Supplemental Condensed Consolidating Financial Information (Tables)

3 Months Ended

Mar. 31, 2020

Supplemental Condensed Consolidated Financial Information [Abstract]

Condensed Consolidating Balance Sheets (Unaudited)


	March 31, 2020
	Parent		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Consolidating Adjustments		Total Consolidated
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	17,008	$	81	$	23,905	$	—	$	40,994
Accounts receivable, net of allowance for doubtful accounts of $2,332 (Guarantor of $1,116 and Parent of $1,216)	1,670		40,119		17,395		(4,805)		54,379
Materials and supplies			414		—		—		414
Current derivative asset	661		—		—		—		661
Income taxes receivable	2,673		—		—		—		2,673
Prepaid expenses and other	3,138		3,143		7,473		—		13,754
Total current assets	25,150		43,757		48,773		(4,805)		112,875
Property and equipment:
Oil and natural gas properties on the full cost method:
Proved properties	—		6,565,136		—		—		6,565,136
Unproved properties not being amortized	—		31,538		—		—		31,538
Drilling equipment	—		1,298,626		—		—		1,298,626
Gas gathering and processing equipment	—		—		829,600		—		829,600
Saltwater disposal systems	—		43,831		—		—		43,831
Corporate land and building	—		59,080		—		—		59,080
Transportation equipment	9,713		14,405		3,397		—		27,515
Other	29,008		29,031		—		—		58,039
	38,721		8,041,647		832,997		—		8,913,365
Less accumulated depreciation, depletion, amortization, and impairment	34,327		7,250,779		483,204		—		7,768,310
Net property and equipment	4,394		790,868		349,793		—		1,145,055
Intercompany receivable	973,769		—		—		(973,769)		—
Investments	74,752		—		—		(74,752)		—

Right of use asset	39		3,724		3,227		(53)		6,937
Other assets	7,060		8,266		7,650		—		22,976
Total assets	$	1,085,164	$	846,615	$	409,443	$	(1,053,379)	$	1,287,843


	March 31, 2020
	Parent		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Consolidating Adjustments		Total Consolidated
	(In thousands)
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	3,121	$	47,721	$	12,014	$	(4,261)	$	58,595
Accrued liabilities	30,735		7,585		4,055		(545)		41,830
Current operating lease liability	17		2,156		1,961		(6)		4,128
Current portion of long-term debt less debt issuance costs	771,283		—		—		—		771,283
Current portion of other long-term liabilities	3,020		6,533		8,764		—		18,317
Total current liabilities	808,176		63,995		26,794		(4,812)		894,153
Intercompany debt	—		972,510		1,259		(973,769)		—
Long-term debt	—		—		37,000		—		37,000
Non-current derivative liability	123		—		—		—		123
Operating lease liability	20		1,533		1,132		(46)		2,639
Other long-term liabilities	11,154		72,301		4,782		—		88,237
Deferred income taxes	11,205		—		—		—		11,205









Total shareholders' equity	254,486		(263,724)		338,476		(74,752)		254,486
Total liabilities and shareholders’ equity	$	1,085,164	$	846,615	$	409,443	$	(1,053,379)	$	1,287,843


	December 31, 2019
	Parent		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Consolidating Adjustments		Total Consolidated
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	503	$	68	$	—	$	—	$	571
Accounts receivable, net of allowance for doubtful accounts of $2,332 (Guarantor of $1,116 and Parent of $1,216)	2,645		64,805		24,653		(9,447)		82,656
Materials and supplies	—		449		—		—		449
Current derivative asset	633		—		—		—		633
Income tax receivable	1,756		—		—		—		1,756
Assets held for sale	—		5,908		—		—		5,908
Prepaid expenses and other	2,019		3,373		7,686		—		13,078
Total current assets	7,556		74,603		32,339		(9,447)		105,051
Property and equipment:
Oil and natural gas properties on the full cost method:
Proved properties	—		6,341,582		—		—		6,341,582
Unproved properties not being amortized	—		252,874		—		—		252,874
Drilling equipment	—		1,295,713		—		—		1,295,713
Gas gathering and processing equipment	—		—		824,699		—		824,699
Saltwater disposal systems	—		69,692		—		—		69,692
Corporate land and building	—		59,080		—		—		59,080
Transportation equipment	9,712		16,621		3,390		—		29,723
Other	28,927		29,065		—		—		57,992
	38,639		8,064,627		828,089		—		8,931,355
Less accumulated depreciation, depletion, amortization, and impairment	33,794		6,537,731		407,144		—		6,978,669
Net property and equipment	4,845		1,526,896		420,945		—		1,952,686
Intercompany receivable	1,048,785		—		—		(1,048,785)		—
Investments	865,252		—		—		(865,252)		—
Right of use asset	46		1,733		3,948		(54)		5,673
Other assets	8,107		9,094		9,441		—		26,642
Total assets	$	1,934,591	$	1,612,326	$	466,673	$	(1,923,538)	$	2,090,052


