Introduction


The next dialogue must be learn along with the condensed consolidated
monetary statements included in Merchandise 1 of Half I of this report and in Merchandise 8
of our 2021 Kind 10-Okay filed with the SEC on March 31, 2022.

We function, handle, and analyze the outcomes of our operations by way of our three
principal enterprise segments:

•Oil and Pure Fuel – carried out by our subsidiary UPC. This section produces,
develops, and acquires oil and pure fuel properties for our personal account.

•Contract Drilling – carried out by our subsidiary UDC. This section contracts
to drill onshore oil and pure fuel wells for others and for our oil and
pure fuel section.


•Mid-Stream - carried out by Superior and its subsidiaries. This section buys,
sells, gathers, processes, and treats pure fuel and NGLs for third events and
for our personal account. We maintain a 50% funding in Superior.

Oil and Pure Fuel


In our oil and pure fuel section, we're optimizing manufacturing and changing
non-producing reserves to producing with selective drilling actions. We additionally
anticipate persevering with to hedge a portion of our future manufacturing relying on
future market pricing amongst different components.
Contract Drilling

In our contract drilling section, we're centered on sustaining utilization of
our BOSS and SCR drilling rigs in a secure and environment friendly method. All 14 of our
BOSS drilling rigs are at present working along with three of our SCR
drilling rigs as we proceed to judge alternatives to put a number of of
our 4 non-operating SCR drilling rigs again in service. Given the bettering
drilling rig dayrate atmosphere, most of our drilling rigs are contracted for
intervals of 12 months or much less. Throughout the third quarter of 2022, contracts on
eight BOSS drilling rigs and one SCR drilling rig repriced at increased dayrates.
We anticipate that contracts on 12 BOSS drilling rigs and one SCR drilling rig will
be up for change or renegotiation between September 30, 2022 and March 31, 2023.

Mid-Stream


In our mid-stream section, Superior is concentrated on persevering with to generate
predictable free money flows with restricted publicity to commodity costs in
addition to searching for enterprise growth alternatives in its core areas
using the Superior credit score settlement (which Unit isn't a celebration to and does
not assure) or different financing sources which might be accessible to it. We maintain a
50% funding in Superior, and subsequent to the deconsolidation of Superior as
of March 1, 2022, we report our possession curiosity as an fairness technique
funding. The next dialogue of economic situation and outcomes of
operations pertaining to our mid-stream section as of the third quarter of 2022
pertains to the 2 months of consolidated outcomes previous to deconsolidation as of
March 1, 2022.

Latest Developments

Commodity Worth Surroundings and COVID-19 Pandemic


Our success relies upon, amongst different issues, on costs we obtain for our oil and
pure fuel manufacturing, the demand for oil, pure fuel, and NGLs, and the
demand for our drilling rigs which influences the quantities we will cost for
these drilling rigs. Whereas our operations are all inside the USA,
occasions exterior the USA have an effect on us and our trade, together with political
and financial uncertainty in addition to geopolitical exercise.

We're constantly monitoring the present and potential impacts of the COVID-19
pandemic, together with any new variants, on our enterprise. This contains the way it has
and should proceed to affect our operations, monetary outcomes, liquidity,
prospects, workers, and distributors as new COVID-19 variants could have undetermined
impacts to our enterprise.

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Over the past two years commodity costs have been risky, and the outlook
for future oil and fuel costs stays unsure and topic to many components. The
following chart displays the numerous fluctuations within the historic costs
for oil and pure fuel:

[[Image Removed: unt-20220930_g2.jpg]]
The next chart displays the numerous fluctuations within the costs for
NGLs(1):


[[Image Removed: unt-20220930_g3.jpg]]
1.NGL costs replicate the month-to-month common Mont Belvieu worth.



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Inventory Repurchases

In June 2021, we repurchased an mixture of 600,000 shares of our frequent inventory
from the Lenders (as outlined in Be aware 9 – Lengthy-Time period Debt and Different Lengthy-Time period
Liabilities) which obtained these shares as an exit price throughout our
reorganization. The Lenders have been paid $15.00 per share for his or her respective
shares, for an mixture money buy worth of $9.0 million.


In June 2021, the Firm's board of administrators (the Board) licensed
repurchasing as much as $25.0 million of the Firm's excellent frequent inventory. The
Board subsequently licensed will increase to the licensed repurchases as much as
$50.0 million in October 2021 after which as much as $100.0 million in June 2022. The
repurchases are made by way of open market purchases, privately negotiated
transactions, or different accessible means. The Firm has no obligation to
repurchase any shares underneath the repurchase program and should droop or
discontinue it at any time with out prior discover. Throughout the third quarter of
2022, we repurchased 275,000 shares underneath the repurchase program at a median
share worth of $51.46 for an mixture buy worth of $14.2 million. As of
September 30, 2022, we had repurchased a complete of 1,794,392 shares underneath the
repurchase program at a median share worth of $38.37 for an mixture buy
worth of $68.9 million.

