Supplemental Condensed Consolidating Financial Information (Tables)

6 Months Ended

Jun. 30, 2020

Supplemental Condensed Consolidated Financial Information [Abstract]

Condensed Consolidating Balance Sheets (Unaudited)

Condensed Consolidating Balance Sheets (Unaudited)

	June 30, 2020
	Parent		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Consolidating Adjustments		Total Consolidated
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	13,214	$	—	$	23,780	$	—	$	36,994
Accounts receivable, net of allowance for doubtful accounts of $3,961 (Guarantor of $2,745 and Parent of $1,216)	1,702		37,216		20,518		(5,290)		54,146
Materials and supplies	—		110		—		—		110
Income taxes receivable	850		—		—		—		850
Prepaid expenses and other	6,575		2,763		7,321		—		16,659
Total current assets	22,341		40,089		51,619		(5,290)		108,759
Property and equipment:
Oil and natural gas properties on the full cost method:
Proved properties	—		6,566,669		—		—		6,566,669
Unproved properties not being amortized	—		30,342		—		—		30,342
Drilling equipment	—		1,296,319		—		—		1,296,319
Gas gathering and processing equipment	—		—		833,402		—		833,402
Saltwater disposal systems	—		43,843		—		—		43,843
Corporate land and building	—		59,080		—		—		59,080
Transportation equipment	362		13,055		3,363		—		16,780
Other	29,005		29,031		—		—		58,036
	29,367		8,038,339		836,765		—		8,904,471
Less accumulated depreciation, depletion, amortization, and impairment	27,888		7,381,777		493,386		—		7,903,051
Net property and equipment	1,479		656,562		343,379		—		1,001,420
Intercompany receivable	853,800		—		—		(853,800)		—
Investments	15,106		—		—		(15,106)		—
Right of use asset	34		3,303		4,542		(51)		7,828
Other assets	6,001		10,316		6,054		—		22,371
Total assets	$	898,761	$	710,270	$	405,594	$	(874,247)	$	1,140,378

	June 30, 2020
	Parent		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Consolidating Adjustments		Total Consolidated
	(In thousands)
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	1,386	$	18,018	$	9,980	$	(2,576)	$	26,808
Accrued liabilities	14,267		12,876		6,029		(1,788)		31,384
Current operating lease liability	18		2,136		2,518		(6)		4,666
Current portion of long-term debt	124,000		—		—		—		124,000
Debtor-in-possession financing	8,000		—		—		—		8,000
Current derivative liability	5,011		—		—		—		5,011
Current portion of other long-term liabilities	—		5,615		8,059		(46)		13,628
Total current liabilities	152,682		38,645		26,586		(4,416)		213,497
Intercompany debt	—		853,491		309		(853,800)		—
Long-term debt	—		—		34,000		—		34,000
Non-current derivative liability	145		—		—		—		145
Operating lease liability	16		1,130		1,911		(45)		3,012
Other long-term liabilities	6,124		75,499		3,979		(880)		84,722
Liabilities subject to compromise	694,512		65,208		—		—		759,720
Deferred income taxes	4,750		—		—		—		4,750
Total shareholders’ equity	40,532		(323,703)		338,809		(15,106)		40,532
Total liabilities and shareholders’ equity	$	898,761	$	710,270	$	405,594	$	(874,247)	$	1,140,378

	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)

Condensed Consolidating Statements of Operations (Unaudited)

	Three Months Ended June 30, 2020
	Parent		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Consolidating Adjustments		Total Consolidated
	(In thousands)
Revenues	$	—	$	56,159	$	37,719	$	(4,871)	$	89,007
Expenses:
Operating costs	—		93,305		26,671		(4,873)		115,103
Depreciation, depletion, and amortization	607		25,005		10,348		—		35,960
Impairments	—		109,318		—		—		109,318
General and administrative	—		25,814		—		—		25,814
(Gain) loss on disposition of assets	1,479		(593)		(9)		—		877
Total operating costs	2,086		252,849		37,010		(4,873)		287,072
Income (loss) from operations	(2,086)		(196,690)		709		2		(198,065)
Interest, net	(7,066)		—		(542)		—		(7,608)
Write off of debt issuance costs	(2,426)		—		—		—		(2,426)
Loss on derivatives	(6,937)		—		—		—		(6,937)
Reorganization items	(2,205)		(4,822)		—		—		(7,027)
Other, net	4		18		21		—		43
Income (loss) before income taxes	(20,716)		(201,494)		188		2		(222,020)
Income tax benefit	(6,455)		—		—		—		(6,455)
Equity in net earnings from investment in subsidiaries, net of taxes	(201,304)		—		—		201,304		—
Net income (loss)	(215,565)		(201,494)		188		201,306		(215,565)
Less: net income attributable to non-controlling interest	84		—		84		(84)		84
Net income (loss) attributable to Unit Corporation	$	(215,649)	$	(201,494)	$	104	$	201,390	$	(215,649)

