View Filing Data

Accounts receivable, net of allowance for doubtful accounts of $2,494 and $2,531 at June 30, 2019 and December 31, 2018, respectively

$ 669

$ 6,452

89,876

119,397

Current derivative asset (Note 10)

516

473

8,513

12,870

Assets held for sale (Note 3)

2,405

2,054

19,500

22,511

9,106

6,602

Oil and natural gas properties on the full cost method:

130,585

170,359

6,212,323

6,018,568

336,214

330,216

1,284,295

1,284,419

798,503

767,388

69,212

68,339

59,080

59,081

30,019

29,524

57,900

57,507

Less accumulated depreciation, depletion, amortization, and impairment

8,847,546

8,615,042

6,289,575

6,182,726

2,557,971

2,432,316

Right of use asset (Note 12)

62,808

8,302

33,863

32,570

^[1]

2,793,529

2,698,053

Accrued liabilities (Note 5)

131,129

149,945

45,175

49,664

Current operating lease liability (Note 12)

4,519

Current portion of other long-term liabilities (Note 6)

13,887

14,250

Long-term debt less debt issuance costs (Note 6)

194,710

213,859

756,590

644,475

Non-current derivative liability (Note 10)

256

293

Operating lease liability (Note 12)

3,556

Other long-term liabilities (Note 6)

102,700

101,234

Commitments and contingencies (Note 13)

142,485

144,748

Preferred stock, $1.00 par value, 5,000,000 shares authorized, none issued

Common stock, $.20 par value, 175,000,000 shares authorized, 55,536,916 and 54,055,600 shares issued as of June 30, 2019 and December 31, 2018, respectively

10,590

10,414

Accumulated other comprehensive loss (Note 15)

638,769

628,108

(487)

(481)

Total shareholders’ equity attributable to Unit Corporation

741,001

752,840

1,389,873

1,390,881

Non-controlling interests in consolidated subsidiaries

203,359

202,563

1,593,232

1,593,444

^[1]

$ 2,793,529

$ 2,698,053

[1]

Unit Corporation's consolidated total assets as of June 30, 2019 include total current and long-term assets of its variable interest entity (VIE) (Superior Pipeline Company, L.L.C.) of $23.7 million and $435.4 million, respectively, which can only be used to settle obligations of the VIE. Unit Corporation's consolidated total liabilities as of June 30, 2019 include total current and long-term liabilities of the VIE of $29.6 million and $21.4 million, respectively, for which the creditors of the VIE have no recourse to Unit Corporation. Unit Corporation's consolidated total assets as of December 31, 2018 include total current and long-term assets of the VIE of $40.1 million and $423.3 million, respectively, which can only be used to settle obligations of the VIE. Unit Corporation's consolidated total liabilities as of December 31, 2018 include total current and long-term liabilities of the VIE of $42.8 million and $14.7 million, respectively, for which the creditors of the VIE have no recourse to Unit Corporation. See Note 14 – Variable Interest Entity Arrangements.

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 2,494	$ 2,531
Preferred stock, par value	$ 1.00	$ 1.00
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Common stock, par value	$ 0.20	$ 0.20
Common stock, shares authorized	175,000,000	175,000,000
Common stock, shares issued	55,536,916	54,055,600
VIE Current Assets Pledged	$ 23,700	$ 40,100
VIE Non-current Assets Pledged	435,400	423,300
VIE Current Liabilities, No Recourse	29,600	42,800
VIE Non-current Liabilities, No Recourse	$ 21,400	$ 14,700

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Revenues:
Revenues	$ 165,146	$ 203,303	$ 354,837	$ 408,435
Operating costs:
Operating costs	98,041	104,015	201,511	213,248
Depreciation, depletion, and amortization	66,292	58,373	128,418	115,439
General and administrative	10,064	8,712	19,805	19,474
(Gain) loss on disposition of assets	(422)	(161)	1,193	(322)
Total operating expenses	173,975	170,939	350,927	347,839
Income (loss) from operations	(8,829)	32,364	3,910	60,596
Other income (expense):
Interest, net	(8,995)	(7,729)	(17,533)	(17,733)
Gain (loss) on derivatives	7,927	(14,461)	995	(21,223)
Other, net	6	5	11	11
Total other income (expense)	(1,062)	(22,185)	(16,527)	(38,945)
Income (loss) before income taxes	(9,891)	10,179	(12,617)	21,651
Income tax expense (benefit):
Deferred	(1,874)	2,029	(2,318)	5,636
Total income taxes	(1,874)	2,029	(2,318)	5,636
Net income (loss)	(8,017)	8,150	(10,299)	16,015
Net income attributable to non-controlling interest	492	2,362	1,714	2,362
Net income (loss) attributable to Unit Corporation	$ (8,509)	$ 5,788	$ (12,013)	$ 13,653
Net income (loss) attributable to Unit Corporation per common share (Note 4):
Basic	$ (0.16)	$ 0.11	$ (0.23)	$ 0.26
Diluted	$ (0.16)	$ 0.11	$ (0.23)	$ 0.26
Oil and natural gas
Revenues:
Revenues	$ 77,815	$ 102,318	$ 163,910	$ 205,417
Operating costs:
Operating costs	36,242	32,418	68,956	68,380
Contract drilling
Revenues:
Revenues	43,037	46,926	94,192	92,915
Operating costs:
Operating costs	29,308	31,894	60,709	63,561
Gas gathering and processing
Revenues:
Revenues	44,294	54,059	96,735	110,103
Operating costs:
Operating costs	$ 32,491	$ 39,703	$ 71,846	$ 81,307

Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ (8,017)	$ 8,150	$ (10,299)	$ 16,015
Other comprehensive income (loss), net of taxes:
Unrealized gain (loss) on securities, net of tax of ($9), $11, ($2), and ($47)	(30)	35	(6)	(141)
Comprehensive income (loss)	(8,047)	8,185	(10,305)	15,874
Less: Comprehensive income attributable to non-controlling interest	492	2,362	1,714	2,362
Comprehensive income (loss) attributable to Unit Corporation	$ (8,539)	$ 5,823	$ (12,019)	$ 13,512

Revenue from Contract with Customer [Abstract]

The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Section 45
-Paragraph 1A
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
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Reference 6: http://www.xbrl.org/2003/role/exampleRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=109223946&loc=d3e3000-108585

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 45
-Paragraph 19
-URI http://asc.fasb.org/extlink&oid=108774443&loc=SL4569616-111683

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8933-108599

Reference 10: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 55
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-URI http://asc.fasb.org/extlink&oid=84234705&loc=SL4591552-111686

+ Details

Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Statement of Comprehensive Income [Abstract]
Unrealized income (loss) on securities, tax	$ (9)	$ 11	$ (2)	$ (47)

Condensed Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands	Total	Common Stock [Member]	Capital In Excess of Par Value [Member]	Accumulated other comprehensive income (loss) [Member]	Retained earnings [Member]	Non-controlling interests in consolidated subsidiaries [Member]
Cumulative effect adjustment for adoption of ASUs	$ (1,261)	$ 0	$ 0	$ 13	$ (1,274)	$ 0
Stockholders' equity, beginning balance at Dec. 31, 2017	1,345,560	10,280	535,815	63	799,402	0
Net Income (loss)	16,015	0	0	0	13,653	2,362
Other comprehensive income (loss)	(141)	0	0	(141)	0	0
Total comprehensive income (loss)	15,874
Contributions	300,000	0	102,958	0	0	197,042
Transaction costs associated with sale of non-controlling interest	(2,254)	0	(2,254)	0	0	0
Tax effect on sale of non-controlling interest	(24,300)	0	(24,300)	0	0	0
Activity in employee compensation plans	10,035	134	9,901	0	0	0
Stockholders' equity, ending balance at Jun. 30, 2018	1,643,654	10,414	622,120	(65)	811,781	199,404
Stockholders' equity, beginning balance at Mar. 31, 2018	1,357,300	10,403	541,004	(100)	805,993	0
Net Income (loss)	8,150	0	0	0	5,788	2,362
Other comprehensive income (loss)	35	0	0	35	0	0
Total comprehensive income (loss)	8,185
Contributions	300,000	0	102,958	0	0	197,042
Transaction costs associated with sale of non-controlling interest	(2,254)	0	(2,254)	0	0	0
Tax effect on sale of non-controlling interest	(24,300)	0	(24,300)	0	0	0
Activity in employee compensation plans	4,723	11	4,712	0	0	0
Stockholders' equity, ending balance at Jun. 30, 2018	1,643,654	10,414	622,120	(65)	811,781	199,404
Cumulative effect adjustment for adoption of ASUs	174	0	0	0	174	0
Stockholders' equity, beginning balance at Dec. 31, 2018	1,593,444	10,414	628,108	(481)	752,840	202,563
Net Income (loss)	(10,299)	0	0	0	(12,013)	1,714
Other comprehensive income (loss)	(6)	0	0	(6)	0	0
Total comprehensive income (loss)	(10,305)
Distributions to non-controlling interest	(918)	0	0	0	0	(918)
Activity in employee compensation plans	10,837	176	10,661	0	0	0
Stockholders' equity, ending balance at Jun. 30, 2019	1,593,232	10,590	638,769	(487)	741,001	203,359
Stockholders' equity, beginning balance at Mar. 31, 2019	1,595,859	10,578	633,361	(457)	749,510	202,867
Net Income (loss)	(8,017)	0	0	0	(8,509)	492
Other comprehensive income (loss)	(30)	0	0	(30)	0	0
Total comprehensive income (loss)	(8,047)
Activity in employee compensation plans	5,420	12	5,408	0	0	0
Stockholders' equity, ending balance at Jun. 30, 2019	$ 1,593,232	$ 10,590	$ 638,769	$ (487)	$ 741,001	$ 203,359

Condensed Consolidated Statements of Changes in Shareholders' Equity (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Statement of Stockholders' Equity [Abstract]
Activity in employee compensation plans (shares)	68,929	43,005	1,481,316	1,209,232
Unrealized income (loss) on securities, tax	$ (9)	$ 11	$ (2)	$ (47)

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
OPERATING ACTIVITIES:
Net income (loss)	$ (10,299)	$ 16,015
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation, depletion, and amortization	128,418	115,439
Amortization of debt issuance costs and debt discount (Note 6)	1,115	1,095
(Gain) loss on derivatives (Note 10)	(995)	21,223
Cash proceeds (payments) on derivatives settled, net (Note 10)	5,314	(8,928)
Deferred tax (benefit) expense	(2,318)	5,636
(Gain) loss on disposition of assets	1,193	(322)
Stock compensation plans	11,187	12,073
Contracts assets and liabilities, net (Note 2)	(1,283)	(2,371)
Other, net	1,117	1,998
Changes in operating assets and liabilities increasing (decreasing) cash:
Accounts receivable	26,939	(1,865)
Accounts payable	(30,374)	(403)
Material and supplies	(43)	4
Accrued liabilities	(1,245)	1,572
Other, net	(1,225)	(1,526)
Net cash provided by operating activities	127,501	159,640
INVESTING ACTIVITIES:
Capital expenditures	(246,638)	(189,916)
Producing properties and other acquisitions	(3,313)	(962)
Proceeds from disposition of assets	7,340	23,528
Net cash used in investing activities	(242,611)	(167,350)
FINANCING ACTIVITIES:
Borrowings under credit agreement	271,200	71,200
Payments under credit agreement	(160,200)	(249,200)
Payments on finance leases	(1,980)	(1,901)
Proceeds from investments of non-controlling interests	0	300,000
Employee taxes paid by withholding shares	(4,073)	(4,947)
Transaction costs associated with non-controlling interests	0	(2,254)
Distributions to non-controlling interest	(918)	0
Book overdrafts	5,298	(1,581)
Net cash provided by financing activities	109,327	111,317
Net increase (decrease) in cash and cash equivalents	(5,783)	103,607
Cash and cash equivalents, beginning of period	6,452	701
Cash and cash equivalents, end of period	669	104,308
Cash paid during the year for:
Interest paid (net of capitalized)	15,748	18,246
Income taxes	0	0
Changes in accounts payable and accrued liabilities related to purchases of property, plant, and equipment	(6,260)	(3,747)
Non-cash (addition) reduction to oil and natural gas properties related to asset retirement obligations	$ (2,057)	$ 7,854

Basis of Preparation and Presentation	6 Months Ended
Basis of Preparation and Presentation	Jun. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Preparation and Presentation	BASIS OF PREPARATION AND PRESENTATION The unaudited condensed consolidated financial statements in this report include the accounts of Unit Corporation and all its subsidiaries and affiliates and have been prepared under the rules and regulations of the SEC. The terms “company,” “Unit,” “we,” “our,” “us,” or like terms refer to Unit Corporation, a Delaware corporation, and one or more of its subsidiaries and affiliates, except as otherwise indicated or as the context otherwise requires. We consolidate the activities of Superior Pipeline Company, L.L.C. (Superior), a 50/50 joint venture between Unit Corporation and SP Investor Holdings, LLC, which qualifies as a Variable Interest Entity (VIE) under generally accepted accounting principles in the United States (GAAP). We have concluded that we are the primary beneficiary of the VIE, as defined in the accounting standards, since we have the power to direct those activities that most significantly affect the economic performance of Superior as further described in Note 14 – Variable Interest Entity Arrangements. The condensed consolidated financial statements are unaudited and do not include all the notes in our annual financial statements. This report should be read with the audited consolidated financial statements and notes in our Form 10-K, filed February 26, 2019, for the year ended December 31, 2018. In the opinion of our management, the unaudited condensed consolidated financial statements contain all normal recurring adjustments (including the elimination of all intercompany transactions) necessary to fairly state: •Balance Sheets at June 30, 2019 and December 31, 2018; •Statements of Operations for the three and six months ended June 30, 2019 and 2018; •Statements of Comprehensive Income (Loss) for the three and six months ended June 30, 2019 and 2018; •Statements of Changes in Shareholders' Equity for the three and six months ended June 30, 2019 and 2018; and •Statements of Cash Flows for the six months ended June 30, 2019 and 2018. Our financial statements are prepared in conformity with GAAP, which requires us to make certain estimates and assumptions that may affect the amounts reported in our unaudited condensed consolidated financial statements and notes. Actual results may differ from those estimates. Results for the six months ended June 30, 2019 and 2018 are not necessarily indicative of the results we may realize for the full year of 2019, or that we realized for the full year of 2018. Certain amounts in this report for prior periods have been reclassified to conform to current year presentation. There was no impact to consolidated net income (loss) or shareholders' equity. Accounting Changes - Recent Accounting Pronouncements - Adopted As of January 1, 2019, we adopted Leases - Topic 842 (ASC 842) using the modified retrospective method and the optional transition method to record the adoption impact through a cumulative adjustment to equity. Results for reporting periods beginning after January 1, 2019, are presented under Topic 842, while prior periods are not adjusted and continue to be reported under the accounting standards in effect for those periods. This new lease standard is explained further in Note 8 – New Accounting Pronouncements. The additional disclosures required by ASC 842 have been included in Note 12 – Leases.

Revenue from Contracts with Customers

6 Months Ended

Jun. 30, 2019

Revenue from Contract with Customer

REVENUE FROM CONTRACTS WITH CUSTOMERSOur revenue streams are reported under three segments: oil and natural gas, contract drilling, and mid-stream. This is how we disaggregate our revenue and how we report our segment revenue (as reflected in Note 16 – Industry Segment Information). Revenue from the oil and natural gas segment is from sales of our oil and natural gas production. Revenue from the contract drilling segment comes from contracting with upstream companies to drill an agreed-on number of wells or provide drilling rigs and services over an agreed-on period. Revenue from the mid-stream segment is derived from gathering, transporting, and processing natural gas production and NGLs and selling those commodities. We sell the hydrocarbons (from our oil and natural gas and mid-stream segments) to other mid-stream and downstream oil and gas companies.

Oil and Natural Gas Revenues

Certain costs—as either a deduction from revenue or as an expense—are determined based on when control of the commodity is transferred to our customer, which would affect our total revenue recognized, but will not affect gross profit. For example, gathering, processing, and transportation costs included as part of the contract price with the customer on transfer of control of the commodity are included in the transaction price, while costs incurred while we are in control of the commodity represent operating costs.

Contract Drilling Revenues

We have evaluated the mobilization and de-mobilization charges due under our outstanding drilling contracts. The impact of those charges to the financial statements was immaterial. As of June 30, 2019, we had 24 contract drilling contracts with terms ranging from one month to almost three years.

Most of our drilling contracts have an original term of less than one year. The remaining performance obligations under the contracts that have a longer duration are not material.

Mid-stream Contracts Revenues

Revenues are generated from fees earned for gas gathering and processing services provided to a customer. The typical revenue contracts used by this segment are gas gathering and processing agreements. The following tables show the changes in our mid-stream contract asset and contract liability balances during the six months ended June 30, 2019:


Contract Assets	Amount
	(In thousands)
Balance at December 31, 2018 ⁽¹⁾	$	13,164
Amounts invoiced in excess of revenue recognized	(86)
Balance at June 30, 2019⁽¹⁾	$	13,078

_______________________

1.At December 31, 2018, total contract assets are included in prepaid expenses and other and other assets of $0.3 million and $12.9 million, respectively, in our Consolidated Balance Sheet. At June 30, 2019, total contract assets included prepaid expenses and other and other assets of $3.4 million and $9.7 million, respectively, in our Condensed Consolidated Balance Sheet.


Contract Liabilities	Amount
	(In thousands)
Balance at December 31, 2018 ⁽¹⁾	$	9,882
New contract	60
Revenue included in beginning balance	(1,429)
Balance at June 30, 2019 ⁽¹⁾	$	8,513

______________________

1.At December 31, 2018, total contract liabilities are included in current portion of other long-term liabilities and other long-term liabilities of $2.9 million and $7.0 million, respectively, in our Consolidated Balance Sheet. At June 30, 2019, total contract liabilities included current portion of other long-term liabilities and other long-term liabilities of $2.9 million and $5.6 million, respectively, in our Condensed Consolidated Balance Sheet.

Included below is the fixed revenue we will earn over the remaining term of the contracts and excludes all variable consideration to be earned with the associated contract.


Contract	Remaining Term of Contract	July - December 2019		2020		2021		2022		2023 and Beyond		Total Remaining Impact to Revenue
		(In thousands)
Demand fee contracts	3-9 years	$	1,295	$	(3,775)	$	(3,501)	$	1,380	$	36	$	(4,565)

Divestitures	6 Months Ended
Divestitures	Jun. 30, 2019
Property, Plant and Equipment Impairment or Disposal [Abstract]
Divestitures	DIVESTITURES Oil and Natural Gas We sold $2.1 million of non-core oil and natural gas assets, net of related expenses, during the first six months of 2019, compared to $22.4 million during the first six months of 2018. These proceeds reduced the net book value of our full cost pool with no gain or loss recognized. Contract Drilling In December 2018, we removed 41 drilling rigs and other equipment from service. We estimated the fair value of the 41 drilling rigs based on the estimated market value from third-party assessments (Level 3 fair value measurement) less cost to sell. Based on these estimates, we recorded a pre-tax non-cash write-down of approximately $147.9 million. During the first six months of 2019, we sold three of these drilling rigs and some of the other equipment to unaffiliated third parties. The proceeds of those sales, less costs to sell, was less than the applicable $3.0 million net book value resulting in a loss of $0.2 million. The remaining drilling rigs and equipment will be marketed for sale throughout 2019 and remain classified as assets held for sale. The net book value of those assets is $19.5 million.

Earnings (Loss) Per Share

6 Months Ended

Jun. 30, 2019

Earnings Per Share [Abstract]

Earnings Per Share

EARNINGS (LOSS) PER SHARE

Information related to the calculation of earnings (loss) per share attributable to Unit Corporation is as follows:


	Earnings (Loss) (Numerator)		Weighted Shares (Denominator)	Per-Share Amount
	(In thousands except per share amounts)
For the three months ended June 30, 2019
Basic loss attributable to Unit Corporation per common share	$	(8,509)	52,930	$	(0.16)
Effect of dilutive stock options and restricted stock	—		—	—
Diluted loss attributable to Unit Corporation per common share	$	(8,509)	52,930	$	(0.16)
For the three months ended June 30, 2018
Basic earnings attributable to Unit Corporation per common share	$	5,788	52,050	$	0.11
Effect of dilutive stock options and restricted stock	—		731	—
Diluted earnings attributable to Unit Corporation per common share	$	5,788	52,781	$	0.11

Because of the net loss for the three months ended June 30, 2019, approximately 283,000 weighted average shares related to stock options and restricted stock were antidilutive and were excluded from the earnings per share calculation above.

The following table shows the number of stock options (and their average exercise price) excluded because their option exercise prices were greater than the average market price of our common stock:


	Three Months Ended
	June 30,
	2019		2018
Stock options	42,000		66,500
Average exercise price	$	48.56	$	44.42


	Earnings (Loss) (Numerator)		Weighted Shares (Denominator)	Per-Share Amount
	(In thousands except per share amounts)
For the six months ended June 30, 2019
Basic loss attributable to Unit Corporation per common share	$	(12,013)	52,744	$	(0.23)
Effect of dilutive stock options and restricted stock	—		—	—
Diluted loss attributable to Unit Corporation per common share	$	(12,013)	52,744	$	(0.23)
For the six months ended June 30, 2018
Basic earnings attributable to Unit Corporation per common share	$	13,653	51,891	$	0.26
Effect of dilutive stock options and restricted stock	—		651	—
Diluted earnings attributable to Unit Corporation per common share	$	13,653	52,542	$	0.26

Because of the net loss for the six months ended June 30, 2019, approximately 286,000 weighted average shares related to stock options and restricted stock were antidilutive and were excluded from the earnings per share calculation above.

The following table shows the number of stock options (and their average exercise price) excluded because their option exercise prices were greater than the average market price of our common stock:


	Six Months Ended
	June 30,
	2019		2018
Stock options	42,000		66,500
Average exercise price	$	48.56	$	44.42

Accrued Liabilities

6 Months Ended

Jun. 30, 2019

Accrued Liabilities [Abstract]

Accrued Liabilities

ACCRUED LIABILITIES

Accrued liabilities consisted of:


	June 30, 2019		December 31, 2018
	(In thousands)
Employee costs	$	13,910	$	22,056
Lease operating expenses	10,552		12,756
Interest payable	6,741		6,635
Taxes	6,675		1,378
Third-party credits	2,824		2,129
Other	4,473		4,710
Total accrued liabilities	$	45,175	$	49,664

Long-Term Debt And Other Long-Term Liabilities

6 Months Ended

Jun. 30, 2019

Debt Disclosure [Abstract]

Long-Term Debt And Other Long-Term Liabilities

LONG-TERM DEBT AND OTHER LONG-TERM LIABILITIES

Long-Term Debt

As of the date indicated, our long-term debt consisted of the following:


	June 30, 2019		December 31, 2018
	(In thousands)
Unit credit agreement with an average interest rate of 4.2% at June 30, 2019	$	103,500	$	—
Superior credit agreement with an average interest rate of 6.5% at June 30, 2019	7,500		—
6.625% senior subordinated notes due 2021	650,000		650,000
Total principal amount	761,000		650,000
Less: unamortized discount	(1,303)		(1,623)
Less: debt issuance costs, net	(3,107)		(3,902)
Total long-term debt	$	756,590	$	644,475

Unit Credit Agreement. Our Senior Credit Agreement (Unit credit agreement) is scheduled to mature on October 18, 2023. Under that agreement, the amount we can borrow is the lesser of the amount we elect as the commitment amount or the value of the borrowing base as determined by the lenders, but in either event not to exceed the maximum credit agreement amount of $1.0 billion. Our elected commitment amount is $425.0 million. Our borrowing base is $425.0 million. We are currently charged a commitment fee of 0.375% on the amount available but not borrowed. That fee varies based on the amount borrowed as a percentage of the total borrowing base. Total fees of $3.3 million in origination, agency, syndication, and other related fees are being amortized over the life of the agreement. Under the agreement, we have pledged as collateral 80% of the proved developed producing (discounted as present worth at 8%) total value of our oil and gas properties.