	December 31, 2019
	Parent		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Consolidating Adjustments		Total Consolidated
	(In thousands)
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	12,259	$	61,002	$	18,511	$	(7,291)	$	84,481
Accrued liabilities	28,003		14,024		6,691		(2,156)		46,562
Current operating lease liability	20		1,009		2,407		(6)		3,430
Current portion of long-term debt	108,200		—		—		—		108,200
Current portion of other long-term liabilities	3,003		7,313		7,060		—		17,376
Total current liabilities	151,485		83,348		34,669		(9,453)		260,049
Intercompany debt	—		1,047,599		1,186		(1,048,785)		—
Long-term debt less debt issuance costs	646,716		—		16,500		—		663,216
Non-current derivative liability	27		—		—		—		27
Operating lease liability	25		690		1,404		(48)		2,071
Other long-term liabilities	12,553		74,662		8,126		—		95,341
Deferred income taxes	68,150		(54,437)		—		—		13,713








Total shareholders' equity	1,055,635		460,464		404,788		(865,252)		1,055,635
Total liabilities and shareholders’ equity	$	1,934,591	$	1,612,326	$	466,673	$	(1,923,538)	$	2,090,052

Condensed Consolidating Statements of Operations (Unaudited)


	Three Months Ended March 31, 2020
	Parent		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Consolidating Adjustments		Total Consolidated
	(In thousands)
Revenues	$	—	$	85,154	$	42,680	$	(5,458)	$	122,376
Expenses:
Operating costs	—		56,864		32,317		(5,458)		83,723
Depreciation, depletion, and amortization	871		48,473		12,273		—		61,617
Impairments	—		677,962		63,962		—		741,924
Loss on abandonment of assets	—		17,554		—		—		17,554
General and administrative	—		11,553		—		—		11,553
(Gain) loss on disposition of assets	—		396		(6)		—		390
Total operating costs	871		812,802		108,546		(5,458)		916,761
Loss from operations	(871)		(727,648)		(65,866)		—		(794,385)
Interest, net	(12,739)		—		(518)		—		(13,257)
Gain on derivatives	483		—		—		—		483
Other, net	7		35		18		—		60
Loss before income taxes	(13,120)		(727,613)		(66,366)		—		(807,099)
Income tax benefit	—		(3,425)		—		—		(3,425)
Equity in net earnings from investment in subsidiaries, net of taxes	(790,554)		—		—		790,554		—
Net loss	(803,674)		(724,188)		(66,366)		790,554		(803,674)
Less: net loss attributable to non-controlling interest	(33,180)		—		(33,180)		33,180		(33,180)
Net loss attributable to Unit Corporation	$	(770,494)	$	(724,188)	$	(33,186)	$	757,374	$	(770,494)


	Three Months Ended March 31, 2019
	Parent		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Consolidating Adjustments		Total Consolidated
	(In thousands)
Revenues	$	—	$	144,294	$	70,509	$	(25,112)	$	189,691
Expenses:
Operating costs	—		71,393		56,129		(24,052)		103,470
Depreciation, depletion, and amortization	1,934		48,466		11,726		—		62,126
General and administrative	—		9,741		—		—		9,741
(Gain) loss on disposition of assets	(10)		1,667		(42)		—		1,615
Total operating costs	1,924		131,267		67,813		(24,052)		176,952
Income (loss) from operations	(1,924)		13,027		2,696		(1,060)		12,739
Interest, net	(8,202)		—		(336)		—		(8,538)
Loss on derivatives	(6,932)		—		—		—		(6,932)
Other, net	5		—		—		—		5
Income (loss) before income taxes	(17,053)		13,027		2,360		(1,060)		(2,726)
Income tax expense (benefit)	(3,699)		3,255		—		—		(444)
Equity in net earnings from investment in subsidiaries, net of taxes	9,850		—		—		(9,850)		—
Net income (loss)	(3,504)		9,772		2,360		(10,910)		(2,282)
Less: net income attributable to non-controlling interest	—		—		1,222		—		1,222
Net income (loss) attributable to Unit Corporation	$	(3,504)	$	9,772	$	1,138	$	(10,910)	$	(3,504)

