 | 32 | % | |||||
Average natural gas price received (Mcf) | $ | 2.40 | $ | 2.57 | (7 | )% | |||||
Oil production (Bbl) | 1,429,000 | 1,357,000 | 5 | % | |||||||
NGLs production (Bbl) | 2,425,000 | 2,233,000 | 9 | % | |||||||
Natural gas production (Mcf) | 27,237,000 | 24,232,000 | 12 | % | |||||||
Depreciation, depletion, and amortization rate (Boe) | $ | 7.08 | $ | 5.58 | 27 | % | |||||
Contract Drilling: | |||||||||||
Revenue | $ | 92,915 | $ | 76,440 | 22 | % | |||||
Operating costs excluding depreciation | $ | 63,561 | $ | 56,466 | 13 | % | |||||
Depreciation | $ | 27,038 | $ | 26,616 | 2 | % | |||||
Percentage of revenue from daywork contracts | 100 | % | 100 | % | — | % | |||||
Average number of drilling rigs in use | 31.9 | 27.2 | 17 | % | |||||||
Average dayrate on daywork contracts | $ | 17,184 | $ | 15,905 | 8 | % | |||||
Mid-Stream: | |||||||||||
Revenue | $ | 110,103 | $ | 99,094 | 11 | % | |||||
Operating costs excluding depreciation and amortization | $ | 81,307 | $ | 73,746 | 10 | % | |||||
Depreciation and amortization | $ | 22,228 | $ | 21,667 | 3 | % | |||||
Gas gathered—Mcf/day | 382,005 | 386,893 | (1 | )% | |||||||
Gas processed—Mcf/day | 155,799 | 130,804 | 19 | % | |||||||
Gas liquids sold—gallons/day | 627,305 | 511,969 | 23 | % | |||||||
Corporate and other: | |||||||||||
General and administrative expense | $ | 19,474 | $ | 17,667 | 10 | % | |||||
Other depreciation | $ | 3,836 | $ | 3,645 | 5 | % | |||||
Gain on disposition of assets | $ | 322 | $ | 1,072 | (70 | )% | |||||
Other income (expense): | |||||||||||
Interest income | $ | 411 | $ | — | — | % | |||||
Interest expense | $ | (18,144 | ) | $ | (18,863 | ) | (4 | )% | |||
Gain (loss) on derivatives | $ | (21,223 | ) | $ | 23,633 | (190 | )% | ||||
Other | $ | 11 | $ | 9 | 22 | % | |||||
Income tax expense | $ | 5,636 | $ | 20,315 | (72 | )% | |||||
Average long-term debt outstanding | $ | 733,167 | $ | 814,485 | (10 | )% | |||||
Average interest rate | 6.4 | % | 6.0 | % | 7 | % |
• | the amount and nature of our future capital expenditures and how we expect to fund our capital expenditures; |
• | prices for oil, NGLs, and natural gas; |
• | demand for oil, NGLs, and natural gas; |
• | our exploration and drilling prospects; |
• | the estimates of our proved oil, NGLs, and natural gas reserves; |
• | oil, NGLs, and natural gas reserve potential; |
• | development and infill drilling potential; |
• | expansion and other development trends of the oil and natural gas industry; |
• | our business strategy; |
• | our plans to maintain or increase production of oil, NGLs, and natural gas; |
• | the number of gathering systems and processing plants we plan to construct or acquire; |
• | volumes and prices for natural gas gathered and processed; |
• | expansion and growth of our business and operations; |
• | demand for our drilling rigs and drilling rig rates; |
• | our belief that the final outcome of legal proceedings involving us will not materially affect our financial results; |
• | our ability to timely secure third-party services used in completing our wells; |
• | our ability to transport or convey our oil or natural gas production to established pipeline systems; |
• | impact of federal and state legislative and regulatory initiatives relating to hydrocarbon fracturing impacting our costs and increasing operating restrictions or delays as well as other adverse impacts on our business; |
• | our projected production guidelines for the year; |
• | our anticipated capital budgets; |
• | our financial condition and liquidity; |
• | the number of wells our oil and natural gas segment plans to drill or rework during the year; |
• | our intended use of the proceeds from the sale of 50% of the interest we owned in our mid-stream segment; and |
• | our estimates of the amounts of any ceiling test write-downs or other potential asset impairments we may have to record in future periods. |
• | the risk factors discussed in this report and in the documents we incorporate by reference; |
• | general economic, market, or business conditions; |
• | the availability of and nature of (or lack of) business opportunities that we pursue; |
• | demand for our land drilling services; |
• | changes in laws or regulations; |
• | changes in the current geopolitical situation; |
• | risks relating to financing, including restrictions in our debt agreements and availability and cost of credit; |
• | risks associated with future weather conditions; |
• | decreases or increases in commodity prices; |
• | putative class action lawsuits that may result in substantial expenditures and divert management's attention; and |
• | other factors, most of which are beyond our control. |
Term | Commodity | Contracted Volume | Weighted Average Fixed Price | Contracted Market | ||||
Jul'18 – Sep'18 | Natural gas – swap | 40,000 MMBtu/day | $2.985 | IF – NYMEX (HH) | ||||
Oct'18 | Natural gas – swap | 30,000 MMBtu/day | $3.005 | IF – NYMEX (HH) | ||||
Nov’18 – Dec'18 | Natural gas – swap | 20,000 MMBtu/day | $3.013 | IF – NYMEX (HH) | ||||
Jan'19 – Dec'19 | Natural gas – swap | 10,000 MMBtu/day | $2.810 | IF – NYMEX (HH) | ||||
Jul'18 – Oct'18 | Natural gas – basis swap | 10,000 MMBtu/day | $(0.190) | NGPL TEXOK | ||||
Jul'18 – Dec'18 | Natural gas – basis swap | 10,000 MMBtu/day | $(0.678) | PEPL | ||||
Jul'18 – Dec'18 | Natural gas – basis swap | 10,000 MMBtu/day | $(0.568) | NGPL MIDCON | ||||
Nov’18 – Dec'18 | Natural gas – basis swap | 10,000 MMBtu/day | $(0.208) | IF – NYMEX (HH) | ||||
Jan'19 – Dec'19 | Natural gas – basis swap | 10,000 MMBtu/day | $(0.728) | PEPL | ||||
Jan'19 – Dec'19 | Natural gas – basis swap | 10,000 MMBtu/day | $(0.625) | NGL MIDCON | ||||
Jan'19 – Dec'19 | Natural gas – basis swap | 30,000 MMBtu/day | $(0.265) | NGPL TEXOK | ||||
Jan'20 – Dec'20 | Natural gas – basis swap | 30,000 MMBtu/day | $(0.275) | NGPL TEXOK | ||||
Jul'18 – Sep'18 | Natural gas – collar | 30,000 MMBtu/day | $2.67 - $2.97 | IF – NYMEX (HH) | ||||
Jul'18 – Dec'18 | Natural gas – three-way collar | 20,000 MMBtu/day | $3.00 - $2.50 - $3.51 | IF – NYMEX (HH) | ||||
Jul'18 – Dec'18 | Crude oil – swap | 4,000 Bbl/day | $53.52 | WTI – NYMEX | ||||
Jul'18 – Dec'18 | Crude oil – price differential risk | 500 Bbl/day | $7.00 | LLS/WTI | ||||
Jul'18 – Dec'18 | Crude oil – three-way collar | 2,000 Bbl/day | $47.50 - $37.50 - $56.08 | WTI – NYMEX | ||||
Jan'19 – Dec'19 | Crude oil – three-way collar | 2,000 Bbl/day | $57.50 - $47.50 - $71.90 | WTI – NYMEX | ||||
Jul'18 – Sep'18 | NGLs – swap (1) | 1,500 Bbl/day | $32.14 | OPIS – Mont Belvieu |
Term | Commodity | Contracted Volume | Weighted Average Fixed Price | Contracted Market | ||||
Jan'19 – Dec'19 | Natural gas – basis swap | 10,000 MMBtu/day | $(0.590) | PEPL |
Period | (a) Total Number of Shares Purchased | (b) Average Price Paid Per Share | (c) Total Number of Shares Purchased As Part of Publicly Announced Plans or Programs | (d) Maximum Number (or Approximate Dollar Value) of Shares That May Yet Be Purchased Under the Plans or Programs | |||||||||
April 1, 2018 to April 30, 2018 | — | $ | — | — | — | ||||||||
May 1, 2018 to May 31, 2018 | — | — | — | — | |||||||||
June 1, 2018 to June 30, 2018 | — | — | — | — | |||||||||
Total | — | $ | — | — | — |
10.1 (a) | Credit Agreement, dated May 10, 2018, by and among Superior Pipeline Company, L.L.C. and the subsidiaries named therein (as borrowers), BOKF, NA DBA Bank of Oklahoma, as Administrative Agent, and the institutions named therein (as lenders) (incorporated by reference to Exhibit 10.1 of our Current Report on Form 8-K, filed with the SEC on May 16, 2018). |
10.1 (b) | |
31.1 | |
31.2 | |
32 | |
101.INS | XBRL Instance Document. |
101.SCH | XBRL Taxonomy Extension Schema Document. |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document. |
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document. |
101.LAB | XBRL Taxonomy Extension Labels Linkbase Document. |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document. |
Unit Corporation | ||
Date: | August 9, 2018 | By: /s/ Larry D. Pinkston |
LARRY D. PINKSTON | ||
Chief Executive Officer and Director | ||
Date: | August 9, 2018 | By: /s/ Les Austin |
LES AUSTIN | ||
Senior Vice President and Chief Financial Officer |
5. | Miscellaneous |
By: | /s/ Larry D. Pinkston | |
Larry D. Pinkston | ||
Chief Executive Officer and Director |
By: | /s/ Les Austin | |
Les Austin | ||
Senior Vice President and Chief Financial Officer |
Document And Entity Information - shares |
6 Months Ended | |
---|---|---|
Jun. 30, 2018 |
Jul. 20, 2018 |
|
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2018 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | unt | |
Entity Registrant Name | UNIT CORP | |
Entity Central Index Key | 0000798949 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 54,086,806 |
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 2,450 | $ 2,450 |
Preferred stock, par value | $ 1.00 | $ 1.00 |
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 | 54,089,366 | 52,880,134 |
VIE Current Assets Pledged | $ 38,389 | |
VIE Non-current Assets Pledged | 412,237 | |
VIE Current Liabilities, No Recourse | 33,699 | |
VIE Non-current Liabilities, No Recourse | $ 17,856 |
Condensed Consolidated Income Statements (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Revenues: | ||||
Oil and natural gas | $ 102,318 | $ 83,173 | $ 205,417 | $ 170,771 |
Contract drilling | 46,926 | 39,255 | 92,915 | 76,440 |
Gas gathering and processing | 54,059 | 48,153 | 110,103 | 99,094 |
Total revenues | 203,303 | 170,581 | 408,435 | 346,305 |
Operating costs: | ||||
Oil and natural gas | 32,418 | 32,758 | 68,380 | 61,962 |
Contract drilling | 31,894 | 27,239 | 63,561 | 56,466 |
Gas gathering and processing | 39,703 | 36,042 | 81,307 | 73,746 |
Total operating costs | 104,015 | 96,039 | 213,248 | 192,174 |
Depreciation, depletion, and amortization | 58,373 | 50,080 | 115,439 | 97,012 |
General and administrative | 8,712 | 8,713 | 19,474 | 17,667 |
Gain on disposition of assets | (161) | (248) | (322) | (1,072) |
Total operating expenses | 170,939 | 154,584 | 347,839 | 305,781 |
Income from operations | 32,364 | 15,997 | 60,596 | 40,524 |
Other income (expense): | ||||
Interest, net | (7,729) | (9,467) | (17,733) | (18,863) |
Gain (loss) on derivatives | (14,461) | 8,902 | (21,223) | 23,633 |
Other, net | 5 | 6 | 11 | 9 |
Total other income (expense) | (22,185) | (559) | (38,945) | 4,779 |
Income before income taxes | 10,179 | 15,438 | 21,651 | 45,303 |
Income tax expense: | ||||
Deferred | 2,029 | 6,379 | 5,636 | 20,315 |
Total income taxes | 2,029 | 6,379 | 5,636 | 20,315 |
Net income | 8,150 | 9,059 | 16,015 | 24,988 |
Net income attributable to non-controlling interest | 2,362 | 0 | 2,362 | 0 |
Net income attributable to Unit Corporation | $ 5,788 | $ 9,059 | $ 13,653 | $ 24,988 |
Net income attributable to Unit Corporation per common share: | ||||
Basic | $ 0.11 | $ 0.18 | $ 0.26 | $ 0.49 |
Diluted | $ 0.11 | $ 0.17 | $ 0.26 | $ 0.49 |
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 8,150 | $ 9,059 | $ 16,015 | $ 24,988 |
Other comprehensive income (loss), net of taxes: | ||||
Unrealized gain (loss) on securities, net of tax of $11, $12, ($47) and $12 | 35 | 20 | (141) | 20 |
Comprehensive income | 8,185 | 9,079 | 15,874 | 25,008 |
Less: Comprehensive income attributable to non-controlling interest | 2,362 | 0 | 2,362 | 0 |
Comprehensive income attributable to Unit Corporation | $ 5,823 | $ 9,079 | $ 13,512 | $ 25,008 |
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Statement of Comprehensive Income [Abstract] | ||||
Unrealized income (loss) on securities, tax | $ 11 | $ 12 | $ (47) | $ 12 |
Condensed Consolidated Statements of Changes in Shareholders' Equity (Unaudited) - USD ($) |
Total |
Common Stock [Member] |
Capital In Excess of Par Value [Member] |
Accumulated other comprehensive income [Member] |
Retained earnings [Member] |
Non-controlling interests in consolidated subsidiaries [Member] |
---|---|---|---|---|---|---|
Stockholders' equity, beginning balance at Dec. 31, 2016 | $ 1,194,070,000 | $ 10,016,000 | $ 502,500,000 | $ 0 | $ 681,554,000 | $ 0 |
Net income | 24,988,000 | 0 | 0 | 0 | 24,988,000 | 0 |
Other comprehensive income (loss) | 20,000 | 0 | 0 | 20,000 | 0 | 0 |
Total comprehensive income | 25,008,000 | |||||
Activity in employee compensation plans | 25,385,000 | 261,000 | 25,124,000 | 0 | 0 | 0 |
Stockholders' equity, ending balance at Jun. 30, 2017 | 1,244,463,000 | 10,277,000 | 527,624,000 | 20,000 | 706,542,000 | 0 |
Cumulative effect adjustment for adoption of ASUs (Notes 1 and 2) | (1,261,000) | 0 | 0 | 13,000 | (1,274,000) | 0 |
Stockholders' equity, beginning balance at Dec. 31, 2017 | 1,345,560,000 | 10,280,000 | 535,815,000 | 63,000 | 799,402,000 | 0 |
Net income | 16,015,000 | 0 | 0 | 0 | 13,653,000 | 2,362,000 |
Other comprehensive income (loss) | (141,000) | 0 | 0 | (141,000) | 0 | 0 |
Total comprehensive income | 15,874,000 | |||||
Contributions | 300,000,000 | 0 | 102,958,000 | 0 | 0 | 197,042,000 |
Transaction costs associated with sale of non-controlling interest | (2,254,000) | 0 | (2,254,000) | 0 | 0 | 0 |
Tax effect of sale on non-controlling interest | (24,300,000) | 0 | (24,300,000) | 0 | 0 | 0 |
Activity in employee compensation plans | 10,035,000 | 134,000 | 9,901,000 | 0 | 0 | 0 |
Stockholders' equity, ending balance at Jun. 30, 2018 | $ 1,643,654,000 | $ 10,414,000 | $ 622,120,000 | $ (65,000) | $ 811,781,000 | $ 199,404,000 |
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
|
OPERATING ACTIVITIES: | ||
Net income | $ 16,015 | $ 24,988 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation, depletion, and amortization | 115,439 | 97,012 |
Amortization of debt issuance costs and debt discount (Note 6) | 1,095 | 1,075 |
(Gain) loss on derivatives (Note 10) | 21,223 | (23,633) |
Cash payments on derivatives settled, net (Note 10) | (8,928) | (1,569) |
Deferred tax expense | 5,636 | 20,315 |
Gain on disposition of assets | (322) | (1,072) |
Stock compensation plans | 12,073 | 8,066 |
Contract assets and liabilities, net (Note 2) | (2,371) | 0 |
Other, net | 1,998 | 299 |
Changes in operating assets and liabilities increasing (decreasing) cash: | ||
Accounts receivable | (6,812) | (15,087) |
Accounts payable | (403) | 3,724 |
Material and supplies | 4 | 49 |
Income taxes | 0 | (15) |
Accrued liabilities | 1,572 | 756 |
Other, net | (1,526) | 2,147 |
Net cash provided by operating activities | 154,693 | 117,055 |
INVESTING ACTIVITIES: | ||
Capital expenditures | (189,916) | (107,933) |
Producing properties and other acquisitions | (962) | (52,956) |
Proceeds from disposition of assets | 23,528 | 19,556 |
Other | 0 | (1,500) |
Net cash used in investing activities | (167,350) | (142,833) |
FINANCING ACTIVITIES: | ||
Borrowings under credit agreement | 71,200 | 160,600 |
Payments under credit agreement | (249,200) | (156,500) |
Payments on capitalized leases | (1,901) | (1,901) |
Proceeds from common stock issued, net of issue costs (Note 14) | 0 | 18,623 |
Proceeds from investments of non-controlling interests | 300,000 | 0 |
Transaction costs associated with non-controlling interests | (2,254) | 0 |
Book overdrafts | (1,581) | 4,912 |
Net cash provided in financing activities | 116,264 | 25,734 |
Net increase (decrease) in cash and cash equivalents | 103,607 | (44) |
Cash and cash equivalents, beginning of period | 701 | 893 |
Cash and cash equivalents, end of period | 104,308 | 849 |
Cash paid during the year for: | ||
Interest paid (net of capitalized) | (17,957) | (16,813) |
Income taxes | 0 | 0 |
Changes in accounts payable and accrued liabilities related to purchases of property, plant, and equipment | (3,747) | (8,771) |
Non-cash (addition) reduction to oil and natural gas properties related to asset retirement obligations | $ 7,854 | $ 1,579 |
Basis of Preparation and Presentation |
6 Months Ended | ||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||||||||||
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, which qualifies as a 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 our 50% ownership, to direct those activities that most significantly impact the economic performance of Superior as further described in Note 13 – 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 with the audited consolidated financial statements and notes in our Form 10-K, filed February 27, 2018, for the year ended December 31, 2017 as amended by our Form 10-K/A filed on August 6, 2018. 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:
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, 2018 and 2017 are not necessarily indicative of the results we may realize for the full year of 2018, or that we realized for the full year of 2017. Accounting Changes - Recent Accounting Pronouncements - Adopted As of January 1, 2018, we adopted ASU 2018-02 Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. This standard is explained further in Note 8 - New Accounting Pronouncements. We adopted this amendment early and it had no material effect to our financial statements. We previously used 37.75% to calculate the tax effect on AOCI and we now use 24.5%. This change is reflected in our Unaudited Condensed Consolidated Statements of Comprehensive Income and in Note 14 - Equity. Also, as of January 1, 2018, we adopted ASU 2014-09 Revenue from Contracts with Customers - Topic 606 (ASC 606) and all later amendments that modified ASC 606. This new revenue standard is explained further in Note 8 - New Accounting Pronouncements. We elected to apply this standard on the modified retrospective approach method to contracts not completed as of January 1, 2018, where the cumulative effect on adoption, which only impacted our mid-stream segment, is recognized as an adjustment to opening retained earnings at January 1, 2018. This adjustment related to the timing of revenue recognition for certain demand fees. Our oil and natural gas and contract drilling segments had no retained earnings adjustment. Comparative prior periods have not been adjusted and continue to be reported under ASC 605. The additional disclosures required by the ASU are included in Note 2 – Revenue from Contracts with Customers. |
Revenue from Contracts with Customers |
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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 our disaggregation of revenue and how our segment revenue is reported (as reflected in Note 15 - Industry Segment Information). Revenue from the oil and natural gas segment is derived from sales of our oil and natural gas production. Revenue from the contract drilling segment is derived by contracting with upstream companies to drill an agreed-on number of wells or provide drilling rigs and services over an agreed-on time period. Revenue from the mid-stream segment is derived from gathering, transporting, and processing natural gas production and selling those commodities. We sell the hydrocarbons (from the oil and natural gas and mid-stream segments) to mid-stream and downstream oil and gas companies. We satisfy the performance obligation under each segment's contracts as follows: for the contract drilling and mid-stream contracts, we satisfy the performance obligation over the agreed-on time period within the contracts, and for oil and natural gas contracts, we satisfy the performance obligation with each delivery of volumes. For oil and natural gas contracts, as it is more feasible, we account for these deliveries monthly. Per the contracts for all segments, customers pay for the services/goods received monthly within an agreed on number of days following the end of the month. Besides the mid-stream demand fees discussed further below, there were no other contract assets or liabilities falling within the scope of this accounting pronouncement. Oil and Natural Gas Contracts, Revenues, Implementation Impact to Retained Earnings, and Performance Obligations Typical types of revenue contracts signed by our segments are Oil Sales Contracts, Gas Purchase Agreements, North American Energy Standards Board (NAESB) Contracts, Gas Gathering and Processing Agreements, and revenues earned as the non-operated party with the operator serving as an agent on our behalf under our Joint Operating Agreements. Contract term can range from a single month to a term spanning a decade or more; some may also include evergreen provisions. Revenues from sales we make are recognized when our customer obtains control of the sold product. For sales to other mid-stream and downstream oil and gas companies, this would occur at a point in time, typically on delivery to the customer. Sales generated from our non-operated interest are recorded based on the information obtained from the operator. Our adoption of this standard did not require an adjustment to opening retained earnings. Certain costs—as either a deduction from revenue or as an expense—is 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. The impact of the adoption of ASC 606 did not impact income from operations or net income for the three or six months ended June 30, 2018. The following tables summarizes the impact of the adoption of ASC 606 on revenue and operating costs for the three months ended June 30, 2018:
The following tables summarizes the impact of the adoption of ASC 606 on revenue and operating costs for the six months ended June 30, 2018:
Our performance obligation for all commodity contracts is the delivery of oil and gas volumes to the customer. Typically, the contract is for a specified period of time (for example, a month or a year); however, each delivery under that contract can be considered separately identifiable since each delivery provides benefits to the customer on its own. For feasibility, as accounting for a monthly performance obligation is not materially different than identifying a more granular performance obligation, we conclude this performance obligation is satisfied monthly. We typically receive a payment within a set number of days following the end of the month which includes payment for all deliveries in that month. Depending on contract circumstances, judgment could be required to determine when the transfer of control occurs. Generally, depending of the facts and circumstances, we consider the transfer of control of the asset in a commodity sale to occur at the point the commodity transfers to our purchaser. Most of the consideration received by us for oil and gas sales is variable. Most of our contracts state the consideration is calculated by multiplying a variable quantity by an agreed-on index price less deductions related to gathering, transportation, fractionation, and related fuel charges. There are also instances where the consideration is quantity multiplied by a weighted average sales price. These different pricing tools can change the perception of when control transfers; however, when analyzed with other control factors, typically the accounting conclusion is the same for both pricing methods. In these instances, the variable consideration is partially constrained. In addition, all variable consideration is settled at the end of the month; therefore, whether the variability is constrained does not affect accounting for revenue under ASC 606 as the variability is known prior to each reporting period. An estimation and allocation of transaction price and future obligations are not required. Contract Drilling Contracts, Revenues, Implementation impact to retained earnings, and Performance Obligations The contracts our drilling segment uses are primarily industry standard IADC contracts model year 2003 and 2013. Contract terms range from six months to two or more years or can be based on terms to drill a specific number of wells. The allocation rules in ASC 606 (referred to as the "series guidance") provide that a contract may contain a single performance obligation composed of a series of distinct goods or services if 1) each distinct good or service is substantially the same and would meet the criteria to be a performance obligation satisfied over time and 2) each distinct good or service is measured using the same method as it relates to the satisfaction of the overall performance obligation. We have determined that the delivery of drilling services is within the scope of the series guidance as both criteria noted above are met. Specifically, 1) each distinct increment of service (i.e. hour available to drill) that the drilling contractor promises to transfer represents a performance obligation that would meet the criteria for recognizing revenue over time, and 2) the drilling contractor would use the same method for measuring progress toward satisfaction of the performance obligation for each distinct increment of service in the series. At inception, the total transaction price will be estimated to include any applicable fixed consideration, unconstrained variable consideration (estimated day rate mobilization and demobilization revenue, estimated operating day rate revenue to be earned over the contract term, expected bonuses (if material and can be reasonably estimated without significant reversal), and penalties (if material and can be reasonably estimated without significant reversal)). Allocation rules under this new standard allow us to recognize revenues associated with our drilling contacts in materially the same manner as under the previous revenue accounting standard. A contract liability will be recorded for consideration received before the corresponding transfer of services. Those liabilities will generally only arise in relation to upfront mobilization fees which are paid in advance and are allocated/recognized over the entire performance obligation. Such balances will be amortized over the recognition period based on the same method of measure used for revenue. On adoption of the standard, no adjustment to opening retained earnings was required. Our performance obligation for all drilling contracts is to drill the agreed-on number of wells or drill over an agreed-on period of time as stated in the applicable contract. Any mobilization and demobilization activities are not considered to be distinct within the context of the contract and therefore, any associated revenue is allocated to the overall performance obligation of drilling services and recognized ratably over the initial term of the related drilling contract. It typically takes from 10 to 90 days to complete drilling a well; therefore, depending on the number of wells under a contract, the contract term could be up to two years. Most of the drilling contracts are for less than one year. As the customer simultaneously receives and consumes the benefits provided by the company’s performance, and the company’s performance enhances an asset that the customer controls, the performance obligation to drill the well occurs over time. We typically receive payment within a set number of days following the end of the month and that payment includes payment for all services performed during that month (calculated on an hourly basis). The company satisfies its overall performance obligation when the well included in the contract is drilled to an agreed-on depth or by a set date. All consideration received for contract drilling is variable, excluding termination fees, which we have concluded will not be applicable to our current contracts as of the reporting date. The consideration is calculated by multiplying a variable quantity (number of days/hours) by an agreed-on daily price (for the daily rate, mobilization and demobilization revenue). Other revenue items under the contract may include bonus/penalty revenue, reimbursable revenue, drilling fluid rates, and early termination fees. All variable consideration is not constrained but is settled at the end of the month; therefore, whether the variability is constrained or not does not affect accounting for revenue under ASC 606 as the variability is known before each reporting period excluding certain bonuses/penalties which might be based on activity that occurs over the entire term of the contract. We have evaluated the mobilization and de-mobilization charges on outstanding contracts, however, the impact to the financial statements was immaterial. As of June 30, 2018, we had 36 contract drilling contracts (12 of which are long-term) for a duration of two months to almost three years. Under the guidance in relation to disclosures regarding the remaining performance obligations, there is a practical expedient for contracts that have an original expected duration of one year or less (ASC 606-10-50-14) and for contracts where the entity can recognize revenue as invoiced (ASC 606-10-55-18). The majority of our drilling contracts have an original term of less than one year; however, the remaining performance obligations under the contracts that do have a longer duration are not material. Mid-stream Contracts Revenues, and Implementation impact to retained earnings, and Performance Obligations Revenues are generated from the fees earned for gas gathering and processing services provided to a customer. The typical types of revenue contracts used by this segment are gas gathering and processing agreements. Contract terms range from a single month to terms spanning a decade or more, some include evergreen provisions. Fees for mid-stream services (gathering, transportation, processing) are performance obligations and meet the criteria of over time recognition which could be considered a series of distinct performance obligations that represents one overall performance obligation of gas gathering and processing services. On adoption of the standard, an adjustment to opening retained earnings was made in the amount of $1.7 million ($1.3 million, net of tax). This adjustment related to the timing of revenue recognized on certain demand fees and had the following impact to the Unaudited Condensed Consolidated Balance Sheet:
The impact of these demand fees to the Unaudited Condensed Consolidated Balance Sheet at June 30, 2018 was:
This adjustment related to the timing of revenue recognized on certain demand fees and had the following impact to the Unaudited Condensed Consolidated Income Statement for the three months ended June 30, 2018:
This adjustment related to the timing of revenue recognized on certain demand fees and had the following impact to the Unaudited Condensed Consolidated Income Statement for the six months ended June 30, 2018:
The only fixed consideration related to mid-stream consideration is the demand fee which is calculated by multiplying an agreed-on price by a fixed number of volumes per month over a specified term in the contract. Included below is the additional fixed revenue we will earn over the remaining term of the contracts and excludes all variable consideration to be earned with the associated contract.
Before the implementation of ASC 606, we immediately recognized the entire demand fee since the fee was payable within the first five years from the effective date of the contract and not over the entire term of the contract. However, as the demand fee does not specifically relate to a distinct performance obligation, under the new standard that amount should now be recognized over the life of the contract. Therefore, the demand fee previously recognized in the amount of $1.7 million ($1.3 million, net of tax) was adjusted to retained earnings as of January 1, 2018, and will be recognized over the remaining term of the contract. As this amount is fixed, recognition of the remaining portion will be stable. Besides the demand fee, there were no other contract assets or liabilities (see above for the balance sheet line items where they are reported). For the three and six months ended June 30, 2018, $1.2 million and $2.4 million, respectively, was recognized in revenue for these demand fees.
Our performance obligations for all contracts is to gather, transport, or process an agreed-on number of volumes as stated in the contract. Typically the contract will establish a period of time over which the company will perform the mid-stream services. Certain contracts also include an agreed-on quantity (or an agreed-on minimum quantity) of volumes that the company will deliver or service. The term under mid-stream service contracts is typically five to ten years. Under service contracts, as the customer simultaneously receives and consumes the benefits provided by the entity’s performance as the entity performs, the performance obligation to gather, transport, or process occurs over time. We typically receive payment within a set number of days following the end of the month and includes payment for all services performed that month. Our overall performance obligation is satisfied at the end of the contract term. Most of the consideration received under mid-stream service contracts is variable. The consideration is calculated by multiplying a variable quantity (number of volumes) by an agreed-on price per MCF (commodity fee and the gathering fee). One fixed component of revenue is calculated by multiplying an agreed-on price by a certain volume commitment (MCF per day). Other revenue items may include shortfall fees. All variable consideration is settled at the end of the month; therefore, whether or not the variability is constrained does not affect accounting for revenue under ASC 606 as the variability is known before each reporting period. However, this excludes the shortfall fee as this fee could be based on a set number of volumes over the course of more than one month. Per the new guidance related to disclosures for remaining performance obligations, there is a practical expedient for contracts that have an original expected duration of one year or less (ASC 606-10-50-14). There is also a practical expedient for “variable consideration [that] is allocated entirely to a wholly unsatisfied performance obligation… that forms part of a single performance obligation… for which the criteria in paragraph 606-10-32-40 have been met” (ASC 606-10-50-14A). As stated previously, the contract term for mid-stream services is typically longer than one year. However, based on the guidance at 606-10-32-40, we determined some of the variable payment in mid-stream service agreements specifically relates to the entity’s efforts to satisfy the performance obligation and that “allocating the variable amount entirely to the distinct good or service is consistent with the allocation objective in paragraph 606-10-32-28.” Therefore, the practical expedient relates to this variable consideration: the commodity fee and the gathering fee. The last time we received a shortfall fee was in 2016 and the amount was immaterial to total mid-stream revenues. These terms have historically been limited in our contracts. We calculate revenue earned from the variable consideration related to mid-stream services by multiplying the number of volumes serviced times an agreed-on price. Therefore, the variable portion of this consideration is due to the change in volumes. This variability is resolved at the end of each month as the company will know the number of volumes serviced under each contract and payment is received monthly. The mid-stream gathering service contracts remaining are for a duration of less than one year to 15 years. While long term service contracts are in place as of the reporting date, due to the variable volumes an estimation and allocation of transaction price and future obligations are not required. |
Divestitures |
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Property, Plant and Equipment Impairment or Disposal [Abstract] | |
Divestitures | DIVESTITURES Divestitures Oil and Natural Gas We sold non-core oil and natural gas assets, net of related expenses, for $22.4 million during the first six months of 2018, compared to $17.8 million during the first six months of 2017. Proceeds from those sales reduced the net book value of our full cost pool with no gain or loss recognized. Mid-Stream On April 3, 2018, we sold 50% of the ownership interest in our mid-stream segment, Superior. The purchaser is 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. We received $300.0 million as a result of this sale. A portion of the proceeds were used to pay down our bank debt and the remainder will be used to accelerate the drilling program of our upstream subsidiary, Unit Petroleum Company, make additional capital investments in the jointly owned Superior, and for general working capital purposes. In connection with the sale of the interest in Superior, we took the necessary actions under the Indenture governing our outstanding senior subordinated notes to secure the ability to close the sale and have Superior released from the Indenture. Superior will be governed and managed under its Amended and Restated Limited Liability Company Agreement and the Master Services and Operating Agreement (MSA) entered into by Superior and an affiliate of Unit, as both of those agreements may be amended from time to time. Further details are in Note 13 – Variable Interest Entity Arrangements. |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | EARNINGS PER SHARE Information related to the calculation of earnings per share attributable to Unit Corporation follows:
The following table shows the number of stock options and SARs (and their average exercise price) excluded because their option exercise prices were greater than the average market price of our common stock:
The following table shows the number of stock options and SARs (and their average exercise price) excluded because their option exercise prices were greater than the average market price of our common stock:
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Accrued Liabilities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Liabilities | ACCRUED LIABILITIES Accrued liabilities consisted of:
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Long-Term Debt And Other Long-Term Liabilities |
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Long-Term Debt And Other Long-Term Liabilities | LONG-TERM DEBT AND OTHER LONG-TERM LIABILITIES Long-Term Debt Our long-term debt as of the dates indicated consisted of the following:
Unit Credit Agreement. On April 2, 2018, we signed a Fourth Amendment to our Senior Credit Agreement (Unit credit agreement) scheduled to mature on April 10, 2020. The Fourth Amendment provided, among other things, for a reduction of the maximum credit amount from $875.0 million to $425.0 million, a reduction in the borrowing base from $475.0 million to $425.0 million, a reduction in the total commitment amount from $475.0 million to $425.0 million; and the full release of Superior and its subsidiaries as a borrower and co-obligor under the Unit credit agreement. Under the amendment, once the sale of the interest in Superior was completed, we were required to use part of the proceeds to pay down the Unit credit agreement. The Superior sale closed on April 3, 2018 and the pay down was made that day. On May 2, 2018, as contemplated under the Fourth Amendment to its credit agreement, the company entered into a Pledge Agreement with BOKF, NA (dba Bank of Oklahoma), as administrative agent for the benefit of the secured parties, under which we granted a security interest in the limited liability membership interests and other equity interests we own in Superior (which as of the date of this report is 50% of the aggregate outstanding equity interests of Superior) as additional collateral for our obligations under the Unit credit agreement. We are charged a commitment fee of 0.50% on the amount available but not borrowed. That fee varies based on the amount borrowed as a percentage of the total borrowing base. We paid $1.0 million in previous origination, agency, syndication, and other related fees. We did not incur any additional fees related to the amendment. We are amortizing these fees over the life of the Unit credit agreement. Under the Unit credit agreement, we have pledged as collateral 85% of the proved developed producing (discounted as present worth at 8%) total value of our oil and gas properties. The borrowing base amount which is subject to redetermination by the lenders on April 1st and October 1st of each year is based on a percentage of the discounted future value of our oil and natural gas reserves. We or the lenders may request a onetime special redetermination of the borrowing base between each scheduled redetermination. In addition, we may request a redetermination following the completion of an acquisition that meets the requirements in the Unit credit agreement. At our election, any part of the outstanding debt under the Unit credit agreement can be fixed at a London Interbank Offered Rate (LIBOR). LIBOR interest is computed as the LIBOR base for the term plus 2.00% to 3.00% 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 at the prime rate specified in the Unit credit agreement but in no event less than LIBOR plus 1.00% plus a margin. Interest is payable at the end of each month and the principal may be repaid in whole or in part at any time, without a premium or penalty. At June 30, 2018, we did not have any outstanding borrowings under our Unit credit agreement. We can use borrowings for financing general working capital requirements for (a) exploration, development, production, and acquisition of oil and gas properties, (b) acquisitions and operation of mid-stream assets up to certain limits, (c) issuance of standby letters of credit, (d) contract drilling services and acquisition of contract drilling equipment, and (e) general corporate purposes. The Unit credit agreement prohibits, among other things:
The Unit credit agreement also requires that we have at the end of each quarter:
Through the quarter ending March 31, 2019, the Unit credit agreement also requires that we have at the end of each quarter:
Beginning with the quarter ending June 30, 2019, and for each following quarter, the Unit credit agreement requires:
As of June 30, 2018, we were in compliance with the Unit credit agreement covenants. Superior Credit Agreement. On May 10, 2018, Superior entered into a five-year, $200.0 million senior secured revolving credit facility with an option to increase the credit amount up to $250.0 million, subject to certain conditions (Superior credit agreement). The amounts borrowed under the Superior credit agreement bear 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) third day LIBOR plus 1.00%) plus the applicable margin of 1.00% to 2.25%. The obligations under the Superior credit agreement are secured by, among other things, mortgage liens on certain of Superior’s processing plants and gathering systems. 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. Additionally, the Superior credit agreement contains a number of customary covenants that, among other things, restrict (subject to certain exceptions) Superior’s ability to incur additional indebtedness, create additional liens on its assets, make investments, pay distributions, enter into sale and leaseback transactions, engage in certain transactions with affiliates, engage in mergers or consolidations, enter into hedging arrangements, and acquire or dispose of assets. As of June 30, 2018, we were in compliance with the Superior credit agreement covenants. The borrowings under the Superior credit agreement will be used to fund capital expenditures and acquisitions, provide general working capital, and for letters of credit for Superior. On June 27, 2018, Superior and the lenders amended the Superior credit agreement to revise certain definitions in the agreement. Superior's credit agreement is not guaranteed by Unit. 6.625% Senior Subordinated Notes. We have an aggregate principal amount of $650.0 million, 6.625% senior subordinated notes (the Notes) outstanding. Interest on the Notes is payable semi-annually (in arrears) on May 15 and November 15 of each year. The Notes mature on May 15, 2021. In issuing the Notes, we incurred fees of $14.7 million that are being amortized as debt issuance cost over the life of the Notes. The Notes are subject to an Indenture dated as of May 18, 2011, between us and Wilmington Trust, National Association (successor to Wilmington Trust FSB), as Trustee (the 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. The Guarantors are most of our direct and indirect subsidiaries. The discussion of the Notes in this report is qualified by and subject to the actual terms of the 2011 Indenture. Unit, as the parent company, has no significant independent assets or operations. The guarantees by the Guarantors of the Notes (registered under registration statements) are 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. Effective April 3, 2018, Superior is no longer a Guarantor of the Notes. Any of our other subsidiaries that are not Guarantors are minor. There are no significant restrictions on our ability to receive funds from any of our subsidiaries through dividends, loans, advances, or otherwise. We may redeem all or, occasionally, a part of the Notes at certain redemption prices, plus accrued and unpaid interest. If a “change of control” occurs, subject to certain conditions, we must offer to repurchase from each holder all or any part of that holder’s Notes at a purchase price in cash equal to 101% of the principal amount of the Notes plus accrued and unpaid interest to the date of purchase. The 2011 Indenture contains customary events of default. The 2011 Indenture also contains covenants including those that limit our ability and the ability of certain of our subsidiaries to incur or guarantee additional indebtedness; pay dividends on our capital stock or redeem capital stock or subordinated indebtedness; transfer or sell assets; make investments; incur liens; enter into transactions with our affiliates; and merge or consolidate with other companies. We were in compliance with all covenants of the Notes as of June 30, 2018. Other Long-Term Liabilities Other long-term liabilities consisted of the following:
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, 2018 (and through 2023) are $14.0 million, $43.8 million, $660.6 million, $5.0 million, and $2.7 million, respectively. Capital Leases In 2014, Superior entered into capital lease agreements for 20 compressors with initial terms of seven years. The underlying assets are included in gas gathering and processing equipment. The $3.9 million current portion of the capital lease obligations is included in current portion of other long-term liabilities and the non-current portion of $9.4 million is included in other long-term liabilities in the accompanying Unaudited Condensed Consolidated Balance Sheets as of June 30, 2018. These capital leases are discounted using annual rates of 4.00%. Total maintenance and interest remaining related to these leases are $5.0 million and $0.9 million, respectively, at June 30, 2018. Annual payments, net of maintenance and interest, average $4.2 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. Future payments required under the capital leases at June 30, 2018 are:
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Asset Retirement Obligations |
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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 AROs for the periods indicated:
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New Accounting Pronouncements |
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New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements | NEW ACCOUNTING PRONOUNCEMENTS Compensation—Stock Compensation: Improvements to Nonemployee Share-Based Payment Accounting. The FASB issued ASU 2018-07, to improve financial reporting for nonemployee share-based payments. The amendment expands the scope of Topic 718, Compensation—Stock Compensation to include share-based payments issued to nonemployees for goods or services. The amendment will be effective for years beginning after December 15, 2019, and interim periods within those years. This amendment will not have a material impact on our financial statements. Income Taxes - Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118. In March 2018, the FASB issued ASU 2018-05 which updates the FASB’s Accounting Standards Codification to reflect the guidance in SAB 118, which adds Section EE, “Income Tax Accounting Implications of the Tax Cuts and Jobs Act,” to SAB Topic 5, “Miscellaneous Accounting.” SAB 118 also provides guidance on applying ASC 740, Income Taxes, if the accounting for certain income tax effects of the Tax Cuts and Jobs Act of 2017 is incomplete when the financial statements are issued for a reporting period. Intangibles—Goodwill and Other: Simplifying the Test for Goodwill Impairment. The FASB issued ASU 2017-04, to simplify the measurement of goodwill. The amendment eliminates Step 2 from the goodwill impairment test. The amendment will be effective prospectively for reporting periods beginning after December 15, 2019, and early adoption is permitted. This amendment will not have a material impact on our financial statements. Leases. The FASB has issued ASU 2016-02. The amendment will require lessees to recognize at the commencement date of a lease a lease liability which is the lessee's obligation to make lease payments arising from the lease, measured on a discounted basis; and a right-of-use asset, which represents the lessee's right to use a specified asset for the lease term. Lessor accounting is largely unchanged. In January 2018, the FASB issued ASU 2018-01, "Leases - Land Easement practical expedient for Transition to Topic 842", which provides clarifying guidance regarding land easements and adds practical expedients. Further amendments were issued under ASU 2018-10. In July 2018, the FASB issued ASU 2018-11, “Leases (Topic 842),” as an amendment to ASU 2016-02, “Leases (Topic 842) Targeted Improvements” which provides entities with an additional transition method in which an entity initially applies the new leases standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The amendment also provides a practical expedient for lessors. At this time, we are still evaluating these expedients. For public companies, these amendments are effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods. The standard will not apply to leases of mineral rights. We have an implementation team working through the provisions of the new guidance including a review of different types of contracts to document our lease portfolio and assess the impact on our accounting, disclosures, processes, internal control over financial reporting, and the election of certain practical expedients. Our evaluation of the impact of the new guidance on our financial statements is on-going. Adopted Standards Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The FASB issued ASU 2018-02, an amendment which provides financial statement preparers with an option to reclassify stranded tax effects within AOCI to retained earnings caused by the Tax Cuts and Jobs Act of 2017. The amendment is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted. Organizations should apply the proposed amendments either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recognized. We adopted this amendment early and it had no material effect to our financial statements. We previously used 37.75% to calculate the tax effect on AOCI and now we are using 24.5%. The change is reflected in our Unaudited Condensed Consolidated Statements of Comprehensive Income and in Note 14 - Equity. Revenue from Contracts with Customers. Effective January 1, 2018, we adopted ASC 606. This new revenue standard provides for a five-step analysis of transactions to determine when and how revenue is to be recognized. The guidance in this update supersedes the revenue recognition requirements in ASC 605, Revenue Recognition, and most industry-specific guidance throughout the Industry Topics of the Codification. Under the standard, revenue is recognized when a customer obtains control of promised goods or services in an amount that reflects the consideration the entity expects to receive in exchange for those goods or services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. We applied the five step method outlined in the ASU to all of our revenue streams in the scope of ASC 606 and elected the modified retrospective approach method. Under that approach the cumulative effect on adoption is recognized as an adjustment to opening retained earnings at January 1, 2018. Only our mid-stream segment was affected. This adjustment related to the timing of revenue on certain demand fees. Both our oil and natural gas and contract drilling segments had no retained earnings adjustment. Comparative prior periods have not been adjusted and continue to be reported under ASC 605. The additional disclosures required by ASC 606 have been included in Note 2 – Revenue from Contracts with Customers. Our internal control framework did not materially change as a result of this standard, but the existing internal controls have been modified to consider our new revenue recognition policy effective January 1, 2018. As we implement the new standard, we have added internal controls to ensure that we adequately evaluate new contracts under the five-step model under ASU 2014-09. |
Stock-Based Compensation |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation | STOCK-BASED COMPENSATION For restricted stock awards and stock options, we had:
The remaining unrecognized compensation cost related to unvested awards at June 30, 2018 is approximately $23.7 million, of which $3.0 million is anticipated to be capitalized. The weighted average period over which this cost will be recognized is 1.0 year. 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. 7,230,000 shares of the company's common stock are 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 granted no SARs or stock options during either of the three or six month periods ending June 30, 2018 or 2017. This table shows the fair value of restricted stock awards granted to employees and non-employee directors during the periods indicated:
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The time vested restricted stock awards granted during the first six months of 2018 and 2017 are being recognized over a three-year vesting period. During the first quarter of 2018 and 2017, two performance vested restricted stock awards were granted to certain executive officers. The first will cliff vest three years from the grant date based on the company's achievement of certain stock performance measures (TSR) at the end of the term and will range from 0% to 200% of the restricted shares granted as performance shares. The second will vest, one-third each year, over a three-year vesting period subject to the company's achievement of cash flow to total assets (CFTA) performance measurement each year and will range from 0% to 200%. Based on a probability assessment of the selected TSR performance criteria at June 30, 2018, the participants are estimated to receive 25% of the 2018, 91% of the 2017, and 167% of the 2016 performance-based shares. The CFTA performance measurement at June 30, 2018 was assessed to vest at target or 100%. The total aggregate stock compensation expense and capitalized cost related to oil and natural gas properties for 2018 awards for the first six months of 2018 was $4.3 million. |
Derivatives |
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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, 2018, these hedges made up our derivative transactions:
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 Income Statements. At June 30, 2018, these derivatives were outstanding:
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After June 30, 2018, the following derivative was entered into:
The following tables present the fair values and locations of the derivative transactions recorded in our Unaudited Condensed Consolidated Balance Sheets:
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 Income Statements for the three months ended June 30:
Following is the effect of derivative instruments on the Unaudited Condensed Consolidated Income Statements for the six months ended June 30:
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Fair Value Measurements |
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Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | FAIR VALUE MEASUREMENTS The estimated fair value of our available-for-sale securities, reflected on our Unaudited Condensed Consolidated Balance Sheets as Non-current other assets, is based on market quotes. The following is a summary of available-for-sale securities:
During the second quarter of 2017, we received available-for-sale securities for early termination fees associated with a long-term drilling contract. We will evaluate the marketability of those equity securities to determine if any decline in fair value below cost is other-than-temporary. If a decline in fair value below cost is determined to be other-than-temporary, an impairment charge will be recorded, and a new cost basis established. We will review several factors to determine whether a loss is other-than-temporary. These factors include, but are not limited to, (i) the time a security is in an unrealized loss position, (ii) the extent to which fair value is less than cost, (iii) the financial condition and near-term prospects of the issuer, and (iv) our intent and ability to hold the security for a period of time sufficient to allow for any anticipated recovery in fair value. 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:
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:
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, 2018. 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 1 Fair Value Measurements Equity Securities. We measure the fair values of our available for sale securities based on market quotes. Level 2 Fair Value Measurements Commodity Derivatives. We measure the fair values of our crude oil and natural gas swaps 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 collars and 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:
The following table provides quantitative information about our Level 3 unobservable inputs at June 30, 2018:
Our valuation at June 30, 2018 reflected that the risk of non-performance by our counterparties 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 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 the estimated fair value amounts. At June 30, 2018, 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. Based on the borrowing rates available to us for credit agreement debt with similar terms and maturities and considering the risk of our non-performance, long-term debt under our credit agreements approximate their fair value and at June 30, 2018 we did not have any outstanding borrowings under either the Unit or Superior credit agreement. Borrowings from our Unit credit agreement at December 31, 2017 were $178.0 million. These borrowings would be classified as Level 2. 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 June 30, 2018 and December 31, 2017 were $643.4 million and $642.3 million, respectively. We estimate the fair value of the Notes using quoted marked prices at June 30, 2018 and December 31, 2017 was $651.1 million and $649.7 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 the company’s AROs is presented in Note 7 – Asset Retirement Obligations. |
Commitments and Contingencies |
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Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES We lease office space or yards in Edmond and Oklahoma City, Oklahoma; Houston, Texas; Englewood, Colorado; Pinedale, Wyoming; and Canonsburg, Pennsylvania under the terms of operating leases expiring through December 2021. We own our corporate headquarters in Tulsa, Oklahoma. We also have several compressor rentals, equipment leases, and lease space on short-term commitments to stack excess drilling rig equipment and production inventory. Future minimum rental payments under the terms of the leases are approximately $4.9 million, $1.4 million, $0.3 million, and less than $0.1 million in twelve-month periods beginning July 1, 2018 (and through 2021), respectively. Total rent expense incurred was $4.6 million and $4.2 million for the first six months of 2018 and 2017, respectively. In 2014, Superior signed capital lease agreements for 20 compressors with initial terms of seven years. Estimated annual capital lease payments under the terms during the four successive twelve-month periods beginning July 1, 2018 (and through the end of 2021) are $6.2 million, $6.2 million, $6.7 million, and $0.2 million. Total maintenance and interest remaining related to these leases are $5.0 million and $0.9 million, respectively at June 30, 2018. Annual payments, net of maintenance and interest, average $4.2 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 employee oil and gas limited partnerships require, on the election of a limited partner, that we repurchase the limited partner’s interest at amounts to be determined by appraisal. In any one year, these repurchases are limited to 20% of the units outstanding. We had no repurchases in the first six months of 2018 or 2017. 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 risk is borne by the operator. Any liabilities we have incurred have been small and have been resolved while the drilling rig is on the location and the cost has been included 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. This amount is already included in our drilling plan. For each dollar of the $150.0 million that 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. If we elected not to drill or spend any money in the designated area over the three year period, the maximum amount we could forgo from distributions would be $87.0 million. For the next twelve months, we have committed to purchase approximately $14.0 million of new drilling rig components. |
Variable Interest Entity Arrangements |
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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 and the MSA. The MSA is between our affiliate, SPC Midstream Operating, L.L.C. (the Operator) and Superior. The Operator is owned 100% by Unit Corporation. 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 houses the power to direct the activities that most significantly impact 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 significantly impact the entity’s economic performance. Because of this, Unit is considered the primary beneficiary. As the primary beneficiary of this VIE, we consolidate in the 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 the 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. As the Operator, we provide services, such as operations and maintenance support, accounting, legal, and human resources to Superior for a monthly service fee of $250,000. 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:
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity | EQUITY At-the-Market (ATM) Common Stock Program On April 4, 2017, we signed a Distribution Agreement (the Agreement) with a sales agent, under which we could offer and sell, from time to time, through the sales agent shares of our common stock, par value $.20 per share (the Shares), up to an aggregate offering price of $100.0 million. Net proceeds from any of these sales could be used to fund (or offset costs of) acquisitions, future capital expenditures, repay amounts outstanding under our revolving credit facility, and general corporate purposes. On May 2, 2018, we terminated the Distribution Agreement. The Distribution Agreement was terminable at will on written notification by us with no penalty. As of the date of termination, we had sold 787,547 shares of our common stock under the Distribution Agreement resulting in net proceeds of approximately $18.6 million. We paid the sales agent a commission of 2.0% of the gross sales price per share sold. As a result of the termination, there will be no more sales of our common stock under the Distribution Agreement. Accumulated Other Comprehensive Income (Loss) Components of accumulated other comprehensive income (loss) were as follows for the three months ended June 30:
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Changes in accumulated other comprehensive income (loss) by component, net of tax, for the three months ended June 30 are as follows:
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Components of accumulated other comprehensive income (loss) were as follows for the six months ended June 30:
Changes in accumulated other comprehensive income by component, net of tax, for the six months ended June 30 are as follows:
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Industry Segment Information |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Industry Segment Information | INDUSTRY SEGMENT INFORMATION We have three main business segments offering different products and services within the energy industry:
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:
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Supplemental Condensed Consolidated Financial Information |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 accompanying unaudited condensed consolidating financial statements based on Rule 3-10 of the SEC's Regulation S-X. For purposes of the following footnote:
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)
Condensed Consolidating Statements of Income (Unaudited)
Condensed Consolidating Statements of Comprehensive Income (Unaudited)
Condensed Consolidating Statements of Cash Flows (Unaudited)
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Revenue from Contracts with Customers Revenues from Contracts with Customers (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Revenue From Contracts with Customers [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Impact of the Adoption of ASC606 | The following tables summarizes the impact of the adoption of ASC 606 on revenue and operating costs for the three months ended June 30, 2018:
The following tables summarizes the impact of the adoption of ASC 606 on revenue and operating costs for the six months ended June 30, 2018:
This adjustment related to the timing of revenue recognized on certain demand fees and had the following impact to the Unaudited Condensed Consolidated Income Statement for the three months ended June 30, 2018:
This adjustment related to the timing of revenue recognized on certain demand fees and had the following impact to the Unaudited Condensed Consolidated Income Statement for the six months ended June 30, 2018:
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Balance Sheet Impact of the Adoption of ASC606 | This adjustment related to the timing of revenue recognized on certain demand fees and had the following impact to the Unaudited Condensed Consolidated Balance Sheet:
The impact of these demand fees to the Unaudited Condensed Consolidated Balance Sheet at June 30, 2018 was:
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Revenue, Remaining Performance Obligation | Included below is the additional fixed revenue we will earn over the remaining term of the contracts and excludes all variable consideration to be earned with the associated contract.