On May 2, 2018, we entered into a Pledge Agreement with BOKF, NA (dba Bank of Oklahoma), as administrative agent to benefit the secured parties, granting a security interest in the limited liability membership interests and other equity interests we own in Superior (which as of this report is 50% of the aggregate outstanding equity interests of Superior) as additional collateral for our obligations under the Unit credit agreement.

The borrowing base amount–which is subject to redetermination by the lenders on April 1st and October 1st of each year–is based on a percentage of the discounted future value of our oil and natural gas reserves. We or the lenders may request a onetime special redetermination of the borrowing base between each scheduled redetermination. In addition, we may request a redetermination following the completion of an acquisition that meets the requirements in the Unit credit agreement.

At our election, any part of the outstanding debt under the Unit credit agreement can be fixed at a London Interbank Offered Rate (LIBOR). LIBOR interest is computed as the LIBOR base for the term plus 1.50% to 2.50% depending on the level of debt as a percentage of the borrowing base and is payable at the end of each term, or every 90 days, whichever is less. Borrowings not under LIBOR bear interest at the prime rate specified in the Unit credit agreement but in no event less than LIBOR plus 1.00% plus a margin. The credit agreement provides that if ICE Benchmark Administration no longer reports the LIBOR or Administrative Agent determines in good faith that the rate so reported no longer accurately reflects the rate available to Lender in the London Interbank Market or if such index no longer exists or accurately reflects the rate available to Administrative Agent in the London Interbank Market, Administrative Agent may select a replacement index. Interest is payable at the end of each month or at the end of each LIBOR contract and the principal may be repaid in whole or in part at any time, without a premium or penalty. At June 30, 2019, we had $103.5 million outstanding borrowings under the Unit credit agreement.

We can use borrowings to finance general working capital requirements for (a) exploration, development, production, and acquisition of oil and gas properties, (b) acquisitions and operation of mid-stream assets up to certain limits, (c) issuance of standby letters of credit, (d) contract drilling services and acquisition of contract drilling equipment, and (e) general corporate purposes.

The Unit credit agreement prohibits, among other things:

•the payment of dividends (other than stock dividends) during any fiscal year over 30% of our consolidated net income for the preceding fiscal year;

•the incurrence of additional debt with certain limited exceptions;

•the creation or existence of mortgages or liens, other than those in the ordinary course of business and with certain limited exceptions, on any of our properties, except in favor of our lenders; and

•investments in Unrestricted Subsidiaries (as defined in the Unit credit agreement) over $200.0 million.

The Unit credit agreement also requires that we have at the end of each quarter:

•a current ratio (as defined in the credit agreement) of not less than 1 to 1.

•a leverage ratio of funded debt to consolidated EBITDA (as defined in the Unit credit agreement) for the most recently ended rolling four fiscal quarters of no greater than 4 to 1.

As of June 30, 2019, we were in compliance with these covenants.

Superior Credit Agreement. On May 10, 2018, Superior signed a five-year, $200.0 million senior secured revolving credit facility with an option to increase the credit amount up to $250.0 million, subject to certain conditions (Superior credit agreement). The amounts borrowed under the Superior credit agreement bear annual interest at a rate, at Superior’s option, equal to (a) LIBOR plus the applicable margin of 2.00% to 3.25% or (b) the alternate base rate (greater of (i) the federal funds rate plus 0.5%, (ii) the prime rate, and (iii) third day LIBOR plus 1.00%) plus the applicable margin of 1.00% to 2.25%. The obligations under the Superior credit agreement are secured by, among other things, mortgage liens on certain of Superior’s processing plants and gathering systems. The credit agreement provides that if ICE Benchmark Administration no longer reports the LIBOR or Administrative Agent determines in good faith that the rate so reported no longer accurately reflects the rate available to Lender in the London Interbank Market or if such index no longer exists or accurately reflects the rate available to Administrative Agent in the London Interbank Market, Administrative Agent may select a replacement index.

Superior is currently charged a commitment fee of 0.375% on the amount available but not borrowed which varies based on the amount borrowed as a percentage of the total borrowing base. Superior paid $1.7 million in origination, agency, syndication, and other related fees. These fees are being amortized over the life of the Superior credit agreement.

The Superior credit agreement requires that Superior maintain a Consolidated EBITDA to interest expense ratio for the most-recently ended rolling four quarters of at least 2.50 to 1.00, and a funded debt to Consolidated EBITDA ratio of not greater than 4.00 to 1.00. The agreement also contains several customary covenants that restrict (subject to certain exceptions) Superior’s ability to incur additional indebtedness, create additional liens on its assets, make investments, pay distributions, sign sale and leaseback transactions, engage in certain transactions with affiliates, engage in mergers or consolidations, sign hedging arrangements, and acquire or dispose of assets. As of June 30, 2019, Superior was in compliance with these covenants.

The borrowings under the Superior credit agreement will fund capital expenditures and acquisitions, provide general working capital, and for letters of credit for Superior. As of June 30, 2019, we had $7.5 million outstanding borrowings under the Superior credit agreement.

On June 27, 2018, Superior and the lenders amended the Superior credit agreement to revise certain definitions in the agreement.

Superior's credit agreement is not guaranteed by Unit.

6.625% Senior Subordinated Notes. We have an aggregate principal amount of $650.0 million, 6.625% senior subordinated notes (the Notes) outstanding. Interest on the Notes is payable semi-annually (in arrears) on May 15 and November 15 of each year. The Notes mature on May 15, 2021. In issuing the Notes, we incurred fees of $14.7 million that are being amortized as debt issuance cost over the life of the Notes.

The Notes are subject to an Indenture dated as of May 18, 2011, between us and Wilmington Trust, National Association (successor to Wilmington Trust FSB), as Trustee (the Trustee), as supplemented by the First Supplemental Indenture dated as of May 18, 2011, between us, the Guarantors, and the Trustee, and as further supplemented by the Second Supplemental Indenture dated as of January 7, 2013, between us, the Guarantors, and the Trustee (as supplemented, the 2011 Indenture), establishing

the terms of and providing for issuing the Notes. The Guarantors are most of our direct and indirect subsidiaries. The discussion of the Notes in this report is qualified by and subject to the actual terms of the 2011 Indenture.

Unit, as the parent company, has no significant independent assets or operations. The guarantees by the Guarantors of the Notes (registered under registration statements) are full and unconditional, joint and several, subject to certain automatic customary releases, are subject to certain restrictions on the sale, disposition, or transfer of the capital stock or substantially all of the assets of a subsidiary guarantor, and other conditions and terms set out in the 2011 Indenture. Effective April 3, 2018, Superior is no longer a Guarantor of the Notes. Excluding Superior, any of our other subsidiaries that are not Guarantors are minor. There are no significant restrictions on our ability to receive funds from any of our subsidiaries through dividends, loans, advances, or otherwise.

We may redeem all or, occasionally, a part of the Notes at certain redemption prices, plus accrued and unpaid interest. If a “change of control” occurs, unless the Company has exercised its right to redeem all of the Notes, we must offer to repurchase from each holder all or any part of that holder’s Notes at a purchase price in cash equal to 101% of the principal amount of the Notes plus accrued and unpaid interest to the date of purchase. As of May 15, 2019, we may redeem the Notes at a redemption price equal to 100% of the principal amount of the Notes plus accrued and unpaid interest on the date of purchase. The 2011 Indenture contains customary events of default. The 2011 Indenture also contains covenants including those that limit our ability and the ability of certain of our subsidiaries to incur or guarantee additional indebtedness; pay dividends on our capital stock or redeem capital stock or subordinated indebtedness; transfer or sell assets; make investments; incur liens; enter into transactions with our affiliates; and merge or consolidate with other companies. We were in compliance with all covenants of the Notes as of June 30, 2019.

We may from time to time seek to retire or purchase our outstanding Note debt through cash purchases and/or exchanges for equity securities, in open market purchases, privately negotiated transactions or otherwise. Such repurchases or exchanges, if any, will depend on prevailing market conditions, our liquidity requirements, contractual restrictions and other factors. The amounts involved may be material.

Other Long-Term Liabilities

Other long-term liabilities consisted of the following:


	June 30, 2019		December 31, 2018
	(In thousands)
Asset retirement obligation (ARO) liability	$	67,433	$	64,208
Workers’ compensation	12,118		12,738
Finance lease obligations	9,400		11,380
Contract liability	8,513		9,881
Separation benefit plans	9,749		8,814
Deferred compensation plan	6,002		5,132
Gas balancing liability	3,372		3,331
	116,587		115,484
Less current portion	13,887		14,250
Total other long-term liabilities	$	102,700	$	101,234

Estimated annual principal payments under the terms of our long-term debt and other long-term liabilities during the five successive twelve-month periods beginning July 1, 2019 (and through 2024) are $13.9 million, $697.5 million, $5.6 million, $10.7 million, and $105.8 million, respectively.

Asset Retirement Obligations

6 Months Ended

Jun. 30, 2019

Asset Retirement Obligation Disclosure [Abstract]

Asset Retirement Obligations

ASSET RETIREMENT OBLIGATIONSWe are required to record the estimated fair value of the liabilities relating to the future retirement of our long-lived assets. Our oil and natural gas wells are plugged and abandoned when the oil and natural gas reserves in those wells are depleted or the wells are no longer able to produce. The plugging and abandonment liability for a well is recorded in the period in which the obligation is incurred (at the time the well is drilled or acquired). None of our assets are restricted for purposes of settling these AROs. All our AROs relate to the plugging costs associated with our oil and gas wells.

The following table shows certain information about our estimated AROs for the periods indicated:


	Six Months Ended
	June 30,
	2019		2018
	(In thousands)
ARO liability, January 1:	$	64,208	$	69,444
Accretion of discount	1,168		1,248
Liability incurred	3,656		211
Liability settled	(2,316)		(3,142)
Liability sold	(1,632)		(94)
Revision of estimates ⁽¹⁾	2,349		(4,829)
ARO liability, June 30:	67,433		62,838
Less current portion	1,784		1,451
Total long-term ARO	$	65,649	$	61,387

_______________________

1.Plugging liability estimates were revised in both 2019 and 2018 for updates in the cost of services used to plug wells over the preceding year. We had various upward and downward adjustments.

New Accounting Pronouncements	6 Months Ended
New Accounting Pronouncements	Jun. 30, 2019
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
New Accounting Pronouncements	NEW ACCOUNTING PRONOUNCEMENTS Measurement of Credit Losses on Financial Instruments (Topic 326). The FASB issued ASU 2016-13 which replaces current methods for evaluating impairment of financial instruments not measured at fair value, including trade accounts receivable and certain debt securities, with a current expected credit loss model. The amendment will be effective for reporting periods after December 15, 2019. We are evaluating the impact this will have on our financial statements by reviewing our accounts receivable accounts and our historic credit losses. Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement. The FASB issued ASU 2018-13 to modify the disclosure requirements in Topic 820. Part of the disclosures were removed or modified and other disclosures were added. The amendment will be effective for reporting periods beginning after December 15, 2019. Early adoption is permitted. Also it is permitted to early adopt any removed or modified disclosure and delay adoption of the additional disclosures until their effective date. This amendment will not have a material impact on our financial statements. Intangibles—Goodwill and Other: Simplifying the Test for Goodwill Impairment. The FASB issued ASU 2017-04, to simplify the measurement of goodwill. The amendment eliminates Step 2 from the goodwill impairment test. The amendment will be effective prospectively for reporting periods beginning after December 15, 2019, and early adoption is permitted. This amendment will not have a material impact on our financial statements. Adopted Standards Compensation—Stock Compensation: Improvements to Nonemployee Share-Based Payment Accounting. The FASB issued ASU 2018-07, to improve financial reporting for nonemployee share-based payments. The amendment expands Topic 718, Compensation—Stock Compensation to include share-based payments issued to nonemployees for goods or services. The amendment is effective for years beginning after December 15, 2018, and interim periods within those years. This amendment did not have an impact on our financial statements. We adopted ASC 842 on January 1, 2019, using the modified retrospective method and the optional transition method to record the adoption impact through a cumulative adjustment to equity. Results for reporting periods beginning after January 1, 2019, are presented under Topic 842, while prior periods are not adjusted and continue to be reported under the accounting standards in effect for those periods. The additional disclosures required by ASC 842 have been included in Note 12 – Leases.

Stock-Based Compensation

6 Months Ended

Jun. 30, 2019

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation

STOCK-BASED COMPENSATION

For restricted stock awards and stock options, we had:


	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2019		2018		2019		2018
	(In millions)
Recognized stock compensation expense	$	4.7	$	4.0	$	8.5	$	9.5
Capitalized stock compensation cost for our oil and natural gas properties	0.7		0.6		1.3		1.0
Tax benefit on stock-based compensation	1.2		1.0		2.1		2.3

The remaining unrecognized compensation cost related to unvested awards at June 30, 2019 is approximately $24.8 million, of which $3.4 million is anticipated to be capitalized. The weighted average period over which this cost will be recognized is 0.8 of a year.

Our Second Amended and Restated Unit Corporation Stock and Incentive Compensation Plan effective May 6, 2015 (the amended plan) allows us to grant stock-based and cash-based compensation to our employees (including employees of subsidiaries) and to non-employee directors. 7,230,000 shares of the company's common stock are authorized for issuance to eligible participants under the amended plan with 2,000,000 shares being the maximum number of shares that can be issued as "incentive stock options."

We did not grant any stock options during either of the three or six month periods ending June 30, 2019 or 2018. This table shows the fair value of restricted stock awards granted to employees and non-employee directors during the periods indicated:


	Three Months Ended								Three Months Ended
	June 30, 2019								June 30, 2018
	Time Vested			Performance Vested		Time Vested			Performance Vested
Shares granted:
Employees	1,500			—		5,000			—
Non-employee directors	72,784			—		44,312			—
	74,284			—		49,312			—
Estimated fair value (in millions):⁽¹⁾
Employees	$	—		$	—	$	0.1		$	—
Non-employee directors	0.9			—		0.9			—
	$	0.9		$	—	$	1.0		$	—
Percentage of shares granted expected to be distributed:
Employees	95		%	N/A		95		%	N/A
Non-employee directors	100%			N/A		100		%	N/A

_______________________

1.The performance shares represent 100% of the grant date fair value. (We recognize the grant date fair value minus estimated forfeitures.)


	Six Months Ended									Six Months Ended
	June 30, 2019									June 30, 2018
	Time Vested			Performance Vested			Time Vested			Performance Vested
Shares granted:
Employees	927,173			424,070			844,498			362,070
Non-employee directors	72,784			—			44,312			—
	999,957			424,070			888,810			362,070
Estimated fair value (in millions):⁽¹⁾
Employees	$	14.6		$	7.1		$	16.2		$	7.3
Non-employee directors	0.9			—			0.9			—
	$	15.5		$	7.1		$	17.1		$	7.3
Percentage of shares granted expected to be distributed:
Employees	95		%	54		%	95		%	74		%
Non-employee directors	100		%	N/A			100		%	N/A

_______________________

1.The performance shares represent 100% of the grant date fair value. (We recognize the grant date fair value minus estimated forfeitures.)

The time vested restricted stock awards granted during the first six months of 2019 and 2018 are being recognized over a three-year vesting period. During the first quarter of 2019 and 2018, two performance vested restricted stock awards were granted to certain executive officers. The first cliff vests three years from the grant date based on the company's achievement of certain stock performance measures (TSR) at the end of the term and will range from 0% to 200% of the restricted shares granted as performance shares. The second vests, one-third each year, over a three-year vesting period subject to the company's achievement of cash flow to total assets (CFTA) performance measurement each year and will range from 0% to 200%. Based on a probability assessment of the selected TSR performance criteria at June 30, 2019, the participants are estimated to receive 7% of the 2019 and 63% of the 2018 performance-based shares. The CFTA performance measurement at June 30, 2019 was assessed to vest at target or 100%. The total aggregate stock compensation expense and capitalized cost related to oil and natural gas properties for 2019 awards for the first six months of 2019 was $4.0 million.

Derivatives

6 Months Ended

Jun. 30, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives

DERIVATIVES

Commodity Derivatives

We have signed various types of derivative transactions covering some of our projected natural gas and oil production. These transactions are intended to reduce our exposure to market price volatility by setting the price(s) we will receive for that production. Our decisions on the price(s), type, and quantity of our production subject to a derivative contract are based, in part, on our view of current and future market conditions. As of June 30, 2019, these hedges made up our derivative transactions:

•Swaps. We receive or pay a fixed price for the commodity and pay or receive a floating market price to the counterparty. The fixed-price payment and the floating-price payment are netted, resulting in a net amount due to or from the counterparty.

•Basis/Differential Swaps. We receive or pay the NYMEX settlement value plus or minus a fixed delivery point price for the commodity and pay or receive the published index price at the specified delivery point. We use basis/differential swaps to hedge the price risk between NYMEX and its physical delivery points.

•Collars. A collar contains a fixed floor price (put) and a ceiling price (call). If the market price exceeds the call strike price or falls below the put strike price, we receive the fixed price and pay the market price. If the market price is between the call and the put strike price, no payments are due from either party.

•Three-way collars. A three-way collar contains a fixed floor price (long put), fixed subfloor price (short put), and a fixed ceiling price (short call). If the market price exceeds the ceiling strike price, we receive the ceiling strike price and pay the market price. If the market price is between the ceiling and the floor strike price, no payments are due from either party. If the market price is below the floor price but above the subfloor price, we receive the floor strike price and pay the market price. If the market price is below the subfloor price, we receive the market price plus the difference between the floor and subfloor strike prices and pay the market price.

We have documented policies and procedures to monitor and control the use of derivative transactions. We do not engage in derivative transactions not otherwise tied to our projected production. Any changes in the fair value of our derivative transactions before maturity (i.e., temporary fluctuations in value) are reported in gain (loss) on derivatives in our Unaudited Condensed Consolidated Statements of Operations.

At June 30, 2019, these derivatives were outstanding:

Term

Commodity

Contracted Volume

Weighted Average
Fixed Price

Contracted Market

Jul'19 – Oct'19

Natural gas – swap

60,000 MMBtu/day

$2.900

IF – NYMEX (HH)

Nov'19 – Dec'19

Natural gas – swap

40,000 MMBtu/day

$2.900

IF – NYMEX (HH)

Jul'19 – Dec'19

Natural gas – basis swap

20,000 MMBtu/day

$(0.659)

PEPL

Jul'19 – Dec'19

Natural gas – basis swap

10,000 MMBtu/day

$(0.625)

NGL MIDCON

Jul'19 – Dec'19

Natural gas – basis swap

30,000 MMBtu/day

$(0.265)

NGPL TEXOK

Jan'20 – Dec'20

Natural gas – basis swap

30,000 MMBtu/day

$(0.275)

NGPL TEXOK

Jul'19 – Dec'19

Natural gas – collar

20,000 MMBtu/day

$2.63 - $3.03

IF – NYMEX (HH)

Jul'19 – Dec'19

Crude oil – three-way collar

4,000 Bbl/day

$61.25 - $51.25 - $72.93

WTI – NYMEX

The following tables present the fair values and locations of the derivative transactions recorded in our Unaudited Condensed Consolidated Balance Sheets:


		Derivative Assets
		Fair Value
	Balance Sheet Location	June 30, 2019		December 31, 2018
		(In thousands)
Commodity derivatives:
Current	Current derivative asset	$	8,513	$	12,870
Long-term	Non-current derivative asset	—		—
Total derivative assets		$	8,513	$	12,870


		Derivative Liabilities
		Fair Value
	Balance Sheet Location	June 30, 2019		December 31, 2018
		(In thousands)
Commodity derivatives:
Current	Current derivative liability	$	—	$	—
Long-term	Non-current derivative liability	256		293
Total derivative liabilities		$	256	$	293

All our counterparties are subject to master netting arrangements. If we have a legal right of set-off, we net the value of the derivative transactions we have with the same counterparty in our Unaudited Condensed Consolidated Balance Sheets.

Following is the effect of derivative instruments on the Unaudited Condensed Consolidated Statements of Operations at June 30:


	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2019		2018		2019		2018
	(In thousands)
Gain (loss) on derivatives:
Gain (loss) on derivatives, included are amounts settled during the period of $2,658, ($6,855), $5,314 and ($8,928), respectively	$	7,927	$	(14,461)	$	995	$	(21,223)
	$	7,927	$	(14,461)	$	995	$	(21,223)

Fair Value Measurements

6 Months Ended

Jun. 30, 2019

Fair Value Disclosures [Abstract]

Fair Value Measurements

FAIR VALUE MEASUREMENTS

The estimated fair value of our available-for-sale securities, reflected on our Unaudited Condensed Consolidated Balance Sheets as non-current other assets, is based on market quotes. The following is a summary of available-for-sale securities:


	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
	(In thousands)
Equity Securities:
June 30, 2019	$	830	$	—	$	645	$	185
December 31, 2018	$	830	$	—	$	636	$	194

During the second quarter of 2017, we received available-for-sale securities in payment of early termination fees associated with a long-term drilling contract. We evaluate the marketability of those equity securities to determine if any decline in fair value below cost is other-than-temporary. If a decline in fair value below cost is determined to be other-than-temporary, an impairment charge will be recorded, and a new cost basis established. We use several factors to determine whether a loss is other-than-temporary. These factors include, but are not limited to, (i) the time a security is in an unrealized loss position, (ii) the extent to which fair value is less than cost, (iii) the financial condition and near-term prospects of the issuer, and (iv) our intent and ability to hold the security for a period of time sufficient to allow for any anticipated recovery in fair value.

Fair value is defined as the amount that would be received from the sale of an asset or paid for transferring a liability in an orderly transaction between market participants (in either case, an exit price). To estimate an exit price, a three-level hierarchy is used prioritizing the valuation techniques used to measure fair value into three levels with the highest priority given to Level 1 and the lowest priority given to Level 3. The levels are summarized as follows:

•Level 1—unadjusted quoted prices in active markets for identical assets and liabilities.

•Level 2—significant observable pricing inputs other than quoted prices included within level 1 either directly or indirectly observable as of the reporting date. Essentially, inputs (variables used in the pricing models) that are derived principally from or corroborated by observable market data.

•Level 3—generally unobservable inputs developed based on the best information available and may include our own internal data.