Throughout the yr ended December 31, 2021, we additionally repurchased 78,000 shares in a
privately negotiated transaction at a share worth of $19.07 which was not half
of the repurchase program.

The cumulative variety of shares repurchased as of September 30, 2022 totaled
2,472,392.

Superior MSA and LLCA amendments


Efficient March 1, 2022, the staff of the Operator have been transferred to
Superior and the MSA was amended and restated to take away the working providers
the Operator was offering to Superior. There was no change to the month-to-month
service price for shared providers. We now not consolidate the monetary
place, working outcomes, and money flows of Superior as of, and subsequent
to, March 1, 2022. We acknowledged a $13.1 million loss on deconsolidation throughout
the 9 months ended September 30, 2022 because the distinction between the $1.7
million estimated truthful worth of our retained fairness technique funding in
Superior as of March 1, 2022 and Superior's internet fairness attributable to Unit's
possession curiosity previous to deconsolidation. We subsequently account for our
funding in Superior as an fairness technique funding utilizing the hypothetical
liquidation ebook worth (HLBV) technique which is a steadiness sheet strategy that
calculates the change within the hypothetical quantity Unit and SP Investor can be
entitled to obtain if Superior have been liquidated at ebook worth on the finish of every
interval, adjusted for any contributions made and distributions obtained throughout
the interval.

Warrants

Every holder of Unit frequent inventory excellent (Previous Frequent Inventory) earlier than the
Emergence Date that didn't choose out of the discharge underneath the Chapter 11 plan of
reorganization filed with the chapter court docket on June 9, 2020 is entitled to
obtain 0.03460447 warrants for each share of Previous Frequent Inventory owned. Every
warrant is exercisable for one share of Firm frequent inventory, topic to
adjustment as offered within the Warrant Settlement. The warrants expire on the
earliest of (i) September 3, 2027, (ii) consummation of a Money Sale (as outlined
within the Warrant Settlement), or (iii) the consummation of a liquidation,
dissolution or winding up of the Firm. As of September 30, 2022, the Firm
had licensed 1,822,203 warrants and none had been exercised. See Be aware 5 -
Capital Inventory for added dialogue on warrant provisions.

Pursuant to the phrases of the Warrant Settlement, the Firm decided the
preliminary train worth of the warrants to be $63.74. On April 7, 2022, the
Firm delivered discover of the preliminary train worth to the Warrant Agent and
the warrants turned exercisable for shares of the Firm's frequent inventory. On or
about April 25, 2022, the warrants started buying and selling over-the-counter underneath the
image "UNTCW".

Monetary Situation and Liquidity

Abstract

Our near-term and long-term monetary situation and liquidity primarily rely
on the money circulate from our operations and credit score settlement borrowings. The
principal components figuring out our money circulate from operations are:

•the quantity of pure fuel, oil, and NGLs we produce;

•the costs we obtain for our pure fuel, oil, and NGLs manufacturing;

•the utilization of our drilling rigs and the charges we obtain for these
drilling rigs; and

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•the charges and margins that Superior obtains from its pure fuel gathering and
processing contracts.

We anticipate that money and money equivalents, money circulate from operations, and
accessible borrowing capability underneath the Exit credit score settlement will likely be satisfactory to
assist our working capital, capital expenditures, potential dividend
distributions, discretionary inventory repurchases, and different money necessities for
a minimum of the subsequent 12 months and we aren't conscious of any indications that they
won't be satisfactory for the foreseeable intervals thereafter.

The desk beneath summarizes money circulate exercise throughout the intervals indicated:

                                                                   9 Months Ended September 30,                      %
                                                                       2022                         2021                Change
                                                                              (In 1000's besides percentages)
Web money offered by working actions                 $        121,310                      $ 124,426                      (3) %
Web money offered by investing actions                           31,095                         50,233                     (38) %
Web money utilized in financing actions                              (37,482)                      (137,807)                     73  %
Web enhance in money and money equivalents                 $        114,923                      $  36,852



Money Flows from Working Actions


Our working money circulate is primarily influenced by the costs we obtain for our
oil, NGLs, and pure fuel manufacturing, the quantity of oil, NGLs, and pure fuel
we produce, settlements of commodity spinoff contracts, third-party
utilization of our drilling rigs and Superior's mid-stream providers, and the
charges charged for these drilling and mid-stream providers. Our money flows from
working actions are additionally affected by adjustments in working capital.