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Contract with Customer, Asset and Liability |
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Earnings Per Share (Tables) |
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share | Information related to the calculation of earnings per share attributable to Unit Corporation follows:
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Schedule of Antidilutive Securities Excluded From Computation of Earnings Per Share | The following table shows the number of stock options and SARs (and their average exercise price) excluded because their option exercise prices were greater than the average market price of our common stock:
The following table shows the number of stock options and SARs (and their average exercise price) excluded because their option exercise prices were greater than the average market price of our common stock:
|
Accrued Liabilities (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Liabilities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Liabilities | Accrued liabilities consisted of:
|
Long-Term Debt And Other Long-Term Liabilities (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Debt | Our long-term debt as of the dates indicated consisted of the following:
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Other Long-Term Liabilities | Other long-term liabilities consisted of the following:
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Capital leases | Future payments required under the capital leases at June 30, 2018 are:
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Asset Retirement Obligations (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset Retirement Obligation Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Asset Retirement Obligations | The following table shows certain information about our AROs for the periods indicated:
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Stock-Based Compensation (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Restricted Stock Awards and Stock Options | For restricted stock awards and stock options, we had:
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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:
_______________________
_______________________
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Derivatives (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives outstanding | At June 30, 2018, these derivatives were outstanding:
_______________________
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Subsequent schedule of derivatives outstanding | After June 30, 2018, the following derivative was entered into:
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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:
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Effect of Derivative Instruments Recognized in Income Statements, Derivative Instruments | Following is the effect of derivative instruments on the Unaudited Condensed Consolidated Income Statements for the three months ended June 30:
Following is the effect of derivative instruments on the Unaudited Condensed Consolidated Income Statements for the six months ended June 30:
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Fair Value Measurements (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Available-for-sale Securities | The following is a summary of available-for-sale securities:
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Recurring Fair Value Measurements | The following tables set forth our recurring fair value measurements:
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Reconciliations Of Level 3 Fair Value Measurements | The following table is a reconciliation of our level 3 fair value measurements:
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Schedule Of Quantitative Information About Unobservable Inputs | The following table provides quantitative information about our Level 3 unobservable inputs at June 30, 2018:
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Variable Interest Entity Arrangements Variable Interest Entity Arrangements (Schedule of Assets and Liabilities) (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Variable Interest Entity Arrangements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Variable Interest Entities [Table Text Block] | 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:
|
Equity (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income | Components of accumulated other comprehensive income (loss) were as follows for the three months ended June 30:
_______________________
Components of accumulated other comprehensive income (loss) were as follows for the six months ended June 30:
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Reclassification Out of Accumulated Other Comprehensive Income | Changes in accumulated other comprehensive income by component, net of tax, for the six months ended June 30 are as follows:
_______________________
Changes in accumulated other comprehensive income (loss) by component, net of tax, for the three months ended June 30 are as follows:
_______________________
|
Industry Segment Information (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Industry segment information | The following tables provide certain information about the operations of each of our segments:
_______________________
_______________________
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Supplemental Condensed Consolidating Financial Information (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Condensed Consolidated Financial Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Consolidating Balance Sheets (Unaudited) | Condensed Consolidating Balance Sheets (Unaudited)
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Condensed Consolidating Statements of Income (Unaudited) | Condensed Consolidating Statements of Income (Unaudited)
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Condensed Consolidating Statements of Comprehensive Income (Unaudited) | Condensed Consolidating Statements of Comprehensive Income (Unaudited)
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Condensed Consolidating Statements of Cash Flows (Unaudited) | Condensed Consolidating Statements of Cash Flows (Unaudited)
|
Basis of Preparation and Presentation (Narrative) (Details) |
6 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2018 |
Dec. 31, 2017 |
|
Basis of Preparation and Presentation [Abstract] | ||
Consolidation, Variable Interest Entity, Policy [Policy Text Block] | 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, which qualifies as a 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 our 50% ownership, to direct those activities that most significantly impact the economic performance of Superior as further described in Note 13 – Variable Interest Entity Arrangements. | |
Federal Statutory Income Tax Rate, Percent | 24.50% | 37.75% |
Revenue from Contracts with Customers Revenue from Contracts with Customers (Revenue Impact of the Adoption of ASC606) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Adoption of ASC606 [Line Items] | ||||
Oil and natural gas revenues | $ 102,318 | $ 83,173 | $ 205,417 | $ 170,771 |
Oil and natural gas operating costs | 32,418 | 32,758 | 68,380 | 61,962 |
Oil and natural gas gross profit | 69,900 | 137,037 | ||
Gas gathering and processing revenues | 54,059 | 48,153 | 110,103 | 99,094 |
Deferred tax expense | 2,029 | 6,379 | 5,636 | 20,315 |
Net income | 8,150 | $ 9,059 | 16,015 | $ 24,988 |
Adjustments due to ASC606 [Member] | ||||
Adoption of ASC606 [Line Items] | ||||
Oil and natural gas revenues | (3,732) | (6,902) | ||
Oil and natural gas operating costs | (3,732) | (6,902) | ||
Oil and natural gas gross profit | 0 | 0 | ||
Gas gathering and processing revenues | 1,179 | 2,371 | ||
Deferred tax expense | 289 | 581 | ||
Net income | 890 | 1,790 | ||
Amounts without the Adoption of ASC606 [Member] | ||||
Adoption of ASC606 [Line Items] | ||||
Oil and natural gas revenues | 106,050 | 212,319 | ||
Oil and natural gas operating costs | 36,150 | 75,282 | ||
Oil and natural gas gross profit | 69,900 | 137,037 | ||
Gas gathering and processing revenues | 52,880 | 107,732 | ||
Deferred tax expense | 1,740 | 5,055 | ||
Net income | $ 7,260 | $ 14,225 |
Revenue from Contracts with Customers Revenue from Contracts with Customers (Balance Sheet Impact of the Adoption of ASC606) (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Jan. 01, 2018 |
Dec. 31, 2017 |
---|---|---|---|
ASSETS | |||
Prepaid expenses and other | $ 8,731 | $ 6,233 | |
Other assets | 28,113 | $ 27,028 | 16,230 |
LIABILITIES AND SHAREHOLDERS' EQUITY | |||
Current portion of other long-term liabilities | 14,036 | 15,750 | 13,002 |
Other long-term liabilities | 102,928 | 109,940 | 100,203 |
Deferred income taxes | 158,232 | 133,064 | 133,477 |
Retained earnings | 811,781 | 798,128 | $ 799,402 |
Mid-Stream [Member] | Adjustments due to ASC606 [Member] | |||
ASSETS | |||
Prepaid expenses and other | 128 | ||
Other assets | 11,887 | 10,798 | |
LIABILITIES AND SHAREHOLDERS' EQUITY | |||
Current portion of other long-term liabilities | 2,875 | 2,748 | |
Other long-term liabilities | 8,456 | 9,737 | |
Deferred income taxes | 168 | (413) | |
Retained earnings | 516 | ||
Impact of Restatement on Opening Retained Earnings, Net of Tax | $ (1,274) | ||
Mid-Stream [Member] | Amounts without the Adoption of ASC606 [Member] | |||
ASSETS | |||
Prepaid expenses and other | 8,603 | ||
Other assets | 16,226 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||
Current portion of other long-term liabilities | 11,161 | ||
Other long-term liabilities | 94,472 | ||
Deferred income taxes | 158,064 | ||
Retained earnings | $ 811,265 |
Revenue from Contracts with Customers Revenue from Contracts with Customers (Revenue, Remaining Performance Obligation) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Net income | $ 8,150 | $ 9,059 | $ 16,015 | $ 24,988 |
Minimum [Member] | Mid-Stream [Member] | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Remaining Term of Contract | 4 years | |||
Maximum [Member] | Mid-Stream [Member] | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Remaining Term of Contract | 5 years | |||
Demand fee contracts [Member] | Mid-Stream [Member] | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Remaining Impact to Revenue | (684) | $ (684) | ||
Demand fee contracts [Member] | Mid-Stream [Member] | July - December 2018 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Remaining Impact to Revenue | 2,598 | 2,598 | ||
Demand fee contracts [Member] | Mid-Stream [Member] | 2019 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Remaining Impact to Revenue | 2,632 | 2,632 | ||
Demand fee contracts [Member] | Mid-Stream [Member] | 2020 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Remaining Impact to Revenue | (3,781) | (3,781) | ||
Demand fee contracts [Member] | Mid-Stream [Member] | 2021 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Remaining Impact to Revenue | (3,507) | (3,507) | ||
Demand fee contracts [Member] | Mid-Stream [Member] | 2022 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Remaining Impact to Revenue | $ 1,374 | $ 1,374 |
Revenue from Contracts with Customers Revenue from Contracts with Customers (Contract with Customer, Asset and Liability) (Details) - USD ($) $ in Thousands |
6 Months Ended | |||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jan. 01, 2018 |
Dec. 31, 2017 |
|
Adoption of ASC606 [Line Items] | ||||
Contract liability | $ 11,331 | $ 0 | ||
Contract with Customer, Liability, Revenue Recognized | (2,371) | $ 0 | ||
Mid-Stream [Member] | ||||
Adoption of ASC606 [Line Items] | ||||
Contract assets | 12,015 | $ 10,798 | ||
Change in contract assets | 1,217 | |||
Contract liability | 11,331 | 12,485 | ||
Contract with Customer, Liability, Revenue Recognized | 1,154 | |||
Contract liabilities, net | 684 | $ (1,687) | ||
Change in contract liabilities, net | $ 2,371 |
Revenue from Contracts with Customers Revenue from Contracts with Customer (Narrative) (Details) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018
USD ($)
|
Jun. 30, 2017
USD ($)
|
Jun. 30, 2018
USD ($)
contract
|
Jun. 30, 2017
USD ($)
|
Jan. 01, 2018
USD ($)
|
Dec. 31, 2017
USD ($)
|
|||||||
Segment Reporting Information [Line Items] | ||||||||||||
Retained earnings | $ 811,781 | $ 811,781 | $ 798,128 | $ 799,402 | ||||||||
Cumulative effect adjustment for adoption of ASUs | $ (1,261) | |||||||||||
Gas gathering and processing revenues | 54,059 | $ 48,153 | 110,103 | $ 99,094 | ||||||||
Net income | 8,150 | 9,059 | 16,015 | 24,988 | ||||||||
Income from operations | 32,364 | 15,997 | $ 60,596 | 40,524 | ||||||||
Oil and Natural Gas [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenue Satisfied at Point in Time, Transfer of Control | Revenues from sales we make are recognized when our customer obtains control of the sold product. For sales to other mid-stream and downstream oil and gas companies, this would occur at a point in time, typically on delivery to the customer. | |||||||||||
Gas gathering and processing revenues | 0 | [1] | 0 | $ 0 | [2] | 0 | ||||||
Drilling [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenue Satisfied over Time, Method Used | At inception, the total transaction price will be estimated to include any applicable fixed consideration, unconstrained variable consideration (estimated day rate mobilization and demobilization revenue, estimated operating day rate revenue to be earned over the contract term, expected bonuses (if material and can be reasonably estimated without significant reversal), and penalties (if material and can be reasonably estimated without significant reversal)). Allocation rules under this new standard allow us to recognize revenues associated with our drilling contacts in materially the same manner as under the previous revenue accounting standard. A contract liability will be recorded for consideration received before the corresponding transfer of services. Those liabilities will generally only arise in relation to upfront mobilization fees which are paid in advance and are allocated/recognized over the entire performance obligation. Such balances will be amortized over the recognition period based on the same method of measure used for revenue. | |||||||||||
Number of Contracts, Daywork | contract | 36 | |||||||||||
Revenue, Practical Expedient, Initial Application and Transition, Qualitative Assessment | The majority of our drilling contracts have an original term of less than one year; however, the remaining performance obligations under the contracts that do have a longer duration are not material. | |||||||||||
Gas gathering and processing revenues | 0 | [1] | 0 | $ 0 | [2] | 0 | ||||||
Mid-Stream [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenue Satisfied over Time, Method Used | Contract terms range from a single month to terms spanning a decade or more, some include evergreen provisions. Fees for mid-stream services (gathering, transportation, processing) are performance obligations and meet the criteria of over time recognition which could be considered a series of distinct performance obligations that represents one overall performance obligation of gas gathering and processing services. | |||||||||||
Revenue, Practical Expedient, Initial Application and Transition, Qualitative Assessment | As stated previously, the contract term for mid-stream services is typically longer than one year. However, based on the guidance at 606-10-32-40, we determined some of the variable payment in mid-stream service agreements specifically relates to the entity’s efforts to satisfy the performance obligation and that “allocating the variable amount entirely to the distinct good or service is consistent with the allocation objective in paragraph 606-10-32-28.” Therefore, the practical expedient relates to this variable consideration: the commodity fee and the gathering fee. | |||||||||||
Gas gathering and processing revenues | 75,406 | [1] | $ 63,111 | $ 150,056 | [2] | $ 129,575 | ||||||
Minimum [Member] | Drilling [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Contract Duration | 6 months | |||||||||||
Number of Days for Drilling of Wells | 10 days | |||||||||||
Minimum [Member] | Mid-Stream [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Contract Duration | 5 years | |||||||||||
Remaining Term of Contract | 4 years | |||||||||||
Maximum [Member] | Drilling [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Contract Duration | 2 years | |||||||||||
Number of Days for Drilling of Wells | 90 days | |||||||||||
Maximum [Member] | Mid-Stream [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Contract Duration | 10 years | |||||||||||
Remaining Term of Contract | 5 years | |||||||||||
Short-term Contract with Customer [Member] | Drilling [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Contract Duration | 2 months | |||||||||||
Long-term Contract with Customer [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Number of Contracts, Daywork | contract | 12 | |||||||||||
Long-term Contract with Customer [Member] | Drilling [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Contract Duration | 3 years | |||||||||||
