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Supplemental Condensed Consolidating Financial Information (Tables)

9 Months Ended

Sep. 30, 2020

Supplemental Condensed Consolidated Financial Information [Abstract]

Condensed Consolidating Balance Sheets (Unaudited)

Condensed Consolidating Balances Sheets (Unaudited)


	Predecessor
	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


	Predecessor
	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)


	Predecessor
	Two Months Ended August 31, 2020
	Parent		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Consolidating Adjustments		Total Consolidated
	(In thousands)
Revenues	$	—	$	35,647	$	34,132	$	(4,205)	$	65,574
Expenses:
Operating costs	—		21,307		21,619		(4,206)		38,720
Depreciation, depletion, and amortization	341		10,828		6,750		—		17,919
Impairments	—		16,572		—		—		16,572
Loss on abandonment of assets	—		1,179		—		—		1,179
General and administrative	—		5,399		—		—		5,399
Gain on disposition of assets	—		(1,353)		(3)		—		(1,356)
Total operating costs	341		53,932		28,366		(4,206)		78,433
Income (loss) from operations	(341)		(18,285)		5,766		1		(12,859)
Interest, net	(1,131)		—		(828)		—		(1,959)
Write off of debt issuance costs	—		—		—		—		—
Loss on derivatives	(4,250)		—		—		—		(4,250)
Reorganization items	380,178		(168,160)		(71,016)		—		141,002
Other, net	68		1,853		10		—		1,931
Income (loss) before income taxes	374,524		(184,592)		(66,068)		1		123,865
Income tax benefit	(4,750)		—		—		—		(4,750)
Equity in net earnings from investment in subsidiaries, net of taxes	(250,659)		—		—		250,659		—
Net income (loss)	128,615		(184,592)		(66,068)		250,660		128,615
Less: net income attributable to non-controlling interest	73,484		—		73,484		(73,484)		73,484
Net income (loss) attributable to Unit Corporation	$	55,131	$	(184,592)	$	(139,552)	$	324,144	$	55,131


	Predecessor
	Three Months Ended September 30, 2019
	Parent		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Consolidating Adjustments		Total Consolidated
	(In thousands)
Revenues	$	—	$	116,671	$	48,585	$	(9,817)	$	155,439
Expenses:
Operating costs	—		66,534		36,023		(9,904)		92,653
Depreciation, depletion, and amortization	1,935		56,432		11,847		—		70,214
Impairments	—		232,615		2,265		—		234,880
General and administrative	—		10,094		—		—		10,094
(Gain) loss on disposition of assets	(1)		260		(28)		—		231
Total operating costs	1,934		365,935		50,107		(9,904)		408,072
Income (loss) from operations	(1,934)		(249,264)		(1,522)		87		(252,633)
Interest, net	(9,086)		—		(448)		—		(9,534)
Gain on derivatives	4,237		—		—		—		4,237
Other, net	5		(627)		—		—		(622)
Loss before income taxes	(6,778)		(249,891)		(1,970)		87		(258,552)
Income tax benefit	(1,982)		(48,781)		—		—		(50,763)
Equity in net earnings from investment in subsidiaries, net of taxes	(202,090)		—		—		202,090		—
Net loss	(206,886)		(201,110)		(1,970)		202,177		(207,789)
Less: net loss attributable to non-controlling interest	—		—		(903)		—		(903)
Net loss attributable to Unit Corporation	$	(206,886)	$	(201,110)	$	(1,067)	$	202,177	$	(206,886)


