Supplemental Condensed Consolidated Financial Information

12 Months Ended

Dec. 31, 2018

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Supplemental Condensed Consolidating Financial Information

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:

•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."

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

	December 31, 2018
	Parent		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Consolidating Adjustments		Total Consolidated
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	403	$	208	$	5,841	$	—	$	6,452
Accounts receivable, net of allowance for doubtful accounts of $2,531 (Guarantor of $1,326 and Parent of $1,205)	2,539		94,526		36,676		(14,344)		119,397
Materials and supplies	—		473		—		—		473
Current derivative asset	12,870		—		—		—		12,870
Current income tax receivable	243		1,811		—		—		2,054
Assets held for sale	—		22,511		—		—		22,511
Prepaid expenses and other	5,103		3,560		2,693		—		11,356
Total current assets	21,158		123,089		45,210		(14,344)		175,113
Property and equipment:
Oil and natural gas properties on the full cost method:
Proved properties	—		6,018,568		—		—		6,018,568
Unproved properties not being amortized	—		330,216		—		—		330,216
Drilling equipment	—		1,284,419		—		—		1,284,419
Gas gathering and processing equipment	—		—		767,388		—		767,388
Saltwater disposal systems	—		68,339		—		—		68,339
Corporate land and building	—		59,081		—		—		59,081
Transportation equipment	9,273		17,165		3,086		—		29,524
Other	28,584		28,923		—		—		57,507
	37,857		7,806,711		770,474		—		8,615,042
Less accumulated depreciation, depletion, amortization, and impairment	27,504		5,790,481		364,741		—		6,182,726
Net property and equipment	10,353		2,016,230		405,733		—		2,432,316
Intercompany receivable	950,916		—		—		(950,916)		—
Goodwill	—		62,808		—		—		62,808
Investments	1,160,444		1,500		—		(1,160,444)		1,500
Other assets	5,115		5,293		15,908		—		26,316
Total assets	$	2,147,986	$	2,208,920	$	466,851	$	(2,125,704)	$	2,698,053

	December 31, 2018
	Parent		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Consolidating Adjustments		Total Consolidated
	(In thousands)
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	8,697	$	122,610	$	32,214	$	(13,576)	$	149,945
Accrued liabilities	28,230		16,409		5,493		(468)		49,664
Current portion of other long-term liabilities	812		6,563		6,875		—		14,250
Total current liabilities	37,739		145,582		44,582		(14,044)		213,859
Intercompany debt	—		948,707		2,209		(950,916)		—
Bonds payable less debt issuance costs	644,475		—		—		—		644,475
Non-current derivative liabilities	293		—		—		—		293
Other long-term liabilities	13,134		73,713		14,687		(300)		101,234
Deferred income taxes	60,983		83,765		—		—		144,748
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, 54,055,600 shares issued	10,414		—		—		—		10,414
Capital in excess of par value	628,108		45,921		197,042		(242,963)		628,108
Contributions from Unit	—		—		792		(792)		—
Accumulated other comprehensive loss	—		(481)		—		—		(481)
Retained earnings	752,840		911,713		4,976		(916,689)		752,840
Total shareholders’ equity attributable to Unit Corporation	1,391,362		957,153		202,810		(1,160,444)		1,390,881
Non-controlling interests in consolidated subsidiaries	—		—		202,563		—		202,563
Total shareholders' equity	1,391,362		957,153		405,373		(1,160,444)		1,593,444
Total liabilities and shareholders’ equity	$	2,147,986	$	2,208,920	$	466,851	$	(2,125,704)	$	2,698,053

	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 (Guarantor of $1,245 and Non-Guarantor of $1,205)	154			89,622		28,714		(6,978)		111,512
Materials and supplies	—			505		—		—		505
Current derivative asset	721			—		—		—		721
Current income tax receivable	61		0	—		—		—		61
Prepaid expenses and other	2,925			2,370		877		—		6,172
Total current assets	4,371			92,688		29,591		(6,978)		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		$	2,123,276	$	439,369	$	(2,207,412)	$	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	$	87,514	$	18,988	$	(6,978)	$	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		115,149		26,056		(6,978)		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	$	2,123,276	$	439,369	$	(2,207,412)	$	2,581,452