	Three Months Ended June 30, 2019
	Parent		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Consolidating Adjustments		Total Consolidated
	(In thousands)
Revenues	$	—	$	128,588	$	54,630	$	(18,072)	$	165,146
Expenses:
Operating costs	—		73,909		41,550		(17,418)		98,041
Depreciation, depletion, and amortization	1,935		52,255		12,102		—		66,292
General and administrative	—		10,064		—		—		10,064
Gain on disposition of assets	—		(356)		(66)		—		(422)
Total operating costs	1,935		135,872		53,586		(17,418)		173,975
Income (loss) from operations	(1,935)		(7,284)		1,044		(654)		(8,829)
Interest, net	(8,650)		—		(345)		—		(8,995)
Gain on derivatives	7,927		—		—		—		7,927
Other, net	6		—		—		—		6
Income (loss) before income taxes	(2,652)		(7,284)		699		(654)		(9,891)
Income tax benefit	(848)		(1,026)		—		—		(1,874)
Equity in net earnings from investment in subsidiaries, net of taxes	(6,705)		—		—		6,705		—
Net income (loss)	(8,509)		(6,258)		699		6,051		(8,017)
Less: net income attributable to non-controlling interest	—		—		492		—		492
Net income (loss) attributable to Unit Corporation	$	(8,509)	$	(6,258)	$	207	$	6,051	$	(8,509)

	Six Months Ended June 30, 2020
	Parent		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Consolidating Adjustments		Total Consolidated
	(In thousands)
Revenues	$	—	$	141,315	$	80,399	$	(10,331)	$	211,383
Expenses:
Operating costs	—		150,169		58,988		(10,331)		198,826
Depreciation, depletion, and amortization	1,478		73,478		22,621		—		97,577
Impairments	—		787,280		63,962		—		851,242
Loss on abandonment of assets	—		17,554		—		—		17,554
General and administrative	—		37,367		—		—		37,367
(Gain) loss on disposition of assets	1,479		(197)		(15)		—		1,267
Total operating costs	2,957		1,065,651		145,556		(10,331)		1,203,833
Loss from operations	(2,957)		(924,336)		(65,157)		—		(992,450)
Interest, net	(19,805)		—		(1,060)		—		(20,865)
Write-off of debt issuance costs	(2,426)		—		—		—		(2,426)
Loss on derivatives	(6,454)		—		—		—		(6,454)
Reorganization items	(2,205)		(4,822)		—		—		(7,027)
Other, net	11		53		39		—		103
Loss before income taxes	(33,836)		(929,105)		(66,178)		—		(1,029,119)
Income tax benefit	(9,880)		—		—		—		(9,880)
Equity in net earnings from investment in subsidiaries, net of taxes	(995,283)		—		—		995,283		—
Net loss	(1,019,239)		(929,105)		(66,178)		995,283		(1,019,239)
Less: net loss attributable to non-controlling interest	(33,096)		—		(33,096)		33,096		(33,096)
Net loss attributable to Unit Corporation	$	(986,143)	$	(929,105)	$	(33,082)	$	962,187	$	(986,143)

	Six Months Ended June 30, 2019
	Parent		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Consolidating Adjustments		Total Consolidated
	(In thousands)
Revenues	$	—	$	272,882	$	125,139	$	(43,184)	$	354,837
Expenses:
Operating costs	—		145,302		97,679		(41,470)		201,511
Depreciation, depletion, and amortization	3,869		100,721		23,828		—		128,418
General and administrative	—		19,805		—		—		19,805
(Gain) loss on disposition of assets	(10)		1,311		(108)		—		1,193
Total operating costs	3,859		267,139		121,399		(41,470)		350,927
Income (loss) from operations	(3,859)		5,743		3,740		(1,714)		3,910
Interest, net	(16,852)		—		(681)		—		(17,533)
Gain on derivatives	995		—		—		—		995
Other, net	11		—		—		—		11
Income (loss) before income taxes	(19,705)		5,743		3,059		(1,714)		(12,617)
Income tax expense (benefit)	(4,547)		2,229		—		—		(2,318)
Equity in net earnings from investment in subsidiaries, net of taxes	3,145		—		—		(3,145)		—
Net income (loss)	(12,013)		3,514		3,059		(4,859)		(10,299)
Less: net income attributable to non-controlling interest	—		—		1,714		—		1,714
Net income (loss) attributable to Unit Corporation	$	(12,013)	$	3,514	$	1,345	$	(4,859)	$	(12,013)

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

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

	Three Months Ended June 30, 2020
	Parent		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Consolidating Adjustments		Total Consolidated
	(In thousands)
Net income (loss)	$	(215,565)	$	(201,494)	$	188	$	201,306	$	(215,565)
Other comprehensive income (loss), net of taxes:
Unrealized gain on securities, net of tax of $0	—		—		—		—		—
Comprehensive income (loss)	(215,565)		(201,494)		188		201,306		(215,565)
Less: Comprehensive income attributable to non-controlling interests	84		—		84		(84)		84
Comprehensive income (loss) attributable to Unit Corporation	$	(215,649)	$	(201,494)	$	104	$	201,390	$	(215,649)