Web money offered by working actions throughout the first 9 months of 2022
decreased by $3.1 million as in comparison with the primary 9 months of 2021 primarily
on account of increased funds on spinoff settlements, internet adjustments in working
belongings and liabilities associated to the timing of money receipts and disbursements,
and decrease working revenue from our mid-stream section reflecting the March 1,
2022 deconsolidation of Superior, partially offset by elevated working revenue
from our oil and pure fuel and contract drilling segments.

Money Flows from Investing Actions


We anticipate utilizing a portion of our free money flows for capital expenditures
associated to our growth and manufacturing of oil, NGLs, and pure fuel as properly
as the upkeep of our present drilling rig fleet.

Web money offered by investing actions decreased by $19.1 million throughout the
first 9 months of 2022 in comparison with the primary 9 months of 2021 primarily
as a result of deconsolidation of Superior's money and money equivalents, increased
capital expenditures, and decrease proceeds obtained from the disposition of
non-core property and tools.

Money Flows from Financing Actions


Web money utilized in financing actions decreased by $100.3 million for the primary
9 months of 2022 in comparison with the primary 9 months of 2021 primarily on account of
the absence of internet funds on credit score agreements and finance leases in addition to
decrease distributions made by Superior to non-controlling pursuits, partially
offset by increased repurchases of frequent inventory. A portion of future money flows and
money and money equivalents could also be used for future shareholder return actions,
together with inventory repurchases and money distributions.

As of September 30, 2022, we had unrestricted money and money equivalents totaling
$179.1 million and no excellent borrowings underneath the Exit credit score settlement.

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The next desk summarizes sure monetary situation and liquidity
info as of the dates recognized:


                                                                          September 30,           September 30,
                                                                              2022                    2021
                                                                                     (In 1000's)
Working capital                                                         $      160,426          $      (30,367)
Present portion of long-term debt                                       $            -          $            -
Lengthy-term debt                                                          $            -          $        3,100
Shareholders' fairness attributable to Unit Company                   $      303,332          $      149,504



Working Capital

Our working capital steadiness usually fluctuates as a result of timing of our commerce
accounts receivable and accounts payable, and the fluctuation in present belongings
and liabilities related to the truthful values of our spinoff positions. We
had constructive working capital of $160.4 million as of September 30, 2022 in contrast
to detrimental working capital of $30.4 million as of September 30, 2021. The
enhance in working capital is primarily on account of will increase in money and money
equivalents, the absence of the warrant legal responsibility, present commodity spinoff
liabilities, and decrease accrued liabilities and payables, partially offset by
decrease accounts receivable. Our commodity spinoff contracts decreased working
capital by $41.5 million as of September 30, 2022 and decreased working capital
by $60.0 million as of September 30, 2021.

Credit score Agreements


Exit Credit score Settlement. On the Efficient Date, the Firm entered into an
amended and restated credit score settlement (the Exit credit score settlement), offering for
a $140.0 million senior secured revolving credit score facility (RBL Facility) and a
$40.0 million senior secured time period mortgage facility, amongst (i) the Firm, UDC, and
UPC (collectively, the Debtors), (ii) the guarantors social gathering thereto, together with the
Firm and all of its subsidiaries present as of the Efficient Date (different
than Superior Pipeline Firm, L.L.C. and its subsidiaries), (iii) the lenders
social gathering thereto infrequently (Lenders), and (iv) BOKF, NA dba Financial institution of
Oklahoma as administrative agent and collateral agent (in such capability, the
Administrative Agent). The maturity date of borrowings underneath this Exit credit score
settlement is March 1, 2024.

Our Exit credit score settlement is primarily used for working capital functions because it
limits the quantity that may be borrowed for capital expenditures. These
limitations limit future capital tasks utilizing the Exit credit score settlement.
The Exit credit score settlement additionally requires that proceeds from the disposition of
sure belongings be used to repay quantities excellent.

On April 6, 2021, the Firm finalized the primary modification to the Exit credit score
settlement. Below the primary modification, the Firm reaffirmed its borrowing base
of $140.0 million of the RBL, amended sure monetary covenants, and obtained
much less restrictive phrases, amongst others, because it pertains to the disposition of belongings
and the usage of proceeds from these tendencies.

On July 27, 2021, the Firm finalized the second modification to the Exit credit score
settlement. Below the second modification, the Firm obtained affirmation that
the Time period Mortgage had been paid in full previous to the modification date and obtained
one-time waivers associated to the disposition of belongings.