Adjustments due to ASC606 [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Gas gathering and processing revenues | 1,179 | $ 2,371 | ||||||||||
Net income | 890 | 1,790 | ||||||||||
Adjustments due to ASC606 [Member] | Oil and Natural Gas [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Retained earnings | 0 | |||||||||||
Net income | 0 | 0 | ||||||||||
Income from operations | 0 | 0 | ||||||||||
Adjustments due to ASC606 [Member] | Drilling [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Retained earnings | 0 | |||||||||||
Adjustments due to ASC606 [Member] | Mid-Stream [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Retained earnings | $ 516 | $ 516 | ||||||||||
Adjustment to opening retained earnings, before tax | (1,687) | |||||||||||
Adjustment to opening retained earnings, after tax | $ (1,274) | |||||||||||
Gathering service contracts [Member] | Minimum [Member] | Mid-Stream [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Remaining Term of Contract | 1 year | |||||||||||
Gathering service contracts [Member] | Maximum [Member] | Mid-Stream [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Remaining Term of Contract | 15 years | |||||||||||
|
Divestitures (Narrative) (Details) - USD ($) $ in Millions |
6 Months Ended | ||
---|---|---|---|
Apr. 03, 2018 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Noncontrolling Interest [Line Items] | |||
Proceeds from non-core oil and natural gas asset sales, net of related expenses | $ 22.4 | $ 17.8 | |
Ownership interest in Superior Pipeline Company, L.L.C. [Member] | |||
Noncontrolling Interest [Line Items] | |||
Ownership interest sold | 50.00% | ||
Proceeds from sale of non-controlling interest | $ 300.0 |
Earnings Per Share (Schedule of Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Earnings Per Share [Abstract] | ||||
Earnings of basic earnings attributable to Unit Corporation per common share | $ 5,788 | $ 9,059 | $ 13,653 | $ 24,988 |
Income of effect of dilutive stock options, restricted stock, and stock appreciation rights (SARs) | 0 | 0 | 0 | 0 |
Earnings of diluted income attributable to Unit Corporation per common share | $ 5,788 | $ 9,059 | $ 13,653 | $ 24,988 |
Weighted shares of basic earnings attributable to Unit Corporation per common share | 52,050 | 51,366 | 51,891 | 50,832 |
Weighted shares of effect of dilutive stock options, restricted stock, and stock appreciation rights (SARs) | 731 | 578 | 651 | 539 |
Weighted shares of diluted earnings attributable to Unit Corporation per common share | 52,781 | 51,944 | 52,542 | 51,371 |
Per-Share amount of basic earnings attributable to Unit Corporation per common share | $ 0.11 | $ 0.18 | $ 0.26 | $ 0.49 |
Per-Share amount of effect of dilutive stock options, restricted stock, and stock appreciation rights (SARs) | 0.00 | (0.01) | 0.00 | 0.00 |
Per-Share amount of diluted earnings attributable to Unit Corporation per common share | $ 0.11 | $ 0.17 | $ 0.26 | $ 0.49 |
Earnings Per Share (Schedule of Antidilutive Securities Excluded From Computation of Earnings Per Share) (Details) - Stock options and SARs - $ / shares |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share | 66,500 | 178,755 | 66,500 | 178,755 |
Average exercise price | $ 44.42 | $ 47.75 | $ 44.42 | $ 47.75 |
Accrued Liabilities (Accrued Liabilities) (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Accrued Liabilities [Abstract] | ||
Employee costs | $ 12,359 | $ 19,521 |
Lease operating expenses | 12,080 | 11,819 |
Taxes | 6,997 | 3,404 |
Interest payable | 6,581 | 6,745 |
Derivative settlements | 2,550 | 0 |
Third-party credits | 2,473 | 2,240 |
Other | 6,024 | 4,794 |
Total accrued liabilities | $ 49,064 | $ 48,523 |
Long-Term Debt And Other Long-Term Liabilities (Long-Term Debt) (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2018 |
Dec. 31, 2017 |
|
Debt Instrument [Line Items] | ||
6.625% senior subordinated notes due 2021 | $ 650,000 | $ 650,000 |
Total principal amount | 650,000 | 828,000 |
Less: unamortized discount | (1,933) | (2,234) |
Less: debt issuance costs, net | (4,696) | (5,490) |
Total long-term debt | $ 643,371 | 820,276 |
Interest percentage of senior subordinated notes | 6.625% | |
Debt instrument maturity date | May 15, 2021 | |
6.625% Senior Subordinated Notes Due 2021 [Member] | ||
Debt Instrument [Line Items] | ||
6.625% senior subordinated notes due 2021 | $ 650,000 | |
Unit Credit Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Credit agreement | $ 0 | $ 178,000 |
Revolving credit facility interest rate | 0.00% | 3.40% |
Superior Credit Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Credit agreement | $ 0 | $ 0 |
Revolving credit facility interest rate | 0.00% | 0.00% |
Long-Term Debt And Other Long-Term Liabilities (Other Long-Term Liabilities) (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Jan. 01, 2018 |
Dec. 31, 2017 |
Jun. 30, 2017 |
Dec. 31, 2016 |
---|---|---|---|---|---|
Debt Disclosure [Abstract] | |||||
Asset retirement obligation (ARO) liability | $ 62,838 | $ 69,444 | $ 70,049 | $ 70,170 | |
Capital lease obligations | 13,321 | 15,224 | |||
Workers' compensation | 12,963 | 13,340 | |||
Contract liability | 11,331 | 0 | |||
Separation benefit plans | 7,607 | 6,524 | |||
Deferred compensation plan | 5,621 | 5,390 | |||
Gas balancing liability | 3,283 | 3,283 | |||
Other liabilities | 116,964 | 113,205 | |||
Current portion of other long-term liabilities | 14,036 | $ 15,750 | 13,002 | ||
Other long-term liabilities | $ 102,928 | $ 109,940 | $ 100,203 |
Long-Term Debt And Other Long-Term Liabilities Long-Term Debt And Other Long-Term Liabilities (Capital Leases) (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Beginning July 1, | ||
2018 | $ 6,168 | |
2019 | 6,168 | |
2020 | 6,673 | |
2021 | 179 | |
Total future payments | 19,188 | |
Less payments related to: | ||
Maintenance | 4,981 | |
Interest | 886 | |
Present value of future minimum payments | $ 13,321 | $ 15,224 |
Long-Term Debt And Other Long-Term Liabilities (Narrative) (Details) - USD ($) $ in Thousands |
6 Months Ended | |||||
---|---|---|---|---|---|---|
May 02, 2018 |
Apr. 03, 2018 |
Jun. 30, 2018 |
Apr. 02, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
|
Debt Instrument [Line Items] | ||||||
Variable Interest Entity, Qualitative or Quantitative Information, Date Involvement Began | Apr. 03, 2018 | |||||
Aggregate principal amount | $ 650,000 | $ 650,000 | ||||
Interest percentage of senior subordinated notes | 6.625% | |||||
Debt instrument maturity date | May 15, 2021 | |||||
Original debt issuance fees | $ 14,700 | |||||
Senior notes repurchase price in percentage | 101.00% | |||||
Estimated principal payments in year 1 | $ 14,000 | |||||
Estimated principal payments in year 2 | 43,800 | |||||
Estimated principal payments in year 3 | 660,600 | |||||
Estimated principal payments in year 4 | 5,000 | |||||
Estimated principal payments in year 5 | $ 2,700 | |||||
Number of compressors under capital lease agreement | 20 | |||||
Capital lease term | 7 years | |||||
Capital Lease Obligations, Current | $ 3,900 | |||||
Capital Lease Obligations, Noncurrent | $ 9,400 | |||||
Discount rate capital leases | 4.00% | |||||
Maintenance | $ 4,981 | |||||
Interest | 886 | |||||
Capital leases, future minimum payments, average annual payment | $ 4,200 | |||||
Capital lease fair market value percentage for purchase | 10.00% | |||||
6.625% Senior Subordinated Notes Due 2021 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate principal amount | $ 650,000 | |||||
Unit Credit Agreement [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility maturity date | April 10, 2020 | |||||
Credit facility maximum credit amount | $ 875,000 | |||||
Commitment fee percentage under credit facility | 0.50% | |||||
Origination, agency and syndication and other related fees with the credit agreement | $ 1,000 | |||||
Payable assessment term for LIBOR | 90 days | |||||
Line of credit facility, amount outstanding | $ 0 | 178,000 | ||||
LIBOR interest rate plus one percent | LIBOR plus 1.00% plus a margin | |||||
Unit Credit Agreement, Dividend Restrictions | the payment of dividends (other than stock dividends) during any fiscal year over 30% of our consolidated net income for the preceding fiscal year; | |||||
Unit Credit Agreement, Asset Restrictions | investments in Unrestricted Subsidiaries (as defined in the Unit credit agreement) in excess of $200.0 million | |||||
Current ratio of credit facility | 1 to 1 | |||||
Unit Credit Agreement, Covenant Compliance | As of June 30, 2018, we were in compliance with the Unit credit agreement covenants. | |||||
Unit Credit Agreement [Member] | Minimum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
LIBOR plus interest rate | 2.00% | |||||
Unit Credit Agreement [Member] | Maximum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
LIBOR plus interest rate | 3.00% | |||||
Unit Credit Agreement [Member] | Line Of Credit Facility Lender Determined Amount [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility current credit amount | 475,000 | |||||
Unit Credit Agreement [Member] | Line Of Credit Facility Commitment Amount [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility current credit amount | $ 475,000 | |||||
Unit Credit Agreement [Member] | Proved developed producing total value of our oil and gas properties [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Percentage of collateral pledged | 85.00% | |||||
Present worth discounted | 8.00% | |||||
Unit Credit Agreement [Member] | Apr 8, 2016 to Mar 31, 2019 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Senior indebtedness ratio | 2.75 to 1 | |||||
Unit Credit Agreement [Member] | Apr 1, 2019 to Apr 10, 2020 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Leverage ratio of funded debt | 4 to 1 | |||||
Superior Credit Agreement [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility maximum credit amount | $ 250,000 | |||||
Credit facility current credit amount | $ 200,000 | |||||
Commitment fee percentage under credit facility | 0.375% | |||||
Origination, agency and syndication and other related fees with the credit agreement | $ 1,700 | |||||
Line of credit facility, amount outstanding | $ 0 | $ 0 | ||||
Unit Credit Agreement, Covenant Compliance | As of June 30, 2018, we were in compliance with the Superior credit agreement covenants. | |||||
Superior Credit Agreement, Initiation Date | May 10, 2018 | |||||
Superior Credit Agreement, Term | 5 years | |||||
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) third day LIBOR plus 1.00%) plus the applicable margin of 1.00% to 2.25%. | |||||
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 | |||||
Fourth Amendment to Credit Agreement [Member] | Unit Credit Agreement [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility maximum credit amount | $ 425,000 | |||||
Line of Credit Facility, Collateral | we granted a security interest in the limited liability membership interests and other equity interests we own in Superior (which as of the date of this report is 50% of the aggregate outstanding equity interests of Superior | |||||
Origination, agency and syndication and other related fees with the credit agreement | 0 | |||||
Fourth Amendment to Credit Agreement [Member] | Unit Credit Agreement [Member] | Line Of Credit Facility Lender Determined Amount [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility current credit amount | 425,000 | |||||
Fourth Amendment to Credit Agreement [Member] | Unit Credit Agreement [Member] | Line Of Credit Facility Commitment Amount [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility current credit amount | $ 425,000 |
Asset Retirement Obligations (Schedule Of Asset Retirement Obligations) (Details) - USD ($) $ in Thousands |
6 Months Ended | |||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
|||
Asset Retirement Obligation Disclosure [Abstract] | ||||
ARO liability, January 1: | $ 69,444 | $ 70,170 | ||
Accretion of discount | 1,248 | 1,458 | ||
Liability incurred | 211 | 1,018 | ||
Liability settled | (3,142) | (1,224) | ||
Liability sold | (94) | (1,412) | ||
Revision of estimates | [1] | (4,829) | 39 | |
ARO liability, June 30: | 62,838 | 70,049 | ||
Less current portion | 1,451 | 2,825 | ||
Total long-term ARO | $ 61,387 | $ 67,224 | ||
|
Stock-Based Compensation Stock-Based Compensation (Schedule of Restricted Stock Awards and Stock Options) (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Abstract] | ||||
Recognized stock compensation expense | $ 4.0 | $ 3.2 | $ 9.5 | $ 5.8 |
Capitalized stock compensation cost for our oil and natural gas properties | 0.6 | 0.4 | 1.0 | 0.8 |
Tax benefit on stock based compensation | $ 1.0 | $ 1.2 | $ 2.3 | $ 2.2 |
Stock-Based Compensation (Schedule of Fair Value of the Restricted Stock Awards Granted During the Periods) (Details) - Restricted Stock [Member] - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|||||||||
Time Vested [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Shares granted | 49,312 | 63,104 | 888,810 | 524,903 | ||||||||
Estimated fair value (in millions) | $ 1.0 | [1] | $ 1.3 | [1] | $ 17.1 | [2] | $ 12.7 | [2] | ||||
Time Vested [Member] | Employees [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Shares granted | 5,000 | 14,000 | 844,498 | 475,799 | ||||||||
Estimated fair value (in millions) | $ 0.1 | [1] | $ 0.4 | [1] | $ 16.2 | [2] | $ 11.8 | [2] | ||||
Percentage of shares granted expected to be distributed | 95.00% | 100.00% | 95.00% | 95.00% | ||||||||
Time Vested [Member] | Non-employee Directors [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Shares granted | 44,312 | 49,104 | 44,312 | 49,104 | ||||||||
Estimated fair value (in millions) | $ 0.9 | [1] | $ 0.9 | [1] | $ 0.9 | [2] | $ 0.9 | [2] | ||||
Percentage of shares granted expected to be distributed | 100.00% | 100.00% | 100.00% | 100.00% | ||||||||
Performance Shares [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Shares granted | 0 | 21,000 | 362,070 | 173,373 | ||||||||
Estimated fair value (in millions) | $ 0.0 | [1] | $ 0.5 | [1] | $ 7.3 | [2] | $ 4.5 | [2] | ||||
Performance Shares [Member] | Employees [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Shares granted | 0 | 21,000 | 362,070 | 173,373 | ||||||||
Estimated fair value (in millions) | $ 0.0 | [1] | $ 0.5 | [1] | $ 7.3 | [2] | $ 4.5 | [2] | ||||
Percentage of shares granted expected to be distributed | 87.00% | 62.00% | 87.00% | |||||||||
Performance Shares [Member] | Non-employee Directors [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Shares granted | 0 | 0 | 0 | 0 | ||||||||
Estimated fair value (in millions) | $ 0.0 | [1] | $ 0.0 | [1] | $ 0.0 | [2] | $ 0.0 | [2] | ||||
|
Stock-Based Compensation (Narrative) (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
May 06, 2015 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation cost related to unvested awards | $ 23.7 | $ 23.7 | |||
Unrecognized compensation cost, expected to be capitalized | $ 3.0 | $ 3.0 | |||
Weighted average years over which this cost will be recognized | 1 year | ||||
Increase in stock compensation expense due to the restricted stock awards granted | $ 4.3 | ||||
Stock Appreciation Rights (SARs) [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares granted | 0 | 0 | 0 | 0 | |
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 | ||||
Employee Stock 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 | 49,312 | 63,104 | 888,810 | 524,903 | |
Performance Shares [Member] | Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares granted | 0 | 21,000 | 362,070 | 173,373 | |
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 | ||||
2018 [Member] | Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance percentage criteria | 25.00% | ||||
2017 [Member] | Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance percentage criteria | 91.00% | ||||
2016 [Member] | Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance percentage criteria | 167.00% |
Derivatives (Schedule of Derivatives Outstanding) (Details) |
6 Months Ended | |||
---|---|---|---|---|
Jun. 30, 2018
$ / Unit
MMBTU
bbl
| ||||
Swap [Member] | Jul'18 - Sep'18 [Member] | Natural Gas [Member] | IF - NYMEX (HH) [Member] | ||||
Derivative [Line Items] | ||||
Weighted average price | 2.985 | |||
Hedged volume (MMBtu/day) | MMBTU | 40,000 | |||
Swap [Member] | Jul'18 - Sep'18 [Member] | Natural Gas Liquids [Member] | OPIS - Mont Belvieu [Member] | ||||
Derivative [Line Items] | ||||
Weighted average price | 32.14 | [1] | ||
Hedged NGLs volume (Bbl/day) | bbl | 1,500 | [1] | ||
Swap [Member] | Oct'18 [Member] | Natural Gas [Member] | IF - NYMEX (HH) [Member] | ||||
Derivative [Line Items] | ||||
Weighted average price | 3.005 | |||
Hedged volume (MMBtu/day) | MMBTU | 30,000 | |||
Swap [Member] | Nov'18 - Dec'18 [Member] | Natural Gas [Member] | IF - NYMEX (HH) [Member] | ||||
Derivative [Line Items] | ||||
Weighted average price | 3.013 | |||
Hedged volume (MMBtu/day) | MMBTU | 20,000 | |||
Swap [Member] | Jul'18 - Dec'18 [Member] | Crude Oil [Member] | WTI - NYMEX [Member] | ||||
Derivative [Line Items] | ||||
Weighted average price | 53.52 | |||
Hedged volume (Bbl/day) | bbl | 4,000 | |||
Swap [Member] | Jan'19 - Dec'19 [Member] | Natural Gas [Member] | IF - NYMEX (HH) [Member] | ||||