	Three Months Ended June 30, 2019
	Parent		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Consolidating Adjustments		Total Consolidated
	(In thousands)
Net income (loss)	$	(8,509)	$	(6,258)	$	699	$	6,051	$	(8,017)
Other comprehensive income (loss), net of taxes:
Unrealized loss on securities, net of tax of ($9)	—		(30)		—		—		(30)
Comprehensive income (loss)	(8,509)		(6,288)		699		6,051		(8,047)
Less: Comprehensive income attributable to non-controlling interests	—		—		492		—		492
Comprehensive income (loss) attributable to Unit Corporation	$	(8,509)	$	(6,288)	$	207	$	6,051	$	(8,539)

	Six Months Ended June 30, 2020
	Parent		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Consolidating Adjustments		Total Consolidated
	(In thousands)
Net loss	$	(1,019,239)	$	(929,105)	$	(66,178)	$	995,283	$	(1,019,239)
Other comprehensive loss, net of taxes:
Unrealized gain on securities, net of tax of $0	—		—		—		—		—
Comprehensive loss	(1,019,239)		(929,105)		(66,178)		995,283		(1,019,239)
Less: Comprehensive loss attributable to non-controlling interests	(33,096)		—		(33,096)		33,096		(33,096)
Comprehensive loss attributable to Unit Corporation	$	(986,143)	$	(929,105)	$	(33,082)	$	962,187	$	(986,143)

	Six Months Ended June 30, 2019
	Parent		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Consolidating Adjustments		Total Consolidated
	(In thousands)
Net income (loss)	$	(12,013)	$	3,514	$	3,059	$	(4,859)	$	(10,299)
Other comprehensive income (loss), net of taxes:
Unrealized loss on securities, net of tax of ($2)	—		(6)		—		—		(6)
Comprehensive income (loss)	(12,013)		3,508		3,059		(4,859)		(10,305)
Less: Comprehensive income attributable to non-controlling interests	—		—		1,714		—		1,714
Comprehensive income (loss) attributable to Unit Corporation	$	(12,013)	$	3,508	$	1,345	$	(4,859)	$	(12,019)

Condensed Consolidating Statements of Cash Flows (Unaudited)

Condensed Consolidating Statements of Cash Flows (Unaudited)

	Six Months Ended June 30, 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	$	(201,699)	$	59,486	$	20,117	$	148,563	$	26,467
INVESTING ACTIVITIES:
Capital expenditures	(760)		(13,428)		(9,616)		—		(23,804)
Producing properties and other acquisitions	—		(210)		—		—		(210)
Proceeds from disposition of assets	1,169		3,253		75		—		4,497
Net cash provided by (used in) investing activities	409		(10,385)		(9,541)		—		(19,517)
FINANCING ACTIVITIES:
Borrowings under credit agreement, including borrowings under DIP credit facility	47,300		—		32,100		—		79,400
Payments under credit agreement	(23,500)		—		(14,600)		—		(38,100)
DIP financing costs	(990)		—		—		—		(990)
Intercompany borrowings (advances), net	198,503		(49,169)		(771)		(148,563)		—
Payments on finance leases	—		—		(2,061)		—		(2,061)
Employee taxes paid by withholding shares	(43)		—		—		—		(43)
Bank overdrafts	(7,269)		—		(1,464)		—		(8,733)
Net cash provided by (used in) financing activities	214,001		(49,169)		13,204		(148,563)		29,473
Net increase (decrease) in cash and cash equivalents	12,711		(68)		23,780		—		36,423
Cash and cash equivalents, beginning of period	503		68		—		—		571
Cash and cash equivalents, end of period	$	13,214	$	—	$	23,780	$	—	$	36,994

	Six Months Ended June 30, 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	$	(8,023)	$	111,615	$	23,943	$	(34)	$	127,501
INVESTING ACTIVITIES:
Capital expenditures	(100)		(212,982)		(33,556)		—		(246,638)
Producing properties and other acquisitions	—		(3,313)		—		—		(3,313)
Proceeds from disposition of assets	10		7,247		83		—		7,340
Net cash used in investing activities	(90)		(209,048)		(33,473)		—		(242,611)
FINANCING ACTIVITIES:
Borrowings under credit agreement	238,800		—		32,400		—		271,200
Payments under credit agreement	(135,300)		—		(24,900)		—		(160,200)
Intercompany borrowings (advances), net	(96,311)		97,384		(1,107)		34		—
Payments on finance leases	—		—		(1,980)		—		(1,980)
Employee taxes paid by withholding shares	(4,073)		—		—		—		(4,073)
Distributions to non-controlling interest	919		—		(1,837)		—		(918)
Bank overdrafts	4,183		—		1,115		—		5,298
Net cash provided by financing activities	8,218		97,384		3,691		34		109,327
Net increase (decrease) in cash and cash equivalents	105		(49)		(5,839)		—		(5,783)
Cash and cash equivalents, beginning of period	403		208		5,841		—		6,452
Cash and cash equivalents, end of period	$	508	$	159	$	2	$	—	$	669