Energy company Unit Corp. (UNT), Tuesday reported a decline in first-quarter profit, hurt by lower revenues stemming mostly from reduced selling prices for oil and natural gas. Results were also impacted by one-time commodity derivative losses. Nonetheless, earnings topped Wall Street estimates, while revenues fell short of expectations.
Unit Corp. engages in the contract drilling, oil and natural gas, and mid-stream businesses.
During the quarter, total production was 4 million barrels of oil equivalent, up 21 percent from a year ago. Total liquids (oil and natural gas liquids) production increased 16 percent.
However, average natural gas price for the quarter slid 2 percent from last year to $3.30 per thousand cubic feet (Mcf), with average oil price down 1 percent to $95.23 per barrel. Average NGLs price was $34.99 per barrel, down 10 percent from a year ago.
The Tulsa, Oklahoma-based company posted quarterly net earnings of $40 million or $0.83 per share, compared with $52 million or $1.09 per share last year.
Results for the quarter included a loss of $7 million related to commodity derivatives, excluding which, earnings would have been $44.5 million or $0.92 per share.
On average, seven analysts by Thomson Reuters expected earnings per share of $0.88 for the first quarter. Analysts' estimates typically exclude one-time items.
Revenues for the quarter slid to $318.5 million from $334 million in the prior year. Analysts had a consensus revenue estimate of $330.53 million for the quarter.
Oil and natural gas comprised 48 percent of revenues, contract drilling 34 percent, and mid-stream 18 percent.
For fiscal year 2013, Unit Corp. expects production of about 16.0 MMBoe to 16.5 MMBoe.
CEO Larry Pinkston said, "The recent acquisition from Noble was an important growth step for us going forward. We plan to accelerate the drilling activity in the acquired properties and our other Granite Wash acreage over the next 12 to 18 months..."
The company's stock is trading at $44.10, up 1.85%, on the NYSE.
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