Derivative [Line Items] | ||||
Weighted average price | 2.810 | |||
Hedged volume (MMBtu/day) | MMBTU | 10,000 | |||
Price Risk Derivative [Member] | Jul'18 - Dec'18 [Member] | Crude Oil [Member] | LLS/WTI [Member] | ||||
Derivative [Line Items] | ||||
Weighted average price | 7.00 | |||
Hedged volume (Bbl/day) | bbl | 500 | |||
Basis swap [Member] | Nov'18 - Dec'18 [Member] | Natural Gas [Member] | IF - NYMEX (HH) [Member] | ||||
Derivative [Line Items] | ||||
Weighted average price | (0.208) | |||
Hedged volume (MMBtu/day) | MMBTU | 10,000 | |||
Basis swap [Member] | Jul'18 - Oct'18 [Member] | Natural Gas [Member] | NGPL Texok [Member] | ||||
Derivative [Line Items] | ||||
Weighted average price | (0.190) | |||
Hedged volume (MMBtu/day) | MMBTU | 10,000 | |||
Basis swap [Member] | Jul'18 - Dec'18 [Member] | Natural Gas [Member] | NGPL Midcon [Member] | ||||
Derivative [Line Items] | ||||
Weighted average price | (0.568) | |||
Hedged volume (MMBtu/day) | MMBTU | 10,000 | |||
Basis swap [Member] | Jul'18 - Dec'18 [Member] | Natural Gas [Member] | PEPL [Member] | ||||
Derivative [Line Items] | ||||
Weighted average price | (0.678) | |||
Hedged volume (MMBtu/day) | MMBTU | 10,000 | |||
Basis swap [Member] | Jan'19 - Dec'19 [Member] | Natural Gas [Member] | NGPL Midcon [Member] | ||||
Derivative [Line Items] | ||||
Weighted average price | (0.625) | |||
Hedged volume (MMBtu/day) | MMBTU | 10,000 | |||
Basis swap [Member] | Jan'19 - Dec'19 [Member] | Natural Gas [Member] | NGPL Texok [Member] | ||||
Derivative [Line Items] | ||||
Weighted average price | (0.265) | |||
Hedged volume (MMBtu/day) | MMBTU | 30,000 | |||
Basis swap [Member] | Jan'19 - Dec'19 [Member] | Natural Gas [Member] | PEPL [Member] | ||||
Derivative [Line Items] | ||||
Weighted average price | (0.728) | |||
Hedged volume (MMBtu/day) | MMBTU | 10,000 | |||
Basis swap [Member] | Jan'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 | |||
Collar [Member] | Jul'18 - Sep'18 [Member] | Natural Gas [Member] | IF - NYMEX (HH) [Member] | ||||
Derivative [Line Items] | ||||
Hedged volume (MMBtu/day) | MMBTU | 30,000 | |||
Cap Price | 2.97 | |||
Floor Price | 2.67 | |||
Three-way collar [Member] | Jul'18 - Dec'18 [Member] | Crude Oil [Member] | WTI - NYMEX [Member] | ||||
Derivative [Line Items] | ||||
Hedged volume (Bbl/day) | bbl | 2,000 | |||
Cap Price | 56.08 | |||
Subfloor price | 37.50 | |||
Floor Price | 47.50 | |||
Three-way collar [Member] | Jul'18 - Dec'18 [Member] | Natural Gas [Member] | IF - NYMEX (HH) [Member] | ||||
Derivative [Line Items] | ||||
Hedged volume (MMBtu/day) | MMBTU | 20,000 | |||
Cap Price | 3.51 | |||
Subfloor price | 2.50 | |||
Floor Price | 3.00 | |||
Three-way collar [Member] | Jan'19 - Dec'19 [Member] | Crude Oil [Member] | WTI - NYMEX [Member] | ||||
Derivative [Line Items] | ||||
Hedged volume (Bbl/day) | bbl | 2,000 | |||
Cap Price | 71.90 | |||
Subfloor price | 47.50 | |||
Floor Price | 57.50 | |||
|
Derivatives Derivatives (Subsequent Schedule of Derivatives Outstanding) (Details) - Basis swap [Member] - Natural Gas [Member] - PEPL [Member] - Jan'19 - Dec'19 [Member] |
1 Months Ended | 6 Months Ended |
---|---|---|
Aug. 07, 2018
$ / Unit
MMBTU
|
Jun. 30, 2018
$ / Unit
MMBTU
|
|
Derivative [Line Items] | ||
Weighted average price | $ / Unit | (0.728) | |
Hedged volume (MMBtu/day) | MMBTU | 10,000 | |
Subsequent Event [Member] | ||
Derivative [Line Items] | ||
Weighted average price | $ / Unit | (0.590) | |
Hedged volume (MMBtu/day) | MMBTU | 10,000 |
Derivatives (Fair Value of Derivative Instruments and Locations in Balance Sheets) (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Current derivative asset | $ 127 | $ 721 |
Non-current derivative asset | 0 | 0 |
Total derivatives assets | 127 | 721 |
Current derivative liability | (18,555) | (7,763) |
Non-current derivative liability | (910) | 0 |
Total derivative liabilities | $ (19,465) | $ (7,763) |
Derivatives (Effect of Derivative Instruments Recognized in Income Statements, Derivative Instruments) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||||
Gain (loss) on derivatives | $ (14,461) | $ 8,902 | $ (21,223) | $ 23,633 | ||||||||
Commodity Derivatives [Member] | ||||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||||
Gain (loss) on derivatives | (14,461) | 8,902 | (21,223) | 23,633 | ||||||||
Amount of loss settled during the period | (6,900) | (400) | (8,900) | (1,600) | ||||||||
Gain (loss) on derivatives [Member] | Commodity Derivatives [Member] | ||||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||||
Gain (loss) on derivatives | $ (14,461) | [1] | $ 8,902 | [1] | $ (21,223) | [2] | $ 23,633 | [2] | ||||
|
Fair Value Measurements (Fair Value of Available-for-sale Securities) (Details) - USD ($) $ in Thousands |
6 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2018 |
Dec. 31, 2017 |
|
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | $ 830 | $ 830 |
Gross unrealized gains | 0 | 102 |
Gross unrealized losses | 86 | 0 |
Available-for-sale Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Estimated fair value | 744 | 932 |
Available-for-sale Securities [Member] | Level 1 [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Estimated fair value | $ 744 | $ 932 |
Fair Value Measurements (Recurring Fair Value Measurements) (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | $ 127 | $ 721 |
Derivative Liability | (19,465) | (7,763) |
Financial assets (liabilities) | (18,594) | (6,110) |
Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial assets (liabilities) | 744 | 932 |
Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial assets (liabilities) | (13,203) | (6,836) |
Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial assets (liabilities) | (6,135) | (206) |
Effect of Netting [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial assets (liabilities) | 0 | 0 |
Commodity Derivatives [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | 127 | 721 |
Derivative Liability | (19,465) | (7,763) |
Total commodity derivatives | (19,338) | (7,042) |
Commodity Derivatives [Member] | Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Gross Assets | 0 | 0 |
Gross Liabilities | 0 | 0 |
Total commodity derivatives | 0 | 0 |
Commodity Derivatives [Member] | Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Gross Assets | 1,196 | 2,137 |
Gross Liabilities | (14,399) | (8,973) |
Total commodity derivatives | (13,203) | (6,836) |
Commodity Derivatives [Member] | Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Gross Assets | 390 | 3,344 |
Gross Liabilities | (6,525) | (3,550) |
Total commodity derivatives | (6,135) | (206) |
Commodity Derivatives [Member] | Effect of Netting [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Effect of netting on assets | (1,459) | (4,760) |
Effect of netting on liabilities | 1,459 | 4,760 |
Total commodity derivatives | 0 | 0 |
Available-for-sale Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities | 744 | 932 |
Available-for-sale Securities [Member] | Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities | 744 | 932 |
Available-for-sale Securities [Member] | Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities | 0 | 0 |
Available-for-sale Securities [Member] | Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities | 0 | 0 |
Available-for-sale Securities [Member] | Effect of Netting [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities | $ 0 | $ 0 |
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, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Beginning of period | $ (3,206) | $ (602) | $ (206) | $ (7,122) | ||
Included in earnings | [1] | (4,704) | 5,214 | (8,624) | 11,117 | |
Settlements | 1,775 | (519) | 2,695 | 98 | ||
End of period | (6,135) | 4,093 | (6,135) | 4,093 | ||
Total gains (losses) for the period included in earnings attributable to the change in unrealized gain relating to assets still held at end of period | $ (2,929) | $ 4,695 | $ (5,929) | $ 11,215 | ||
|
Fair Value Measurements (Schedule Of Quantitative Information About Unobservable Inputs) (Details) - Level 3 [Member] $ in Thousands |
6 Months Ended | |||
---|---|---|---|---|
Jun. 30, 2018
USD ($)
$ / Unit
|
[1] | |||
Oil [Member] | Three-way collar [Member] | ||||
Derivative fair value | $ | $ (6,420) | |||
Derivatives Valuation Technique(s) | Discounted cash flow | |||
Unobservable Input | Forward commodity price curve | |||
Oil [Member] | Three-way collar [Member] | Minimum [Member] | ||||
Forward commodity price curve | 0.00 | |||
Oil [Member] | Three-way collar [Member] | Maximum [Member] | ||||
Forward commodity price curve | 18.05 | |||
Natural Gas [Member] | Collar [Member] | ||||
Derivative fair value | $ | $ (105) | |||
Derivatives Valuation Technique(s) | Discounted cash flow | |||
Unobservable Input | Forward commodity price curve | |||
Natural Gas [Member] | Collar [Member] | Minimum [Member] | ||||
Forward commodity price curve | 0.00 | |||
Natural Gas [Member] | Collar [Member] | Maximum [Member] | ||||
Forward commodity price curve | 0.08 | |||
Natural Gas [Member] | Three-way collar [Member] | ||||
Derivative fair value | $ | $ 390 | |||
Derivatives Valuation Technique(s) | Discounted cash flow | |||
Unobservable Input | Forward commodity price curve | |||
Natural Gas [Member] | Three-way collar [Member] | Minimum [Member] | ||||
Forward commodity price curve | 0.00 | |||
Natural Gas [Member] | Three-way collar [Member] | Maximum [Member] | ||||
Forward commodity price curve | 0.18 | |||
|
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral posted | $ 0 | |
6.625% senior subordinated notes due 2021 | 643,400 | $ 642,300 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Estimated fair value of long-term debt | 651,100 | 649,700 |
Unit Credit Agreement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Line of credit facility, amount outstanding | $ 0 | $ 178,000 |
Commitments and Contingencies (Narrative) (Details) - USD ($) |
6 Months Ended | |
---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Long-term Purchase Commitment [Line Items] | ||
Operating Leases, Future Minimum Payments Due, Next Twelve Months | $ 4,900,000 | |
Operating Leases, Future Minimum Payments, Due in Two Years | 1,400,000 | |
Operating Leases, Future Minimum Payments, Due in Three Years | 300,000 | |
Operating Leases, Future Minimum Payments, Due in Four Years | 100,000 | |
Operating Leases, Rent Expense, Net | $ 4,600,000 | $ 4,200,000 |
Number of compressors under capital lease agreement | 20 | |
Capital lease term | 7 years | |
Capital Leases, Future Minimum Payments Due, Next Twelve Months | $ 6,168,000 | |
Capital Leases, Future Minimum Payments Due in Two Years | 6,168,000 | |
Capital Leases, Future Minimum Payments Due in Three Years | 6,673,000 | |
Capital Leases, Future Minimum Payments Due in Four Years | 179,000 | |
Maintenance | 4,981,000 | |
Interest | 886,000 | |
Capital leases, future minimum payments, average annual payment | $ 4,200,000 | |
Capital lease fair market value percentage for purchase | 10.00% | |
Percentage of repurchase of limited units outstanding | 20.00% | |
Repurchase Of Limited Units Outstanding Amount | $ 0 | $ 0 |
Drilling Equipment [Member] | ||
Long-term Purchase Commitment [Line Items] | ||
Other Commitment, Due in Next Twelve Months | $ 13,992,000 | |
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. This amount is already included in our drilling plan. For each dollar of the $150.0 million that 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. If we elected not to drill or spend any money in the designated area over the three year period, the maximum amount we could forgo from distributions would be $87.0 million. | |
Long-term Purchase Commitment, Amount | $ 150,000,000 | |
Long-term Purchase Commitment, Period | 3 years |
Variable Interest Entity Arrangements Variable Interest Entity Arrangements (Schedule of Assets and Liabilities) (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Jan. 01, 2018 |
Dec. 31, 2017 |
Jun. 30, 2017 |
Dec. 31, 2016 |
|||
---|---|---|---|---|---|---|---|---|
Variable Interest Entity [Line Items] | ||||||||
Cash and cash equivalents | $ 104,308 | $ 701 | $ 849 | $ 893 | ||||
Accounts receivable, net of allowance for doubtful accounts | 113,377 | 111,512 | ||||||
Prepaid expenses and other | 8,731 | 6,233 | ||||||
Total current assets | 227,044 | 119,672 | ||||||
Gas gathering and processing equipment | 736,488 | 726,236 | ||||||
Transportation equipment | 29,918 | 29,631 | ||||||
Property, plant, and equipment, gross | 8,695,348 | 8,534,192 | ||||||
Less accumulated depreciation, depletion, amortization, and impairment | 6,263,504 | 6,151,450 | ||||||
Net property and equipment | 2,431,844 | 2,382,742 | ||||||
Other assets | 28,113 | $ 27,028 | 16,230 | |||||
Total assets | 2,749,809 | [1] | 2,581,452 | |||||
Accounts payable | 114,411 | 112,648 | ||||||
Accrued liabilities | 49,064 | 48,523 | ||||||
Current portion of other long-term liabilities | 14,036 | 15,750 | 13,002 | |||||
Total current liabilities | 200,714 | 181,936 | ||||||
Long-term debt less debt issuance costs | 643,371 | 820,276 | ||||||
Other long-term liabilities | 102,928 | $ 109,940 | $ 100,203 | |||||
VIE [Member] | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Cash and cash equivalents | 7,002 | |||||||
Accounts receivable, net of allowance for doubtful accounts | 28,378 | |||||||
Prepaid expenses and other | 3,009 | |||||||
Total current assets | 38,389 | |||||||
Gas gathering and processing equipment | 736,488 | |||||||
Transportation equipment | 3,102 | |||||||
Property, plant, and equipment, gross | 739,590 | |||||||
Less accumulated depreciation, depletion, amortization, and impairment | 342,269 | |||||||
Net property and equipment | 397,321 | |||||||
Other assets | 14,916 | |||||||
Total assets | 450,626 | |||||||
Accounts payable | 24,898 | |||||||
Accrued liabilities | 2,005 | |||||||
Current portion of other long-term liabilities | 6,796 | |||||||
Total current liabilities | 33,699 | |||||||
Long-term debt less debt issuance costs | 0 | |||||||
Other long-term liabilities | 17,856 | |||||||
Total liabilities | $ 51,555 | |||||||
|
Variable Interest Entity Arrangements (Details) - USD ($) |
6 Months Ended | |
---|---|---|
Apr. 03, 2018 |
Jun. 30, 2018 |
|
Variable Interest Entity [Line Items] | ||
Date Involvement Began | Apr. 03, 2018 | |
Superior Pipeline Company, L.L.C. [Member] | ||
Variable Interest Entity [Line Items] | ||
Date Involvement Began | Apr. 03, 2018 | |
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 houses the power to direct the activities that most significantly impact 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 significantly impact the entity’s economic performance. Because of this, Unit is considered the primary beneficiary. | |
Lack of Recourse | Superior's creditors have no recourse to our general credit. | |
SP Investor Holdings, LLC [Member] | Superior Pipeline Company, L.L.C. [Member] | ||
Variable Interest Entity [Line Items] | ||
Ownership Percentage | 50.00% | |
SPC Midstream Operating, L.L.C. [Member] | Superior Pipeline Company, L.L.C. [Member] | ||
Variable Interest Entity [Line Items] | ||
Monthly service fee | $ 250,000 |
Equity (Schedule of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Abstract] | ||||||||||
Unrealized appreciation (loss) on securities, before tax | $ 46 | $ 32 | $ (188) | $ 32 | ||||||
Tax expense | (11) | [1] | (12) | 47 | [2] | (12) | ||||
Unrealized appreciation (loss) on securities, net of tax | $ 35 | $ 20 | $ (141) | $ 20 | ||||||
|
Equity (Reclassification out of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
Jan. 01, 2018 |
Dec. 31, 2016 |
||||||||
New Accounting Pronouncement, Early Adoption [Line Items] | |||||||||||||
Beginning Balance | $ (100) | $ 0 | $ 63 | $ 0 | |||||||||
Accumulated other comprehensive income (loss) | (100) | 0 | 63 | 0 | $ 63 | $ 0 | |||||||
Unrealized appreciation (loss) before reclassifications | 35 | [1] | 20 | (141) | [2] | 20 | |||||||
Amounts reclassified from accumulated other comprehensive income | 0 | 0 | 0 | 0 | |||||||||
Net current-period other comprehensive income (loss) | 35 | 20 | (141) | 20 | |||||||||
Ending Balance | $ (65) | $ 20 | $ (65) | $ 20 | |||||||||
ASU 2018-02 effect | |||||||||||||
New Accounting Pronouncement, Early Adoption [Line Items] | |||||||||||||
Adjustment due to ASU 2018-02 | 13 | [2] | $ 0 | ||||||||||
ASU 2018-02 end balance | |||||||||||||
New Accounting Pronouncement, Early Adoption [Line Items] | |||||||||||||
Accumulated other comprehensive income (loss) | $ 76 | ||||||||||||
|
Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands |
6 Months Ended | 13 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
May 02, 2018 |
Dec. 31, 2017 |
Apr. 04, 2017 |
|
Class of Stock [Line Items] | |||||
Common stock, par value | $ 0.20 | $ 0.20 | |||
Common stock, shares issued | 54,089,366 | 52,880,134 | |||
Proceeds from issuance of common stock, net of issuance costs | $ 0 | $ 18,623 | |||
Terminated May 2, 2018 [Member] | At-the-Market Common Stock Program [Member] | |||||
Class of Stock [Line Items] | |||||
Common stock, par value | $ 0.20 | ||||
Aggregate Offering Price | $ 100,000 | ||||
Proceeds from issuance of common stock, net of issuance costs | $ 18,623 | ||||
