What is Brief History of Unit Company?

Following its founding in 1963, Unit Company history shows an early expansion of its core drilling business. In 1964, the company added four more rigs acquired from Falcon Seaboard Drilling Company. This demonstrated an initial step in growing its operational capacity in the drilling sector.

Recognizing the cyclical nature of the drilling industry, Unit Company development included a strategic move into oil and natural gas production. In 1979, Unit Petroleum Company was formed to venture into this less volatile segment. This was the beginning of an integrated approach, using cash flow from drilling to invest in production.

A significant milestone in the Unit Company timeline was the listing of its stock on the New York Stock Exchange in 1981. At that time, the company had a market capitalization of $168 million and a fleet of 28 rigs. However, the company faced a severe downturn in the oil and gas market between 1982 and 1986, experiencing a 92.5% fall in stock price.

To survive the market downturn, Unit Company background reflects the importance of conservative fiscal management. In September 1986, the business was reorganized, and Unit Corporation was incorporated in Delaware. This restructuring made Unit Corporation the parent company of Unit Drilling and Exploration Company.

The 1990s saw continued expansion through acquisitions. In 1990, the acquisition of Roundup Resources, Inc. for $1.3 million doubled its proved reserves. Further expansion included entering the Permian Basin and Gulf Coast regions in 1994, and the acquisition of Willis Drilling Co. Inc. for $4.2 million in 1995.

By 1995, Unit Company's oil and natural gas reserves surpassed 120 billion cubic feet equivalent (Bcfe), classifying it as a 'mid-sized' oil and gas company. By 2000, proved reserves reached 240.7 Bcfe, boosted by the acquisition of Questa Oil and Gas Co. The acquisition of the remaining 60% of Superior Pipeline Company, L.L.C. in 2004, further integrated its midstream operations. To learn more about the company's financial structure, you can read about the Owners & Shareholders of Unit.

The drilling fleet reached a record of 112 rigs by 2005, primarily through internal construction and acquisitions. This included seven rigs in the active Barnett Shale area, demonstrating the company's continued investment in its core business. This expansion reflects the company's commitment to both organic growth and strategic acquisitions.

The early years of Unit Company's development established a foundation for its future. The company's ability to adapt to market changes and strategically expand its operations has been crucial to its long-term success. The company's focus on both drilling and production, along with its strategic acquisitions, has positioned it as a significant player in the energy sector.

In Q1 2025, the company reported a net income of $17.9 million, or $1.80 per diluted share. Revenues for the same period were $63.5 million. This financial performance indicates a strong start to the year.

Unit Corporation declared a quarterly cash dividend of $1.25 per share for Q4 2024 and a special cash dividend of $2.00 per share. The company plans to continue the quarterly dividend of $1.25 per share throughout 2025.

The company is focused on maximizing the value of its assets and returning value to shareholders. This is demonstrated by continued dividend payments and share repurchase programs. Unit Corporation is leveraging natural gas swap agreements.

Unit Corporation has natural gas swap agreements to stabilize cash flows. Agreements in March 2025 for 15,000 MMBtu/day (April-December 2025) at $4.69/MMBtu and 5,000 MMBtu/day for 2026 at $4.22/MMBtu. These agreements are designed to mitigate price volatility.