Unit Corp. Establishes Its Initial 2016 Capital Budget - Quick Facts

(RTTNews) - Unit Corp. (UNT) announced its 2016 overall capital budget is 59% to 65% less as compared to 2015, excluding acquisitions and asset retirement obligation liability. The reduction is designed to keep the budget below anticipated internally generated cash flow plus proceeds from any non-core asset sales. The company's 2016 capital budget is allocated as: a range of $109.0 million to $131.0 million for oil and natural gas segment; $9.0 million to $11.0 million for contract drilling segment; and $22.0 million to $24.0 million for midstream segment.

Unit's oil and natural gas segment's 2016 production is anticipated to decline on a year over year basis by 13% to 16%. Approximately 3% of the decline is attributable to two of the non-core asset packages sold in early 2016. The balance of the decline is attributable to the reduction in the segment's capital budget. The company anticipates that the segment will cease all drilling activity by the end of the first quarter, pending the evaluation of future industry conditions.

Total production for 2015 was 20.0 million barrels of oil equivalent, a 9% increase over 2014.