The inputs available to us determine the valuation technique we use to measure the fair values of our financial instruments.

The following tables set forth our recurring fair value measurements:


	June 30, 2019
	Level 1		Level 2		Level 3		Effect of Netting		Net Amounts Presented
	(In thousands)
Financial assets (liabilities):
Commodity derivatives:
Assets	$	—	$	5,422	$	3,945	$	(854)	$	8,513
Liabilities	—		(1,110)		—		854		(256)
Total commodity derivatives	—		4,312		3,945		—		8,257
Equity securities	185		—		—		—		185
	$	185	$	4,312	$	3,945	$	—	$	8,442


	December 31, 2018
	Level 1		Level 2		Level 3		Effect of Netting		Net Amounts Presented
	(In thousands)
Financial assets (liabilities):
Commodity derivatives:
Assets	$	—	$	3,225	$	10,964	$	(1,319)	$	12,870
Liabilities	—		(1,278)		(334)		1,319		(293)
Total commodity derivatives	—		1,947		10,630		—		12,577
Equity securities	194		—		—		—		194
	$	194	$	1,947	$	10,630	$	—	$	12,771

All our counterparties are subject to master netting arrangements. If a legal right of set-off exists, we net the value of the derivative transactions we have with the same counterparty. We are not required to post cash collateral with our counterparties and no collateral has been posted as of June 30, 2019.

We used the following methods and assumptions to estimate the fair values of the assets and liabilities in the table above. There were no transfers between Level 2 and Level 3 financial assets (liabilities).

Level 1 Fair Value Measurements

Equity Securities. We measure the fair values of our available for sale securities based on market quotes.

Level 2 Fair Value Measurements

Commodity Derivatives. We measure the fair values of our crude oil and natural gas swaps using estimated internal discounted cash flow calculations based on the NYMEX futures index.

Level 3 Fair Value Measurements

Commodity Derivatives. The fair values of our natural gas and crude oil collars and three-way collars are estimated using internal discounted cash flow calculations based on forward price curves, quotes obtained from brokers for contracts with similar terms, or quotes obtained from counterparties to the agreements.

The following table is a reconciliation of our level 3 fair value measurements:


	Net Derivatives
	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2019		2018		2019		2018
	(In thousands)
Beginning of period	$	3,080	$	(3,206)	$	10,630	$	(206)
Total gains or losses (realized and unrealized):
Included in earnings ⁽¹⁾	2,060		(4,704)		(3,374)		(8,624)
Settlements	(1,195)		1,775		(3,311)		2,695
End of period	$	3,945	$	(6,135)	$	3,945	$	(6,135)
Total earnings (losses) for the period included in earnings attributable to the change in unrealized loss relating to assets still held at end of period	$	865	$	(2,929)	$	(6,685)	$	(5,929)

_______________________

1.Commodity derivatives are reported in the Unaudited Condensed Consolidated Statements of Operations in gain (loss) on derivatives.

The following table provides quantitative information about our Level 3 unobservable inputs at June 30, 2019:

Commodity ⁽¹⁾

Fair Value

Valuation Technique

Unobservable Input

Range

(In thousands)

Oil three-way collars

2,828

Discounted cash flow

Forward commodity price curve

$0 - $9.00

Natural gas collars

1,117

Discounted cash flow

Forward commodity price curve

$0 - $0.48

_______________________

1.The commodity contracts detailed in this category include non-exchange-traded crude oil three-way collars and natural gas collars that are valued based on NYMEX. The forward pricing range represents the low and high price expected to be paid or received within the settlement period.

Our valuation at June 30, 2019 reflected that the risk of non-performance was immaterial.

Fair Value of Other Financial Instruments

This disclosure of the estimated fair value of financial instruments is made under accounting guidance for financial instruments. We have determined the estimated fair values by using market information and certain valuation methodologies. Considerable judgment is required in interpreting market data to develop the estimates of fair value. Using different market assumptions or valuation methodologies may have a material effect on our estimated fair value amounts.

At June 30, 2019, the carrying values on the Unaudited Condensed Consolidated Balance Sheets for cash and cash equivalents (composed of bank and money market accounts - classified as Level 1), accounts receivable, accounts payable, other current assets, and current liabilities approximate their fair value because of their short-term nature.

Based on the borrowing rates available to us for credit agreement debt with similar terms and maturities and considering the risk of our non-performance, long-term debt under the Unit and Superior credit agreements approximate its fair value and at June 30, 2019 we had $103.5 million of outstanding borrowings under the Unit and $7.5 million under the Superior credit agreements. We had no borrowing under either the Unit or Superior Credit agreements at December 31, 2018. Borrowings under these agreements are classified as Level 2.

The carrying amounts of long-term debt associated with the Notes, net of unamortized discount and debt issuance costs, reported in the Unaudited Condensed Consolidated Balance Sheets as of June 30, 2019 and December 31, 2018 were $645.6 million and $644.5 million, respectively. We estimate the fair value of the Notes using quoted marked prices at June 30, 2019 and December 31, 2018 was $592.4 million and $600.5 million, respectively. The Notes would be classified as Level 2.

Fair Value of Non-Financial Instruments

The initial measurement of AROs at fair value is calculated using discounted cash flow techniques and based on internal estimates of future retirement costs associated with property, plant, and equipment. Significant Level 3 inputs used in the

calculation of AROs include plugging costs and remaining reserve lives. A reconciliation of the company’s AROs is presented in Note 7 – Asset Retirement Obligations.

Leases

6 Months Ended

Jun. 30, 2019

Leases of Lessee Disclosure

LEASES

Operating Leases under ASC 840

We lease office space or yards in Edmond and Oklahoma City, Oklahoma; Houston, Texas; Englewood, Colorado; and Pinedale, Wyoming under the terms of operating leases expiring through December 2021. We own our corporate headquarters in Tulsa, Oklahoma. We also have several compressor rentals, equipment leases, and lease space on short-term commitments to stack excess drilling rig equipment and production inventory. As of December 31, 2018, future minimum rental payments under the terms of the leases under ASC 840 were approximately $4.6 million, $1.7 million, and $0.4 million in 2019 through 2021, respectively.

Operating Leases under ASC 842

Adoption of Accounting Standards Codification (“ASC”) Topic 842, “Leases." We adopted Topic 842 on January 1, 2019, using the modified retrospective method and the optional transition method to record the adoption impact through a cumulative adjustment to equity. Results for reporting periods beginning after January 1, 2019, are presented under Topic 842, while prior periods are not adjusted and continue to be reported under the accounting standards in effect for those periods.

We determine whether a contract is or contains a lease at inception of the contract based on whether an identified asset exists and whether we have the right to obtain substantially all of the benefit of the assets and to control its use over the full term of the agreement. When available, we use the rate implicit in the lease to discount lease payments to present value; however, most of our leases do not provide a readily determinable implicit rate. Therefore, we must estimate our incremental borrowing rate considering both the revolving credit rates and a credit notching approach to discount the lease payments based on information available at lease commencement. There are no material residual value guarantees and no restrictions or covenants included in the our lease agreements. Certain of our leases include provisions for variable payments. These variable payments are typically determined based on a measure of throughput or actual days or another measure of usage and are not included in the calculation of lease liabilities and right-of-use assets.

Related to our oil and natural gas segment, our short-term lease costs include those that are recognized in profit or loss during the period and those that are capitalized as part of the cost of another asset in accordance with other U.S. GAAP. As the costs related to our drilling and production activities are reflected at our net ownership consistent with the principals of proportional consolidation, and lease commitments are generally considered gross as the operator, the costs may not reasonably reflect the company’s short-term lease commitments. As of June 30, 2019, we had an average working interest of 94% in our operated properties.

Practical Expedients and Policies Elected. We elected the hindsight expedient, which allows us to use hindsight in assessing lease term; the package of practical expedients permitted under the guidance, which among other things, allowed us to carry forward the historical lease classification; and the land easement expedient, which allowed us to apply the guidance prospectively at adoption for land easements on existing agreements.We applied the short-term policy election, which allowed us to exclude from recognition on the balance sheet leases with an initial term of 12 months or less. We considered quantitative and qualitative factors when determining the application of the practical expedient that allowed us not to separate lease and non-lease components and are accounting for the agreements as a single lease component.

We routinely enter into related party agreements between our three segments. These agreements have been evaluated under the guidance of ASC 842. Routinely, our oil and natural gas segment contracts for the use of drilling equipment from our drilling segment.

We have determined that the contracting of our drilling segment's drilling rigs will be accounted for under ASC 606 as the service has been deemed the predominate component of the contract per the lessor practical expedient.

Adoption. Adoption of Topic 842 resulted in new operating lease assets and lease liabilities on our Unaudited Condensed Consolidated Balance Sheet of $3.7 million and $3.5 million, respectively, as of January 1, 2019, which represents noncash operating activity. The immaterial difference between the lease assets and lease liabilities was recorded as an adjustment to the beginning balance of retained earnings, which represents the cumulative impact of adopting the standard. Our accounting for finance leases remained substantially unchanged.

Leases. We lease certain office space, land and equipment, including pipeline equipment and office equipment. Our lease payments are generally straight-line and the exercise of lease renewal options, which vary in term, is at our sole discretion. We include renewal periods in our lease term if we are reasonably certain to exercise available renewal options. Our lease agreements do not include options to purchase the leased property.

The following table shows supplemental cash flow information related to leases for the six months of June 30, 2019:


	Amount
	(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	1,616
Financing cash flows for finance leases	1,980
Lease liabilities recognized in exchange for new operating lease right of use assets	5

The following table shows information about our lease assets and liabilities included in our Unaudited Condensed Consolidated Balance Sheet as of June 30, 2019:

Classification on the Consolidated Balance Sheet

June 30,
2019

(In thousands)

Assets

Operating right of use assets

Right of use assets

8,302

Finance right of use assets

Property, plant, and equipment, net

18,416

Total right of use assets

26,718

Liabilities

Current liabilities:

Operating lease liabilities

Current operating lease liabilities

4,519

Finance lease liabilities

Current portion of other long-term liabilities

4,081

Non-current liabilities:

Operating lease liabilities

3,556

Finance lease liabilities

Other long-term liabilities

5,319

Total lease liabilities

17,475

The following table shows certain information related to the lease costs for our finance and operating leases for the three and six months ended June 30, 2019:


	Three Months Ended		Six Months Ended
	June 30,		June 30,
	2019		2019
	(In thousands)
Components of total lease cost:
Amortization of finance leased assets	$	995	$	1,980
Interest on finance lease liabilities	100		211
Operating lease cost	1,052		1,651
Short-term lease cost ⁽¹⁾	12,038		22,012
Variable lease cost	84		190
Total lease cost	$	14,269	$	26,044

_______________________

1.Short-term lease cost includes amounts capitalized related to our oil and natural gas segment of $9.0 million and $14.7 million, respectively.

The following table shows certain information related to the weighted average remaining lease terms and the weighted average discount rates for our operating and finance leases:


	Weighted Average Remaining Lease Term	Weighted Average Discount Rate ⁽¹⁾
	(In years)
Operating leases	2.2	6.34%
Finance leases	2.2	4.00%

_______________________

1.Our weighted average discount rates represent the rate implicit in the lease or our incremental borrowing rate for a term equal to the remaining term of the lease.

The following table sets forth the maturity of our operating lease liabilities as of June 30, 2019:


	Amount
	(In thousands)
Ending July 1,
2020	$	4,902
2021	2,642
2022	839
2023	196
2024	12
2025 and beyond	81
Total future payments	8,672
Less: Interest	597
Present value of future minimum operating lease payments	8,075
Less: Current portion	4,519
Total long-term operating lease payments	$	3,556

As of June 30, 2019, we had one additional lease for $0.1 million that had not started. That lease will start later in 2019 with a term of two years.

Finance Leases

In 2014, Superior entered into finance lease agreements for 20 compressors with initial terms of seven years. The underlying assets are included in gas gathering and processing equipment. The $4.1 million current portion of the finance lease obligations is included in current portion of other long-term liabilities and the non-current portion of $5.3 million is included in other long-term liabilities in the accompanying Unaudited Condensed Consolidated Balance Sheets as of June 30, 2019. These finance leases are discounted using annual rates of 4.00%. Total maintenance and interest remaining related to these leases are $3.2 million and $0.4 million, respectively, at June 30, 2019. Annual payments, net of maintenance and interest, average $4.3 million annually through 2021. At the end of the term, Superior has the option to purchase the assets at 10% of their then fair market value.

The following table sets forth the maturity of our finance lease liabilities as of June 30, 2019:


	Amount
Ending July 1,	(In thousands)
2020	$	6,168
2021	6,672
2022	180
Total future payments	13,020
Less payments related to:
Maintenance	3,196
Interest	424
Present value of future minimum finance lease payments	9,400
Less: Current portion	4,081
Total long-term finance lease payments	$	5,319

Commitments and Contingencies	6 Months Ended
Commitments and Contingencies	Jun. 30, 2019
Commitments and Contingencies [Abstract]
Commitments and Contingencies	COMMITMENTS AND CONTINGENCIES The employee oil and gas limited partnerships require, on the election of a limited partner, that we repurchase the limited partner’s interest at amounts to be determined by appraisal. In any one year, these repurchases are limited to 20% of the units outstanding. We had no repurchases in the first six months of 2018. The partnerships were terminated in the second quarter of 2019 with an effective date of January 1, 2019 at a repurchase cost of $0.6 million net of Unit's interest. We manage our exposure to environmental liabilities on properties to be acquired by identifying existing problems and assessing the potential liability. We also conduct periodic reviews, on a company-wide basis, to identify changes in our environmental risk profile. These reviews evaluate whether there is a probable liability, its amount, and the likelihood that the liability will be incurred. Any potential liability is determined by considering, among other matters, incremental direct costs of any likely remediation and the proportionate cost of employees expected to devote significant time directly to any possible remediation effort. As it relates to evaluations of purchased properties, depending on the extent of an identified environmental problem, we may exclude a property from the acquisition, require the seller to remediate the property to our satisfaction, or agree to assume liability for the remediation of the property. We have not historically experienced any environmental liability while being a contract driller since the greatest portion of that risk is borne by the operator. Any liabilities we have incurred have been small and were resolved while the drilling rig was on the location. Those costs were in the direct cost of drilling the well. During the second quarter of 2018, as part of the Superior transaction, we entered into a contractual obligation that commits us to spend $150.0 million to drill wells in the Granite Wash/Buffalo Wallow area over three years starting January 1, 2019. This amount is included in our future drilling plans. For each dollar of the $150.0 million that we do not spend (over the three year period), we would forgo receiving $0.58 of future distributions from our 50% ownership interest in our consolidated mid-stream subsidiary. At June 30, 2019, if we elected not to drill or spend any additional money in the designated area before December 31, 2021, the maximum amount we could forgo from distributions would be $74.0 million. Total spent towards the $150.0 million as of June 30, 2019 was $22.4 million. For the next 12 months, we have committed to purchase approximately $1.6 million of drilling rig components and casing.

Variable Interest Entity Arrangements

6 Months Ended

Jun. 30, 2019

Variable Interest Entity Arrangements [Abstract]

Variable Interest Entity Arrangements

VARIABLE INTEREST ENTITY ARRANGEMENTSOn April 3, 2018 we sold 50% of the ownership interest in Superior. The 50% interest in Superior we sold was acquired by SP Investor Holdings, LLC, a holding company jointly owned by OPTrust and funds managed and/or advised by Partners Group, a global private markets investment manager. Superior will be governed and managed under the Amended and Restated Limited Liability Company Agreement and the MSA. The MSA is between our affiliate, SPC Midstream Operating, L.L.C. (the Operator) and Superior. The Operator is owned 100% by Unit Corporation. Under the guidance in ASC 810, Consolidation, we have determined that Superior is a VIE. The two variable interests applicable to Unit include the 50% equity investment in Superior and the MSA. The MSA houses the power to direct the activities that most significantly impact Superior's operating performance. The MSA is a separate variable interest. Unit through the MSA has the power to direct Superior’s most significant

activities; reciprocally the equity investors lack the power to direct the activities that most significantly impact the entity’s economic performance. Because of this, Unit is considered the primary beneficiary. There have been no changes to the primary beneficiary during the quarter ended June 30, 2019.

As the primary beneficiary of this VIE, we consolidate in our financial statements the financial position, results of operations, and cash flows of this VIE, and all intercompany balances and transactions between us and the VIE are eliminated in our consolidated financial statements. Cash distributions of income, net of agreed on expenses, and estimated expenses are allocated to the equity owners as specified in the relevant agreements.

On the sale or liquidation of Superior, distributions would occur in the order and priority specified in the relevant agreements.

As the Operator, we provide services, like operations and maintenance support, accounting, legal, and human resources to Superior for a monthly service fee of $255,970. Superior's creditors have no recourse to our general credit. Superior's credit agreement is not guaranteed by Unit. The obligations under Superior's credit agreement are secured by, among other things, mortgage liens on certain of Superior’s processing plants and gathering systems.

The carrying value of Superior's assets and liabilities, after eliminations of any intercompany transactions and balances, in the consolidated balance sheets were as follows:


	June 30, 2019		December 31, 2018
	(In thousands)

Current assets:
Cash and cash equivalents	$	2	$	5,841
Accounts receivable	19,500		33,207
Prepaid expenses and other	4,185		1,049
Total current assets	23,687		40,097
Property and equipment:
Gas gathering and processing equipment	798,503		767,388
Transportation equipment	3,152		3,086
	801,655		770,474
Less accumulated depreciation, depletion, amortization, and impairment	387,845		364,740
Net property and equipment	413,810		405,734
Right of use asset	6,221		—
Other assets	15,330		17,551
Total assets	$	459,048	$	463,382

Current liabilities:
Accounts payable	$	14,807	$	32,214
Accrued liabilities	4,296		3,688
Current operating lease liability	3,576		—
Current portion of other long-term liabilities	6,970		6,875
Total current liabilities	29,649		42,777
Long-term debt	7,500		—
Operating lease liability	2,451		—
Other long-term liabilities	11,449		14,687
Total liabilities	$	51,049	$	57,464

Equity

6 Months Ended

Jun. 30, 2019

Equity [Abstract]

Equity

EQUITY

Accumulated Other Comprehensive Income (Loss)

Components of accumulated other comprehensive income (loss) were as follows for the three months ended June 30:


	2019		2018
	(In thousands)
Unrealized appreciation (loss) on securities, before tax	$	(39)	$	46
Tax benefit (expense)	9		(11)		⁽¹⁾
Unrealized appreciation (loss) on securities, net of tax	$	(30)	$	35

_______________________

1.Due to the implementation of ASU 2018-02, the tax rate changed from 37.75% to 24.5%.

Changes in accumulated other comprehensive income (loss) by component, net of tax, for the three months ended June 30 are as follows:


	Net Gains (Loss) on Equity Securities
	2019		2018
	(In thousands)
Balance at March 31:	$	(457)	$	(100)
Unrealized appreciation (loss) before reclassifications	(30)		35		⁽¹⁾
Amounts reclassified from accumulated other comprehensive income	—		—
Net current-period other comprehensive income (loss)	(30)		35
Balance at June 30:	$	(487)	$	(65)

_______________________

1.Due to the implementation of ASU 2018-02, the tax rate changed from 37.75% to 24.5%.

Components of accumulated other comprehensive income (loss) were as follows for the six months ended June 30:


	2019		2018
	(In thousands)
Unrealized loss on securities, before tax	$	(8)	$	(188)
Tax benefit	2		47		⁽¹⁾
Unrealized loss on securities, net of tax	$	(6)	$	(141)

_______________________

1.Due to the implementation of ASU 2018-02, the tax rate changed from 37.75% to 24.5%.

Changes in accumulated other comprehensive income by component, net of tax, for the six months ended June 30 are as follows:


	Net Gains (Loss) on Equity Securities
	2019		2018
	(In thousands)
Prior year balance at December 31:	$	(481)	$	63
Adjustment due to ASU 2018-02	—		13		⁽¹⁾
Balance at January 1:	(481)		76
Unrealized loss before reclassifications	(6)		(141)		⁽¹⁾
Amounts reclassified from accumulated other comprehensive income	—		—
Net current-period other comprehensive loss	(6)		(141)
Balance at June 30:	$	(487)	$	(65)

_______________________

1.Due to the implementation of ASU 2018-02, the tax rate changed from 37.75% to 24.5%.

Industry Segment Information

6 Months Ended

Jun. 30, 2019

Segment Reporting [Abstract]

Industry Segment Information

INDUSTRY SEGMENT INFORMATION

We have three main business segments offering different products and services within the energy industry:

•Oil and natural gas,

•Contract drilling, and

•Mid-stream

Our oil and natural gas segment is engaged in the acquisition, development, and production of oil, NGLs, and natural gas properties. The contract drilling segment is engaged in the land contract drilling of oil and natural gas wells and the mid-stream segment is engaged in the buying, selling, gathering, processing, and treating of natural gas and NGLs.

We evaluate each segment’s performance based on its operating income, which is defined as operating revenues less operating expenses and depreciation, depletion, amortization, and impairment. We have no oil and natural gas production outside the United States.

The following tables provide certain information about the operations of each of our segments:


	Three Months Ended June 30, 2019
	Oil and Natural Gas		Contract Drilling		Mid-stream		Corporate and Other		Eliminations		Total Consolidated
	(In thousands)
Revenues: ⁽¹⁾
Oil and natural gas	$	77,815	$	—	$	—	$	—	$	—	$	77,815
Contract drilling	—		50,773		—		—		(7,736)		43,037
Gas gathering and processing	—		—		54,630		—		(10,336)		44,294
Total revenues	77,815		50,773		54,630		—		(18,072)		165,146
Expenses:
Operating costs:
Oil and natural gas	37,519		—		—		—		(1,277)		36,242
Contract drilling	—		36,390		—		—		(7,082)		29,308
Gas gathering and processing	—		—		41,550		—		(9,059)		32,491
Total operating costs	37,519		36,390		41,550		—		(17,418)		98,041
Depreciation, depletion, and amortization	38,751		13,504		12,102		1,935		—		66,292
Total expenses	76,270		49,894		53,652		1,935		(17,418)		164,333
General and administrative	—		—		—		10,064		—		10,064
Gain on disposition of assets	(60)		(296)		(66)		—		—		(422)
Income (loss) from operations	1,605		1,175		1,044		(11,999)		(654)		(8,829)
Gain on derivatives	—		—		—		7,927		—		7,927
Interest, net	—		—		(345)		(8,650)		—		(8,995)
Other	—		—		—		6		—		6
Income (loss) before income taxes	$	1,605	$	1,175	$	699	$	(12,716)	$	(654)	$	(9,891)

_______________________

1.The revenues for oil and natural gas occur at a point in time. The revenues for contract drilling and gas gathering and processing occur over time.