Condensed Consolidating Statements of Operations

	Year Ended December 31, 2018
	Parent		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Consolidating Adjustments		Total Consolidated
	(In thousands)
Revenues	$	—	$	642,041	$	312,417	$	(111,177)	$	843,281
Expenses:
Operating costs	—		287,704		251,328		(108,136)		430,896
Depreciation, depletion, and amortization	7,679		191,092		44,834		—		243,605
Impairments	—		147,884		—		—		147,884
General and administrative	—		36,083		2,624		—		38,707
Gain on disposition of assets	(30)		(564)		(110)		—		(704)
Total operating expenses	7,649		662,199		298,676		(108,136)		860,388
Income (loss) from operations	(7,649)		(20,158)		13,741		(3,041)		(17,107)
Interest, net	(32,280)		—		(1,214)		—		(33,494)
Loss on derivatives	(3,184)		—		—		—		(3,184)
Other	22		—		—		—		22
Income (loss) before income taxes	(43,091)		(20,158)		12,527		(3,041)		(53,763)
Income tax expense (benefit)	(12,707)		(3,319)		2,030		—		(13,996)
Equity in net earnings from investment in subsidiaries, net of taxes	(14,904)		—		—		14,904		—
Net loss	(45,288)		(16,839)		10,497		11,863		(39,767)
Less: net income attributable to non-controlling interest	—		—		5,521		—		5,521
Net loss attributable to Unit Corporation	$	(45,288)	$	(16,839)	$	4,976	$	11,863	$	(45,288)

	Year Ended December 31, 2017
	Parent		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Consolidating Adjustments		Total Consolidated
	(In thousands)
Revenues	$	—	$	545,916	$	277,049	$	(83,325)	$	739,640
Expenses:
Operating costs	—		269,964		220,613		(81,705)		408,872
Depreciation, depletion, and amortization	7,477		158,281		43,499		—		209,257
General and administrative	—		29,440		8,647		—		38,087
(Gain) loss on disposition of assets	(850)		548		(25)		—		(327)
Total operating expenses	6,627		458,233		272,734		(81,705)		655,889
Income (loss) from operations	(6,627)		87,683		4,315		(1,620)		83,751
Interest, net	(37,645)		—		(689)		—		(38,334)
Gain on derivatives	14,732		—		—		—		14,732
Other	21		—		—		—		21
Income (loss) before income taxes	(29,519)		87,683		3,626		(1,620)		60,170
Income tax benefit	(12,599)		(20,881)		(24,198)		—		(57,678)
Equity in net earnings from investment in subsidiaries, net of taxes	134,768		—		—		(134,768)		—
Net income	117,848		108,564		27,824		(136,388)		117,848
Less: net income attributable to non-controlling interest	—		—		—		—		—
Net income attributable to Unit Corporation	$	117,848	$	108,564	$	27,824	$	(136,388)	$	117,848

	Year Ended December 31, 2016
	Parent		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Consolidating Adjustments		Total Consolidated
	(In thousands)
Revenues	$	—	$	416,307	$	237,785	$	(51,915)	$	602,177
Expenses:
Operating costs	—		214,892		182,970		(51,915)		345,947
Depreciation, depletion, and amortization	1,835		160,803		45,715		—		208,353
Impairments	—		161,563		—		—		161,563
General and administrative	—		26,158		7,179		—		33,337
(Gain) loss on disposition of assets	18		(2,860)		302		—		(2,540)
Total operating expenses	1,853		560,556		236,166		(51,915)		746,660
Income (loss) from operations	(1,853)		(144,249)		1,619		—		(144,483)
Interest, net	(38,995)		—		(834)		—		(39,829)
Loss on derivatives	(22,813)		—		—		—		(22,813)
Other	—		307		—		—		307
Income (loss) before income taxes	(63,661)		(143,942)		785		—		(206,818)
Income tax expense (benefit)	(24,031)		(48,654)		1,491		—		(71,194)
Equity in net earnings from investment in subsidiaries, net of taxes	(95,994)		—		—		95,994		—
Net loss	(135,624)		(95,288)		(706)		95,994		(135,624)
Less: net income attributable to non-controlling interest	—		—		—		—		—
Net loss attributable to Unit Corporation	$	(135,624)	$	(95,288)	$	(706)	$	95,994	$	(135,624)

Condensed Consolidating Statements of Comprehensive Income (Loss)

	Year Ended December 31, 2018
	Parent		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Consolidating Adjustments		Total Consolidated
	(In thousands)
Net loss	$	(45,288)	$	(16,839)	$	10,497	$	11,863	$	(39,767)
Other comprehensive income, net of taxes:
Unrealized loss on securities, net of tax (($181))	—		(557)		—		—		(557)
Comprehensive loss	(45,288)		(17,396)		10,497		11,863		(40,324)
Less: Comprehensive income attributable to non-controlling interests	—		—		5,521		—		5,521
Comprehensive loss attributable to Unit Corporation	$	(45,288)	$	(17,396)	$	4,976	$	11,863	$	(45,845)

	Year Ended December 31, 2017
	Parent		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Consolidating Adjustments		Total Consolidated
	(In thousands)
Net income	$	117,848	$	108,564	$	27,824	$	(136,388)	$	117,848
Other comprehensive income, net of taxes:
Unrealized gain on securities, net of tax ($39)	—		63		—		—		63
Comprehensive income	117,848		108,627		27,824		(136,388)		117,911
Less: Comprehensive income attributable to non-controlling interests	—		—		—		—		—
Comprehensive income attributable to Unit Corporation	$	117,848	$	108,627	$	27,824	$	(136,388)	$	117,911