On October 19, 2021, the Firm finalized the third modification to the Exit
credit score settlement. Below the third modification, the Firm requested, and was
granted, a discount within the RBL borrowing base from $140.0 million to
$80.0 million along with much less restrictive phrases because it pertains to capital
expenditures, required hedges, and the usage of proceeds from the disposition of
sure belongings, whereas additionally amending sure monetary covenants.

On March 30, 2022, the RBL Facility borrowing base of $80.0 million was
reaffirmed.

On July 1, 2022, the RBL Facility borrowing base was routinely decreased to
$31.3 million on account of closing the Texas Gulf Coast properties sale
mentioned in Be aware 4 – Divestitures.

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On November 1, 2022, the Firm finalized the fourth modification to the Exit
credit score settlement. Below the fourth modification, (i) the RBL Facility borrowing
base was elevated to $35.0 million, (ii) the lenders social gathering to the settlement
have been revised to solely BOKF, NA dba Financial institution of Oklahoma, and (iii) the Eurodollar
Mortgage borrowing choice was amended to a secured in a single day financing price (SOFR)
choice. Subsequent to the fourth modification, Revolving Loans are capable of be SOFR
Loans or ABR Loans (every as outlined within the Exit credit score settlement). Revolving
Loans which might be SOFR Loans bear curiosity at a price every year equal to the
Adjusted Time period SOFR Fee (as outlined within the Exit credit score settlement) for the
relevant curiosity interval plus 525 foundation factors whereas Revolving Loans which might be
ABR Loans bear curiosity at a price every year equal to the Alternate Base Fee
plus 425 foundation factors.

Superior Credit score Settlement. On Might 10, 2018, Superior signed a five-year, $200.0
million senior secured revolving credit score facility with an choice to extend the
credit score quantity as much as $250.0 million, topic to sure circumstances (Superior
credit score settlement). On April 29, 2022, Superior entered into an Amended and
Restated Credit score Settlement for a four-year, $135.0 million senior secured
revolving credit score facility with an choice to extend the credit score quantity as much as
$200.0 million, topic to sure circumstances (Amended Superior credit score
settlement).

Capital Necessities


Oil and Pure Fuel Section Inclinations, Acquisitions, and Capital
Expenditures. Most of our capital expenditures for this section are
discretionary and directed towards development. Our choices to extend our oil,
NGLs, and pure fuel reserves by way of acquisitions or by way of drilling relies upon
on the prevailing or anticipated market circumstances, potential return on funding,
future drilling potential, and alternatives to acquire financing, which give
us flexibility in deciding when and if to incur these prices. We participated in
the completion of 18 gross wells (1.03 internet wells) drilled by different operators
throughout the first 9 months of 2022 in comparison with 10 gross wells (0.77 internet wells)
throughout the first 9 months of 2021.

Oil and pure fuel section capital expenditures, together with oil and fuel
properties on the total value technique, for the primary 9 months of 2022 totaled
$15.2 million, excluding a $2.5 million enhance within the ARO legal responsibility, in contrast
to $7.1 million, excluding a $1.6 million enhance within the ARO legal responsibility, throughout
the primary 9 months of 2021.

On July 1, 2022, the Firm closed on the sale of sure wells and associated
leases close to the Texas Gulf Coast for money proceeds of $45.4 million, internet of
customary closing and post-closing changes primarily based on an efficient date of
April 1, 2022. These proceeds decreased the web ebook worth of our full value pool
with no achieve or loss acknowledged because the sale didn't lead to a major
alteration of the total value pool.

On March 8, 2022, the Firm closed on the sale of sure non-core wells and
associated leases positioned close to the Oklahoma Panhandle for money proceeds of $3.6
million, internet of customary closing and post-closing changes primarily based on an
efficient date of December 1, 2021. These proceeds decreased the web ebook worth of
our full value pool with no achieve or loss acknowledged because the sale didn't lead to
a major alteration of the total value pool.

On August 16, 2021, the corporate closed on the sale of considerably all of our
wells and associated leases positioned close to Oklahoma Metropolis, Oklahoma for $16.1 million,
internet of customary closing and post-closing changes primarily based on an efficient date
of August 1, 2021. These proceeds decreased the web ebook worth of our full value
pool with no achieve or loss acknowledged because the sale didn't lead to a major
alteration of the total value pool.

On Might 6, 2021, the Firm closed on the sale of considerably all of our wells
and the leases associated thereto positioned in Reno and Stafford Counties, Kansas for
proceeds of $7.3 million, internet of customary closing and post-closing changes.
These proceeds decreased the web ebook worth of our full value pool with no achieve or
loss acknowledged because the sale didn't lead to a major alteration of the
full value pool.