	Three Months Ended June 30, 2018
	Oil and Natural Gas		Contract Drilling		Mid-stream		Corporate and Other		Eliminations		Total Consolidated
	(In thousands)
Revenues: ⁽¹⁾
Oil and natural gas	$	102,318	$	—	$	—	$	—	$	—	$	102,318
Contract drilling	—		52,767		—		—		(5,841)		46,926
Gas gathering and processing	—		—		75,406		—		(21,347)		54,059
Total revenues	102,318		52,767		75,406		—		(27,188)		203,303
Expenses:
Operating costs:
Oil and natural gas	33,682		—		—		—		(1,264)		32,418
Contract drilling	—		36,921		—		—		(5,027)		31,894
Gas gathering and processing	—		—		59,786		—		(20,083)		39,703
Total operating costs	33,682		36,921		59,786		—		(26,374)		104,015
Depreciation, depletion, and amortization	31,554		13,726		11,175		1,918		—		58,373
Total expenses	65,236		50,647		70,961		1,918		(26,374)		162,388
General and administrative expense	—		—		—		8,712		—		8,712
Gain on disposition of assets	(59)		(57)		(45)		—		—		(161)
Income (loss) from operations	37,141		2,177		4,490		(10,630)		(814)		32,364
Loss on derivatives	—		—		—		(14,461)		—		(14,461)
Interest, net	—		—		(304)		(7,425)		—		(7,729)
Other	—		—		—		5		—		5
Income (loss) before income taxes	$	37,141	$	2,177	$	4,186	$	(32,511)	$	(814)	$	10,179

_______________________

1.The revenues for oil and natural gas occur at a point in time. The revenues for contract drilling and gas gathering and processing occur over time.


	Six Months Ended June 30, 2019
	Oil and Natural Gas		Contract Drilling		Mid-stream		Corporate and Other		Eliminations		Total Consolidated
	(In thousands)
Revenues: ⁽¹⁾
Oil and natural gas	$	163,910	$	—	$	—	$	—	$	—	$	163,910
Contract drilling	—		108,972		—		—		(14,780)		94,192
Gas gathering and processing	—		—		125,139		—		(28,404)		96,735
Total revenues	163,910		108,972		125,139		—		(43,184)		354,837
Expenses:
Operating costs:
Oil and natural gas	71,527		—		—		—		(2,571)		68,956
Contract drilling	—		73,775		—		—		(13,066)		60,709
Gas gathering and processing	—		—		97,679		—		(25,833)		71,846
Total operating costs	71,527		73,775		97,679		—		(41,470)		201,511
Depreciation, depletion, and amortization	74,518		26,203		23,828		3,869		—		128,418
Total expenses	146,045		99,978		121,507		3,869		(41,470)		329,929
General and administrative expense	—		—		—		19,805		—		19,805
(Gain) loss on disposition of assets	(138)		1,449		(108)		(10)		—		1,193
Income (loss) from operations	18,003		7,545		3,740		(23,664)		(1,714)		3,910
Gain on derivatives	—		—		—		995		—		995
Interest, net	—		—		(681)		(16,852)		—		(17,533)
Other	—		—		—		11		—		11
Income (loss) before income taxes	$	18,003	$	7,545	$	3,059	$	(39,510)	$	(1,714)	$	(12,617)

_______________________ ____________________

1.The revenues for oil and natural gas occur at a point in time. The revenues for contract drilling and gas gathering and processing occur over time.


	Six Months Ended June 30, 2018
	Oil and Natural Gas		Contract Drilling		Mid-stream		Corporate and Other		Eliminations		Total Consolidated
	(In thousands)
Revenues: ⁽¹⁾
Oil and natural gas	$	205,417	$	—	$	—	$	—	$	—	$	205,417
Contract drilling	—		103,477		—		—		(10,562)		92,915
Gas gathering and processing	—		—		150,056		—		(39,953)		110,103
Total revenues	205,417		103,477		150,056		—		(50,515)		408,435
Expenses:
Operating costs:
Oil and natural gas	70,834		—		—		—		(2,454)		68,380
Contract drilling	—		72,875		—		—		(9,314)		63,561
Gas gathering and processing	—		—		118,806		—		(37,499)		81,307
Total operating costs	70,834		72,875		118,806		—		(49,267)		213,248
Depreciation, depletion, and amortization	62,337		27,038		22,228		3,836		—		115,439
Total expenses	133,171		99,913		141,034		3,836		(49,267)		328,687
General and administrative expense	—		—		—		19,474		—		19,474
Gain on disposition of assets	(129)		(84)		(79)		(30)		—		(322)
Income (loss) from operations	72,375		3,648		9,101		(23,280)		(1,248)		60,596
Loss on derivatives	—		—		—		(21,223)		—		(21,223)
Interest, net	—		—		(453)		(17,280)		—		(17,733)
Other	—		—		—		11		—		11
Income (loss) before income taxes	$	72,375	$	3,648	$	8,648	$	(61,772)	$	(1,248)	$	21,651

_______________________

1.The revenues for oil and natural gas occur at a point in time. The revenues for contract drilling and gas gathering and processing occur over time.

Supplemental Condensed Consolidated Financial Information

6 Months Ended

Jun. 30, 2019

Supplemental Condensed Consolidated Financial Information [Abstract]

Condensed Consolidated Financial Statements

SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL INFORMATION

We have no significant assets or operations other than our investments in our subsidiaries. Our wholly owned subsidiaries are the guarantors of our Notes. On April 3, 2018, we sold 50% of the ownership interest in our mid-stream segment, Superior and that company and its subsidiaries are no longer guarantors of the Notes. Instead of providing separate financial statements for each subsidiary issuer and guarantor, we have included the accompanying unaudited condensed consolidating financial statements based on Rule 3-10 of the SEC's Regulation S-X.

For purposes of the following footnote:

•we are referred to as "Parent",

•the direct subsidiaries are 100% owned by the Parent and the guarantee is full and unconditional and joint and several and referred to as "Combined Guarantor Subsidiaries", and

•Superior and its subsidiaries and the Operator are referred to as "Non-Guarantor Subsidiaries."

The following unaudited supplemental condensed consolidating financial information reflects the Parent's separate accounts, the combined accounts of the Combined Guarantor Subsidiaries', the combined accounts of the Non-Guarantor Subsidiaries', the combined consolidating adjustments and eliminations, and the Parent's consolidated amounts for the periods indicated.

Condensed Consolidating Balance Sheets (Unaudited)


	June 30, 2019
	Parent		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Consolidating Adjustments		Total Consolidated
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	508	$	159	$	2	$	—	$	669
Accounts receivable, net of allowance for doubtful accounts of $2,494 (Guarantor of $1,289 and Parent of $1,205)	1,775		71,965		22,058		(5,922)		89,876
Materials and supplies	—		516		—		—		516
Current derivative asset	8,513		—		—		—		8,513
Income taxes receivable	2,405		—		—		—		2,405
Assets held for sale	—		19,500		—		—		19,500
Prepaid expenses and other	1,990		2,931		4,185		—		9,106
Total current assets	15,191		95,071		26,245		(5,922)		130,585
Property and equipment:
Oil and natural gas properties on the full cost method:
Proved properties	—		6,212,323		—		—		6,212,323
Unproved properties not being amortized	—		336,214		—		—		336,214
Drilling equipment	—		1,284,295		—		—		1,284,295
Gas gathering and processing equipment	—		—		798,503		—		798,503
Saltwater disposal systems	—		69,212		—		—		69,212
Corporate land and building	—		59,080		—		—		59,080
Transportation equipment	9,731		17,136		3,152		—		30,019
Other	28,824		29,076		—		—		57,900
	38,555		8,007,336		801,655		—		8,847,546
Less accumulated depreciation, depletion, amortization, and impairment	30,652		5,871,078		387,845		—		6,289,575
Net property and equipment	7,903		2,136,258		413,810		—		2,557,971
Intercompany receivable	1,046,308		—		—		(1,046,308)		—
Goodwill	—		62,808		—		—		62,808
Investments	1,166,768		—		—		(1,166,768)		—
Right of use asset	58		2,080		6,221		(57)		8,302
Other assets	8,731		9,802		15,330		—		33,863
Total assets	$	2,244,959	$	2,306,019	$	461,606	$	(2,219,055)	$	2,793,529


	June 30, 2019
	Parent		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Consolidating Adjustments		Total Consolidated
	(In thousands)
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	10,892	$	110,379	$	15,779	$	(5,921)	$	131,129
Accrued liabilities	22,080		17,837		5,725		(467)		45,175
Current operating lease liability	24		925		3,576		(6)		4,519
Current portion of other long-term liabilities	1,083		5,834		6,970		—		13,887
Total current liabilities	34,079		134,975		32,050		(6,394)		194,710
Intercompany debt	—		1,046,159		149		(1,046,308)		—
Long-term debt less debt issuance costs	749,090		—		7,500		—		756,590
Non-current derivative liability	256		—		—		—		256
Operating lease liability	34		1,122		2,451		(51)		3,556
Other long-term liabilities	14,669		77,088		11,449		(506)		102,700
Deferred income taxes	56,471		86,014		—		—		142,485
Shareholders’ equity:
Preferred stock, $1.00 par value, 5,000,000 shares authorized, none issued	—		—		—		—		—
Common stock, $.20 par value, 175,000,000 shares authorized, 55,536,916 shares issued	10,590		—		—		—		10,590
Capital in excess of par value	638,769		45,921		197,042		(242,963)		638,769
Contributions from Unit	—		—		1,145		(1,145)		—
Accumulated other comprehensive loss	—		(487)		—		—		(487)
Retained earnings	741,001		915,227		6,461		(921,688)		741,001
Total shareholders’ equity attributable to Unit Corporation	1,390,360		960,661		204,648		(1,165,796)		1,389,873
Non-controlling interests in consolidated subsidiaries	—		—		203,359		—		203,359
Total shareholders' equity	1,390,360		960,661		408,007		(1,165,796)		1,593,232
Total liabilities and shareholders’ equity	$	2,244,959	$	2,306,019	$	461,606	$	(2,219,055)	$	2,793,529


	December 31, 2018
	Parent		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Consolidating Adjustments		Total Consolidated
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	403	$	208	$	5,841	$	—	$	6,452
Accounts receivable, net of allowance for doubtful accounts of $2,531 (Guarantor of $1,326 and Parent of $1,205)	2,539		94,526		36,676		(14,344)		119,397
Materials and supplies	—		473		—		—		473
Current derivative asset	12,870		—		—		—		12,870
Income tax receivable	243		1,811		—		—		2,054
Assets held for sale	—		22,511		—		—		22,511
Prepaid expenses and other	1,993		3,560		1,049		—		6,602
Total current assets	18,048		123,089		43,566		(14,344)		170,359
Property and equipment:
Oil and natural gas properties on the full cost method:
Proved properties	—		6,018,568		—		—		6,018,568
Unproved properties not being amortized	—		330,216		—		—		330,216
Drilling equipment	—		1,284,419		—		—		1,284,419
Gas gathering and processing equipment	—		—		767,388		—		767,388
Saltwater disposal systems	—		68,339		—		—		68,339
Corporate land and building	—		59,081		—		—		59,081
Transportation equipment	9,273		17,165		3,086		—		29,524
Other	28,584		28,923		—		—		57,507
	37,857		7,806,711		770,474		—		8,615,042
Less accumulated depreciation, depletion, amortization, and impairment	27,504		5,790,481		364,741		—		6,182,726
Net property and equipment	10,353		2,016,230		405,733		—		2,432,316
Intercompany receivable	950,916		—		—		(950,916)		—
Goodwill	—		62,808		—		—		62,808
Investments	1,160,444		—		—		(1,160,444)		—
Other assets	8,225		6,793		17,552		—		32,570
Total assets	$	2,147,986	$	2,208,920	$	466,851	$	(2,125,704)	$	2,698,053


	December 31, 2018
	Parent		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Consolidating Adjustments		Total Consolidated
	(In thousands)
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	8,697	$	122,610	$	32,214	$	(13,576)	$	149,945
Accrued liabilities	28,230		16,409		5,493		(468)		49,664
Current portion of other long-term liabilities	812		6,563		6,875		—		14,250
Total current liabilities	37,739		145,582		44,582		(14,044)		213,859
Intercompany debt	—		948,707		2,209		(950,916)		—
Long-term debt less debt issuance costs	644,475		—		—		—		644,475
Non-current derivative liability	293		—		—		—		293
Other long-term liabilities	13,134		73,713		14,687		(300)		101,234
Deferred income taxes	60,983		83,765		—		—		144,748
Shareholders’ equity:
Preferred stock, $1.00 par value, 5,000,000 shares authorized, none issued	—		—		—		—		—
Common stock, $.20 par value, 175,000,000 shares authorized, 54,055,600 shares issued	10,414		—		—		—		10,414
Capital in excess of par value	628,108		45,921		197,042		(242,963)		628,108
Contributions from Unit	—		—		792		(792)		—
Accumulated other comprehensive loss	—		(481)		—		—		(481)
Retained earnings	752,840		911,713		4,976		(916,689)		752,840
Total shareholders’ equity attributable to Unit Corporation	1,391,362		957,153		202,810		(1,160,444)		1,390,881
Non-controlling interests in consolidated subsidiaries	—		—		202,563		—		202,563
Total shareholders' equity	1,391,362		957,153		405,373		(1,160,444)		1,593,444
Total liabilities and shareholders’ equity	$	2,147,986	$	2,208,920	$	466,851	$	(2,125,704)	$	2,698,053

Condensed Consolidating Statements of Operations (Unaudited)


	Three Months Ended June 30, 2019
	Parent		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Consolidating Adjustments		Total Consolidated
	(In thousands)
Revenues	$	—	$	128,588	$	54,630	$	(18,072)	$	165,146
Expenses:
Operating costs	—		73,909		41,550		(17,418)		98,041
Depreciation, depletion, and amortization	1,935		52,255		12,102		—		66,292
General and administrative	—		10,064		—		—		10,064
Gain on disposition of assets	—		(356)		(66)		—		(422)
Total operating costs	1,935		135,872		53,586		(17,418)		173,975
Income (loss) from operations	(1,935)		(7,284)		1,044		(654)		(8,829)
Interest, net	(8,650)		—		(345)		—		(8,995)
Gain on derivatives	7,927		—		—		—		7,927
Other, net	6		—		—		—		6
Income (loss) before income taxes	(2,652)		(7,284)		699		(654)		(9,891)
Income tax benefit	(848)		(1,026)		—		—		(1,874)
Equity in net earnings from investment in subsidiaries, net of taxes	(6,705)		—		—		6,705		—
Net income (loss)	(8,509)		(6,258)		699		6,051		(8,017)
Less: net income attributable to non-controlling interest	—		—		492		—		492
Net income (loss) attributable to Unit Corporation	$	(8,509)	$	(6,258)	$	207	$	6,051	$	(8,509)


	Three Months Ended June 30, 2018
	Parent		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Consolidating Adjustments		Total Consolidated
	(In thousands)
Revenues	$	—	$	155,085	$	75,406	$	(27,188)	$	203,303
Expenses:
Operating costs	—		70,603		59,786		(26,374)		104,015
Depreciation, depletion, and amortization	1,918		45,280		11,175		—		58,373
General and administrative	—		8,655		57		—		8,712
Gain on disposition of assets	—		(116)		(45)		—		(161)
Total operating costs	1,918		124,422		70,973		(26,374)		170,939
Income (loss) from operations	(1,918)		30,663		4,433		(814)		32,364
Interest, net	(7,425)		—		(304)		—		(7,729)
Loss on derivatives	(14,461)		—		—		—		(14,461)
Other, net	5		—		—		—		5
Income (loss) before income taxes	(23,799)		30,663		4,129		(814)		10,179
Income tax expense (benefit)	(6,029)		7,803		255		—		2,029
Equity in net earnings from investment in subsidiaries, net of taxes	23,558		—		—		(23,558)		—
Net income	5,788		22,860		3,874		(24,372)		8,150
Less: net income attributable to non-controlling interest	—		—		2,362		—		2,362
Net income attributable to Unit Corporation	$	5,788	$	22,860	$	1,512	$	(24,372)	$	5,788


	Six Months Ended June 30, 2019
	Parent		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Consolidating Adjustments		Total Consolidated
	(In thousands)
Revenues	$	—	$	272,882	$	125,139	$	(43,184)	$	354,837
Expenses:
Operating costs	—		145,302		97,679		(41,470)		201,511
Depreciation, depletion, and amortization	3,869		100,721		23,828		—		128,418
General and administrative	—		19,805		—		—		19,805
(Gain) loss on disposition of assets	(10)		1,311		(108)		—		1,193
Total operating costs	3,859		267,139		121,399		(41,470)		350,927
Income (loss) from operations	(3,859)		5,743		3,740		(1,714)		3,910
Interest, net	(16,852)		—		(681)		—		(17,533)
Gain on derivatives	995		—		—		—		995
Other, net	11		—		—		—		11
Income (loss) before income taxes	(19,705)		5,743		3,059		(1,714)		(12,617)
Income tax expense (benefit)	(4,547)		2,229		—		—		(2,318)
Equity in net earnings from investment in subsidiaries, net of tax	3,145		—		—		(3,145)		—
Net income (loss)	(12,013)		3,514		3,059		(4,859)		(10,299)
Less: net income attributable to non-controlling interest	—		—		1,714		—		1,714
Net income (loss) attributable to Unit Corporation	$	(12,013)	$	3,514	$	1,345	$	(4,859)	$	(12,013)


	Six Months Ended June 30, 2018
	Parent		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Consolidating Adjustments		Total Consolidated
	(In thousands)
Revenues	$	—	$	308,894	$	150,056	$	(50,515)	$	408,435
Expenses:
Operating costs	—		143,709		118,806		(49,267)		213,248
Depreciation, depletion, and amortization	3,836		89,375		22,228		—		115,439
General and administrative	—		16,884		2,590		—		19,474
Gain on disposition of assets	(30)		(213)		(79)		—		(322)
Total operating costs	3,806		249,755		143,545		(49,267)		347,839
Income (loss) from operations	(3,806)		59,139		6,511		(1,248)		60,596
Interest, net	(17,280)		—		(453)		—		(17,733)
Loss on derivatives	(21,223)		—		—		—		(21,223)
Other, net	11		1		(1)		—		11
Income (loss) before income taxes	(42,298)		59,140		6,057		(1,248)		21,651
Income tax expense (benefit)	(10,668)		15,460		844		—		5,636
Equity in net earnings from investment in subsidiaries, net of tax	45,283		—		—		(45,283)		—
Net income	13,653		43,680		5,213		(46,531)		16,015
Less: net income attributable to non-controlling interest	—		—		2,362		—		2,362
Net income attributable to Unit Corporation	$	13,653	$	43,680	$	2,851	$	(46,531)	$	13,653

Condensed Consolidating Statements of Comprehensive Income (Loss) (Unaudited)


	Three Months Ended June 30, 2019
	Parent		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Consolidating Adjustments		Total Consolidated
	(In thousands)
Net income (loss)	$	(8,509)	$	(6,258)	$	699	$	6,051	$	(8,017)
Other comprehensive income (loss), net of taxes:
Unrealized loss on securities, net of tax ($9)	—		(30)		—		—		(30)
Comprehensive income (loss)	(8,509)		(6,288)		699		6,051		(8,047)
Less: Comprehensive income attributable to non-controlling interests	—		—		492		—		492
Comprehensive income (loss) attributable to Unit Corporation	$	(8,509)	$	(6,288)	$	207	$	6,051	$	(8,539)


	Three Months Ended June 30, 2018
	Parent		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Consolidating Adjustments		Total Consolidated
	(In thousands)
Net income	$	5,788	$	22,860	$	3,874	$	(24,372)	$	8,150
Other comprehensive income, net of taxes:
Unrealized gain on securities, net of tax of $11	—		35		—		—		35
Comprehensive income	5,788		22,895		3,874		(24,372)		8,185
Less: Comprehensive income attributable to non-controlling interests	—		—		2,362		—		2,362
Comprehensive income attributable to Unit Corporation	$	5,788	$	22,895	$	1,512	$	(24,372)	$	5,823


	Six Months Ended June 30, 2019
	Parent		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Consolidating Adjustments		Total Consolidated
	(In thousands)
Net income (loss)	$	(12,013)	$	3,514	$	3,059	$	(4,859)	$	(10,299)
Other comprehensive income (loss), net of taxes:
Unrealized loss on securities, net of tax of ($2)	—		(6)		—		—		(6)
Comprehensive income (loss)	(12,013)		3,508		3,059		(4,859)		(10,305)
Less: Comprehensive income attributable to non-controlling interests	—		—		1,714		—		1,714
Comprehensive income (loss) attributable to Unit Corporation	$	(12,013)	$	3,508	$	1,345	$	(4,859)	$	(12,019)


	Six Months Ended June 30, 2018
	Parent		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Consolidating Adjustments		Total Consolidated
	(In thousands)
Net income	$	13,653	$	43,680	$	5,213	$	(46,531)	$	16,015
Other comprehensive income, net of taxes:
Unrealized loss on securities, net of tax of ($47)	—		(141)		—		—		(141)
Comprehensive income	13,653		43,539		5,213		(46,531)		15,874
Less: Comprehensive income attributable to non-controlling interests	—		—		2,362		—		2,362
Comprehensive income attributable to Unit Corporation	$	13,653	$	43,539	$	2,851	$	(46,531)	$	13,512

Condensed Consolidating Statements of Cash Flows (Unaudited)


	Six Months Ended June 30, 2019
	Parent		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Consolidating Adjustments		Total Consolidated
	(In thousands)
OPERATING ACTIVITIES:
Net cash provided by (used in) operating activities	$	(8,023)	$	111,615	$	23,943	$	(34)	$	127,501
INVESTING ACTIVITIES:
Capital expenditures	(100)		(212,982)		(33,556)		—		(246,638)
Producing properties and other acquisitions	—		(3,313)		—		—		(3,313)
Proceeds from disposition of assets	10		7,247		83		—		7,340
Net cash used in investing activities	(90)		(209,048)		(33,473)		—		(242,611)
FINANCING ACTIVITIES:
Borrowings under credit agreement	238,800		—		32,400		—		271,200
Payments under credit agreement	(135,300)		—		(24,900)		—		(160,200)
Intercompany borrowings (advances), net	(96,311)		97,384		(1,107)		34		—
Payments on finance leases	—		—		(1,980)		—		(1,980)
Employee taxes paid by withholding shares	(4,073)		—		—		—		(4,073)
Distributions to non-controlling interest	919		—		(1,837)		—		(918)
Book overdrafts	4,183		—		1,115		—		5,298
Net cash provided by financing activities	8,218		97,384		3,691		34		109,327
Net increase (decrease) in cash and cash equivalents	105		(49)		(5,839)		—		(5,783)
Cash and cash equivalents, beginning of period	403		208		5,841		—		6,452
Cash and cash equivalents, end of period	$	508	$	159	$	2	$	—	$	669


	Six Months Ended June 30, 2018
	Parent		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Consolidating Adjustments		Total Consolidated
	(In thousands)
OPERATING ACTIVITIES:
Net cash provided by operating activities	$	(96,111)	$	145,227	$	(16,469)	$	126,993	$	159,640
INVESTING ACTIVITIES:
Capital expenditures	(13)		(173,097)		(16,806)		—		(189,916)
Producing properties and other acquisitions	—		(962)		—		—		(962)
Proceeds from disposition of assets	30		23,427		71		—		23,528
Net cash used in investing activities	17		(150,632)		(16,735)		—		(167,350)
FINANCING ACTIVITIES:
Borrowings under credit agreement	69,200		—		2,000		—		71,200
Payments under credit agreement	(247,200)		—		(2,000)		—		(249,200)
Intercompany borrowings (advances), net	276,460		5,468		(154,935)		(126,993)		—
Payments on finance leases	—		—		(1,901)		—		(1,901)
Employee taxes paid by withholding shares	(4,947)		—		—		—		(4,947)
Proceeds from investments of non-controlling interest	102,958		—		197,042		—		300,000
Transaction costs associated with sale of non-controlling interest	(2,254)		—		—		—		(2,254)
Book overdrafts	(1,581)		—		—		—		(1,581)
Net cash provided by (used in) financing activities	192,636		5,468		40,206		(126,993)		111,317
Net increase (decrease) in cash and cash equivalents	96,542		63		7,002		—		103,607
Cash and cash equivalents, beginning of period	510		191		—		—		701
Cash and cash equivalents, end of period	$	97,052	$	254	$	7,002	$	—	$	104,308

Revenues from Contracts with Customers (Tables)

6 Months Ended

Jun. 30, 2019

Revenue From Contracts with Customers [Abstract]

Contract with Customer, Asset and Liability

The following tables show the changes in our mid-stream contract asset and contract liability balances during the six months ended June 30, 2019:


Contract Assets	Amount
	(In thousands)
Balance at December 31, 2018 ⁽¹⁾	$	13,164
Amounts invoiced in excess of revenue recognized	(86)
Balance at June 30, 2019⁽¹⁾	$	13,078

_______________________


Contract Liabilities	Amount
	(In thousands)
Balance at December 31, 2018 ⁽¹⁾	$	9,882
New contract	60
Revenue included in beginning balance	(1,429)
Balance at June 30, 2019 ⁽¹⁾	$	8,513

______________________

Revenue, Remaining Performance Obligation

Included below is the fixed revenue we will earn over the remaining term of the contracts and excludes all variable consideration to be earned with the associated contract.


