Unit hikes capital expenditure budget

Unit Corp. raised its 2010 drilling budget 66 percent over 2009 estimated expenditures and its initial overall capital expenditures budget for all of its business segments 57 percent, the company reported in a release.
Unit hiked capital expenditures for all segments to a $467 million. Of that amount, $365 million is budgeted for its oil and natural gas segment, which includes: $319 million for drilling and completion activities, $49 million for its contract drilling segment — a 27 percent decrease over estimated 2009 capital expenditures — and $53 million for its mid-stream segment, which is a 446 percent increase over estimated 2009 capital expenditures.
The company’s 2010 operating budget is based on oil and natural gas prices averaging $72 per barrel and $5.30 per million cubic feet, respectively, and, in addition to other items, may be adjusted based on changes in commodity prices and industry conditions. The 2010 capital expenditures program is anticipated to be funded mainly through internally generated cash flow and to a lesser extent from borrowings under the company’s bank credit facility.

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