Web proceeds for the sale of different non-core oil and pure fuel belongings totaled
$6.6 million and $5.0 million throughout the 9 months ended September 30, 2022
and 2021, respectively. These proceeds decreased the web ebook worth of our full
value pool with no achieve or loss acknowledged because the gross sales didn't lead to a
vital alteration of the total value pool.

Contract Drilling Section Inclinations, Acquisitions, and Capital Expenditures.
Close to time period capital expenditures are anticipated to primarily be for upkeep
capital on working drilling rigs. We additionally proceed to pursue the disposal or
sale of our non-core, idle drilling rig fleet. Contract drilling capital
expenditures totaled $6.8 million throughout the first 9 months of 2022 in contrast
to $0.9 million throughout the first 9 months of 2021.

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We offered non-core contract drilling belongings for proceeds of $9.4 million and $8.2
million throughout the 9 months ended September 30, 2022 and 2021, respectively.
These proceeds resulted in internet features of $6.7 million and $5.2 million throughout the
9 months ended September 30, 2022 and 2021, respectively.

Mid-Stream Inclinations, Acquisitions, and Capital Expenditures. Superior
incurred $1.2 million in consolidated capital expenditures throughout the first 9
months of 2022 in comparison with $8.6 million throughout the first 9 months of 2021.

By-product Actions


Commodity Derivatives. Our commodity derivatives are meant to scale back our
publicity to cost volatility and handle worth dangers. Our resolution on the kind
and amount of our manufacturing and the worth(s) of our spinoff(s) relies,
partially, on our view of present and future market circumstances. As of
September 30, 2022, primarily based on our third quarter 2022 common each day manufacturing,
the approximated percentages of our manufacturing underneath spinoff contracts are as
follows:
                                  2022      2023
Every day oil manufacturing              93%       50%
Every day pure fuel manufacturing      97%       44%



Utilizing spinoff devices entails the danger that the counterparties can not
meet the monetary phrases of the transactions. We thought of this non-performance
threat concerning our counterparties and our personal non-performance threat in our
spinoff valuation at September 30, 2022 and decided there was no materials
threat at the moment. The truthful worth of the web belongings (liabilities) we had with
Financial institution of Oklahoma, our solely commodity spinoff counterparty, was $49.8 million
as of September 30, 2022.

Warrants. Previous to the dedication of the preliminary train worth, we
acknowledged the truthful worth of the warrants as a spinoff legal responsibility on our
unaudited condensed consolidated steadiness sheets with adjustments within the legal responsibility
reported as achieve (loss) on change in truthful worth of warrants in our unaudited
condensed consolidated statements of operations. On April 7, 2022, the Firm
delivered discover of the preliminary $63.74 train worth ensuing within the warrants
assembly the definition of an fairness instrument. Accordingly, we acknowledged the
change within the truthful worth of the warrant legal responsibility in our unaudited condensed
consolidated statements of operations and reclassified the $49.1 million warrant
legal responsibility to capital in extra of par worth on the unaudited condensed
consolidated steadiness sheets as of April 7, 2022. The warrants will proceed to
be reported as capital in extra of par and are now not topic to future truthful
worth changes. On or about April 25, 2022, the warrants started buying and selling
over-the-counter underneath the image "UNTCW".

Beneath is the impact of spinoff devices on the unaudited condensed
consolidated statements of operations for the intervals indicated:

                                               Three Months Ended September 30,        9 Months Ended September 30,
                                                   2022                2021               2022                2021
                                                                            (In 1000's)
Loss on derivatives                            $  (12,381)         $ 

(39,742) $ (73,848) $ (104,973)
Money settlements paid on commodity derivatives (28,641) (12,940)

            (82,764)            (22,647)

Acquire (loss) on derivatives much less money
settlements paid on commodity derivatives $ 16,260 $ (26,802) $ 8,916 $ (82,326)

Loss on change in truthful worth of warrants $ – $ (9,054) $ (29,323) $ (12,628)




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Outcomes of Operations

Three months ended September 30, 2022 versus three months ended September 30,
2021

Supplied beneath is a comparability of chosen working and monetary information:

                                                      Three Months Ended September 30,                                   %
                                                          2022                   2021              Change               Change (1)
                                                                        (In 1000's until in any other case specified)
Complete income, earlier than inter-segment eliminations   $       120,282           $ 177,382          $ (57,100)                       (32) %