Condensed Consolidating Statements of Comprehensive Income (Loss) (Unaudited)


	Three Months Ended March 31, 2020
	Parent		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Consolidating Adjustments		Total Consolidated
	(In thousands)
Net loss	$	(803,674)	$	(724,188)	$	(66,366)	$	790,554	$	(803,674)
Other comprehensive loss, net of taxes:
Unrealized gain on securities, net of tax of $0	—		—		—		—		—
Comprehensive loss	(803,674)		(724,188)		(66,366)		790,554		(803,674)
Less: Comprehensive loss attributable to non-controlling interests	(33,180)		—		(33,180)		33,180		(33,180)
Comprehensive loss attributable to Unit Corporation	$	(770,494)	$	(724,188)	$	(33,186)	$	757,374	$	(770,494)


	Three Months Ended March 31, 2019
	Parent		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Consolidating Adjustments		Total Consolidated
	(In thousands)
Net income (loss)	$	(3,504)	$	9,772	$	2,360	$	(10,910)	$	(2,282)
Other comprehensive income (loss), net of taxes:
Unrealized income on securities, net of tax of $7	—		24		—		—		24
Comprehensive income (loss)	(3,504)		9,796		2,360		(10,910)		(2,258)
Less: Comprehensive income attributable to non-controlling interests	—		—		1,222		—		1,222
Comprehensive income (loss) attributable to Unit Corporation	$	(3,504)	$	9,796	$	1,138	$	(10,910)	$	(3,480)

Condensed Consolidating Statements of Cash Flows (Unaudited)


	Three Months Ended March 31, 2020
	Parent		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Consolidating Adjustments		Total Consolidated
	(In thousands)
OPERATING ACTIVITIES:
Net cash provided by (used in) operating activities	$	(66,578)	$	86,663	$	9,827	$	—	$	29,912
INVESTING ACTIVITIES:
Capital expenditures	(421)		(13,051)		(4,056)		—		(17,528)
Producing properties and other acquisitions	—		(210)		—		—		(210)
Proceeds from disposition of assets	—		1,700		51		—		1,751
Net cash used in investing activities	(421)		(11,561)		(4,005)		—		(15,987)
FINANCING ACTIVITIES:
Borrowings under credit agreement	39,300		—		32,100		—		71,400
Payments under credit agreement	(23,500)		—		(11,600)		—		(35,100)
Intercompany borrowings (advances), net	75,016		(75,089)		73		—		—
Net payments on finance leases	—		—		(1,026)		—		(1,026)
Employee taxes paid by withholding shares	(43)		—		—		—		(43)

Bank overdrafts	(7,269)		—		(1,464)		—		(8,733)
Net cash provided by (used in) financing activities	83,504		(75,089)		18,083		—		26,498
Net increase in cash and cash equivalents	16,505		13		23,905		—		40,423
Cash and cash equivalents, beginning of period	503		68		—		—		571
Cash and cash equivalents, end of period	$	17,008	$	81	$	23,905	$	—	$	40,994


	Three Months Ended March 31, 2019
	Parent		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Consolidating Adjustments		Total Consolidated
	(In thousands)
OPERATING ACTIVITIES:
Net cash provided by (used in) operating activities	$	3,548	$	64,168	$	13,506	$	(34)	$	81,188
INVESTING ACTIVITIES:
Capital expenditures	(321)		(110,089)		(12,097)		—		(122,507)
Producing properties and other acquisitions	—		(1,580)		—		—		(1,580)
Proceeds from disposition of assets	10		3,142		38		—		3,190
Net cash used in investing activities	(311)		(108,527)		(12,059)		—		(120,897)
FINANCING ACTIVITIES:
Borrowings under credit agreement	106,900		—		2,900		—		109,800
Payments under credit agreement	(66,900)		—		(2,900)		—		(69,800)
Intercompany borrowings (advances), net	(43,103)		44,407		(1,338)		34		—
Net payments on finance leases	—		—		(985)		—		(985)
Employee taxes paid by withholding shares	(4,110)		—		—		—		(4,110)
Distributions to non-controlling interest	919		—		(1,837)		—		(918)
Bank overdrafts	3,161		—		—		—		3,161
Net cash provided by (used in) financing activities	(3,133)		44,407		(4,160)		34		37,148
Net increase (decrease) in cash and cash equivalents	104		48		(2,713)		—		(2,561)
Cash and cash equivalents, beginning of period	403		208		5,841		—		6,452
Cash and cash equivalents, end of period	$	507	$	256	$	3,128	$	—	$	3,891