Three months ago, I called out Unit Corp
In the drilling segment, Unit still had more rigs mobilized than the market had use for. Of course, the oversupply is not just a Unit issue -- Patterson-UTI
Here's the interesting thing, though. Once we subtract the daily cash costs of operating those rigs, Unit starts to look less unseemly. Unit's reported margin of $9,465 per day translates to 51% of drilling revenues, which is an outstanding figure, and conversely, the very best I've seen among the landlubbers. Nabors Industries
On the E&P side, the success rate of commercial well completions bounced back to the usual range. Production growth isn't going to make you leap out of your seat, like it might if you looked at Southwestern Energy's
Finally, the midstream segment is on something of a tear. Margins are about the same as last year, but the increases in gas processing volume and liquids recoveries (for sale in the form of premium-priced natural gas liquids) have boosted profits in absolute terms. All in all, this was a very fine quarter, and I regret losing sight of Unit's unique qualities in a stormy moment.