Contract	Remaining Term of Contract	July - December 2019		2020		2021		2022		2023 and Beyond		Total Remaining Impact to Revenue
		(In thousands)
Demand fee contracts	3-9 years	$	1,295	$	(3,775)	$	(3,501)	$	1,380	$	36	$	(4,565)

Earnings (Loss) Per Share (Tables)

6 Months Ended

Jun. 30, 2019

Earnings Per Share [Abstract]

Schedule of Earnings (Loss) Per Share

Information related to the calculation of earnings (loss) per share attributable to Unit Corporation is as follows:


	Earnings (Loss) (Numerator)		Weighted Shares (Denominator)	Per-Share Amount
	(In thousands except per share amounts)
For the three months ended June 30, 2019
Basic loss attributable to Unit Corporation per common share	$	(8,509)	52,930	$	(0.16)
Effect of dilutive stock options and restricted stock	—		—	—
Diluted loss attributable to Unit Corporation per common share	$	(8,509)	52,930	$	(0.16)
For the three months ended June 30, 2018
Basic earnings attributable to Unit Corporation per common share	$	5,788	52,050	$	0.11
Effect of dilutive stock options and restricted stock	—		731	—
Diluted earnings attributable to Unit Corporation per common share	$	5,788	52,781	$	0.11

Schedule of Earnings Per Share, Basic and Diluted


	Earnings (Loss) (Numerator)		Weighted Shares (Denominator)	Per-Share Amount
	(In thousands except per share amounts)
For the six months ended June 30, 2019
Basic loss attributable to Unit Corporation per common share	$	(12,013)	52,744	$	(0.23)
Effect of dilutive stock options and restricted stock	—		—	—
Diluted loss attributable to Unit Corporation per common share	$	(12,013)	52,744	$	(0.23)
For the six months ended June 30, 2018
Basic earnings attributable to Unit Corporation per common share	$	13,653	51,891	$	0.26
Effect of dilutive stock options and restricted stock	—		651	—
Diluted earnings attributable to Unit Corporation per common share	$	13,653	52,542	$	0.26

Schedule of Antidilutive Securities Excluded From Computation of Earnings Per Share

The following table shows the number of stock options (and their average exercise price) excluded because their option exercise prices were greater than the average market price of our common stock:


	Three Months Ended
	June 30,
	2019		2018
Stock options	42,000		66,500
Average exercise price	$	48.56	$	44.42

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share

The following table shows the number of stock options (and their average exercise price) excluded because their option exercise prices were greater than the average market price of our common stock:


	Six Months Ended
	June 30,
	2019		2018
Stock options	42,000		66,500
Average exercise price	$	48.56	$	44.42

Accrued Liabilities (Tables)

6 Months Ended

Jun. 30, 2019

Accrued Liabilities [Abstract]

Accrued Liabilities

Accrued liabilities consisted of:


	June 30, 2019		December 31, 2018
	(In thousands)
Employee costs	$	13,910	$	22,056
Lease operating expenses	10,552		12,756
Interest payable	6,741		6,635
Taxes	6,675		1,378
Third-party credits	2,824		2,129
Other	4,473		4,710
Total accrued liabilities	$	45,175	$	49,664

Long-Term Debt And Other Long-Term Liabilities (Tables)

6 Months Ended

Jun. 30, 2019

Debt Disclosure [Abstract]

Long-Term Debt

As of the date indicated, our long-term debt consisted of the following:


	June 30, 2019		December 31, 2018
	(In thousands)
Unit credit agreement with an average interest rate of 4.2% at June 30, 2019	$	103,500	$	—
Superior credit agreement with an average interest rate of 6.5% at June 30, 2019	7,500		—
6.625% senior subordinated notes due 2021	650,000		650,000
Total principal amount	761,000		650,000
Less: unamortized discount	(1,303)		(1,623)
Less: debt issuance costs, net	(3,107)		(3,902)
Total long-term debt	$	756,590	$	644,475

Other Long-Term Liabilities

Other long-term liabilities consisted of the following:


	June 30, 2019		December 31, 2018
	(In thousands)
Asset retirement obligation (ARO) liability	$	67,433	$	64,208
Workers’ compensation	12,118		12,738
Finance lease obligations	9,400		11,380
Contract liability	8,513		9,881
Separation benefit plans	9,749		8,814
Deferred compensation plan	6,002		5,132
Gas balancing liability	3,372		3,331
	116,587		115,484
Less current portion	13,887		14,250
Total other long-term liabilities	$	102,700	$	101,234

Asset Retirement Obligation Disclosure [Abstract]

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

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+ Details

Asset Retirement Obligations (Tables)

6 Months Ended

Jun. 30, 2019

Schedule of Asset Retirement Obligations

The following table shows certain information about our estimated AROs for the periods indicated:


	Six Months Ended
	June 30,
	2019		2018
	(In thousands)
ARO liability, January 1:	$	64,208	$	69,444
Accretion of discount	1,168		1,248
Liability incurred	3,656		211
Liability settled	(2,316)		(3,142)
Liability sold	(1,632)		(94)
Revision of estimates ⁽¹⁾	2,349		(4,829)
ARO liability, June 30:	67,433		62,838
Less current portion	1,784		1,451
Total long-term ARO	$	65,649	$	61,387

_______________________

1.Plugging liability estimates were revised in both 2019 and 2018 for updates in the cost of services used to plug wells over the preceding year. We had various upward and downward adjustments.

Stock-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2019

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of Restricted Stock Awards and Stock Options

For restricted stock awards and stock options, we had:


	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2019		2018		2019		2018
	(In millions)
Recognized stock compensation expense	$	4.7	$	4.0	$	8.5	$	9.5
Capitalized stock compensation cost for our oil and natural gas properties	0.7		0.6		1.3		1.0
Tax benefit on stock-based compensation	1.2		1.0		2.1		2.3

Schedule of Fair Value of the Restricted Stock Awards Granted During the Periods

This table shows the fair value of restricted stock awards granted to employees and non-employee directors during the periods indicated:


	Three Months Ended								Three Months Ended
	June 30, 2019								June 30, 2018
	Time Vested			Performance Vested		Time Vested			Performance Vested
Shares granted:
Employees	1,500			—		5,000			—
Non-employee directors	72,784			—		44,312			—
	74,284			—		49,312			—
Estimated fair value (in millions):⁽¹⁾
Employees	$	—		$	—	$	0.1		$	—
Non-employee directors	0.9			—		0.9			—
	$	0.9		$	—	$	1.0		$	—
Percentage of shares granted expected to be distributed:
Employees	95		%	N/A		95		%	N/A
Non-employee directors	100%			N/A		100		%	N/A

_______________________

1.The performance shares represent 100% of the grant date fair value. (We recognize the grant date fair value minus estimated forfeitures.)


	Six Months Ended									Six Months Ended
	June 30, 2019									June 30, 2018
	Time Vested			Performance Vested			Time Vested			Performance Vested
Shares granted:
Employees	927,173			424,070			844,498			362,070
Non-employee directors	72,784			—			44,312			—
	999,957			424,070			888,810			362,070
Estimated fair value (in millions):⁽¹⁾
Employees	$	14.6		$	7.1		$	16.2		$	7.3
Non-employee directors	0.9			—			0.9			—
	$	15.5		$	7.1		$	17.1		$	7.3
Percentage of shares granted expected to be distributed:
Employees	95		%	54		%	95		%	74		%
Non-employee directors	100		%	N/A			100		%	N/A

_______________________

1.The performance shares represent 100% of the grant date fair value. (We recognize the grant date fair value minus estimated forfeitures.)

Derivatives (Tables)

6 Months Ended

Jun. 30, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives outstanding

At June 30, 2019, these derivatives were outstanding:

Term

Commodity

Contracted Volume

Weighted Average
Fixed Price

Contracted Market

Jul'19 – Oct'19

Natural gas – swap

60,000 MMBtu/day

$2.900

IF – NYMEX (HH)

Nov'19 – Dec'19

Natural gas – swap

40,000 MMBtu/day

$2.900

IF – NYMEX (HH)

Jul'19 – Dec'19

Natural gas – basis swap

20,000 MMBtu/day

$(0.659)

PEPL

Jul'19 – Dec'19

Natural gas – basis swap

10,000 MMBtu/day

$(0.625)

NGL MIDCON

Jul'19 – Dec'19

Natural gas – basis swap

30,000 MMBtu/day

$(0.265)

NGPL TEXOK

Jan'20 – Dec'20

Natural gas – basis swap

30,000 MMBtu/day

$(0.275)

NGPL TEXOK

Jul'19 – Dec'19

Natural gas – collar

20,000 MMBtu/day

$2.63 - $3.03

IF – NYMEX (HH)

Jul'19 – Dec'19

Crude oil – three-way collar

4,000 Bbl/day

$61.25 - $51.25 - $72.93

WTI – NYMEX

Fair Value of Derivative Instruments and Locations in Balance Sheets

The following tables present the fair values and locations of the derivative transactions recorded in our Unaudited Condensed Consolidated Balance Sheets:


		Derivative Assets
		Fair Value
	Balance Sheet Location	June 30, 2019		December 31, 2018
		(In thousands)
Commodity derivatives:
Current	Current derivative asset	$	8,513	$	12,870
Long-term	Non-current derivative asset	—		—
Total derivative assets		$	8,513	$	12,870


		Derivative Liabilities
		Fair Value
	Balance Sheet Location	June 30, 2019		December 31, 2018
		(In thousands)
Commodity derivatives:
Current	Current derivative liability	$	—	$	—
Long-term	Non-current derivative liability	256		293
Total derivative liabilities		$	256	$	293

Effect of Derivative Instruments Recognized in Income Statements, Derivative Instruments

Following is the effect of derivative instruments on the Unaudited Condensed Consolidated Statements of Operations at June 30:


	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2019		2018		2019		2018
	(In thousands)
Gain (loss) on derivatives:
Gain (loss) on derivatives, included are amounts settled during the period of $2,658, ($6,855), $5,314 and ($8,928), respectively	$	7,927	$	(14,461)	$	995	$	(21,223)
	$	7,927	$	(14,461)	$	995	$	(21,223)

Fair Value of Available-for-sale Securities

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

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+ Details

Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2019

Fair Value Disclosures [Abstract]

The following is a summary of available-for-sale securities:


	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
	(In thousands)
Equity Securities:
June 30, 2019	$	830	$	—	$	645	$	185
December 31, 2018	$	830	$	—	$	636	$	194

Recurring Fair Value Measurements

The following tables set forth our recurring fair value measurements:


	June 30, 2019
	Level 1		Level 2		Level 3		Effect of Netting		Net Amounts Presented
	(In thousands)
Financial assets (liabilities):
Commodity derivatives:
Assets	$	—	$	5,422	$	3,945	$	(854)	$	8,513
Liabilities	—		(1,110)		—		854		(256)
Total commodity derivatives	—		4,312		3,945		—		8,257
Equity securities	185		—		—		—		185
	$	185	$	4,312	$	3,945	$	—	$	8,442


	December 31, 2018
	Level 1		Level 2		Level 3		Effect of Netting		Net Amounts Presented
	(In thousands)
Financial assets (liabilities):
Commodity derivatives:
Assets	$	—	$	3,225	$	10,964	$	(1,319)	$	12,870
Liabilities	—		(1,278)		(334)		1,319		(293)
Total commodity derivatives	—		1,947		10,630		—		12,577
Equity securities	194		—		—		—		194
	$	194	$	1,947	$	10,630	$	—	$	12,771

Reconciliations Of Level 3 Fair Value Measurements

The following table is a reconciliation of our level 3 fair value measurements:


	Net Derivatives
	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2019		2018		2019		2018
	(In thousands)
Beginning of period	$	3,080	$	(3,206)	$	10,630	$	(206)
Total gains or losses (realized and unrealized):
Included in earnings ⁽¹⁾	2,060		(4,704)		(3,374)		(8,624)
Settlements	(1,195)		1,775		(3,311)		2,695
End of period	$	3,945	$	(6,135)	$	3,945	$	(6,135)
Total earnings (losses) for the period included in earnings attributable to the change in unrealized loss relating to assets still held at end of period	$	865	$	(2,929)	$	(6,685)	$	(5,929)

_______________________

1.Commodity derivatives are reported in the Unaudited Condensed Consolidated Statements of Operations in gain (loss) on derivatives.

Schedule Of Quantitative Information About Unobservable Inputs

The following table provides quantitative information about our Level 3 unobservable inputs at June 30, 2019:

Commodity ⁽¹⁾

Fair Value

Valuation Technique

Unobservable Input

Range

(In thousands)

Oil three-way collars

2,828

Discounted cash flow

Forward commodity price curve

$0 - $9.00

Natural gas collars

1,117

Discounted cash flow

Forward commodity price curve

$0 - $0.48

_______________________

Leases (Tables)

6 Months Ended

Jun. 30, 2019

Supplemental cash flow information related to leases

The following table shows supplemental cash flow information related to leases for the six months of June 30, 2019:


	Amount
	(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	1,616
Financing cash flows for finance leases	1,980
Lease liabilities recognized in exchange for new operating lease right of use assets	5

Schedule of lease assets and liabilities

The following table shows information about our lease assets and liabilities included in our Unaudited Condensed Consolidated Balance Sheet as of June 30, 2019:

Classification on the Consolidated Balance Sheet

June 30,
2019

(In thousands)

Assets

Operating right of use assets

Right of use assets

8,302

Finance right of use assets

Property, plant, and equipment, net

18,416

Total right of use assets

26,718

Liabilities

Current liabilities:

Operating lease liabilities

Current operating lease liabilities

4,519

Finance lease liabilities

Current portion of other long-term liabilities

4,081

Non-current liabilities:

Operating lease liabilities

3,556

Finance lease liabilities

Other long-term liabilities

5,319

Total lease liabilities

17,475

Schedule of lease costs

The following table shows certain information related to the lease costs for our finance and operating leases for the three and six months ended June 30, 2019:


	Three Months Ended		Six Months Ended
	June 30,		June 30,
	2019		2019
	(In thousands)
Components of total lease cost:
Amortization of finance leased assets	$	995	$	1,980
Interest on finance lease liabilities	100		211
Operating lease cost	1,052		1,651
Short-term lease cost ⁽¹⁾	12,038		22,012
Variable lease cost	84		190
Total lease cost	$	14,269	$	26,044

_______________________

1.Short-term lease cost includes amounts capitalized related to our oil and natural gas segment of $9.0 million and $14.7 million, respectively.

Schedule of weighted average discount rate for leases

The following table shows certain information related to the weighted average remaining lease terms and the weighted average discount rates for our operating and finance leases:


	Weighted Average Remaining Lease Term	Weighted Average Discount Rate ⁽¹⁾
	(In years)
Operating leases	2.2	6.34%
Finance leases	2.2	4.00%

_______________________

1.Our weighted average discount rates represent the rate implicit in the lease or our incremental borrowing rate for a term equal to the remaining term of the lease.

Operating leases

The following table sets forth the maturity of our operating lease liabilities as of June 30, 2019:


	Amount
	(In thousands)
Ending July 1,
2020	$	4,902
2021	2,642
2022	839
2023	196
2024	12
2025 and beyond	81
Total future payments	8,672
Less: Interest	597
Present value of future minimum operating lease payments	8,075
Less: Current portion	4,519
Total long-term operating lease payments	$	3,556

Finance leases

The following table sets forth the maturity of our finance lease liabilities as of June 30, 2019:


	Amount
Ending July 1,	(In thousands)
2020	$	6,168
2021	6,672
2022	180
Total future payments	13,020
Less payments related to:
Maintenance	3,196
Interest	424
Present value of future minimum finance lease payments	9,400
Less: Current portion	4,081
Total long-term finance lease payments	$	5,319

Variable Interest Entity Arrangements (Tables)

6 Months Ended

Jun. 30, 2019

Variable Interest Entity Arrangements [Abstract]

Schedule of Assets and Liabilities

The carrying value of Superior's assets and liabilities, after eliminations of any intercompany transactions and balances, in the consolidated balance sheets were as follows:


	June 30, 2019		December 31, 2018
	(In thousands)

Current assets:
Cash and cash equivalents	$	2	$	5,841
Accounts receivable	19,500		33,207
Prepaid expenses and other	4,185		1,049
Total current assets	23,687		40,097
Property and equipment:
Gas gathering and processing equipment	798,503		767,388
Transportation equipment	3,152		3,086
	801,655		770,474
Less accumulated depreciation, depletion, amortization, and impairment	387,845		364,740
Net property and equipment	413,810		405,734
Right of use asset	6,221		—
Other assets	15,330		17,551
Total assets	$	459,048	$	463,382

Current liabilities:
Accounts payable	$	14,807	$	32,214
Accrued liabilities	4,296		3,688
Current operating lease liability	3,576		—
Current portion of other long-term liabilities	6,970		6,875
Total current liabilities	29,649		42,777
Long-term debt	7,500		—
Operating lease liability	2,451		—
Other long-term liabilities	11,449		14,687
Total liabilities	$	51,049	$	57,464

Schedule of Accumulated Other Comprehensive Income (Loss)

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

+ References + Details

Equity (Tables)

6 Months Ended

Jun. 30, 2019

Equity [Abstract]

Components of accumulated other comprehensive income (loss) were as follows for the three months ended June 30:


	2019		2018
	(In thousands)
Unrealized appreciation (loss) on securities, before tax	$	(39)	$	46
Tax benefit (expense)	9		(11)		⁽¹⁾
Unrealized appreciation (loss) on securities, net of tax	$	(30)	$	35

_______________________

1.Due to the implementation of ASU 2018-02, the tax rate changed from 37.75% to 24.5%.

Reclassification out of Accumulated Other Comprehensive Income

Changes in accumulated other comprehensive income (loss) by component, net of tax, for the three months ended June 30 are as follows:


	Net Gains (Loss) on Equity Securities
	2019		2018
	(In thousands)
Balance at March 31:	$	(457)	$	(100)
Unrealized appreciation (loss) before reclassifications	(30)		35		⁽¹⁾
Amounts reclassified from accumulated other comprehensive income	—		—
Net current-period other comprehensive income (loss)	(30)		35
Balance at June 30:	$	(487)	$	(65)

_______________________

1.Due to the implementation of ASU 2018-02, the tax rate changed from 37.75% to 24.5%.

Schedule of Accumulated Other Comprehensive Income

Components of accumulated other comprehensive income (loss) were as follows for the six months ended June 30:


	2019		2018
	(In thousands)
Unrealized loss on securities, before tax	$	(8)	$	(188)
Tax benefit	2		47		⁽¹⁾
Unrealized loss on securities, net of tax	$	(6)	$	(141)

_______________________

1.Due to the implementation of ASU 2018-02, the tax rate changed from 37.75% to 24.5%.

Reclassification Out of Accumulated Other Comprehensive Income

Changes in accumulated other comprehensive income by component, net of tax, for the six months ended June 30 are as follows:


	Net Gains (Loss) on Equity Securities
	2019		2018
	(In thousands)
Prior year balance at December 31:	$	(481)	$	63
Adjustment due to ASU 2018-02	—		13		⁽¹⁾
Balance at January 1:	(481)		76
Unrealized loss before reclassifications	(6)		(141)		⁽¹⁾
Amounts reclassified from accumulated other comprehensive income	—		—
Net current-period other comprehensive loss	(6)		(141)
Balance at June 30:	$	(487)	$	(65)

_______________________

1.Due to the implementation of ASU 2018-02, the tax rate changed from 37.75% to 24.5%.

Industry Segment Information (Tables)

6 Months Ended

Jun. 30, 2019

Segment Reporting [Abstract]

Industry segment information

The following tables provide certain information about the operations of each of our segments:


	Three Months Ended June 30, 2019
	Oil and Natural Gas		Contract Drilling		Mid-stream		Corporate and Other		Eliminations		Total Consolidated
	(In thousands)
Revenues: ⁽¹⁾
Oil and natural gas	$	77,815	$	—	$	—	$	—	$	—	$	77,815
Contract drilling	—		50,773		—		—		(7,736)		43,037
Gas gathering and processing	—		—		54,630		—		(10,336)		44,294
Total revenues	77,815		50,773		54,630		—		(18,072)		165,146
Expenses:
Operating costs:
Oil and natural gas	37,519		—		—		—		(1,277)		36,242
Contract drilling	—		36,390		—		—		(7,082)		29,308
Gas gathering and processing	—		—		41,550		—		(9,059)		32,491
Total operating costs	37,519		36,390		41,550		—		(17,418)		98,041
Depreciation, depletion, and amortization	38,751		13,504		12,102		1,935		—		66,292
Total expenses	76,270		49,894		53,652		1,935		(17,418)		164,333
General and administrative	—		—		—		10,064		—		10,064
Gain on disposition of assets	(60)		(296)		(66)		—		—		(422)
Income (loss) from operations	1,605		1,175		1,044		(11,999)		(654)		(8,829)
Gain on derivatives	—		—		—		7,927		—		7,927
Interest, net	—		—		(345)		(8,650)		—		(8,995)
Other	—		—		—		6		—		6
Income (loss) before income taxes	$	1,605	$	1,175	$	699	$	(12,716)	$	(654)	$	(9,891)

_______________________

1.The revenues for oil and natural gas occur at a point in time. The revenues for contract drilling and gas gathering and processing occur over time.


