Nov. 3--Tulsa-based Unit Corp. announced Tuesday it had net income of $31.4 million, or 66 cents per diluted share, for the three months ended Sept. 30, compared with $92.3 million, or $1.96 per diluted share, in the same period of last year.

Total revenues for the third quarter of 2009 were $167.4 million, versus $375.6 million for the comparable quarter of 2008.

"We are pleased with the results of our 2009 third quarter as the challenges to the economy and our industry persist," Unit CEO Larry Pinkston said in a press release.

"Unit had borrowings outstanding of $30.0 million at the end of the third quarter, which is $81.0 million less than the $111 million outstanding at the end of the second quarter. The reduction in borrowings was primarily funded from lower capital spending relative to cash flow, supported by a strong commodity hedge position, along with proceeds from the sale of certain Appalachia acreage and related collection of third-party costs."

Sustained improvement in Unit's key business segments likely will not occur until there are increases in underlying commodity prices, Pinkston said. Natural gas prices, in particular, have been weak much of the year, but have risen lately.

"We believe initial signs of increased demand for drilling activity by exploration and production companies have materialized, and we are well positioned with the personnel, prospects, rig fleet and financial capacity to take advantage of low-cost growth opportunities for our shareholders."

For the first nine months

of 2009, Unit reported a net loss of $84.0 million, or $1.79 per diluted share, compared with net income of $263.5 million, or $5.61 per diluted share, for the same nine months of 2008.

Included in the 2009 results was a $281.2 million ($175.1 million after tax, or $3.71 per diluted share) noncash ceiling test writedown that occurred in the first quarter. The adjustment was required to reduce the carrying value of the company's oil and natural gas properties due to significantly lower commodity prices at the end of the first quarter 2009, Unit said.

Excluding the writedown, net income for the first nine months of 2009 would have been $91.1 million, or $1.92 per diluted share.

Total revenues for the first nine months of 2009 were $532.6 million, compared with $1.1 billion in the comparable nine months of 2008.

Average drilling rig utilization for the third quarter of 2009 was 34.6 drilling rigs, or 26 percent, a decrease of 69 percent from the third quarter of 2008, and an increase of 9 percent from the second quarter of 2009.

Contract drilling rig rates for the third quarter of 2009 averaged $15,360 per day, a decrease of 18 percent, or $3,284 per day, from the third quarter of 2008, and a decrease of 11 percent, or $1,975 per day, from the second quarter of 2009.

Unit Corp. is engaged through its subsidiaries in oil and gas exploration, production, contract drilling and gas gathering and processing. The company's shares closed at $40.24 Tuesday, up 38 cents, in trading on the New York Stock Exchange.

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