	Predecessor
	Eight Months Ended August 31, 2020
	Parent		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Consolidating Adjustments		Total Consolidated
	(In thousands)
Revenues	$	—	$	176,962	$	114,531	$	(14,536)	$	276,957
Expenses:
Operating costs	—		171,476		80,607		(14,537)		237,546
Depreciation, depletion, and amortization	1,819		84,306		29,371		—		115,496
Impairments	—		803,852		63,962		—		867,814
Loss on abandonment of assets	—		18,733		—		—		18,733
General and administrative	—		42,766		—		—		42,766
(Gain) loss on disposition of assets	1,479		(1,550)		(18)		—		(89)
Total operating costs	3,298		1,119,583		173,922		(14,537)		1,282,266
Income (loss) from operations	(3,298)		(942,621)		(59,391)		1		(1,005,309)
Interest, net	(20,936)		—		(1,888)		—		(22,824)
Write-off of debt issuance costs	(2,426)		—		—		—		(2,426)
Loss on derivatives	(10,704)		—		—		—		(10,704)
Reorganization items	373,151		(168,160)		(71,016)		—		133,975
Other, net	79		1,906		49		—		2,034
Income (loss) before income taxes	335,866		(1,108,875)		(132,246)		1		(905,254)
Income tax benefit	(14,630)		—		—		—		(14,630)
Equity in net earnings from investment in subsidiaries, net of taxes	(1,241,120)		—		—		1,241,120		—
Net loss	(890,624)		(1,108,875)		(132,246)		1,241,121		(890,624)
Less: net income attributable to non-controlling interest	40,388		—		40,388		(40,388)		40,388
Net loss attributable to Unit Corporation	$	(931,012)	$	(1,108,875)	$	(172,634)	$	1,281,509	$	(931,012)


	Predecessor
	Nine Months Ended September 30, 2019
	Parent		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Consolidating Adjustments		Total Consolidated
	(In thousands)
Revenues	$	—	$	389,553	$	173,724	$	(53,001)	$	510,276
Expenses:
Operating costs	—		211,836		133,702		(51,374)		294,164
Depreciation, depletion, and amortization	5,804		157,153		35,675		—		198,632
Impairments	—		232,615		2,265		—		234,880
General and administrative	—		29,899		—		—		29,899
(Gain) loss on disposition of assets	(11)		1,571		(136)		—		1,424
Total operating costs	5,793		633,074		171,506		(51,374)		758,999
Income (loss) from operations	(5,793)		(243,521)		2,218		(1,627)		(248,723)
Interest, net	(25,938)		—		(1,129)		—		(27,067)
Gain on derivatives	5,232		—		—		—		5,232
Other, net	16		(627)		—		—		(611)
Income (loss) before income taxes	(26,483)		(244,148)		1,089		(1,627)		(271,169)
Income tax benefit	(6,529)		(46,552)		—		—		(53,081)
Equity in net earnings from investment in subsidiaries, net of taxes	(198,945)		—		—		198,945		—
Net income (loss)	(218,899)		(197,596)		1,089		197,318		(218,088)
Less: net income attributable to non-controlling interest	—		—		811		—		811
Net income (loss) attributable to Unit Corporation	$	(218,899)	$	(197,596)	$	278	$	197,318	$	(218,899)

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


	Predecessor
	Two Months ended August 31, 2020
	Parent		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Consolidating Adjustments		Total Consolidated
	(In thousands)
Net income (loss)	$	128,615	$	(184,592)	$	(66,068)	$	250,660	$	128,615
Other comprehensive income (loss), net of taxes:
Unrealized gain on securities, net of tax of $0	—		—		—		—		—
Comprehensive income (loss)	128,615		(184,592)		(66,068)		250,660		128,615
Less: Comprehensive income attributable to non-controlling interests	73,484		—		73,484		(73,484)		73,484
Comprehensive income (loss) attributable to Unit Corporation	$	55,131	$	(184,592)	$	(139,552)	$	324,144	$	55,131


	Predecessor
	Three Months Ended September 30, 2019
	Parent		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Consolidating Adjustments		Total Consolidated
	(In thousands)
Net loss	$	(206,886)	$	(201,110)	$	(1,970)	$	202,177	$	(207,789)
Other comprehensive loss, net of taxes:
Reclassification adjustment for write-down of securities, net of tax ($45)	—		487		—		—		487
Comprehensive loss	(206,886)		(200,623)		(1,970)		202,177		(207,302)
Less: Comprehensive loss attributable to non-controlling interests	—		—		(903)		—		(903)
Comprehensive loss attributable to Unit Corporation	$	(206,886)	$	(200,623)	$	(1,067)	$	202,177	$	(206,399)