	Three Months Ended June 30, 2018
	Oil and Natural Gas		Contract Drilling		Mid-stream		Corporate and Other		Eliminations		Total Consolidated
	(In thousands)
Revenues: ⁽¹⁾
Oil and natural gas	$	102,318	$	—	$	—	$	—	$	—	$	102,318
Contract drilling	—		52,767		—		—		(5,841)		46,926
Gas gathering and processing	—		—		75,406		—		(21,347)		54,059
Total revenues	102,318		52,767		75,406		—		(27,188)		203,303
Expenses:
Operating costs:
Oil and natural gas	33,682		—		—		—		(1,264)		32,418
Contract drilling	—		36,921		—		—		(5,027)		31,894
Gas gathering and processing	—		—		59,786		—		(20,083)		39,703
Total operating costs	33,682		36,921		59,786		—		(26,374)		104,015
Depreciation, depletion, and amortization	31,554		13,726		11,175		1,918		—		58,373
Total expenses	65,236		50,647		70,961		1,918		(26,374)		162,388
General and administrative expense	—		—		—		8,712		—		8,712
Gain on disposition of assets	(59)		(57)		(45)		—		—		(161)
Income (loss) from operations	37,141		2,177		4,490		(10,630)		(814)		32,364
Loss on derivatives	—		—		—		(14,461)		—		(14,461)
Interest, net	—		—		(304)		(7,425)		—		(7,729)
Other	—		—		—		5		—		5
Income (loss) before income taxes	$	37,141	$	2,177	$	4,186	$	(32,511)	$	(814)	$	10,179

_______________________

1.The revenues for oil and natural gas occur at a point in time. The revenues for contract drilling and gas gathering and processing occur over time.


	Six Months Ended June 30, 2019
	Oil and Natural Gas		Contract Drilling		Mid-stream		Corporate and Other		Eliminations		Total Consolidated
	(In thousands)
Revenues: ⁽¹⁾
Oil and natural gas	$	163,910	$	—	$	—	$	—	$	—	$	163,910
Contract drilling	—		108,972		—		—		(14,780)		94,192
Gas gathering and processing	—		—		125,139		—		(28,404)		96,735
Total revenues	163,910		108,972		125,139		—		(43,184)		354,837
Expenses:
Operating costs:
Oil and natural gas	71,527		—		—		—		(2,571)		68,956
Contract drilling	—		73,775		—		—		(13,066)		60,709
Gas gathering and processing	—		—		97,679		—		(25,833)		71,846
Total operating costs	71,527		73,775		97,679		—		(41,470)		201,511
Depreciation, depletion, and amortization	74,518		26,203		23,828		3,869		—		128,418
Total expenses	146,045		99,978		121,507		3,869		(41,470)		329,929
General and administrative expense	—		—		—		19,805		—		19,805
(Gain) loss on disposition of assets	(138)		1,449		(108)		(10)		—		1,193
Income (loss) from operations	18,003		7,545		3,740		(23,664)		(1,714)		3,910
Gain on derivatives	—		—		—		995		—		995
Interest, net	—		—		(681)		(16,852)		—		(17,533)
Other	—		—		—		11		—		11
Income (loss) before income taxes	$	18,003	$	7,545	$	3,059	$	(39,510)	$	(1,714)	$	(12,617)

_______________________ ____________________

1.The revenues for oil and natural gas occur at a point in time. The revenues for contract drilling and gas gathering and processing occur over time.


	Six Months Ended June 30, 2018
	Oil and Natural Gas		Contract Drilling		Mid-stream		Corporate and Other		Eliminations		Total Consolidated
	(In thousands)
Revenues: ⁽¹⁾
Oil and natural gas	$	205,417	$	—	$	—	$	—	$	—	$	205,417
Contract drilling	—		103,477		—		—		(10,562)		92,915
Gas gathering and processing	—		—		150,056		—		(39,953)		110,103
Total revenues	205,417		103,477		150,056		—		(50,515)		408,435
Expenses:
Operating costs:
Oil and natural gas	70,834		—		—		—		(2,454)		68,380
Contract drilling	—		72,875		—		—		(9,314)		63,561
Gas gathering and processing	—		—		118,806		—		(37,499)		81,307
Total operating costs	70,834		72,875		118,806		—		(49,267)		213,248
Depreciation, depletion, and amortization	62,337		27,038		22,228		3,836		—		115,439
Total expenses	133,171		99,913		141,034		3,836		(49,267)		328,687
General and administrative expense	—		—		—		19,474		—		19,474
Gain on disposition of assets	(129)		(84)		(79)		(30)		—		(322)
Income (loss) from operations	72,375		3,648		9,101		(23,280)		(1,248)		60,596
Loss on derivatives	—		—		—		(21,223)		—		(21,223)
Interest, net	—		—		(453)		(17,280)		—		(17,733)
Other	—		—		—		11		—		11
Income (loss) before income taxes	$	72,375	$	3,648	$	8,648	$	(61,772)	$	(1,248)	$	21,651

_______________________

1.The revenues for oil and natural gas occur at a point in time. The revenues for contract drilling and gas gathering and processing occur over time.

Supplemental Condensed Consolidating Financial Information (Tables)

6 Months Ended

Jun. 30, 2019

Supplemental Condensed Consolidated Financial Information [Abstract]

Condensed Consolidating Balance Sheets (Unaudited)


	June 30, 2019
	Parent		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Consolidating Adjustments		Total Consolidated
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	508	$	159	$	2	$	—	$	669
Accounts receivable, net of allowance for doubtful accounts of $2,494 (Guarantor of $1,289 and Parent of $1,205)	1,775		71,965		22,058		(5,922)		89,876
Materials and supplies	—		516		—		—		516
Current derivative asset	8,513		—		—		—		8,513
Income taxes receivable	2,405		—		—		—		2,405
Assets held for sale	—		19,500		—		—		19,500
Prepaid expenses and other	1,990		2,931		4,185		—		9,106
Total current assets	15,191		95,071		26,245		(5,922)		130,585
Property and equipment:
Oil and natural gas properties on the full cost method:
Proved properties	—		6,212,323		—		—		6,212,323
Unproved properties not being amortized	—		336,214		—		—		336,214
Drilling equipment	—		1,284,295		—		—		1,284,295
Gas gathering and processing equipment	—		—		798,503		—		798,503
Saltwater disposal systems	—		69,212		—		—		69,212
Corporate land and building	—		59,080		—		—		59,080
Transportation equipment	9,731		17,136		3,152		—		30,019
Other	28,824		29,076		—		—		57,900
	38,555		8,007,336		801,655		—		8,847,546
Less accumulated depreciation, depletion, amortization, and impairment	30,652		5,871,078		387,845		—		6,289,575
Net property and equipment	7,903		2,136,258		413,810		—		2,557,971
Intercompany receivable	1,046,308		—		—		(1,046,308)		—
Goodwill	—		62,808		—		—		62,808
Investments	1,166,768		—		—		(1,166,768)		—
Right of use asset	58		2,080		6,221		(57)		8,302
Other assets	8,731		9,802		15,330		—		33,863
Total assets	$	2,244,959	$	2,306,019	$	461,606	$	(2,219,055)	$	2,793,529


	June 30, 2019
	Parent		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Consolidating Adjustments		Total Consolidated
	(In thousands)
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	10,892	$	110,379	$	15,779	$	(5,921)	$	131,129
Accrued liabilities	22,080		17,837		5,725		(467)		45,175
Current operating lease liability	24		925		3,576		(6)		4,519
Current portion of other long-term liabilities	1,083		5,834		6,970		—		13,887
Total current liabilities	34,079		134,975		32,050		(6,394)		194,710
Intercompany debt	—		1,046,159		149		(1,046,308)		—
Long-term debt less debt issuance costs	749,090		—		7,500		—		756,590
Non-current derivative liability	256		—		—		—		256
Operating lease liability	34		1,122		2,451		(51)		3,556
Other long-term liabilities	14,669		77,088		11,449		(506)		102,700
Deferred income taxes	56,471		86,014		—		—		142,485
Shareholders’ equity:
Preferred stock, $1.00 par value, 5,000,000 shares authorized, none issued	—		—		—		—		—
Common stock, $.20 par value, 175,000,000 shares authorized, 55,536,916 shares issued	10,590		—		—		—		10,590
Capital in excess of par value	638,769		45,921		197,042		(242,963)		638,769
Contributions from Unit	—		—		1,145		(1,145)		—
Accumulated other comprehensive loss	—		(487)		—		—		(487)
Retained earnings	741,001		915,227		6,461		(921,688)		741,001
Total shareholders’ equity attributable to Unit Corporation	1,390,360		960,661		204,648		(1,165,796)		1,389,873
Non-controlling interests in consolidated subsidiaries	—		—		203,359		—		203,359
Total shareholders' equity	1,390,360		960,661		408,007		(1,165,796)		1,593,232
Total liabilities and shareholders’ equity	$	2,244,959	$	2,306,019	$	461,606	$	(2,219,055)	$	2,793,529


	December 31, 2018
	Parent		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Consolidating Adjustments		Total Consolidated
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	403	$	208	$	5,841	$	—	$	6,452
Accounts receivable, net of allowance for doubtful accounts of $2,531 (Guarantor of $1,326 and Parent of $1,205)	2,539		94,526		36,676		(14,344)		119,397
Materials and supplies	—		473		—		—		473
Current derivative asset	12,870		—		—		—		12,870
Income tax receivable	243		1,811		—		—		2,054
Assets held for sale	—		22,511		—		—		22,511
Prepaid expenses and other	1,993		3,560		1,049		—		6,602
Total current assets	18,048		123,089		43,566		(14,344)		170,359
Property and equipment:
Oil and natural gas properties on the full cost method:
Proved properties	—		6,018,568		—		—		6,018,568
Unproved properties not being amortized	—		330,216		—		—		330,216
Drilling equipment	—		1,284,419		—		—		1,284,419
Gas gathering and processing equipment	—		—		767,388		—		767,388
Saltwater disposal systems	—		68,339		—		—		68,339
Corporate land and building	—		59,081		—		—		59,081
Transportation equipment	9,273		17,165		3,086		—		29,524
Other	28,584		28,923		—		—		57,507
	37,857		7,806,711		770,474		—		8,615,042
Less accumulated depreciation, depletion, amortization, and impairment	27,504		5,790,481		364,741		—		6,182,726
Net property and equipment	10,353		2,016,230		405,733		—		2,432,316
Intercompany receivable	950,916		—		—		(950,916)		—
Goodwill	—		62,808		—		—		62,808
Investments	1,160,444		—		—		(1,160,444)		—
Other assets	8,225		6,793		17,552		—		32,570
Total assets	$	2,147,986	$	2,208,920	$	466,851	$	(2,125,704)	$	2,698,053


	December 31, 2018
	Parent		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Consolidating Adjustments		Total Consolidated
	(In thousands)
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	8,697	$	122,610	$	32,214	$	(13,576)	$	149,945
Accrued liabilities	28,230		16,409		5,493		(468)		49,664
Current portion of other long-term liabilities	812		6,563		6,875		—		14,250
Total current liabilities	37,739		145,582		44,582		(14,044)		213,859
Intercompany debt	—		948,707		2,209		(950,916)		—
Long-term debt less debt issuance costs	644,475		—		—		—		644,475
Non-current derivative liability	293		—		—		—		293
Other long-term liabilities	13,134		73,713		14,687		(300)		101,234
Deferred income taxes	60,983		83,765		—		—		144,748
Shareholders’ equity:
Preferred stock, $1.00 par value, 5,000,000 shares authorized, none issued	—		—		—		—		—
Common stock, $.20 par value, 175,000,000 shares authorized, 54,055,600 shares issued	10,414		—		—		—		10,414
Capital in excess of par value	628,108		45,921		197,042		(242,963)		628,108
Contributions from Unit	—		—		792		(792)		—
Accumulated other comprehensive loss	—		(481)		—		—		(481)
Retained earnings	752,840		911,713		4,976		(916,689)		752,840
Total shareholders’ equity attributable to Unit Corporation	1,391,362		957,153		202,810		(1,160,444)		1,390,881
Non-controlling interests in consolidated subsidiaries	—		—		202,563		—		202,563
Total shareholders' equity	1,391,362		957,153		405,373		(1,160,444)		1,593,444
Total liabilities and shareholders’ equity	$	2,147,986	$	2,208,920	$	466,851	$	(2,125,704)	$	2,698,053

Condensed Consolidating Statements of Operations (Unaudited)


	Three Months Ended June 30, 2019
	Parent		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Consolidating Adjustments		Total Consolidated
	(In thousands)
Revenues	$	—	$	128,588	$	54,630	$	(18,072)	$	165,146
Expenses:
Operating costs	—		73,909		41,550		(17,418)		98,041
Depreciation, depletion, and amortization	1,935		52,255		12,102		—		66,292
General and administrative	—		10,064		—		—		10,064
Gain on disposition of assets	—		(356)		(66)		—		(422)
Total operating costs	1,935		135,872		53,586		(17,418)		173,975
Income (loss) from operations	(1,935)		(7,284)		1,044		(654)		(8,829)
Interest, net	(8,650)		—		(345)		—		(8,995)
Gain on derivatives	7,927		—		—		—		7,927
Other, net	6		—		—		—		6
Income (loss) before income taxes	(2,652)		(7,284)		699		(654)		(9,891)
Income tax benefit	(848)		(1,026)		—		—		(1,874)
Equity in net earnings from investment in subsidiaries, net of taxes	(6,705)		—		—		6,705		—
Net income (loss)	(8,509)		(6,258)		699		6,051		(8,017)
Less: net income attributable to non-controlling interest	—		—		492		—		492
Net income (loss) attributable to Unit Corporation	$	(8,509)	$	(6,258)	$	207	$	6,051	$	(8,509)


	Three Months Ended June 30, 2018
	Parent		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Consolidating Adjustments		Total Consolidated
	(In thousands)
Revenues	$	—	$	155,085	$	75,406	$	(27,188)	$	203,303
Expenses:
Operating costs	—		70,603		59,786		(26,374)		104,015
Depreciation, depletion, and amortization	1,918		45,280		11,175		—		58,373
General and administrative	—		8,655		57		—		8,712
Gain on disposition of assets	—		(116)		(45)		—		(161)
Total operating costs	1,918		124,422		70,973		(26,374)		170,939
Income (loss) from operations	(1,918)		30,663		4,433		(814)		32,364
Interest, net	(7,425)		—		(304)		—		(7,729)
Loss on derivatives	(14,461)		—		—		—		(14,461)
Other, net	5		—		—		—		5
Income (loss) before income taxes	(23,799)		30,663		4,129		(814)		10,179
Income tax expense (benefit)	(6,029)		7,803		255		—		2,029
Equity in net earnings from investment in subsidiaries, net of taxes	23,558		—		—		(23,558)		—
Net income	5,788		22,860		3,874		(24,372)		8,150
Less: net income attributable to non-controlling interest	—		—		2,362		—		2,362
Net income attributable to Unit Corporation	$	5,788	$	22,860	$	1,512	$	(24,372)	$	5,788


	Six Months Ended June 30, 2019
	Parent		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Consolidating Adjustments		Total Consolidated
	(In thousands)
Revenues	$	—	$	272,882	$	125,139	$	(43,184)	$	354,837
Expenses:
Operating costs	—		145,302		97,679		(41,470)		201,511
Depreciation, depletion, and amortization	3,869		100,721		23,828		—		128,418
General and administrative	—		19,805		—		—		19,805
(Gain) loss on disposition of assets	(10)		1,311		(108)		—		1,193
Total operating costs	3,859		267,139		121,399		(41,470)		350,927
Income (loss) from operations	(3,859)		5,743		3,740		(1,714)		3,910
Interest, net	(16,852)		—		(681)		—		(17,533)
Gain on derivatives	995		—		—		—		995
Other, net	11		—		—		—		11
Income (loss) before income taxes	(19,705)		5,743		3,059		(1,714)		(12,617)
Income tax expense (benefit)	(4,547)		2,229		—		—		(2,318)
Equity in net earnings from investment in subsidiaries, net of tax	3,145		—		—		(3,145)		—
Net income (loss)	(12,013)		3,514		3,059		(4,859)		(10,299)
Less: net income attributable to non-controlling interest	—		—		1,714		—		1,714
Net income (loss) attributable to Unit Corporation	$	(12,013)	$	3,514	$	1,345	$	(4,859)	$	(12,013)


	Six Months Ended June 30, 2018
	Parent		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Consolidating Adjustments		Total Consolidated
	(In thousands)
Revenues	$	—	$	308,894	$	150,056	$	(50,515)	$	408,435
Expenses:
Operating costs	—		143,709		118,806		(49,267)		213,248
Depreciation, depletion, and amortization	3,836		89,375		22,228		—		115,439
General and administrative	—		16,884		2,590		—		19,474
Gain on disposition of assets	(30)		(213)		(79)		—		(322)
Total operating costs	3,806		249,755		143,545		(49,267)		347,839
Income (loss) from operations	(3,806)		59,139		6,511		(1,248)		60,596
Interest, net	(17,280)		—		(453)		—		(17,733)
Loss on derivatives	(21,223)		—		—		—		(21,223)
Other, net	11		1		(1)		—		11
Income (loss) before income taxes	(42,298)		59,140		6,057		(1,248)		21,651
Income tax expense (benefit)	(10,668)		15,460		844		—		5,636
Equity in net earnings from investment in subsidiaries, net of tax	45,283		—		—		(45,283)		—
Net income	13,653		43,680		5,213		(46,531)		16,015
Less: net income attributable to non-controlling interest	—		—		2,362		—		2,362
Net income attributable to Unit Corporation	$	13,653	$	43,680	$	2,851	$	(46,531)	$	13,653

Condensed Consolidating Statements of Comprehensive Income (Loss) (Unaudited)


	Three Months Ended June 30, 2019
	Parent		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Consolidating Adjustments		Total Consolidated
	(In thousands)
Net income (loss)	$	(8,509)	$	(6,258)	$	699	$	6,051	$	(8,017)
Other comprehensive income (loss), net of taxes:
Unrealized loss on securities, net of tax ($9)	—		(30)		—		—		(30)
Comprehensive income (loss)	(8,509)		(6,288)		699		6,051		(8,047)
Less: Comprehensive income attributable to non-controlling interests	—		—		492		—		492
Comprehensive income (loss) attributable to Unit Corporation	$	(8,509)	$	(6,288)	$	207	$	6,051	$	(8,539)


	Three Months Ended June 30, 2018
	Parent		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Consolidating Adjustments		Total Consolidated
	(In thousands)
Net income	$	5,788	$	22,860	$	3,874	$	(24,372)	$	8,150
Other comprehensive income, net of taxes:
Unrealized gain on securities, net of tax of $11	—		35		—		—		35
Comprehensive income	5,788		22,895		3,874		(24,372)		8,185
Less: Comprehensive income attributable to non-controlling interests	—		—		2,362		—		2,362
Comprehensive income attributable to Unit Corporation	$	5,788	$	22,895	$	1,512	$	(24,372)	$	5,823


	Six Months Ended June 30, 2019
	Parent		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Consolidating Adjustments		Total Consolidated
	(In thousands)
Net income (loss)	$	(12,013)	$	3,514	$	3,059	$	(4,859)	$	(10,299)
Other comprehensive income (loss), net of taxes:
Unrealized loss on securities, net of tax of ($2)	—		(6)		—		—		(6)
Comprehensive income (loss)	(12,013)		3,508		3,059		(4,859)		(10,305)
Less: Comprehensive income attributable to non-controlling interests	—		—		1,714		—		1,714
Comprehensive income (loss) attributable to Unit Corporation	$	(12,013)	$	3,508	$	1,345	$	(4,859)	$	(12,019)


	Six Months Ended June 30, 2018
	Parent		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Consolidating Adjustments		Total Consolidated
	(In thousands)
Net income	$	13,653	$	43,680	$	5,213	$	(46,531)	$	16,015
Other comprehensive income, net of taxes:
Unrealized loss on securities, net of tax of ($47)	—		(141)		—		—		(141)
Comprehensive income	13,653		43,539		5,213		(46,531)		15,874
Less: Comprehensive income attributable to non-controlling interests	—		—		2,362		—		2,362
Comprehensive income attributable to Unit Corporation	$	13,653	$	43,539	$	2,851	$	(46,531)	$	13,512

Condensed Consolidating Statements of Cash Flows (Unaudited)


	Six Months Ended June 30, 2019
	Parent		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Consolidating Adjustments		Total Consolidated
	(In thousands)
OPERATING ACTIVITIES:
Net cash provided by (used in) operating activities	$	(8,023)	$	111,615	$	23,943	$	(34)	$	127,501
INVESTING ACTIVITIES:
Capital expenditures	(100)		(212,982)		(33,556)		—		(246,638)
Producing properties and other acquisitions	—		(3,313)		—		—		(3,313)
Proceeds from disposition of assets	10		7,247		83		—		7,340
Net cash used in investing activities	(90)		(209,048)		(33,473)		—		(242,611)
FINANCING ACTIVITIES:
Borrowings under credit agreement	238,800		—		32,400		—		271,200
Payments under credit agreement	(135,300)		—		(24,900)		—		(160,200)
Intercompany borrowings (advances), net	(96,311)		97,384		(1,107)		34		—
Payments on finance leases	—		—		(1,980)		—		(1,980)
Employee taxes paid by withholding shares	(4,073)		—		—		—		(4,073)
Distributions to non-controlling interest	919		—		(1,837)		—		(918)
Book overdrafts	4,183		—		1,115		—		5,298
Net cash provided by financing activities	8,218		97,384		3,691		34		109,327
Net increase (decrease) in cash and cash equivalents	105		(49)		(5,839)		—		(5,783)
Cash and cash equivalents, beginning of period	403		208		5,841		—		6,452
Cash and cash equivalents, end of period	$	508	$	159	$	2	$	—	$	669


	Six Months Ended June 30, 2018
	Parent		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Consolidating Adjustments		Total Consolidated
	(In thousands)
OPERATING ACTIVITIES:
Net cash provided by operating activities	$	(96,111)	$	145,227	$	(16,469)	$	126,993	$	159,640
INVESTING ACTIVITIES:
Capital expenditures	(13)		(173,097)		(16,806)		—		(189,916)
Producing properties and other acquisitions	—		(962)		—		—		(962)
Proceeds from disposition of assets	30		23,427		71		—		23,528
Net cash used in investing activities	17		(150,632)		(16,735)		—		(167,350)
FINANCING ACTIVITIES:
Borrowings under credit agreement	69,200		—		2,000		—		71,200
Payments under credit agreement	(247,200)		—		(2,000)		—		(249,200)
Intercompany borrowings (advances), net	276,460		5,468		(154,935)		(126,993)		—
Payments on finance leases	—		—		(1,901)		—		(1,901)
Employee taxes paid by withholding shares	(4,947)		—		—		—		(4,947)
Proceeds from investments of non-controlling interest	102,958		—		197,042		—		300,000
Transaction costs associated with sale of non-controlling interest	(2,254)		—		—		—		(2,254)
Book overdrafts	(1,581)		—		—		—		(1,581)
Net cash provided by (used in) financing activities	192,636		5,468		40,206		(126,993)		111,317
Net increase (decrease) in cash and cash equivalents	96,542		63		7,002		—		103,607
Cash and cash equivalents, beginning of period	510		191		—		—		701
Cash and cash equivalents, end of period	$	97,052	$	254	$	7,002	$	—	$	104,308

Revenue from Contracts with Customers (Contract with Customer, Asset and Liability) (Details) - USD ($)
$ in Thousands

6 Months Ended

Jun. 30, 2019

Dec. 31, 2018

Disaggregation of Revenue [Line Items]

Contract liability

$ 8,513

$ 9,881

Mid-Stream [Member]

Disaggregation of Revenue [Line Items]

Contract assets

^[1]

13,078

13,164

Amounts invoiced in excess of revenue recognized

(86)

Contract with Customer, Asset, Net, Current

3,400

300

Contract with Customer, Asset, Net, Noncurrent

9,700

12,900

Contract liability

^[2]

8,513

9,882

New contract

Contract with Customer, Liability, Revenue Recognized

(1,429)

Contract with Customer, Liability, Current

2,900

Contract with Customer, Liability, Noncurrent

$ 5,600

$ 7,000

[1]

At December 31, 2018, total contract assets are included in prepaid expenses and other and other assets of $0.3 million and $12.9 million, respectively, in our Consolidated Balance Sheet. At June 30, 2019, total contract assets included prepaid expenses and other and other assets of $3.4 million and $9.7 million, respectively, in our Condensed Consolidated Balance Sheet.