Complete income, after inter-segment eliminations $ 120,282

  $ 163,248          $ (42,966)                       (26) %
Web revenue (loss)                                  $        55,818           $  (2,805)         $  58,623                            NM
Web revenue (loss) attributable to non-controlling
curiosity                                           $             -           $  (9,100)         $   9,100                       (100) %

Web revenue attributable to Unit Company $ 55,818

  $   6,295          $  49,523                            NM

Oil and Pure Fuel:
Income, earlier than inter-segment eliminations         $        80,026           $  66,202          $  13,824                         21  %

Working prices, earlier than inter-segment eliminations $ 21,235

  $  22,022          $    (787)                        (4) %
Common oil worth (Bbl)                            $         56.75           $   47.66          $    9.09                         19  %

Common oil worth excluding derivatives (Bbl) $ 91.81

  $   70.53          $   21.28                         30  %
Common NGLs worth (Bbl)                           $         29.39           $   27.42          $    1.97                          7  %

Common NGLs worth excluding derivatives (Bbl) $ 29.39

  $   27.42          $    1.97                          7  %
Common pure fuel worth (Mcf)                    $          3.57           $    2.88          $    0.69                         24  %
Common pure fuel worth excluding derivatives
(Mcf)                                              $          7.04           $    3.69          $    3.35                         91  %
Oil manufacturing (MBbls)                                         276                 329                (53)                       (16) %
NGL manufacturing (MBbls)                                         547                 649               (102)                       (16) %
Pure fuel manufacturing (MMcf)                                5,452               6,805             (1,353)                       (20) %

Contract Drilling:
Income, earlier than inter-segment eliminations         $        40,256           $  19,158          $  21,098                        110  %

Working prices, earlier than inter-segment eliminations $ 25,823

  $  15,357          $  10,466                         68  %

Common variety of drilling rigs in use                        17.0                11.0                6.0                         55  %
Complete drilling rigs accessible to be used on the finish
of the interval                                                   21                  21                  -                          -  %

Common dayrate on daywork contracts – BOSS Rigs $ 24,258

  $  18,832          $   5,426                         29  %

Common dayrate on daywork contracts – SCR Rigs $ 19,370

  $  14,007          $   5,363                         38  %

Mid-Stream: (2)
Income, earlier than inter-segment eliminations         $             -           $  92,022          $ (92,022)                      (100) %
Working prices, earlier than inter-segment eliminations $             -           $  76,823          $ (76,823)                      (100) %

Company and Different:

Normal and administrative expense, earlier than $ 5,601

 $   4,246          $   1,355                         32  %
inter-segment eliminations

Different revenue (expense):

Curiosity expense, internet                              $           (37)          $    (702)         $     665                        (95) %

Reorganization gadgets, internet                          $           (48)          $    (971)         $     923                        (95) %
Loss on derivatives                                $       (12,381)          $ (39,742)         $  27,361                         69  %
Loss on change in truthful worth of warrants           $             -           $  (9,054)         $   9,054                       (100) %

Revenue tax expense, internet                            $             -           $       -          $       -                          -  %
Common rate of interest on long-term debt
excellent                                                      -   %             6.5  %            (6.5) %                    (100) %
Common long-term debt excellent                 $             -           $  18,393          $ (18,393)                      (100) %


1.NM – A share calculation isn’t significant on account of a zero-value
denominator or a share change higher than 200.
2.Absence of mid-stream exercise throughout the three months ended September 30,
2022
displays the March 1, 2022 deconsolidation of Superior.

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Oil and Pure Fuel

Oil and pure fuel revenues elevated $13.8 million or 21% throughout the third
quarter of 2022 as in comparison with the third quarter of 2021 primarily on account of increased
commodity costs, partially offset by decrease manufacturing volumes. Together with
derivatives settled, common oil costs elevated 19% to $56.75 per barrel,
common pure fuel costs elevated 24% to $3.57 per Mcf, and NGLs costs
elevated 7% to $29.39 per barrel. Oil manufacturing decreased 16%, pure fuel
manufacturing decreased 20%, and NGLs manufacturing decreased 16%. The lower in
volumes was on account of regular properly manufacturing declines and divestitures of manufacturing
properties which haven't been offset by new drilling or acquisitions.

Oil and pure fuel working prices elevated $0.8 million or 4% between the
comparative third quarters of 2022 and 2021 primarily on account of increased manufacturing
taxes on elevated revenues and worker compensation and separation advantages,
partially offset by decrease lease working bills on decrease volumes as described
above.

