Unit Corporation (OTCQX: UNTC), a company that operates within the energy sector through its subsidiaries that are engaged in oil and gas production as well as contract drilling services, has declared a substantial cash dividend for its shareholders. The company’s board of directors has approved a quarterly cash dividend of $1.25 per share for the fourth quarter of 2024, alongside a special cash dividend of $2.00 per share. Both dividends are set to be paid on December 27, 2024, to shareholders on record as of the close of business on December 17, 2024.
Phil Frohlich, the Chief Executive Officer of Unit Corporation, emphasized that the ability to maintain and enhance their dividend program reflects the company’s operational strength and capital discipline. “Our commitment to delivering long-term value for our shareholders is unwavering,” Frohlich stated, highlighting the importance of these dividends in providing returns to investors.
Looking ahead, Unit Corporation plans to continue its quarterly cash dividend at the same rate of $1.25 per share throughout 2025. This consistency in dividend payments is indicative of the company’s strategic focus on shareholder returns, despite fluctuations in market conditions.
The decision to declare these dividends comes in light of Unit Corporation’s recent financial performance. In its third-quarter report for 2024, the company reported a net income of $8.9 million, or $0.89 per diluted share, a significant decrease from $28.8 million or $2.94 per diluted share during the same period in 2023. Total revenue also saw a decline, dropping from $80.2 million to $53.7 million year-over-year.
This decline can be attributed to various factors, including decreased production volumes following the sale of certain assets in the Texas Panhandle in December 2023. Despite these challenges, Unit Corporation’s management remains optimistic about future performance and its capacity to sustain dividend payments.
While the company is committed to its current dividend policy, it also notes that any future declarations, whether fixed or special, will be subject to the discretion of its board of directors. Factors influencing these decisions will include the company’s financial health, operational results, cash flow availability, capital requirements, and prevailing market conditions. The board’s commitment to evaluating these elements will ensure that dividends align with both shareholder interests and the company’s long-term sustainability goals.
