BRIEF: Unit Corp. reports $147 million loss for quarter

Tue. May 05, 2009; Posted: 07:50 PM

May 05, 2009 (Tulsa World - McClatchy-Tribune Information Services via COMTEX) -- UNT | Quote | Chart | News | PowerRating -- Depressed oil and gas prices forced Unit Corp. to mark a $147.5 million net loss for the quarter ending March 31, the Tulsa contract drilling firm announced Tuesday.

Unit normally would have posted a net gain, but the company was saddled with a $281 million writedown on the book value of its oil and gas properties, according to reports. The non-cash writedown reduced the carrying cost of those assets, which are currently devalued due to lower commodity prices.

"The substantial reduction in commodity prices along with reduced capital spending by exploration and production companies has had a significant negative impact to the utilization rates in the contract drilling industry and to our rig fleet," Unit CEO Larry Pinkston said in a statement. "We have and are responding to these changes by taking substantial cost cutting measures throughout the segment, while being careful to protect the core organization."

Unit generated more than $200 million in operating revenue for the three-month period. The net loss, however, compares to the $77 million profit from 2008s first quarter. Unit Corp. traded up 3 percent to $30.63 per share Tuesday morning on the New York Stock exchange.

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For full details on Unit Corp (UNT) click here. Unit Corp (UNT) has Short Term PowerRatings of 6. Details on Unit Corp (UNT) Short Term PowerRatings is available at This Link.

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