Unit Corporation. (
Bank of America Merrill Lynch Leveraged Finance Conference
December 1, 2011 08:50 am ET
Larry Pinkston – CEO and President
David Merrill - CFO
And next we have Unit from Tulsa, Oklahoma. And from Unit we have Larry Pinkston, who is the Chief Executive Officer and President; and David Merrill, who is the Chief Financial Officer. So, Larry, you can take it away, please.
Thank you. We thank everyone for joining us this morning. We think we have a very exciting story on the equity side and a pretty boring story on the debt side, which I – we’re kind of new to this arena and that we had our first debt offering in mid-year this year, but it’s been an exciting trip.
We are an integrated energy Company that has three distinct energy segments. We finished the year on our E&P segment with about 104 million barrels equivalent of reserves. We’ve a contract drilling segment that we currently have 126 drilling rigs. And we have a midstream segment that currently has a little over 900 miles of pipeline and processing plants and treating plants and et cetera, et cetera that goes with the midstream operation.
We really consider our strengths to be somewhat two fold. One, we think our corporate structure is a significant strength and that gives us the ability to invest into whichever segment that we feel has the best rate of return for our shareholders. And the cycles are very different. There are times when you want to add drilling rigs, there are times when you don’t want to add drilling rigs or times when you want to – when you have the ability add to the midstream operations when the opportunities are there, there are times when there is no new grass roots projects on the midstream operations, but cycles are different with any segment. The most consistent segment has been our E&P segment and that we can create our own opportunities in the E&P segment.