UNIT CORPORATION Investor Presentation
Appendix 2
Description
Amount
Standardized Measure
1
$237 million
Discounted effect of future income tax expenses
$12 million
Pre-tax PV-10 value under SEC pricing 2
$249 million
($1) million
3
$248 million
Impact of adjusting SEC pricing to forward strip pricing
Pre-tax PV-10 value under forward strip pricing
1The standardized measure of discounted future net cash flows relating to proved oil, NGLs, and natural gas reserves (Standardized
Measure) is calculated in accordance with US GAAP as the after-tax estimated future cash flows from proved reserves discounted at
an annual rate of 10 percent. The benchmark price used for all future reserves was $78.22 per barrel of oil, $23.72 per barrel of NGLS,
and $2.64 per Mcf of natural gas, then adjusted for price differentials, based on the 12-month historical average of the beginning-of-
month prices in accordance with SEC rules.
2 Pre-tax PV-10 value under SEC pricing is consistent with the Standardized Measure calculation, but excludes the effects of future
income taxes. We view pre-tax PV-10 under SEC pricing as a useful measure of the value of our proved reserves relative to the values
of proved reserves held by other companies as it excludes future income tax expenses which may vary based on the characteristics of
the owner of the reserves rather than on the nature, location, and quality of the reserves themselves. We also believe that securities
analysts and rating agencies use pre-tax PV-10 under SEC pricing in a similar manner.
3 Pre-tax PV-10 value under forward strip pricing is consistent with the calculation of pre-tax PV-10 value under SEC pricing, but uses
forward strip product pricing instead of average historical pricing as required by SEC rules. We view pre-tax PV-10 value under
forward strip pricing as a useful measure of the value of our proved reserves both because it excludes future income tax expenses (as
discussed above) and because forward strip pricing provides a more current, forward-looking indicator of value. The pricing used is
$67.75/bbl oil and $3.36/mcf gas based on strip pricing as of 1/2/2024.
UNIT CORPORATION
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