Unit Corp., (UNT) announced that it has increased its initial 2010 capital expenditures budget for all of its business segments by 57% to $467 million over estimated 2009 capital expenditures.
Of this amount, $365 million is budgeted for its oil and natural gas segment, which includes $319 million for drilling and completion activities and is a 66% increase over estimated 2009 capital expenditures, $49 million for its contract drilling segment, a 27% decrease over estimated 2009 capital expenditures, and $53 million for its mid-stream segment, a 446% increase over estimated 2009 capital expenditures.
The company's 2010 operating budget is based on oil and natural gas prices averaging $72.00 per barrel and $5.30 per million cubic feet, respectively.
The 2010 capital expenditures program is anticipated to be funded mainly through internally generated cash flow and to a lesser extent from borrowings under the company's bank credit facility.
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