Commission of the gross sales price by share paid percentage | 2.00% | ||||
ATM Distribution Agreement [Member] | Terminated May 2, 2018 [Member] | At-the-Market Common Stock Program [Member] | |||||
Class of Stock [Line Items] | |||||
Common stock, shares issued | 787,547 |
Industry Segment Information (Industry Segment Information) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|||||||||||||||||
Revenues: | ||||||||||||||||||||
Oil and natural gas | $ 102,318 | $ 83,173 | $ 205,417 | $ 170,771 | ||||||||||||||||
Contract drilling | 46,926 | 39,255 | 92,915 | 76,440 | ||||||||||||||||
Gas gathering and processing | 54,059 | 48,153 | 110,103 | 99,094 | ||||||||||||||||
Total revenues | 203,303 | 170,581 | 408,435 | 346,305 | ||||||||||||||||
Operating costs: | ||||||||||||||||||||
Oil and natural gas | 32,418 | 32,758 | 68,380 | 61,962 | ||||||||||||||||
Contract drilling | 31,894 | 27,239 | 63,561 | 56,466 | ||||||||||||||||
Gas gathering and processing | 39,703 | 36,042 | 81,307 | 73,746 | ||||||||||||||||
Total operating costs | 104,015 | 96,039 | 213,248 | 192,174 | ||||||||||||||||
Depreciation, depletion, and amortization | 58,373 | 50,080 | 115,439 | 97,012 | ||||||||||||||||
Total expenses | 162,388 | 146,119 | 328,687 | 289,186 | ||||||||||||||||
General and administrative expense | (8,712) | (8,713) | (19,474) | (17,667) | ||||||||||||||||
Gain on disposition of assets | 161 | 248 | 322 | 1,072 | ||||||||||||||||
Gain (loss) on derivatives | (14,461) | 8,902 | (21,223) | 23,633 | ||||||||||||||||
Interest, net | (7,729) | (9,467) | (17,733) | (18,863) | ||||||||||||||||
Other | 5 | 6 | 11 | 9 | ||||||||||||||||
Income (loss) before income taxes | 10,179 | 15,438 | 21,651 | 45,303 | ||||||||||||||||
Oil and Natural Gas [Member] | ||||||||||||||||||||
Revenues: | ||||||||||||||||||||
Oil and natural gas | 102,318 | [1] | 83,173 | 205,417 | [2] | 170,771 | ||||||||||||||
Contract drilling | 0 | [1] | 0 | 0 | [2] | 0 | ||||||||||||||
Gas gathering and processing | 0 | [1] | 0 | 0 | [2] | 0 | ||||||||||||||
Total revenues | 102,318 | [1] | 83,173 | 205,417 | [2] | 170,771 | ||||||||||||||
Operating costs: | ||||||||||||||||||||
Oil and natural gas | 33,682 | 33,941 | 70,834 | 64,267 | ||||||||||||||||
Contract drilling | 0 | 0 | 0 | 0 | ||||||||||||||||
Gas gathering and processing | 0 | 0 | 0 | 0 | ||||||||||||||||
Total operating costs | 33,682 | 33,941 | 70,834 | 64,267 | ||||||||||||||||
Depreciation, depletion, and amortization | 31,554 | 23,558 | 62,337 | 45,084 | ||||||||||||||||
Total expenses | 65,236 | 57,499 | 133,171 | 109,351 | ||||||||||||||||
Total operating income (loss) | 37,082 | [3] | 25,674 | [4] | 72,246 | [5] | 61,420 | [6] | ||||||||||||
General and administrative expense | 0 | 0 | 0 | 0 | ||||||||||||||||
Gain on disposition of assets | 59 | 168 | 129 | 177 | ||||||||||||||||
Gain (loss) on derivatives | 0 | 0 | 0 | 0 | ||||||||||||||||
Interest, net | 0 | 0 | 0 | 0 | ||||||||||||||||
Other | 0 | 0 | 0 | 0 | ||||||||||||||||
Income (loss) before income taxes | 37,141 | 25,842 | 72,375 | 61,597 | ||||||||||||||||
Drilling [Member] | ||||||||||||||||||||
Revenues: | ||||||||||||||||||||
Oil and natural gas | 0 | [1] | 0 | 0 | [2] | 0 | ||||||||||||||
Contract drilling | 52,767 | [1] | 44,844 | 103,477 | [2] | 82,029 | ||||||||||||||
Gas gathering and processing | 0 | [1] | 0 | 0 | [2] | 0 | ||||||||||||||
Total revenues | 52,767 | [1] | 44,844 | 103,477 | [2] | 82,029 | ||||||||||||||
Operating costs: | ||||||||||||||||||||
Oil and natural gas | 0 | 0 | 0 | 0 | ||||||||||||||||
Contract drilling | 36,921 | 32,452 | 72,875 | 61,679 | ||||||||||||||||
Gas gathering and processing | 0 | 0 | 0 | 0 | ||||||||||||||||
Total operating costs | 36,921 | 32,452 | 72,875 | 61,679 | ||||||||||||||||
Depreciation, depletion, and amortization | 13,726 | 13,769 | 27,038 | 26,616 | ||||||||||||||||
Total expenses | 50,647 | 46,221 | 99,913 | 88,295 | ||||||||||||||||
Total operating income (loss) | 2,120 | [3] | (1,377) | [4] | 3,564 | [5] | (6,266) | [6] | ||||||||||||
General and administrative expense | 0 | 0 | 0 | 0 | ||||||||||||||||
Gain on disposition of assets | 57 | 31 | 84 | 38 | ||||||||||||||||
Gain (loss) on derivatives | 0 | 0 | 0 | 0 | ||||||||||||||||
Interest, net | 0 | 0 | 0 | 0 | ||||||||||||||||
Other | 0 | 0 | 0 | 0 | ||||||||||||||||
Income (loss) before income taxes | 2,177 | (1,346) | 3,648 | (6,228) | ||||||||||||||||
Mid-Stream [Member] | ||||||||||||||||||||
Revenues: | ||||||||||||||||||||
Oil and natural gas | 0 | [1] | 0 | 0 | [2] | 0 | ||||||||||||||
Contract drilling | 0 | [1] | 0 | 0 | [2] | 0 | ||||||||||||||
Gas gathering and processing | 75,406 | [1] | 63,111 | 150,056 | [2] | 129,575 | ||||||||||||||
Total revenues | 75,406 | [1] | 63,111 | 150,056 | [2] | 129,575 | ||||||||||||||
Operating costs: | ||||||||||||||||||||
Oil and natural gas | 0 | 0 | 0 | 0 | ||||||||||||||||
Contract drilling | 0 | 0 | 0 | 0 | ||||||||||||||||
Gas gathering and processing | 59,786 | 49,817 | 118,806 | 101,922 | ||||||||||||||||
Total operating costs | 59,786 | 49,817 | 118,806 | 101,922 | ||||||||||||||||
Depreciation, depletion, and amortization | 11,175 | 10,849 | 22,228 | 21,667 | ||||||||||||||||
Total expenses | 70,961 | 60,666 | 141,034 | 123,589 | ||||||||||||||||
Total operating income (loss) | 4,445 | [3] | 2,445 | [4] | 9,022 | [5] | 5,986 | [6] | ||||||||||||
General and administrative expense | 0 | 0 | 0 | 0 | ||||||||||||||||
Gain on disposition of assets | 45 | 44 | 79 | 44 | ||||||||||||||||
Gain (loss) on derivatives | 0 | 0 | 0 | 0 | ||||||||||||||||
Interest, net | (304) | 0 | (453) | 0 | ||||||||||||||||
Other | 0 | 0 | 0 | 0 | ||||||||||||||||
Income (loss) before income taxes | 4,186 | 2,489 | 8,648 | 6,030 | ||||||||||||||||
Other Segments [Member] | ||||||||||||||||||||
Revenues: | ||||||||||||||||||||
Oil and natural gas | 0 | [1] | 0 | 0 | [2] | 0 | ||||||||||||||
Contract drilling | 0 | [1] | 0 | 0 | [2] | 0 | ||||||||||||||
Gas gathering and processing | 0 | [1] | 0 | 0 | [2] | 0 | ||||||||||||||
Total revenues | 0 | [1] | 0 | 0 | [2] | 0 | ||||||||||||||
Operating costs: | ||||||||||||||||||||
Oil and natural gas | 0 | 0 | 0 | 0 | ||||||||||||||||
Contract drilling | 0 | 0 | 0 | 0 | ||||||||||||||||
Gas gathering and processing | 3,576 | 0 | 3,576 | 0 | ||||||||||||||||
Total operating costs | 3,576 | 0 | 3,576 | 0 | ||||||||||||||||
Depreciation, depletion, and amortization | 1,918 | 1,904 | 3,836 | 3,645 | ||||||||||||||||
Total expenses | 5,494 | 1,904 | 7,412 | 3,645 | ||||||||||||||||
Total operating income (loss) | (5,494) | [3] | (1,904) | [4] | (7,412) | [5] | (3,645) | [6] | ||||||||||||
General and administrative expense | (8,712) | (8,713) | (19,474) | (17,667) | ||||||||||||||||
Gain on disposition of assets | 0 | 5 | 30 | 813 | ||||||||||||||||
Gain (loss) on derivatives | (14,461) | 8,902 | (21,223) | 23,633 | ||||||||||||||||
Interest, net | (7,425) | (9,467) | (17,280) | (18,863) | ||||||||||||||||
Other | 3,581 | 6 | 3,587 | 9 | ||||||||||||||||
Income (loss) before income taxes | (32,511) | (11,171) | (61,772) | (15,720) | ||||||||||||||||
Eliminations [Member] | ||||||||||||||||||||
Revenues: | ||||||||||||||||||||
Oil and natural gas | 0 | 0 | 0 | 0 | ||||||||||||||||
Contract drilling | (5,841) | (5,589) | (10,562) | (5,589) | ||||||||||||||||
Gas gathering and processing | (21,347) | (14,958) | (39,953) | (30,481) | ||||||||||||||||
Total revenues | (27,188) | (20,547) | (50,515) | (36,070) | ||||||||||||||||
Operating costs: | ||||||||||||||||||||
Oil and natural gas | (1,264) | (1,183) | (2,454) | (2,305) | ||||||||||||||||
Contract drilling | (5,027) | (5,213) | (9,314) | (5,213) | ||||||||||||||||
Gas gathering and processing | (23,659) | (13,775) | (41,075) | (28,176) | ||||||||||||||||
Total operating costs | (29,950) | (20,171) | (52,843) | (35,694) | ||||||||||||||||
Depreciation, depletion, and amortization | 0 | 0 | 0 | 0 | ||||||||||||||||
Total expenses | (29,950) | (20,171) | (52,843) | (35,694) | ||||||||||||||||
Total operating income (loss) | 2,762 | [3] | (376) | [4] | 2,328 | [5] | (376) | [6] | ||||||||||||
General and administrative expense | 0 | 0 | 0 | 0 | ||||||||||||||||
Gain on disposition of assets | 0 | 0 | 0 | 0 | ||||||||||||||||
Gain (loss) on derivatives | 0 | 0 | 0 | 0 | ||||||||||||||||
Interest, net | 0 | 0 | 0 | 0 | ||||||||||||||||
Other | (3,576) | 0 | (3,576) | 0 | ||||||||||||||||
Income (loss) before income taxes | $ (814) | $ (376) | $ (1,248) | $ (376) | ||||||||||||||||
|
Supplemental Condensed Consolidated Financial Information (Condensed Consolidating Balance Sheets) (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Mar. 31, 2018 |
Jan. 01, 2018 |
Dec. 31, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
|||
---|---|---|---|---|---|---|---|---|---|---|
Current assets: | ||||||||||
Cash and cash equivalents | $ 104,308 | $ 701 | $ 849 | $ 893 | ||||||
Accounts receivable, net of allowance for doubtful accounts | 113,377 | 111,512 | ||||||||
Materials and supplies | 501 | 505 | ||||||||
Current derivative asset | 127 | 721 | ||||||||
Prepaid expenses and other | 8,731 | 6,233 | ||||||||
Total current assets | 227,044 | 119,672 | ||||||||
Oil and natural gas properties on the full cost method: | ||||||||||
Proved properties | 5,809,850 | 5,712,813 | ||||||||
Unproved properties not being amortized | 325,595 | 296,764 | ||||||||
Drilling equipment | 1,612,817 | 1,593,611 | ||||||||
Gas gathering and processing equipment | 736,488 | 726,236 | ||||||||
Saltwater disposal systems | 65,218 | 62,618 | ||||||||
Corporate land and building | 59,081 | 59,080 | ||||||||
Transportation equipment | 29,918 | 29,631 | ||||||||
Other | 56,381 | 53,439 | ||||||||
Property, plant, and equipment, gross | 8,695,348 | 8,534,192 | ||||||||
Less accumulated depreciation, depletion, amortization, and impairment | 6,263,504 | 6,151,450 | ||||||||
Net property and equipment | 2,431,844 | 2,382,742 | ||||||||
Intercompany receivable | 0 | 0 | ||||||||
Goodwill | 62,808 | 62,808 | ||||||||
Investments | 1,500 | 1,500 | ||||||||
Other assets | 26,613 | 14,730 | ||||||||
Total assets | 2,749,809 | [1] | 2,581,452 | |||||||
Current liabilities: | ||||||||||
Accounts payable | 114,411 | 112,648 | ||||||||
Accrued liabilities | 49,064 | 48,523 | ||||||||
Income taxes payable | 4,648 | 0 | ||||||||
Current derivative liability | 18,555 | 7,763 | ||||||||
Current portion of other long-term liabilities | 14,036 | $ 15,750 | 13,002 | |||||||
Total current liabilities | 200,714 | 181,936 | ||||||||
Intercompany debt | 0 | 0 | ||||||||
Long-term debt | 178,000 | |||||||||
Bonds payable less debt issuance costs | 643,371 | 642,276 | ||||||||
Non-current derivative liability | 910 | 0 | ||||||||
Other long-term liabilities | 102,928 | 109,940 | 100,203 | |||||||
Deferred income taxes | 158,232 | 133,064 | 133,477 | |||||||
Shareholders' equity: | ||||||||||
Preferred stock, $1.00 par value, 5,000,000 shares authorized, none issued | 0 | 0 | ||||||||
Common stock, $.20 par value, 175,000,000 shares authorized, 54,089,366 shares issued | 10,414 | 10,280 | ||||||||
Capital in excess of par value | 622,120 | 535,815 | ||||||||
Accumulated other comprehensive income (loss) | (65) | $ (100) | 63 | 63 | 20 | $ 0 | 0 | |||
Retained earnings | 811,781 | $ 798,128 | 799,402 | |||||||
Total Unit Corporation shareholders’ equity | 1,444,250 | 1,345,560 | ||||||||
Non-controlling interests in consolidated subsidiaries | 199,404 | 0 | ||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 1,643,654 | 1,345,560 | 1,244,463 | 1,194,070 | ||||||
Total liabilities and shareholders' equity | 2,749,809 | [1] | 2,581,452 | |||||||
Consolidating Adjustments [Member] | ||||||||||
Current assets: | ||||||||||
Cash and cash equivalents | 0 | 0 | 0 | 0 | ||||||
Accounts receivable, net of allowance for doubtful accounts | 0 | 0 | ||||||||
Materials and supplies | 0 | 0 | ||||||||
Current derivative asset | 0 | 0 | ||||||||
Prepaid expenses and other | 0 | 0 | ||||||||
Total current assets | 0 | 0 | ||||||||
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 | ||||||||
Corporate 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 | (877,823) | (1,155,725) | ||||||||
Goodwill | 0 | 0 | ||||||||
Investments | (1,216,959) | (1,044,709) | ||||||||
Other assets | 0 | 0 | ||||||||
Total assets | (2,094,782) | (2,200,434) | ||||||||
Current liabilities: | ||||||||||
Accounts payable | 0 | 0 | ||||||||
Accrued liabilities | 0 | 0 | ||||||||
Income taxes payable | 0 | |||||||||
Current derivative liability | 0 | 0 | ||||||||
Current portion of other long-term liabilities | 0 | 0 | ||||||||
Total current liabilities | 0 | 0 | ||||||||
Intercompany debt | (877,823) | (1,155,725) | ||||||||
Long-term debt | 0 | |||||||||
Bonds payable less debt issuance costs | 0 | 0 | ||||||||
Non-current derivative liability | 0 | |||||||||
Other long-term liabilities | 0 | 0 | ||||||||
Deferred income taxes | 0 | 0 | ||||||||
Shareholders' equity: | ||||||||||
Preferred stock, $1.00 par value, 5,000,000 shares authorized, none issued | 0 | 0 | ||||||||
Common stock, $.20 par value, 175,000,000 shares authorized, 54,089,366 shares issued | 0 | 0 | ||||||||
Capital in excess of par value | (242,963) | (61,470) | ||||||||
Accumulated other comprehensive income (loss) | 0 | 0 | ||||||||
Retained earnings | (973,996) | (983,239) | ||||||||
Total Unit Corporation shareholders’ equity | (1,216,959) | (1,044,709) | ||||||||
Non-controlling interests in consolidated subsidiaries | 0 | 0 | ||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | (1,216,959) | (1,044,709) | ||||||||
Total liabilities and shareholders' equity | (2,094,782) | (2,200,434) | ||||||||
Parent [Member] | ||||||||||
Current assets: | ||||||||||
Cash and cash equivalents | 97,052 | 510 | 522 | 517 | ||||||
Accounts receivable, net of allowance for doubtful accounts | 885 | 154 | ||||||||
Materials and supplies | 0 | 0 | ||||||||
Current derivative asset | 127 | 721 | ||||||||
Prepaid expenses and other | 2,643 | 2,986 | ||||||||
Total current assets | 100,707 | 4,371 | ||||||||
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 | ||||||||
Corporate land and building | 0 | 0 | ||||||||
Transportation equipment | 9,244 | 9,270 | ||||||||
Other | 28,246 | 28,039 | ||||||||
Property, plant, and equipment, gross | 37,490 | 37,309 | ||||||||
Less accumulated depreciation, depletion, amortization, and impairment | 24,335 | 21,268 | ||||||||
Net property and equipment | 13,155 | 16,041 | ||||||||
Intercompany receivable | 877,823 | 1,155,725 | ||||||||
Goodwill | 0 | 0 | ||||||||
Investments | 1,216,959 | 1,044,709 | ||||||||
Other assets | 5,472 | 5,373 | ||||||||
Total assets | 2,214,116 | 2,226,219 | ||||||||
Current liabilities: | ||||||||||
Accounts payable | 9,669 | 13,124 | ||||||||
Accrued liabilities | 21,618 | 26,165 | ||||||||
Income taxes payable | 4,648 | |||||||||
Current derivative liability | 18,555 | 7,763 | ||||||||
Current portion of other long-term liabilities | 615 | 657 | ||||||||
Total current liabilities | 55,105 | 47,709 | ||||||||
Intercompany debt | 0 | 0 | ||||||||
Long-term debt | 178,000 | |||||||||
Bonds payable less debt issuance costs | 643,371 | 642,276 | ||||||||
Non-current derivative liability | 910 | |||||||||
Other long-term liabilities | 12,613 | 11,257 | ||||||||
Deferred income taxes | 57,802 | 1,480 | ||||||||
Shareholders' equity: | ||||||||||
Preferred stock, $1.00 par value, 5,000,000 shares authorized, none issued | 0 | 0 | ||||||||
Common stock, $.20 par value, 175,000,000 shares authorized, 54,089,366 shares issued | 10,414 | 10,280 | ||||||||
Capital in excess of par value | 622,120 | 535,815 | ||||||||
Accumulated other comprehensive income (loss) | 0 | 0 | ||||||||
Retained earnings | 811,781 | 799,402 | ||||||||
Total Unit Corporation shareholders’ equity | 1,444,315 | 1,345,497 | ||||||||
Non-controlling interests in consolidated subsidiaries | 0 | 0 | ||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 1,444,315 | 1,345,497 | ||||||||
Total liabilities and shareholders' equity | 2,214,116 | 2,226,219 | ||||||||
Combined Guarantor Subsidiaries [Member] | ||||||||||
Current assets: | ||||||||||
Cash and cash equivalents | 254 | 191 | 327 | 376 | ||||||
Accounts receivable, net of allowance for doubtful accounts | 84,851 | 83,442 | ||||||||
Materials and supplies | 501 | 505 | ||||||||
Current derivative asset | 0 | 0 | ||||||||
Prepaid expenses and other | 3,079 | 2,370 | ||||||||
Total current assets | 88,685 | 86,508 | ||||||||
Oil and natural gas properties on the full cost method: | ||||||||||
Proved properties | 5,809,850 | 5,712,813 | ||||||||
Unproved properties not being amortized | 325,595 | 296,764 | ||||||||
Drilling equipment | 1,612,817 | 1,593,611 | ||||||||
Gas gathering and processing equipment | 0 | 0 | ||||||||
Saltwater disposal systems | 65,218 | 62,618 | ||||||||
Corporate land and building | 59,081 | 59,080 | ||||||||
Transportation equipment | 17,572 | 17,423 | ||||||||
Other | 28,135 | 25,400 | ||||||||
Property, plant, and equipment, gross | 7,918,268 | 7,767,709 | ||||||||
Less accumulated depreciation, depletion, amortization, and impairment | 5,896,900 | 5,807,757 | ||||||||