Contract Drilling

Drilling revenues elevated $21.1 million or 110% throughout the third quarter of
2022 in comparison with the third quarter of 2021 primarily on account of a 55% enhance in
the typical variety of rigs in use to 17.0 within the third quarter of 2022 as properly
as will increase to the typical dayrates on daywork contracts of 29% and 38% on BOSS
rigs and SCR rigs, respectively.

Drilling working prices elevated $10.5 million or 68% between the comparative
third quarters of 2022 and 2021 primarily on account of a rise within the common
variety of working rigs.

Mid-Stream


Our mid-stream revenues decreased $92.0 million or 100% throughout the third quarter
of 2022 as in comparison with the third quarter of 2021 as a result of absence of exercise
on account of the March 1, 2022 deconsolidation of Superior.

Working prices decreased $76.8 million or 100% throughout the third quarter of 2022
in comparison with the third quarter of 2021 as a result of absence of exercise consequently
of the March 1, 2022 deconsolidation of Superior.

Normal and Administrative

Company basic and administrative bills elevated $1.4 million or 32%
throughout the third quarter of 2022 in comparison with the third quarter of 2021 primarily
on account of increased worker compensation.

Curiosity Expense, Web


Curiosity expense, internet decreased $0.7 million between the comparative third
quarters of 2022 and 2021 primarily on account of a 100% lower in common long-term
debt excellent. Our common debt excellent decreased $18.4 million throughout
the third quarter of 2022 in comparison with the third quarter of 2021 primarily on account of
funds made underneath the Exit credit score settlement and the deconsolidation of
Superior's excellent long-term debt.

Reorganization Objects, Web

Reorganization gadgets, internet signify any of the bills, features, and losses
incurred subsequent to and as a direct results of the Chapter 11 proceedings.

Loss on Derivatives


The $27.4 million favorable change in loss on derivatives between the
comparative third quarters of 2022 and 2021 is primarily on account of favorable
pricing adjustments on unsettled commodity spinoff positions and new commodity
spinoff positions executed throughout the third quarter of 2022, partially offset
by increased settlement funds pushed by increased common pricing.

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Loss on Change in Truthful Worth of Warrants

The $9.1 million favorable change in loss on change in truthful worth of warrants
between the comparative third quarters of 2022 and 2021 is as a result of absence of
achieve or loss on change within the truthful worth of the warrants throughout the third
quarter of 2022 following the second quarter 2022 warrant strike worth
dedication and reclassification of the warrant legal responsibility to shareholders'
fairness.

Revenue Tax Expense, Web

We didn’t file any revenue tax expense, internet throughout the third quarter of 2022
or throughout the third quarter of 2021 as a result of Firm’s full valuation
allowance towards our internet deferred tax asset.

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9 months ended September 30, 2022 versus 9 months ended September 30, 2021

Supplied beneath is a comparability of chosen working and monetary information:

                                                         9 Months Ended September 30,                                     %
                                                             2022                  2021               Change                Change (1)
                                                                            (In 1000's until in any other case specified)
Complete income, earlier than inter-segment eliminations      $      454,482           $  451,850          $    2,632                          1  %

Complete income, after inter-segment eliminations $ 443,201

    $  418,202          $   24,999                          6  %
Web revenue (loss)                                     $       83,206           $  (13,511)         $   96,717                            NM

Web loss attributable to non-controlling curiosity $ (5,828)

    $   (4,875)         $     (953)                        20  %

Web revenue (loss) attributable to Unit Company $ 89,034

    $   (8,636)         $   97,670                            NM

Oil and Pure Fuel:
Income, earlier than inter-segment eliminations            $      268,504           $  181,003          $   87,501                         48  %

Working prices, earlier than inter-segment eliminations $ 72,838

    $   58,365          $   14,473                         25  %
Common oil worth (Bbl)                               $        57.82           $    47.77          $    10.05                         21  %

Common oil worth excluding derivatives (Bbl) $ 97.74

    $    63.15          $    34.59                         55  %
Common NGLs worth (Bbl)                              $        32.46           $    21.10          $    11.36                         54  %

Common NGLs worth excluding derivatives (Bbl) $ 32.46

    $    21.10          $    11.36                         54  %
Common pure fuel worth (Mcf)                       $         3.72           $     2.87          $     0.85                         30  %

Common pure fuel worth excluding derivatives (Mcf) $ 6.02

   $     3.12          $     2.90                         93  %
Oil manufacturing (MBbls)                                           991                1,130                (139)                       (12) %
NGL manufacturing (MBbls)                                         1,781                1,952                (171)                        (9) %
Pure fuel manufacturing (MMcf)                                 18,788               21,750              (2,962)                       (14) %

Contract Drilling:
Income, earlier than inter-segment eliminations            $      102,780           $   52,893          $   49,887                         94  %

