Previous Statements by UNT
» Unit Corporation's CEO Discusses Q1 2012 Results - Earnings Call Transcript
» Unit Corporation's Management Presents at Bank of America Merrill Lynch Leveraged Finance Conference (Transcript)
» Unit Corporation's CEO Discusses Q4 2011 Results - Earnings Call Transcript
There are bigger opportunity, larger opportunities right now in that segment that we’ve ever seen since we've been in the midstream segment and certainly bigger and even bigger than all of the group that runs our midstream company has ever seen in their lifetime with all the processing infrastructure that’s going in right now.Our more consistent year in year out growth has always been our E&P segment, that’s been the segment that we can somewhat control our growth, we create our own opportunities in that segment. Whereas the other two segments are driven by opportunities by drilling oils that those two segments can’t control. But the three mix, the three work very well together, we’ve directed investments from one subsidiary to other subsidiaries very aggressively over the last 10 years, over the last 20 years, but all three segments they’ve show very good, very consistent, very nice growth over the time period that we’ve been involved with in our drilling segment, our rig fleet in the last 10 years has increased to about 69% and our E&P segment we’ve averaged replacing a 195% of our annual production with new reserves over that 10-year span and since 2004 since we brought 100% of the midstream company. We've seen over 260% increase in the amount of natural gas that they process, over 600% increase on the amount of the natural gas liquids that they've sold, a very dramatic growth in that segment. In our E&P segment, as I mentioned, we finished the year at 116 million barrels of oil equivalent reserves, that was up 12% over 2010, 81% of our reserves are prove developed. It's not that we don’t have more [PUDs] or you definitely have more PUDs. It’s always been our philosophy our strategy to always keep our PUDs we have booked pretty consistent year to year as a percentage of our total reserves. So basically whatever PUDs we drill each year, we replace with new PUDs and our relationship has been about 80% as long as I could remember.
We are -- currently about 36% of our reserves are liquids, so dramatically over the last two or three years in 2009, we made a decision early in 2009 to change our strategy from being previously almost entirely driven by the natural gas opportunities to looking for liquids. Our three key areas that we are aggressively drilling in today, one of them is Granite Wash in the Texas Panhandle which has been a legacy acreage position that we had for 20 plus years. The Marmaton which is a old play in the Oklahoma Panhandle in Beaver county and the Wilcox play in Southeast Texas which is a conventional play driven by 3D seismic different type play than the other two. But the economic year in and year out have competed very favorably with our other two plates.Our goals as I mentioned or I think mentioned each and every year is to replace at least a 150% of our annual production with new reserves. We have done that every year for the last 28 years. I don’t know that there is another company that has presented at this conference or probably any other conference, but you can say that they have had that kind of consistent track record over that longer period of time. Our average production replacement over those 28 years has been 218%. Last year we replaced 202% of our production with new reserves. The way we have been able to do that consistently over the years is we don’t depend on acquisitions for our growth. Read the rest of this transcript for free on seekingalpha.com