Supplemental Condensed Consolidating Financial Information (Tables)

6 Months Ended

Jun. 30, 2018

Supplemental Condensed Consolidated Financial Information [Abstract]

Condensed Consolidating Balance Sheets (Unaudited)



	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

Condensed Consolidating Statements of Income (Unaudited)



	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

Condensed Consolidating Statements of Comprehensive Income (Unaudited)



	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

Condensed Consolidating Statements of Cash Flows (Unaudited)



	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