	Predecessor
	Eight Months Ended August 31, 2020
	Parent		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Consolidating Adjustments		Total Consolidated
	(In thousands)
Net loss	$	(890,624)	$	(1,108,875)	$	(132,246)	$	1,241,121	$	(890,624)
Other comprehensive loss, net of taxes:
Unrealized gain on securities, net of tax of $0	—		—		—		—		—
Comprehensive loss	(890,624)		(1,108,875)		(132,246)		1,241,121		(890,624)
Less: Comprehensive income attributable to non-controlling interests	40,388		—		40,388		(40,388)		40,388
Comprehensive loss attributable to Unit Corporation	$	(931,012)	$	(1,108,875)	$	(172,634)	$	1,281,509	$	(931,012)


	Predecessor
	Nine Months Ended September 30, 2019
	Parent		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Consolidating Adjustments		Total Consolidated
	(In thousands)
Net income (loss)	$	(218,899)	$	(197,596)	$	1,089	$	197,318	$	(218,088)
Other comprehensive income (loss), net of taxes:
Reclassification adjustment for write-down of securities, net of tax ($45)	—		481		—		—		481
Comprehensive income (loss)	(218,899)		(197,115)		1,089		197,318		(217,607)
Less: Comprehensive income attributable to non-controlling interests	—		—		811		—		811
Comprehensive income (loss) attributable to Unit Corporation	$	(218,899)	$	(197,115)	$	278	$	197,318	$	(218,418)

Condensed Consolidating Statements of Cash Flows (Unaudited)


	Predecessor
	Eight Months Ended August 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	$	(207,593)	$	82,769	$	32,922	$	136,858	$	44,956
INVESTING ACTIVITIES:
Capital expenditures	(986)		(14,585)		(10,204)		—		(25,775)
Producing properties and other acquisitions	—		(382)		—		—		(382)
Proceeds from disposition of assets	1,169		4,772		77		—		6,018
Net cash provided by (used in) investing activities	183		(10,195)		(10,127)		—		(20,139)
FINANCING ACTIVITIES:
Borrowings under credit agreement, including borrowings under DIP credit facility	55,300		—		32,100		—		87,400
Payments under credit agreement	(31,500)		—		(32,600)		—		(64,100)
DIP financing costs	(990)		—		—		—		(990)
Exit facility financing costs	(3,225)		—		—		—		(3,225)
Intercompany borrowings (advances), net	210,398		(72,642)		(898)		(136,858)		—
Payments on finance leases	—		—		(2,757)		—		(2,757)
Employee taxes paid by withholding shares	(43)		—		—		—		(43)
Bank overdrafts	(7,269)		—		(1,464)		—		(8,733)
Net cash provided by (used in) financing activities	222,671		(72,642)		(5,619)		(136,858)		7,552
Net increase (decrease) in cash and cash equivalents	15,261		(68)		17,176		—		32,369
Cash and cash equivalents, beginning of period	503		68		—		—		571
Cash and cash equivalents, end of period	$	15,764	$	—	$	17,176	$	—	$	32,940


	Predecessor
	Nine Months Ended September 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	$	11,054	$	169,838	$	38,592	$	(34)	$	219,450
INVESTING ACTIVITIES:
Capital expenditures	168		(321,840)		(43,282)		—		(364,954)
Producing properties and other acquisitions	—		(3,345)		—		—		(3,345)
Proceeds from disposition of assets	11		10,376		119		—		10,506
Net cash provided by (used in) investing activities	179		(314,809)		(43,163)		—		(357,793)
FINANCING ACTIVITIES:
Borrowings under credit agreement	332,300		—		59,900		—		392,200
Payments under credit agreement	(198,200)		—		(55,800)		—		(254,000)
Intercompany borrowings (advances), net	(143,692)		144,867		(1,209)		34		—
Payments on finance leases	—		—		(2,984)		—		(2,984)
Employee taxes paid by withholding shares	(4,080)		—		—		—		(4,080)
Distributions to non-controlling interest	919		—		(1,837)		—		(918)
Bank overdrafts	1,622		—		663		—		2,285
Net cash provided by (used in) financing activities	(11,131)		144,867		(1,267)		34		132,503
Net increase (decrease) in cash and cash equivalents	102		(104)		(5,838)		—		(5,840)
Cash and cash equivalents, beginning of period	403		208		5,841		—		6,452
Cash and cash equivalents, end of period	$	505	$	104	$	3	$	—	$	612