	Year Ended December 31, 2016
	Parent		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Consolidating Adjustments		Total Consolidated
	(In thousands)
Net loss	$	(135,624)	$	(95,288)	$	(706)	$	95,994	$	(135,624)
Other comprehensive income, net of taxes:
Unrealized loss on securities, net of tax ($0)	—		—		—		—		—
Comprehensive loss	(135,624)		(95,288)		(706)		95,994		(135,624)
Less: Comprehensive income attributable to non-controlling interests	—		—		—		—		—
Comprehensive loss attributable to Unit Corporation	$	(135,624)	$	(95,288)	$	(706)	$	95,994	$	(135,624)

Condensed Consolidating Statements of Cash Flows

	Year Ended December 31, 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	$	(120,317)	$	327,075	$	12,129	$	128,872	$	347,759
INVESTING ACTIVITIES:
Capital expenditures	236		(400,990)		(45,528)		—		(446,282)
Producing properties and other acquisitions	—		(29,970)		—		—		(29,970)
Proceeds from disposition of property and equipment	30		25,777		103		—		25,910
Net cash provided by (used in) investing activities	266		(405,183)		(45,425)		—		(450,342)
FINANCING ACTIVITIES:
Borrowings under credit agreements	97,100		—		2,000		—		99,100
Payments under credit agreements	(275,100)		—		(2,000)		—		(277,100)
Intercompany borrowings (advances), net	204,809		78,125		(154,854)		(128,080)		—
Payments on capitalized leases	—		—		(3,843)		—		(3,843)
Proceeds from investments of non-controlling interest	102,958		—		197,042		—		300,000
Contributions from Unit	—		—		792		(792)		—
Transaction costs associated with sale of non-controlling interest	(2,503)		—		—		—		(2,503)
Book overdrafts	(7,320)		—		—		—		(7,320)
Net cash provided by financing activities	119,944		78,125		39,137		(128,872)		108,334
Net increase in cash and cash equivalents	(107)		17		5,841		—		5,751
Cash and cash equivalents, beginning of period	510		191		—		—		701
Cash and cash equivalents, end of period	$	403	$	208	$	5,841	$	—	$	6,452

	Year Ended December 31, 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	$	(1,683)	$	224,446	$	43,193	$	—	$	265,956
INVESTING ACTIVITIES:
Capital expenditures	(3,594)		(233,254)		(18,705)		—		(255,553)
Producing properties and other acquisitions	—		(58,026)		—		—		(58,026)
Proceeds from disposition of property and equipment	964		20,674		75		—		21,713
Other	—		(1,500)		—		—		(1,500)
Net cash used in investing activities	(2,630)		(272,106)		(18,630)		—		(293,366)
FINANCING ACTIVITIES:
Borrowings under credit agreement	343,900		—		—		—		343,900
Payments under credit agreement	(326,700)		—		—		—		(326,700)
Intercompany borrowings (advances), net	(26,606)		47,475		(20,869)		—		—
Payments on capitalized leases	—		—		(3,694)		—		(3,694)
Proceeds from common stock issued, net of issue costs	18,623		—		—		—		18,623
Book overdrafts	(4,911)		—		—		—		(4,911)
Net cash provided by (used in) financing activities	4,306		47,475		(24,563)		—		27,218
Net increase in cash and cash equivalents	(7)		(185)		—		—		(192)
Cash and cash equivalents, beginning of period	517		376		—		—		893
Cash and cash equivalents, end of period	$	510	$	191	$	—	$	—	$	701

	Year Ended December 31, 2016
	Parent		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Consolidating Adjustments		Total Consolidated
	(In thousands)
OPERATING ACTIVITIES:
Net cash provided by operating activities	$	1,781	$	197,132	$	41,217	$	—	$	240,130
INVESTING ACTIVITIES:
Capital expenditures	(3,927)		(158,983)		(23,239)		—		(186,149)
Producing properties and other acquisitions	—		(564)		—		—		(564)
Proceeds from disposition of property and equipment	13		74,694		116		—		74,823
Other	750		—		169		—		919
Net cash provided by (used in) investing activities	(3,164)		(84,853)		(22,954)		—		(110,971)
FINANCING ACTIVITIES:
Borrowings under credit agreement	251,398		—		—		—		251,398
Payments under credit agreement	(371,600)		—		—		—		(371,600)
Intercompany borrowings (advances), net	126,797		(112,228)		(14,569)		—		—
Payments on capitalized leases	—		—		(3,694)		—		(3,694)
Tax expense from stock compensation	(376)		—		—		—		(376)
Book overdrafts	(4,829)		—		—		—		(4,829)
Net cash used in financing activities	1,390		(112,228)		(18,263)		—		(129,101)
Net increase in cash and cash equivalents	7		51		—		—		58
Cash and cash equivalents, beginning of period	510		325		—		—		835
Cash and cash equivalents, end of period	$	517	$	376	$	—	$	—	$	893