Net property and equipment | 2,021,368 | 1,959,952 | ||||||||
Intercompany receivable | 0 | 0 | ||||||||
Goodwill | 62,808 | 62,808 | ||||||||
Investments | 1,500 | 1,500 | ||||||||
Other assets | 6,225 | 6,328 | ||||||||
Total assets | 2,180,586 | 2,117,096 | ||||||||
Current liabilities: | ||||||||||
Accounts payable | 81,827 | 81,334 | ||||||||
Accrued liabilities | 24,880 | 19,134 | ||||||||
Income taxes payable | 0 | |||||||||
Current derivative liability | 0 | 0 | ||||||||
Current portion of other long-term liabilities | 6,625 | 8,501 | ||||||||
Total current liabilities | 113,332 | 108,969 | ||||||||
Intercompany debt | 876,277 | 870,582 | ||||||||
Long-term debt | 0 | |||||||||
Bonds payable less debt issuance costs | 0 | 0 | ||||||||
Non-current derivative liability | 0 | |||||||||
Other long-term liabilities | 72,459 | 77,566 | ||||||||
Deferred income taxes | 100,430 | 85,443 | ||||||||
Shareholders' equity: | ||||||||||
Preferred stock, $1.00 par value, 5,000,000 shares authorized, none issued | 0 | 0 | ||||||||
Common stock, $.20 par value, 175,000,000 shares authorized, 54,089,366 shares issued | 0 | 0 | ||||||||
Capital in excess of par value | 45,921 | 45,921 | ||||||||
Accumulated other comprehensive income (loss) | (65) | 63 | ||||||||
Retained earnings | 972,232 | 928,552 | ||||||||
Total Unit Corporation shareholders’ equity | 1,018,088 | 974,536 | ||||||||
Non-controlling interests in consolidated subsidiaries | 0 | 0 | ||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 1,018,088 | 974,536 | ||||||||
Total liabilities and shareholders' equity | 2,180,586 | 2,117,096 | ||||||||
Combined Non-Guarantor Subsidiaries [Member] | ||||||||||
Current assets: | ||||||||||
Cash and cash equivalents | 7,002 | 0 | $ 0 | $ 0 | ||||||
Accounts receivable, net of allowance for doubtful accounts | 27,641 | 27,916 | ||||||||
Materials and supplies | 0 | 0 | ||||||||
Current derivative asset | 0 | 0 | ||||||||
Prepaid expenses and other | 3,009 | 877 | ||||||||
Total current assets | 37,652 | 28,793 | ||||||||
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 | 736,488 | 726,236 | ||||||||
Saltwater disposal systems | 0 | 0 | ||||||||
Corporate land and building | 0 | 0 | ||||||||
Transportation equipment | 3,102 | 2,938 | ||||||||
Other | 0 | 0 | ||||||||
Property, plant, and equipment, gross | 739,590 | 729,174 | ||||||||
Less accumulated depreciation, depletion, amortization, and impairment | 342,269 | 322,425 | ||||||||
Net property and equipment | 397,321 | 406,749 | ||||||||
Intercompany receivable | 0 | 0 | ||||||||
Goodwill | 0 | 0 | ||||||||
Investments | 0 | 0 | ||||||||
Other assets | 14,916 | 3,029 | ||||||||
Total assets | 449,889 | 438,571 | ||||||||
Current liabilities: | ||||||||||
Accounts payable | 22,915 | 18,190 | ||||||||
Accrued liabilities | 2,566 | 3,224 | ||||||||
Income taxes payable | 0 | |||||||||
Current derivative liability | 0 | 0 | ||||||||
Current portion of other long-term liabilities | 6,796 | 3,844 | ||||||||
Total current liabilities | 32,277 | 25,258 | ||||||||
Intercompany debt | 1,546 | 285,143 | ||||||||
Long-term debt | 0 | |||||||||
Bonds payable less debt issuance costs | 0 | 0 | ||||||||
Non-current derivative liability | 0 | |||||||||
Other long-term liabilities | 17,856 | 11,380 | ||||||||
Deferred income taxes | 0 | 46,554 | ||||||||
Shareholders' equity: | ||||||||||
Preferred stock, $1.00 par value, 5,000,000 shares authorized, none issued | 0 | 0 | ||||||||
Common stock, $.20 par value, 175,000,000 shares authorized, 54,089,366 shares issued | 0 | 0 | ||||||||
Capital in excess of par value | 197,042 | 15,549 | ||||||||
Accumulated other comprehensive income (loss) | 0 | 0 | ||||||||
Retained earnings | 1,764 | 54,687 | ||||||||
Total Unit Corporation shareholders’ equity | 198,806 | 70,236 | ||||||||
Non-controlling interests in consolidated subsidiaries | 199,404 | 0 | ||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 398,210 | 70,236 | ||||||||
Total liabilities and shareholders' equity | $ 449,889 | $ 438,571 | ||||||||
|
Supplemental Condensed Consolidated Financial Information (Condensed Consolidating Statements of Income) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Condensed Financial Statements, Captions [Line Items] | ||||
Revenues | $ 203,303 | $ 170,581 | $ 408,435 | $ 346,305 |
Expenses: | ||||
Operating costs | 104,015 | 96,039 | 213,248 | 192,174 |
Depreciation, depletion, and amortization | 58,373 | 50,080 | 115,439 | 97,012 |
General and administrative | 8,712 | 8,713 | 19,474 | 17,667 |
Gain on disposition of assets | (161) | (248) | (322) | (1,072) |
Total operating expenses | 170,939 | 154,584 | 347,839 | 305,781 |
Income from operations | 32,364 | 15,997 | 60,596 | 40,524 |
Interest, net | (7,729) | (9,467) | (17,733) | (18,863) |
Gain (loss) on derivatives | (14,461) | 8,902 | (21,223) | 23,633 |
Other, net | 5 | 6 | 11 | 9 |
Income (loss) before income taxes | 10,179 | 15,438 | 21,651 | 45,303 |
Income tax expense (benefit) | 2,029 | 6,379 | 5,636 | 20,315 |
Equity in net earnings from investment in subsidiaries, net of tax | 0 | 0 | 0 | 0 |
Net income | 8,150 | 9,059 | 16,015 | 24,988 |
Less: net income attributable to non-controlling interest | 2,362 | 0 | 2,362 | 0 |
Net income attributable to Unit Corporation | 5,788 | 9,059 | 13,653 | 24,988 |
Consolidating Adjustments [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Revenues | (27,188) | (20,547) | (50,515) | (36,070) |
Expenses: | ||||
Operating costs | (26,374) | (20,171) | (49,267) | (35,694) |
Depreciation, depletion, and amortization | 0 | 0 | 0 | 0 |
General and administrative | 0 | 0 | 0 | 0 |
Gain on disposition of assets | 0 | 0 | 0 | 0 |
Total operating expenses | (26,374) | (20,171) | (49,267) | (35,694) |
Income from operations | (814) | (376) | (1,248) | (376) |
Interest, net | 0 | 0 | 0 | 0 |
Gain (loss) on derivatives | 0 | 0 | 0 | 0 |
Other, net | 0 | 0 | 0 | 0 |
Income (loss) before income taxes | (814) | (376) | (1,248) | (376) |
Income tax expense (benefit) | 0 | 0 | 0 | 0 |
Equity in net earnings from investment in subsidiaries, net of tax | (23,558) | (10,338) | (45,283) | (23,409) |
Net income | (24,372) | (10,714) | (46,531) | (23,785) |
Less: net income attributable to non-controlling interest | 0 | 0 | 0 | 0 |
Net income attributable to Unit Corporation | (24,372) | (10,714) | (46,531) | (23,785) |
Parent [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Expenses: | ||||
Operating costs | 0 | 0 | 0 | 0 |
Depreciation, depletion, and amortization | 1,918 | 1,904 | 3,836 | 3,645 |
General and administrative | 0 | 0 | 0 | 0 |
Gain on disposition of assets | 0 | (5) | (30) | (813) |
Total operating expenses | 1,918 | 1,899 | 3,806 | 2,832 |
Income from operations | (1,918) | (1,899) | (3,806) | (2,832) |
Interest, net | (7,425) | (9,290) | (17,280) | (18,500) |
Gain (loss) on derivatives | (14,461) | 8,902 | (21,223) | 23,633 |
Other, net | 5 | 6 | 11 | 9 |
Income (loss) before income taxes | (23,799) | (2,281) | (42,298) | 2,310 |
Income tax expense (benefit) | (6,029) | (1,002) | (10,668) | 731 |
Equity in net earnings from investment in subsidiaries, net of tax | 23,558 | 10,338 | 45,283 | 23,409 |
Net income | 5,788 | 9,059 | 13,653 | 24,988 |
Less: net income attributable to non-controlling interest | 0 | 0 | 0 | 0 |
Net income attributable to Unit Corporation | 5,788 | 9,059 | 13,653 | 24,988 |
Combined Guarantor Subsidiaries [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Revenues | 155,085 | 128,017 | 308,894 | 252,800 |
Expenses: | ||||
Operating costs | 70,603 | 66,393 | 143,709 | 125,946 |
Depreciation, depletion, and amortization | 45,280 | 37,327 | 89,375 | 71,700 |
General and administrative | 8,655 | 6,899 | 16,884 | 13,797 |
Gain on disposition of assets | (116) | (199) | (213) | (215) |
Total operating expenses | 124,422 | 110,420 | 249,755 | 211,228 |
Income from operations | 30,663 | 17,597 | 59,139 | 41,572 |
Interest, net | 0 | 0 | 0 | 0 |
Gain (loss) on derivatives | 0 | 0 | 0 | 0 |
Other, net | 0 | (1) | 1 | 0 |
Income (loss) before income taxes | 30,663 | 17,596 | 59,140 | 41,572 |
Income tax expense (benefit) | 7,803 | 7,054 | 15,460 | 18,354 |
Equity in net earnings from investment in subsidiaries, net of tax | 0 | 0 | 0 | 0 |
Net income | 22,860 | 10,542 | 43,680 | 23,218 |
Less: net income attributable to non-controlling interest | 0 | 0 | 0 | 0 |
Net income attributable to Unit Corporation | 22,860 | 10,542 | 43,680 | 23,218 |
Combined Non-Guarantor Subsidiaries [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Revenues | 75,406 | 63,111 | 150,056 | 129,575 |
Expenses: | ||||
Operating costs | 59,786 | 49,817 | 118,806 | 101,922 |
Depreciation, depletion, and amortization | 11,175 | 10,849 | 22,228 | 21,667 |
General and administrative | 57 | 1,814 | 2,590 | 3,870 |
Gain on disposition of assets | (45) | (44) | (79) | (44) |
Total operating expenses | 70,973 | 62,436 | 143,545 | 127,415 |
Income from operations | 4,433 | 675 | 6,511 | 2,160 |
Interest, net | (304) | (177) | (453) | (363) |
Gain (loss) on derivatives | 0 | 0 | 0 | 0 |
Other, net | 0 | 1 | (1) | 0 |
Income (loss) before income taxes | 4,129 | 499 | 6,057 | 1,797 |
Income tax expense (benefit) | 255 | 327 | 844 | 1,230 |
Equity in net earnings from investment in subsidiaries, net of tax | 0 | 0 | 0 | 0 |
Net income | 3,874 | 172 | 5,213 | 567 |
Less: net income attributable to non-controlling interest | 2,362 | 0 | 2,362 | 0 |
Net income attributable to Unit Corporation | $ 1,512 | $ 172 | $ 2,851 | $ 567 |
Supplemental Condensed Consolidated Financial Information (Condensed Consolidating Statements of Comprehensive Income) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Condensed Financial Statements, Captions [Line Items] | ||||
Net income | $ 8,150 | $ 9,059 | $ 16,015 | $ 24,988 |
Other comprehensive income (loss) | 35 | 20 | (141) | 20 |
Comprehensive income | 8,185 | 9,079 | 15,874 | 25,008 |
Less: Comprehensive income attributable to non-controlling interest | 2,362 | 0 | 2,362 | 0 |
Comprehensive income attributable to Unit Corporation | 5,823 | 9,079 | 13,512 | 25,008 |
Consolidating Adjustments [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net income | (24,372) | (10,714) | (46,531) | (23,785) |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Comprehensive income | (24,372) | (10,714) | (46,531) | (23,785) |
Less: Comprehensive income attributable to non-controlling interest | 0 | 0 | 0 | 0 |
Comprehensive income attributable to Unit Corporation | (24,372) | (10,714) | (46,531) | (23,785) |
Parent [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net income | 5,788 | 9,059 | 13,653 | 24,988 |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Comprehensive income | 5,788 | 9,059 | 13,653 | 24,988 |
Less: Comprehensive income attributable to non-controlling interest | 0 | 0 | 0 | 0 |
Comprehensive income attributable to Unit Corporation | 5,788 | 9,059 | 13,653 | 24,988 |
Combined Guarantor Subsidiaries [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net income | 22,860 | 10,542 | 43,680 | 23,218 |
Other comprehensive income (loss) | 35 | 20 | (141) | 20 |
Comprehensive income | 22,895 | 10,562 | 43,539 | 23,238 |
Less: Comprehensive income attributable to non-controlling interest | 0 | 0 | 0 | 0 |
Comprehensive income attributable to Unit Corporation | 22,895 | 10,562 | 43,539 | 23,238 |
Combined Non-Guarantor Subsidiaries [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net income | 3,874 | 172 | 5,213 | 567 |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Comprehensive income | 3,874 | 172 | 5,213 | 567 |
Less: Comprehensive income attributable to non-controlling interest | 2,362 | 0 | 2,362 | 0 |
Comprehensive income attributable to Unit Corporation | $ 1,512 | $ 172 | $ 2,851 | $ 567 |
Supplemental Condensed Consolidated Financial Information (Condensed Consolidating Statements of Cash Flows (Unaudited)) (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
|
OPERATING ACTIVITIES: | ||
Net cash provided by (used in) operating activities | $ 154,693 | $ 117,055 |
INVESTING ACTIVITIES: | ||
Capital expenditures | (189,916) | (107,933) |
Producing properties and other acquisitions | (962) | (52,956) |
Proceeds from disposition of assets | 23,528 | 19,556 |
Other | 0 | (1,500) |
Net cash used in investing activities | (167,350) | (142,833) |
FINANCING ACTIVITIES: | ||
Borrowings under credit agreement | 71,200 | 160,600 |
Payments under credit agreement | (249,200) | (156,500) |
Intercompany borrowings (advances), net | 0 | 0 |
Payments on capitalized leases | (1,901) | (1,901) |
Proceeds from investments of non-controlling interests | 300,000 | 0 |
Transaction costs associated with non-controlling interests | (2,254) | 0 |
Proceeds from issuance of common stock, net of issuance costs | 0 | 18,623 |
Book overdrafts | (1,581) | 4,912 |
Net cash provided in financing activities | 116,264 | 25,734 |
Net increase (decrease) in cash and cash equivalents | 103,607 | (44) |
Cash and cash equivalents, beginning of period | 701 | 893 |
Cash and cash equivalents, end of period | 104,308 | 849 |
Consolidating Adjustments [Member] | ||
OPERATING ACTIVITIES: | ||
Net cash provided by (used in) operating activities | 126,993 | 0 |
INVESTING ACTIVITIES: | ||
Capital expenditures | 0 | 0 |
Producing properties and other acquisitions | 0 | 0 |
Proceeds from disposition of assets | 0 | 0 |
Other | 0 | |
Net cash used in investing activities | 0 | 0 |
FINANCING ACTIVITIES: | ||
Borrowings under credit agreement | 0 | 0 |
Payments under credit agreement | 0 | 0 |
Intercompany borrowings (advances), net | (126,993) | 0 |
Payments on capitalized leases | 0 | 0 |
Proceeds from investments of non-controlling interests | 0 | |
Transaction costs associated with non-controlling interests | 0 | |
Proceeds from issuance of common stock, net of issuance costs | 0 | |
Book overdrafts | 0 | 0 |
Net cash provided in financing activities | (126,993) | 0 |
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 | (102,500) | (13,497) |
INVESTING ACTIVITIES: | ||
Capital expenditures | (13) | (3,380) |
Producing properties and other acquisitions | 0 | 0 |
Proceeds from disposition of assets | 30 | 955 |
Other | 0 | |
Net cash used in investing activities | 17 | (2,425) |
FINANCING ACTIVITIES: | ||
Borrowings under credit agreement | 71,200 | 160,600 |
Payments under credit agreement | (249,200) | (156,500) |
Intercompany borrowings (advances), net | 277,902 | (11,708) |
Payments on capitalized leases | 0 | 0 |
Proceeds from investments of non-controlling interests | 102,958 | |
Transaction costs associated with non-controlling interests | (2,254) | |
Proceeds from issuance of common stock, net of issuance costs | 18,623 | |
Book overdrafts | (1,581) | 4,912 |
Net cash provided in financing activities | 199,025 | 15,927 |
Net increase (decrease) in cash and cash equivalents | 96,542 | 5 |
Cash and cash equivalents, beginning of period | 510 | 517 |
Cash and cash equivalents, end of period | 97,052 | 522 |
Combined Guarantor Subsidiaries [Member] | ||
OPERATING ACTIVITIES: | ||
Net cash provided by (used in) operating activities | 145,000 | 106,718 |
INVESTING ACTIVITIES: | ||
Capital expenditures | (173,097) | (97,337) |
Producing properties and other acquisitions | (962) | (52,956) |
Proceeds from disposition of assets | 23,427 | 18,557 |
Other | (1,500) | |
Net cash used in investing activities | (150,632) | (133,236) |
FINANCING ACTIVITIES: | ||
Borrowings under credit agreement | 0 | 0 |
Payments under credit agreement | 0 | 0 |
Intercompany borrowings (advances), net | 5,695 | 26,469 |
Payments on capitalized leases | 0 | 0 |
Proceeds from investments of non-controlling interests | 0 | |
Transaction costs associated with non-controlling interests | 0 | |
Proceeds from issuance of common stock, net of issuance costs | 0 | |
Book overdrafts | 0 | 0 |
Net cash provided in financing activities | 5,695 | 26,469 |
Net increase (decrease) in cash and cash equivalents | 63 | (49) |
Cash and cash equivalents, beginning of period | 191 | 376 |
Cash and cash equivalents, end of period | 254 | 327 |
Combined Non-Guarantor Subsidiaries [Member] | ||
OPERATING ACTIVITIES: | ||
Net cash provided by (used in) operating activities | (14,800) | 23,834 |
INVESTING ACTIVITIES: | ||
Capital expenditures | (16,806) | (7,216) |
Producing properties and other acquisitions | 0 | 0 |
Proceeds from disposition of assets | 71 | 44 |
Other | 0 | |
Net cash used in investing activities | (16,735) | (7,172) |
FINANCING ACTIVITIES: | ||
Borrowings under credit agreement | 0 | 0 |
Payments under credit agreement | 0 | 0 |
Intercompany borrowings (advances), net | (156,604) | (14,761) |
Payments on capitalized leases | (1,901) | (1,901) |
Proceeds from investments of non-controlling interests | 197,042 | |
Transaction costs associated with non-controlling interests | 0 | |
Proceeds from issuance of common stock, net of issuance costs | 0 | |
Book overdrafts | 0 | 0 |
Net cash provided in financing activities | 38,537 | (16,662) |
Net increase (decrease) in cash and cash equivalents | 7,002 | 0 |
Cash and cash equivalents, beginning of period | 0 | 0 |
Cash and cash equivalents, end of period | $ 7,002 | $ 0 |
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