May 18, 2013
Unit is a diversified oilfield services firm that also operates a natural gas exploration and production segment. The company owns 129 land drilling rigs, operates 676 miles of petroleum-transporting pipeline, and owns half a trillion cubic feet of natural gas reserves - all in the southern United States. Rising natural gas prices are driving up both revenues and margins for the company's E&P segment, though its onshore oilfield services operations don't feel the benefits quite like the offshore segments of other companies, since land rigs are far more abundant and, therefore, less in demand. Unit has achieved a reserve replacement ratio of over 150% for 24 years, causing its holdings to grow faster than production, and with 48% of its reserves in the gas-swollen Anadarko Basin, the company is set to keep producing for many years to come. Unit competes with Cabot Oil & Gas, Oneok, Kinder Morgan Energy Partners, L.P. (KMP), Atmos Energy, National Fuel Gas Company, and Nabors Industries.
(Read more at Wikinvest
) - Business and Financials
- Trends and Forces
- Unit's Exposure to Natural Gas Means that Rising Gas Prices Bring Up the Company's E&P Revenues - and Profits
- Unit's Onshore Drilling Focus Means it is Missing Out on the Dayrate Growth of the Offshore Sector
- Unit's Reserve Strategy Ensures that the Company's Supplies Will Last for Years
- Legislation Supporting the Development of Renewable Energy Threatens the Long-Term Strength of Hydrocarbons in the U.S.
- Competition
- References
