Supplemental Condensed Consolidated Financial Information

6 Months Ended

Jun. 30, 2021

Supplemental Condensed Consolidated Financial Information [Abstract]

Condensed Consolidated Financial Statements

SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL INFORMATION

The Notes of the Predecessor company were registered securities until they were cancelled on the Effective Date. As a result, we are required to present the following condensed consolidating financial information for the Predecessor Periods under Rule 3-10 of the SEC's Regulation S-X, Financial Statements of Guarantors and Issuers of Guaranteed Securities Registered or Being Registered. Our Successor Exit credit agreement is not a registered security. Therefore, the presentation of condensed consolidating financial information is not required for the Successor period.

For the following footnote:

•we were called "Parent",

•the direct subsidiaries were 100% owned by the Parent and the guarantee was full and unconditional and joint and several and called "Combined Guarantor Subsidiaries", and

•Superior and its subsidiaries and the Operator were called "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 Statements of Operations (Unaudited)

	Predecessor
	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, net	(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)

	Predecessor
	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, net	(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)

Condensed Consolidating Statements of Cash Flows (Unaudited)

	Predecessor
	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