[2]

At December 31, 2018, total contract liabilities are included in current portion of other long-term liabilities and other long-term liabilities of $2.9 million and $7.0 million, respectively, in our Consolidated Balance Sheet. At June 30, 2019, total contract liabilities included current portion of other long-term liabilities and other long-term liabilities of $2.9 million and $5.6 million, respectively, in our Condensed Consolidated Balance Sheet.

Revenue from Contracts with Customers (Revenue, Remaining Performance Obligation) (Details) - Mid-Stream [Member] $ in Thousands	Jun. 30, 2019 USD ($)
Minimum [Member]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining Term of Contract	3 years
Maximum [Member]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining Term of Contract	9 years
Demand fee contracts [Member]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining Impact to Revenue	$ (4,565)
Demand fee contracts [Member] \| July - December 2019
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining Impact to Revenue	1,295
Demand fee contracts [Member] \| 2020
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining Impact to Revenue	(3,775)
Demand fee contracts [Member] \| 2021
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining Impact to Revenue	(3,501)
Demand fee contracts [Member] \| 2022
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining Impact to Revenue	1,380
Demand fee contracts [Member] \| 2023 and Beyond
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining Impact to Revenue	$ 36

Revenue from Contracts with Customer (Narrative) (Details) - Drilling [Member]	6 Months Ended
	Jun. 30, 2019 contract
Segment Reporting Information [Line Items]
Number of Contracts, Daywork	24
Short-term Contract with Customer [Member]
Segment Reporting Information [Line Items]
Contract Duration	1 month
Long-term Contract with Customer [Member]
Segment Reporting Information [Line Items]
Contract Duration	3 years

Divestitures (Narrative) (Details) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
Divestitures (Narrative) (Details) $ in Thousands	Jun. 30, 2019 USD ($)	Jun. 30, 2018 USD ($)	Jun. 30, 2019 USD ($) rig	Jun. 30, 2018 USD ($)	Dec. 31, 2018 USD ($) rig
Segment Reporting Information [Line Items]
Contract drilling impairment					$ 147,900
Gain (loss) on Disposition of Assets	$ 422	$ 161	$ (1,193)	$ 322
Assets held for sale	19,500		19,500		$ 22,511
Oil and Natural Gas [Member]
Segment Reporting Information [Line Items]
Proceeds from non-core oil and natural gas asset sales, net of related expenses			2,100	22,400
Gain (loss) on Disposition of Assets	60	59	$ 138	129
Drilling [Member]
Segment Reporting Information [Line Items]
Number of drilling rigs removed from service \| rig					41
Number of rigs sold \| rig			3
Gain (loss) on Disposition of Assets	296	$ 57	$ (1,449)	$ 84
Assets Held for Sale Drilling Equipment [Member]
Segment Reporting Information [Line Items]
Net book value of assets held for sale that were sold	$ 3,000		3,000
Gain (loss) on Disposition of Assets			$ (200)

Earnings (Loss) Per Share (Schedule of Earnings (Loss) Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Earnings Per Share [Abstract]
Earnings (loss) of basic earnings (loss) attributable to Unit Corporation per common share	$ (8,509)	$ 5,788	$ (12,013)	$ 13,653
Income of effect of dilutive stock options and restricted stock	0	0	0	0
Earnings (loss) of diluted income (loss) attributable to Unit Corporation per common share	$ (8,509)	$ 5,788	$ (12,013)	$ 13,653
Weighted shares of basic earnings (loss) attributable to Unit Corporation per common share	52,930	52,050	52,744	51,891
Weighted shares of effect of dilutive stock options and restricted stock	0	731	0	651
Weighted shares of diluted earnings (loss) attributable to Unit Corporation per common share	52,930	52,781	52,744	52,542
Per-Share amount of basic earnings (loss) attributable to Unit Corporation per common share	$ (0.16)	$ 0.11	$ (0.23)	$ 0.26
Per-Share amount of effect of dilutive stock options and restricted stock	0	0	0	0
Per-Share amount of diluted earnings (loss) attributable to Unit Corporation per common share	$ (0.16)	$ 0.11	$ (0.23)	$ 0.26

Earnings (Loss) Per Share (Schedule of Antidilutive Securities Excluded From Computation of Earnings Per Share) (Details) - Stock options [Member] - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	42,000	66,500	42,000	66,500
Average exercise price	$ 48.56	$ 44.42	$ 48.56	$ 44.42

Earnings (Loss) Per Share (Narrative) (Details) - shares	3 Months Ended	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2019
Restricted stock and stock options [Member]
Debt and Equity Securities, FV-NI [Line Items]
Antidilutive securities excluded from computation of earnings per share	283,000	286,000

Accrued Liabilities (Accrued Liabilities) (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Accrued Liabilities [Abstract]
Employee costs	$ 13,910	$ 22,056
Lease operating expenses	10,552	12,756
Interest payable	6,741	6,635
Taxes	6,675	1,378
Third-party credits	2,824	2,129
Other	4,473	4,710
Total accrued liabilities	$ 45,175	$ 49,664

Long-Term Debt And Other Long-Term Liabilities (Long-Term Debt) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Total principal amount	$ 761,000	$ 650,000
Less: unamortized discount	(1,303)	(1,623)
Less: debt issuance costs, net	(3,107)	(3,902)
Total long-term debt	$ 756,590	644,475
Interest percentage of senior subordinated notes	6.625%
Debt instrument maturity date	May 15, 2021
6.625% Senior Subordinated Notes Due 2021 [Member]
Debt Instrument [Line Items]
6.625% senior subordinated notes due 2021	$ 650,000	650,000
Interest percentage of senior subordinated notes	6.625%
Debt instrument maturity date	May 15, 2021
Unit Credit Agreement [Member]
Debt Instrument [Line Items]
Credit agreement	$ 103,500	$ 0
Revolving credit facility interest rate	4.20%	0.00%
Superior Credit Agreement [Member]
Debt Instrument [Line Items]
Credit agreement	$ 7,500	$ 0
Revolving credit facility interest rate	6.50%	0.00%

Long-Term Debt And Other Long-Term Liabilities (Other Long-Term Liabilities) (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018	Jun. 30, 2018	Dec. 31, 2017
Debt Disclosure [Abstract]
Asset retirement obligation (ARO) liability	$ 67,433	$ 64,208	$ 62,838	$ 69,444
Workers' compensation	12,118	12,738
Finance lease obligations	9,400	11,380
Contract liability	8,513	9,881
Separation benefit plans	9,749	8,814
Deferred compensation plan	6,002	5,132
Gas balancing liability	3,372	3,331
Other liabilities	116,587	115,484
Current portion of other long-term liabilities	13,887	14,250
Other long-term liabilities	$ 102,700	$ 101,234

Long-Term Debt And Other Long-Term Liabilities (Narrative) (Details) - USD ($) $ in Thousands			6 Months Ended
	May 15, 2019	May 02, 2018	Jun. 30, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Interest percentage of senior subordinated notes			6.625%
Debt instrument maturity date			May 15, 2021
Estimated principal payments in year 1			$ 13,900
Estimated principal payments in year 2			697,500
Estimated principal payments in year 3			5,600
Estimated principal payments in year 4			10,700
Estimated principal payments in year 5			105,800
6.625% Senior Subordinated Notes Due 2021 [Member]
Debt Instrument [Line Items]
Aggregate principal amount			$ 650,000	$ 650,000
Interest percentage of senior subordinated notes			6.625%
Senior notes repurchase price in percentage	100.00%		101.00%
Debt instrument maturity date			May 15, 2021
Original debt issuance fees			$ 14,700
Unit Credit Agreement [Member]
Debt Instrument [Line Items]
Credit facility maximum credit amount			$ 1,000,000
Commitment fee percentage under credit facility			0.375%
Origination, agency and syndication and other related fees with the credit agreement			$ 3,300
Payable assessment term for LIBOR			90 days
LIBOR interest rate plus one percent			LIBOR plus 1.00% plus a margin
Line of credit facility, amount outstanding			$ 103,500	0
Unit Credit Agreement, Dividend Restrictions			the payment of dividends (other than stock dividends) during any fiscal year over 30% of our consolidated net income for the preceding fiscal year;
Unit Credit Agreement, Asset Restrictions			investments in Unrestricted Subsidiaries (as defined in the Unit credit agreement) over $200.0 million
Current ratio of credit facility			1 to 1
Leverage ratio of credit facility			4 to 1
Covenant Compliance			As of June 30, 2019, we were in compliance with these covenants.
Unit Credit Agreement [Member] \| Minimum [Member]
Debt Instrument [Line Items]
LIBOR plus interest rate			1.50%
Unit Credit Agreement [Member] \| Maximum [Member]
Debt Instrument [Line Items]
LIBOR plus interest rate			2.50%
Unit Credit Agreement [Member] \| Line Of Credit Facility Commitment Amount [Member]
Debt Instrument [Line Items]
Credit facility current credit amount			$ 425,000
Unit Credit Agreement [Member] \| Line Of Credit Facility Lender Determined Amount [Member]
Debt Instrument [Line Items]
Credit facility current credit amount			$ 425,000
Unit Credit Agreement [Member] \| Proved developed producing total value of our oil and gas properties [Member]
Debt Instrument [Line Items]
Percentage of collateral pledged			80.00%
Present worth discounted			8.00%
Superior Credit Agreement [Member]
Debt Instrument [Line Items]
Credit facility maximum credit amount			$ 250,000
Credit facility current credit amount			$ 200,000
Commitment fee percentage under credit facility			0.375%
Origination, agency and syndication and other related fees with the credit agreement			$ 1,700
Line of credit facility, amount outstanding			$ 7,500	$ 0
Covenant Compliance			As of June 30, 2019, Superior was in compliance with these covenants.
Superior Credit Agreement, Term			5 years
Superior Credit Agreement, Interest Rate Description			annual interest at a rate, at Superior’s option, equal to (a) LIBOR plus the applicable margin of 2.00% to 3.25% or (b) the alternate base rate (greater of (i) the federal funds rate plus 0.5%, (ii) the prime rate, and (iii) third day LIBOR plus 1.00%) plus the applicable margin of 1.00% to 2.25%.
Superior Credit Agreement [Member] \| Minimum [Member]
Debt Instrument [Line Items]
Consolidated EBITDA to interest expense ratio			2.50 to 1.00
Superior Credit Agreement [Member] \| Maximum [Member]
Debt Instrument [Line Items]
Funded debt to consolidated EBITDA ratio			4.00 to 1.00
Pledge agreement [Member] \| Unit Credit Agreement [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Collateral		granting a security interest in the limited liability membership interests and other equity interests we own in Superior (which as of this report is 50% of the aggregate outstanding equity interests of Superior

Asset Retirement Obligations (Schedule Of Asset Retirement Obligations) (Details) - USD ($)
$ in Thousands

6 Months Ended

Jun. 30, 2019

Jun. 30, 2018

Asset Retirement Obligation Disclosure [Abstract]

ARO liability, January 1:

$ 64,208

$ 69,444

Accretion of discount

1,168

1,248

Liability incurred

3,656

211

Liability settled

(2,316)

(3,142)

Liability sold

(1,632)

(94)

Revision of estimates

^[1]

2,349

(4,829)

ARO liability, June 30:

67,433

62,838

Less current portion

1,784

1,451

Total long-term ARO

$ 65,649

$ 61,387

[1]	Plugging liability estimates were revised in both 2019 and 2018 for updates in the cost of services used to plug wells over the preceding year. We had various upward and downward adjustments.

Stock-Based Compensation (Schedule of Restricted Stock Awards and Stock Options) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Abstract]
Recognized stock compensation expense	$ 4.7	$ 4.0	$ 8.5	$ 9.5
Capitalized stock compensation cost for our oil and natural gas properties	0.7	0.6	1.3	1.0
Tax benefit on stock based compensation	$ 1.2	$ 1.0	$ 2.1	$ 2.3

Stock-Based Compensation (Schedule of Fair Value of the Restricted Stock Awards Granted During the Periods) (Details) - Restricted Stock [Member] - USD ($)
$ in Millions

3 Months Ended

6 Months Ended

Jun. 30, 2019

Jun. 30, 2018

Jun. 30, 2019

Jun. 30, 2018

Time Vested [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

74,284

49,312

999,957

888,810

Time Vested [Member] | Employees [Member]

$ 0.9

^[1]

$ 1.0

^[1]

$ 15.5

^[2]

$ 17.1

^[2]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

1,500

5,000

927,173

844,498

Percentage of shares granted expected to be distributed

$ 0.0

^[1]

$ 0.1

^[1]

$ 14.6

^[2]

$ 16.2

^[2]

95.00%

Time Vested [Member] | Non-employee Directors [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

72,784

44,312

72,784

44,312

Percentage of shares granted expected to be distributed

$ 0.9

^[1]

$ 0.9

^[1]

$ 0.9

^[2]

$ 0.9

^[2]

100.00%

Performance Shares [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

424,070

362,070

Performance Shares [Member] | Employees [Member]

$ 0.0

^[1]

$ 0.0

^[1]

$ 7.1

^[2]

$ 7.3

^[2]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

424,070

362,070

Percentage of shares granted expected to be distributed

$ 0.0

^[1]

$ 0.0

^[1]

$ 7.1

^[2]

$ 7.3

^[2]

54.00%

74.00%

Performance Shares [Member] | Non-employee Directors [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]

$ 0.0

^[1]

$ 0.0

^[1]

$ 0.0

^[2]

$ 0.0

^[2]

[1]	The performance shares represent 100% of the grant date fair value. (We recognize the grant date fair value minus estimated forfeitures.)
[2]	The performance shares represent 100% of the grant date fair value. (We recognize the grant date fair value minus estimated forfeitures.)

Stock-Based Compensation (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	May 06, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost related to unvested awards	$ 24.8		$ 24.8
Unrecognized compensation cost, expected to be capitalized	$ 3.4		$ 3.4
Weighted average years over which this cost will be recognized			9 months 18 days
Increase in stock compensation expense due to the restricted stock awards granted			$ 4.0
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options granted	0	0	0	0
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized					7,230,000
Incentive Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized					2,000,000
Stock Performance Measures [Member] \| Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance percentage criteria			0.00%
Stock Performance Measures [Member] \| Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance percentage criteria			200.00%
Cash flow to total assets performance [Member] \| Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance percentage criteria			0.00%
Cash flow to total assets performance [Member] \| Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance percentage criteria			200.00%
Cash flow to total assets performance [Member] \| Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance percentage criteria			100.00%
Time Vested [Member] \| Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period			3 years
Shares granted	74,284	49,312	999,957	888,810
Performance Shares [Member] \| Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted	0	0	424,070	362,070
Performance Shares [Member] \| Cash flow to total assets performance [Member] \| Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period			3 years
Cliff vest [Member] \| Performance Shares [Member] \| Stock Performance Measures [Member] \| Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period			3 years
2019 [Member] \| Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance percentage criteria			7.00%
2018 [Member] \| Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance percentage criteria			63.00%

Derivatives (Schedule of Derivatives Outstanding) (Details)	6 Months Ended
	Jun. 30, 2019 $ / Unit MMBTU bbl
Swap [Member] \| Jul'19 - Oct'19 [Member] \| Natural Gas [Member] \| IF - NYMEX (HH) [Member]
Derivative [Line Items]
Weighted average price	2.900
Hedged volume (MMBtu/day) \| MMBTU	60,000
Swap [Member] \| Nov'19 - Dec'19 [Member] \| Natural Gas [Member] \| IF - NYMEX (HH) [Member]
Derivative [Line Items]
Weighted average price	2.900
Hedged volume (MMBtu/day) \| MMBTU	40,000
Basis swap [Member] \| Jul'19 - Dec'19 [Member] \| Natural Gas [Member] \| PEPL [Member]
Derivative [Line Items]
Weighted average price	(0.659)
Hedged volume (MMBtu/day) \| MMBTU	20,000
Basis swap [Member] \| Jul'19 - Dec'19 [Member] \| Natural Gas [Member] \| NGPL Midcon [Member]
Derivative [Line Items]
Weighted average price	(0.625)
Hedged volume (MMBtu/day) \| MMBTU	10,000
Basis swap [Member] \| Jul'19 - Dec'19 [Member] \| Natural Gas [Member] \| NGPL Texok [Member]
Derivative [Line Items]
Weighted average price	(0.265)
Hedged volume (MMBtu/day) \| MMBTU	30,000
Basis swap [Member] \| Jan'20 - Dec'20 [Member] \| Natural Gas [Member] \| NGPL Texok [Member]
Derivative [Line Items]
Weighted average price	(0.275)
Hedged volume (MMBtu/day) \| MMBTU	30,000
Collar [Member] \| Jul'19 - Dec'19 [Member] \| Natural Gas [Member] \| IF - NYMEX (HH) [Member]
Derivative [Line Items]
Hedged volume (MMBtu/day) \| MMBTU	20,000
Cap Price	3.03
Floor Price	2.63
Three-way collar [Member] \| Jul'19 - Dec'19 [Member] \| Crude Oil [Member] \| WTI - NYMEX [Member]
Derivative [Line Items]
Hedged volume (Bbl/day) \| bbl	4,000
Cap Price	72.93
Subfloor price	51.25
Floor Price	61.25

Derivatives (Fair Value of Derivative Instruments and Locations in Balance Sheets) (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Current derivative asset	$ 8,513	$ 12,870
Non-current derivative asset	0	0
Total derivatives assets	8,513	12,870
Current derivative liability	0	0
Non-current derivative liability	256	293
Derivative Liability, Total	$ 256	$ 293

Derivatives (Effect of Derivative Instruments Recognized in Income Statements, Derivative Instruments) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) on derivatives	$ 7,927	$ (14,461)	$ 995	$ (21,223)
Commodity Derivatives [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) on derivatives	7,927	(14,461)	995	(21,223)
Amount of gains (loss) settled during the period	2,658	(6,855)	5,314	(8,928)
Gain (loss) on derivatives [Member] \| Commodity Derivatives [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) on derivatives	$ 7,927	$ (14,461)	$ 995	$ (21,223)

Fair Value Measurements (Fair Value of Available-for-sale Securities) (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Schedule of Available-for-sale Securities [Line Items]
Cost	$ 830	$ 830
Gross unrealized gains	0	0
Gross unrealized losses	645	636
Available-for-sale Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Estimated fair value	185	194
Available-for-sale Securities [Member] \| Level 1 [Member]
Schedule of Available-for-sale Securities [Line Items]
Estimated fair value	$ 185	$ 194

Fair Value Measurements (Recurring Fair Value Measurements) (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative Asset	$ 8,513	$ 12,870
Derivative Liability	(256)	(293)
Financial assets (liabilities)	8,442	12,771
Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets (liabilities)	185	194
Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets (liabilities)	4,312	1,947
Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets (liabilities)	3,945	10,630
Effect of Netting [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial assets (liabilities)	0	0
Commodity Derivatives [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative Asset	8,513	12,870
Derivative Liability	(256)	(293)
Total commodity derivatives	8,257	12,577
Commodity Derivatives [Member] \| Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Gross Assets	0	0
Gross Liabilities	0	0
Total commodity derivatives	0	0
Commodity Derivatives [Member] \| Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Gross Assets	5,422	3,225
Gross Liabilities	(1,110)	(1,278)
Total commodity derivatives	4,312	1,947
Commodity Derivatives [Member] \| Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Gross Assets	3,945	10,964
Gross Liabilities	0	(334)
Total commodity derivatives	3,945	10,630
Commodity Derivatives [Member] \| Effect of Netting [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Effect of netting on assets	(854)	(1,319)
Effect of netting on liabilities	854	1,319
Total commodity derivatives	0	0
Available-for-sale Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Equity securities	185	194
Available-for-sale Securities [Member] \| Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Equity securities	185	194
Available-for-sale Securities [Member] \| Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Equity securities	0	0
Available-for-sale Securities [Member] \| Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Equity securities	0	0
Available-for-sale Securities [Member] \| Effect of Netting [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Equity securities	$ 0	$ 0

Fair Value Measurements (Reconciliations Of Level 3 Fair Value Measurements) (Details) - Level 3 [Member] - USD ($)
$ in Thousands

3 Months Ended

6 Months Ended

Jun. 30, 2019

Jun. 30, 2018

Jun. 30, 2019

Jun. 30, 2018

Beginning of period

$ 3,080

$ (3,206)

$ 10,630

$ (206)

Included in earnings

^[1]

2,060

(4,704)

(3,374)

(8,624)

Settlements

(1,195)

1,775

(3,311)

2,695

End of period

3,945

(6,135)

3,945

(6,135)

Total earnings (losses) for the period included in earnings attributable to the change in unrealized gain relating to assets still held at end of period

$ 865

$ (2,929)

$ (6,685)

$ (5,929)

[1]	Commodity derivatives are reported in the Unaudited Condensed Consolidated Statements of Operations in gain (loss) on derivatives.

Fair Value Measurements (Schedule Of Quantitative Information About Unobservable Inputs) (Details) - Level 3 [Member]
$ in Thousands

6 Months Ended

Jun. 30, 2019

USD ($)

$ / Unit

Oil [Member] | Three-way collar [Member]

Derivative fair value | $

$ 2,828

^[1]

Unobservable Input

Forward commodity price curve

Oil [Member] | Three-way collar [Member] | Minimum [Member]

Oil [Member] | Three-way collar [Member] | Maximum [Member]

Natural Gas [Member] | Collar [Member]

9.00

Derivative fair value | $

$ 1,117

^[1]

Unobservable Input

Forward commodity price curve

Natural Gas [Member] | Collar [Member] | Minimum [Member]

Natural Gas [Member] | Collar [Member] | Maximum [Member]

0.480

[1]	The commodity contracts detailed in this category include non-exchange-traded crude oil three-way collars and natural gas collars that are valued based on NYMEX. The forward pricing range represents the low and high price expected to be paid or received within the settlement period.

Fair Value Measurements (Narrative) (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral posted	$ 0
6.625% senior subordinated notes due 2021	645,600	$ 644,500
Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Estimated fair value of long-term debt	592,400	600,500
Unit Credit Agreement [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Line of credit facility, amount outstanding	103,500	0
Superior Credit Agreement [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Line of credit facility, amount outstanding	$ 7,500	$ 0

The carrying value as of the balance sheet date of the current and noncurrent portions of long-term obligations drawn from a line of credit, which is a bank's commitment to make loans up to a specific amount. Examples of items that might be included in the application of this element may consist of letters of credit, standby letters of credit, and revolving credit arrangements, under which borrowings can be made up to a maximum amount as of any point in time conditional on satisfaction of specified terms before, as of and after the date of drawdowns on the line. Includes short-term obligations that would normally be classified as current liabilities but for which (a) postbalance sheet date issuance of a long term obligation to refinance the short term obligation on a long term basis, or (b) the enterprise has entered into a financing agreement that clearly permits the enterprise to refinance the short-term obligation on a long term basis and the following conditions are met (1) the agreement does not expire within 1 year and is not cancelable by the lender except for violation of an objectively determinable provision, (2) no violation exists at the BS date, and (3) the lender has entered into the financing agreement is expected to be financially capable of honoring the agreement.

+ References + Details

Leases (Supplemental cash flow information related to leases) (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2019 USD ($)
Leases [Abstract]
Operating cash flows for operating leases	$ 1,616
Financing cash flows for finance leases	1,980
Lease liabilities recognized in exchange for new operating lease right of use assets	$ 5

Leases (Schedule of lease assets and liabilities) (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Leases [Abstract]
Operating right of use asset	$ 8,302	$ 0
Finance right of use assets	18,416
Total right of use assets	26,718
Current operating lease liability	4,519	0
Current finance lease liability	4,081
Operating lease liability	3,556	$ 0
Finance lease liability	5,319
Total lease liability	$ 17,475

Leases (Schedule of lease costs) (Details) - USD ($)
$ in Thousands

3 Months Ended

6 Months Ended

Jun. 30, 2019

Amortization of finance leased assets

$ 995

$ 1,980

Interest on finance lease liabilities

100

211

Operating lease cost

1,052

1,651

Short-term lease cost

^[1]

12,038

22,012

Variable lease cost

190

Total lease cost

14,269

26,044

Capitalized costs included in short-term lease costs

$ 9,000

$ 14,700

[1]	Short-term lease cost includes amounts capitalized related to our oil and natural gas segment of $9.0 million and $14.7 million, respectively.

Leases (Schedule of weighted average discount rate for leases) (Details)

Jun. 30, 2019

Operating Lease, Weighted Average Remaining Lease Term

2 years 2 months 12 days

Operating Lease, Weighted Average Discount Rate, Percent

6.34%

^[1]

Finance Lease, Weighted Average Remaining Lease Term

2 years 2 months 12 days

Finance Lease, Weighted Average Discount Rate, Percent

4.00%

^[1]

[1]	Our weighted average discount rates represent the rate implicit in the lease or our incremental borrowing rate for a term equal to the remaining term of the lease.

Leases (Operating leases) (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Ending with July 1,
2020	$ 4,902
2021	2,642
2022	839
2023	196
2024	12
2025 and beyond	81
Total future payments	8,672
Less: Interest	597
Present value of future minimum operating lease payments	8,075
Less: current portion	(4,519)	$ 0
Operating lease liability	$ 3,556	$ 0

Leases (Finance leases) (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Ending July 1,
2020	$ 6,168
2021	6,672
2022	180
Total future payments	13,020
Less payments related to:
Maintenance	3,196
Interest	424
Present value of future minimum finance lease payments	9,400	$ 11,380
Less: Current portion	(4,081)
Total long-term finance lease payments	$ 5,319

Leases (Narrative) (Details) $ in Thousands	6 Months Ended
Leases (Narrative) (Details) $ in Thousands	Jun. 30, 2019 USD ($)	Jan. 01, 2019 USD ($)	Dec. 31, 2018 USD ($)
Adoption of ASC842 [Line Items]
Operating leases under ASC 840 future minimum payments due in next year			$ 4,600
Operating leases under ASC 840 future minimum payments due in two years			1,700
Operating leases under ASC 840 future minimum payments due in three years			400
Average working interest in operated properties	94.00%
Operating right of use asset	$ 8,302		$ 0
Total operating lease liability	8,075
Operating lease liability not yet commenced	$ 100
Number of compressors under finance lease agreement	20
Finance lease term	7 years
Finance Lease Obligations, Current	$ 4,100
Finance Lease Obligations, Noncurrent	$ 5,300
Discount rate finance leases	4.00%
Maintenance	$ 3,196
Interest	424
Finance leases, future minimum payments, average annual payment	$ 4,300
Finance lease fair market value percentage for purchase	10.00%
Accounting Standards Update 2016-02 [Member]
Adoption of ASC842 [Line Items]
Operating right of use asset		$ 3,700
Total operating lease liability		$ 3,500
Maximum [Member]
Adoption of ASC842 [Line Items]
Term of contract for operating lease liabilities not yet commenced	2 years

Commitments and Contingencies (Narrative) (Details) - USD ($)	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Long-term Purchase Commitment [Line Items]
Percentage of repurchase of limited units outstanding	20.00%
Repurchase Of Limited Units Outstanding Amount	$ 600,000	$ 0
Maximum amount of distributions we would forgo if our commitment was not fulfilled	74,000,000
Other Commitment, Due in Next Twelve Months	$ 1,600,000
Capital Addition Purchase Commitments [Member] \| Oil and Natural Gas [Member]
Long-term Purchase Commitment [Line Items]
Long-term Purchase Commitment, Description	as part of the Superior transaction, we entered into a contractual obligation that commits us to spend $150.0 million to drill wells in the Granite Wash/Buffalo Wallow area over three years starting January 1, 2019. This amount is included in our future drilling plans. For each dollar of the $150.0 million that we do not spend (over the three year period), we would forgo receiving $0.58 of future distributions from our 50% ownership interest in our consolidated mid-stream subsidiary. At June 30, 2019, if we elected not to drill or spend any additional money in the designated area before December 31, 2021, the maximum amount we could forgo from distributions would be $74.0 million.
Long-term Purchase Commitment, Amount	$ 150,000,000.0
Long-term Purchase Commitment, Period	3 years
Long-term purchase commitment, purchases made	$ 22,400,000

Variable Interest Entity Arrangements (Schedule of Assets and Liabilities) (Details) - USD ($)
$ in Thousands

Jun. 30, 2019

Dec. 31, 2018

Jun. 30, 2018

Dec. 31, 2017

Accounts receivable, net of allowance for doubtful accounts

$ 669

$ 6,452

$ 104,308

$ 701

89,876

119,397

9,106

6,602

130,585

170,359

Property and equipment:

798,503

767,388

30,019

29,524

Less accumulated depreciation, depletion, amortization, and impairment

8,847,546

8,615,042

6,289,575

6,182,726

2,557,971

2,432,316

8,302

33,863

32,570

^[1]

2,793,529

2,698,053

131,129

149,945

45,175

49,664

4,519

13,887

14,250

194,710

213,859

756,590

644,475

3,556

102,700

101,234

VIE [Member]

Accounts receivable, net of allowance for doubtful accounts

5,841

19,500

33,207

4,185

1,049

23,687

40,097

Property and equipment:

798,503

767,388

3,152

3,086

Less accumulated depreciation, depletion, amortization, and impairment

801,655

770,474

387,845

364,740

413,810

405,734

6,221

15,330

17,551

459,048

463,382

14,807

32,214

4,296

3,688

3,576

6,970

6,875

29,649

42,777

7,500

2,451

Schedule of Accumulated Other Comprehensive Income (Loss) [Abstract]

11,449

14,687

Total liabilities

$ 51,049

$ 57,464

[1]

Variable Interest Entity Arrangements (Details)	6 Months Ended
Variable Interest Entity Arrangements (Details)	Jun. 30, 2019 USD ($)
Variable Interest Entity [Line Items]
Methodology for Determining Whether Entity is Primary Beneficiary	We consolidate the activities of Superior Pipeline Company, L.L.C. (Superior), a 50/50 joint venture between Unit Corporation and SP Investor Holdings, LLC, which qualifies as a Variable Interest Entity (VIE) under generally accepted accounting principles in the United States (GAAP). We have concluded that we are the primary beneficiary of the VIE, as defined in the accounting standards, since we have the power to direct those activities that most significantly affect the economic performance of Superior as further described in Note 14 – Variable Interest Entity Arrangements.
Superior Pipeline Company, L.L.C. [Member]
Variable Interest Entity [Line Items]
Date Involvement Began	Apr. 03, 2018
Methodology for Determining Whether Entity is Primary Beneficiary	The two variable interests applicable to Unit include the 50% equity investment in Superior and the MSA. The MSA houses the power to direct the activities that most significantly impact Superior's operating performance. The MSA is a separate variable interest. Unit through the MSA has the power to direct Superior’s most significant activities; reciprocally the equity investors lack the power to direct the activities that most significantly impact the entity’s economic performance. Because of this, Unit is considered the primary beneficiary.
Lack of Recourse	Superior's creditors have no recourse to our general credit.
SP Investor Holdings, LLC [Member] \| Superior Pipeline Company, L.L.C. [Member]
Variable Interest Entity [Line Items]
Ownership Percentage	50.00%
SPC Midstream Operating, L.L.C. [Member] \| Superior Pipeline Company, L.L.C. [Member]
Variable Interest Entity [Line Items]
Monthly service fee	$ 255,970

Equity (Schedule of Accumulated Other Comprehensive Income) (Details) - USD ($)
$ in Thousands

3 Months Ended

6 Months Ended

Jun. 30, 2019

Jun. 30, 2018

Jun. 30, 2019

Jun. 30, 2018

Unrealized appreciation (loss) on securities, before tax

$ (39)

$ 46

$ (8)

$ (188)

Tax benefit (expense)

(11)

^[1]

Unrealized appreciation (loss) on securities, net of tax

$ (30)

$ 35

$ (6)

$ (141)

[1]	Due to the implementation of ASU 2018-02, the tax rate changed from 37.75% to 24.5%.

Equity (Reclassification out of Accumulated Other Comprehensive Income) (Details) - USD ($)
$ in Thousands

3 Months Ended

6 Months Ended

Jun. 30, 2019

Jun. 30, 2018

Jun. 30, 2019

Jun. 30, 2018

Jan. 01, 2019

Jan. 01, 2018

New Accounting Pronouncement, Early Adoption [Line Items]

Beginning Balance

$ (457)

$ (100)

$ (481)

$ 63

Unrealized appreciation (loss) before reclassifications

(457)

(65)

(481)

(30)

^[1]

(6)

(141)

^[2]

Amounts reclassified from accumulated other comprehensive income

Net current-period other comprehensive income (loss)

(30)

(6)

(141)

Ending Balance

$ (487)

$ (65)

$ (487)

$ (65)

ASU 2018-02 effect

New Accounting Pronouncement, Early Adoption [Line Items]

Adjustment due to ASU 2018-02

$ 0

$ 13

^[2]

ASU 2018-02 end balance

New Accounting Pronouncement, Early Adoption [Line Items]

$ (481)

$ 76

[1]	Due to the implementation of ASU 2018-02, the tax rate changed from 37.75% to 24.5%.
[2]	Due to the implementation of ASU 2018-02, the tax rate changed from 37.75% to 24.5%.

Industry Segment Information (Industry Segment Information) (Details) - USD ($)
$ in Thousands

3 Months Ended

6 Months Ended

Jun. 30, 2019

Jun. 30, 2018

Jun. 30, 2019

Jun. 30, 2018

Revenues:

$ 165,146

$ 203,303

$ 354,837

$ 408,435

98,041

104,015

201,511

213,248

66,292

58,373

128,418

115,439

164,333

162,388

329,929

328,687

10,064

8,712

19,805

19,474

(422)

(161)

1,193

(322)

(8,829)

32,364

3,910

60,596

7,927

(14,461)

995

(21,223)

(8,995)

(7,729)

(17,533)

(17,733)

Oil and Natural Gas [Member]

(9,891)

10,179

(12,617)

21,651

Revenues:

77,815

^[1]

102,318

^[2]

163,910

^[3]

205,417

^[4]

37,519

33,682

71,527

70,834

38,751

31,554

74,518

62,337

76,270

65,236

146,045

133,171

(60)

(59)

(138)

(129)

1,605

37,141

18,003

72,375

1,605

37,141

18,003

72,375

Drilling [Member]

Revenues:

50,773

^[1]

52,767

^[2]

108,972

^[3]

103,477

^[4]

36,390

36,921

73,775

72,875

13,504

13,726

26,203

27,038

49,894

50,647

99,978

99,913

(296)

(57)

1,449

(84)

1,175

2,177

7,545

3,648

1,175

2,177

7,545

3,648

Mid-Stream [Member]

Revenues:

54,630

^[1]

75,406

^[2]

125,139

^[3]

150,056

^[4]

41,550

59,786

97,679

118,806

12,102

11,175

23,828

22,228

53,652

70,961

121,507

141,034

(66)

(45)

(108)

(79)

1,044

4,490

3,740

9,101

(345)

(304)

(681)

(453)

Corporate and Other [Member]

699

4,186

3,059

8,648

Revenues:

^[1]

^[2]

^[3]

^[4]

1,935

1,918

3,869

3,836

1,935

1,918

3,869

3,836

10,064

8,712

19,805

19,474

(10)

(30)

(11,999)

(10,630)

(23,664)

(23,280)

7,927

(14,461)

995

(21,223)

(8,650)

(7,425)

(16,852)

(17,280)

(12,716)

(32,511)

(39,510)

(61,772)

Eliminations [Member]

Revenues:

(18,072)

^[1]

(27,188)

^[2]

(43,184)

^[3]

(50,515)

^[4]

(17,418)

(26,374)

(41,470)

(49,267)

(17,418)

(26,374)

(41,470)

(49,267)

(654)

(814)

(1,714)

(1,248)

(654)

(814)

(1,714)

(1,248)

Oil and natural gas

Revenues:

77,815

102,318

163,910

205,417

Oil and natural gas | Oil and Natural Gas [Member]

36,242

32,418

68,956

68,380

Revenues:

77,815

^[1]

102,318

^[2]

163,910

^[3]

205,417

^[4]

Oil and natural gas | Drilling [Member]

37,519

33,682

71,527

70,834

Revenues:

^[1]

^[2]

^[3]

^[4]

Oil and natural gas | Mid-Stream [Member]

Revenues:

^[1]

^[2]

^[3]

^[4]

Oil and natural gas | Corporate and Other [Member]

Revenues:

^[1]

^[2]

^[3]

^[4]

Oil and natural gas | Eliminations [Member]

Revenues:

^[1]

^[2]

^[3]

^[4]

(1,277)

(1,264)

(2,571)

(2,454)

Contract drilling

Revenues:

43,037

46,926

94,192

92,915

Contract drilling | Oil and Natural Gas [Member]

29,308

31,894

60,709

63,561

Revenues:

^[1]

^[2]

^[3]

^[4]

Contract drilling | Drilling [Member]

Revenues:

50,773

^[1]

52,767

^[2]

108,972

^[3]

103,477

^[4]

Contract drilling | Mid-Stream [Member]

36,390

36,921

73,775

72,875

Revenues:

^[1]

^[2]

^[3]

^[4]

Contract drilling | Corporate and Other [Member]

Revenues:

^[1]

^[2]

^[3]

^[4]

Contract drilling | Eliminations [Member]

Revenues:

(7,736)

^[1]

(5,841)

^[2]

(14,780)

^[3]

(10,562)

^[4]

Gas gathering and processing

(7,082)

(5,027)

(13,066)

(9,314)

Revenues:

44,294

54,059

96,735

110,103

Gas gathering and processing | Oil and Natural Gas [Member]

32,491

39,703

71,846

81,307

Revenues:

^[1]

^[2]

^[3]

^[4]

Gas gathering and processing | Drilling [Member]

Revenues:

^[1]

^[2]

^[3]

^[4]

Gas gathering and processing | Mid-Stream [Member]

Revenues:

54,630

^[1]

75,406

^[2]

125,139

^[3]

150,056

^[4]

Gas gathering and processing | Corporate and Other [Member]

41,550

59,786

97,679

118,806

Revenues:

^[1]

^[2]

^[3]

^[4]

Gas gathering and processing | Eliminations [Member]

Revenues:

(10,336)

^[1]

(21,347)

^[2]

(28,404)

^[3]

(39,953)

^[4]

$ (9,059)

$ (20,083)

$ (25,833)

$ (37,499)

[1]	The revenues for oil and natural gas occur at a point in time. The revenues for contract drilling and gas gathering and processing occur over time.
[2]	The revenues for oil and natural gas occur at a point in time. The revenues for contract drilling and gas gathering and processing occur over time.
[3]	The revenues for oil and natural gas occur at a point in time. The revenues for contract drilling and gas gathering and processing occur over time.
[4]	The revenues for oil and natural gas occur at a point in time. The revenues for contract drilling and gas gathering and processing occur over time.

Supplemental Condensed Consolidated Financial Information (Condensed Consolidating Balance Sheets) (Details) - USD ($)
$ in Thousands

Jun. 30, 2019

Mar. 31, 2019

Dec. 31, 2018

Jun. 30, 2018

Mar. 31, 2018

Dec. 31, 2017

Accounts receivable, net of allowance for doubtful accounts

$ 669

$ 6,452

$ 104,308

$ 701

89,876

119,397

516

473

8,513

12,870

2,405

2,054

19,500

22,511

9,106

6,602

Oil and natural gas properties on the full cost method:

130,585

170,359

6,212,323

6,018,568

336,214

330,216

1,284,295

1,284,419

798,503

767,388

69,212

68,339

59,080

59,081

30,019

29,524

57,900

57,507

Less accumulated depreciation, depletion, amortization, and impairment

8,847,546

8,615,042

6,289,575

6,182,726

2,557,971

2,432,316

62,808

8,302

33,863

32,570

^[1]

2,793,529

2,698,053

131,129

149,945

45,175

49,664

4,519

13,887

14,250

194,710

213,859

756,590

644,475

256

293

3,556

102,700

101,234

142,485

144,748

Preferred stock, $1.00 par value, 5,000,000 shares authorized, none issued

Common stock, $.20 par value, 175,000,000 shares authorized

10,590

10,414

638,769

628,108

(487)

$ (457)

(481)

(65)

$ (100)

Total shareholders’ equity attributable to Unit Corporation

741,001

752,840

1,389,873

1,390,881

Non-controlling interests in consolidated subsidiaries

203,359

202,563

1,593,232

$ 1,595,859

1,593,444

1,643,654

$ 1,357,300

1,345,560

Consolidating Adjustments [Member]

^[1]

2,793,529

2,698,053

Accounts receivable, net of allowance for doubtful accounts

(5,922)

(14,344)

Oil and natural gas properties on the full cost method:

(5,922)

(14,344)

Less accumulated depreciation, depletion, amortization, and impairment

(1,046,308)

(950,916)

(1,166,768)

(1,160,444)

(57)

(2,219,055)

(2,125,704)

(5,921)

(13,576)

(467)

(468)

(6)

(6,394)

(14,044)

(1,046,308)

(950,916)

(51)

(506)

(300)

Preferred stock, $1.00 par value, 5,000,000 shares authorized, none issued

Common stock, $.20 par value, 175,000,000 shares authorized

(242,963)

(1,145)

(792)

Total shareholders’ equity attributable to Unit Corporation

(921,688)

(916,689)

(1,165,796)

(1,160,444)

Non-controlling interests in consolidated subsidiaries

(1,165,796)

(1,160,444)

(2,219,055)

(2,125,704)

Parent [Member]

Accounts receivable, net of allowance for doubtful accounts

508

403

97,052

510

1,775

2,539

8,513

12,870

2,405

243

1,990

1,993

Oil and natural gas properties on the full cost method:

15,191

18,048

9,731

9,273

28,824

28,584

Less accumulated depreciation, depletion, amortization, and impairment

38,555

37,857

30,652

27,504

7,903

10,353

1,046,308

950,916

1,166,768

1,160,444

8,731

8,225

2,244,959

2,147,986

10,892

8,697

22,080

28,230

1,083

812

34,079

37,739

749,090

644,475

256

293

14,669

13,134

56,471

60,983

Preferred stock, $1.00 par value, 5,000,000 shares authorized, none issued

Common stock, $.20 par value, 175,000,000 shares authorized

10,590

10,414

638,769

628,108

Total shareholders’ equity attributable to Unit Corporation

741,001

752,840

1,390,360

1,391,362

Non-controlling interests in consolidated subsidiaries

1,390,360

1,391,362

Combined Guarantor Subsidiaries [Member]

2,244,959

2,147,986

Accounts receivable, net of allowance for doubtful accounts

159

208

254

191

71,965

94,526

516

473

1,811

19,500

22,511

2,931

3,560

Oil and natural gas properties on the full cost method:

95,071

123,089

6,212,323

6,018,568

336,214

330,216

1,284,295

1,284,419

69,212

68,339

59,080

59,081

17,136

17,165

29,076

28,923

Less accumulated depreciation, depletion, amortization, and impairment

8,007,336

7,806,711

5,871,078

5,790,481

2,136,258

2,016,230

62,808

2,080

9,802

6,793

2,306,019

2,208,920

110,379

122,610

17,837

16,409

925

5,834

6,563

134,975

145,582

1,046,159

948,707

1,122

77,088

73,713

86,014

83,765

Preferred stock, $1.00 par value, 5,000,000 shares authorized, none issued

Common stock, $.20 par value, 175,000,000 shares authorized

45,921

(487)

(481)

Total shareholders’ equity attributable to Unit Corporation

915,227

911,713

960,661

957,153

Non-controlling interests in consolidated subsidiaries

960,661

957,153

Combined Non-Guarantor Subsidiaries [Member]

2,306,019

2,208,920

Accounts receivable, net of allowance for doubtful accounts

5,841

$ 7,002

$ 0

22,058

36,676

4,185

1,049

Oil and natural gas properties on the full cost method:

26,245

43,566

798,503

767,388

3,152

3,086

Less accumulated depreciation, depletion, amortization, and impairment

801,655

770,474

387,845

364,741

413,810

405,733

6,221

15,330

17,552

461,606

466,851

15,779

32,214

5,725

5,493

3,576

6,970

6,875

32,050

44,582

149

2,209

7,500

2,451

11,449

14,687

Preferred stock, $1.00 par value, 5,000,000 shares authorized, none issued

Common stock, $.20 par value, 175,000,000 shares authorized

197,042

1,145

792

Total shareholders’ equity attributable to Unit Corporation

6,461

4,976

204,648

202,810

Non-controlling interests in consolidated subsidiaries

203,359

202,563

408,007

405,373