Working prices, earlier than inter-segment eliminations $ 77,823

    $   41,308          $   36,515                         88  %
Common variety of drilling rigs in use                          16.3                 10.1                 6.2                         61  %

Complete drilling rigs accessible to be used on the finish of
the interval

                                                        21                   21                   -                          -  %

Common dayrate on daywork contracts – BOSS Rigs $ 22,378

    $   19,682          $    2,696                         14  %

Common dayrate on daywork contracts – SCR Rigs $ 17,900

    $   13,774          $    4,126                         30  %

Mid-Stream: (2)
Income, earlier than inter-segment eliminations            $       83,198           $  217,954          $ (134,756)                       (62) %

Working prices, earlier than inter-segment eliminations $ 73,771

    $  181,109          $ (107,338)                       (59) %
Fuel gathered--Mcf/day                                        348,859              300,484              48,375                         16  %
Fuel processed--Mcf/day                                       146,368              124,263              22,105                         18  %
Fuel liquids sold--gallons/day                                456,700              431,474              25,226                          6  %

Company and Different:
Normal and administrative expense, earlier than            $       18,937           $   15,406          $    3,531                         23  %
inter-segment eliminations
Different revenue (expense):
Curiosity expense, internet                                 $         (229)          $   (3,895)         $    3,666                        (94) %
Reorganization gadgets, internet                             $          (90)          $   (3,959)         $    3,869                         98  %
Loss on derivatives                                   $      (73,848)          $ (104,973)         $   31,125                         30  %
Loss on change in truthful worth of warrants              $      (29,323)          $  (12,628)         $  (16,695)                       132  %
Loss on deconsolidation of Superior                   $      (13,141)          $        -          $  (13,141)                         -  %
Revenue tax expense, internet                               $            -           $        -          $        -                          -  %
Common rate of interest on long-term debt excellent              2.2   %              6.7  %             (4.5) %                     (67) %
Common long-term debt excellent                    $        4,202           $   57,815          $  (53,613)                       (93) %


1.NM - A share calculation isn't significant on account of a zero-value
denominator or a share change higher than 200.
2.Mid-Stream exercise and metrics proven on this desk for the 9 months ended
September 30, 2022 replicate Superior exercise on a consolidated foundation for the 2
months previous to March 1, 2022.
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Oil and Pure Fuel

Oil and pure fuel revenues elevated $87.5 million or 48% throughout the first
9 months of 2022 as in comparison with the primary 9 months of 2021 primarily due
to increased commodity costs, partially offset by decrease manufacturing volumes.
Together with derivatives settled, common oil costs elevated 21% to $57.82 per
barrel, common pure fuel costs elevated 30% to $3.72 per Mcf, and NGLs
costs elevated 54% to $32.46 per barrel. Oil manufacturing decreased 12%, pure
fuel manufacturing decreased 14%, and NGLs manufacturing decreased 9%. The lower in
volumes was on account of regular properly manufacturing declines and divestitures of manufacturing
properties which haven't been offset by new drilling or acquisitions.

Oil and pure fuel working prices elevated $14.5 million or 25% between the
comparative first 9 months of 2022 and 2021 primarily on account of increased
manufacturing taxes on elevated revenues, increased lease working bills, and
increased worker compensation and separation advantages.

Contract Drilling


Drilling revenues elevated $49.9 million or 94% throughout the first 9 months of
2022 in comparison with the primary 9 months of 2021 primarily on account of a 61% enhance
within the common variety of rigs in use to 16.3 throughout the first 9 months of
2022 in addition to will increase to the typical dayrates on daywork contracts of 14%
and 30% on BOSS rigs and SCR rigs, respectively.

Drilling working prices elevated $36.5 million or 88% between the comparative
first 9 months of 2022 and 2021 primarily on account of a rise within the common
variety of working rigs in addition to $6.7 million of transportation and begin up
prices related to bringing stacked rigs again into service.

Mid-Stream


Our mid-stream revenues decreased $134.8 million or 62% throughout the first 9
months of 2022 as in comparison with the primary 9 months of 2021 primarily as a result of
absence of exercise subsequent to March 1, 2022 on account of the
deconsolidation of Superior, partially offset by increased fuel, NGL, and condensate
costs in addition to increased volumes throughout the consolidated interval. Fuel processed
volumes per day elevated 18% whereas fuel gathered volumes per day elevated 16%
between the comparative first 9 months of 2022 and 2021 primarily on account of
connecting new wells in addition to new volumes from the processing plant and
gathering system acquired in November 2021.

Working prices decreased $107.3 million or 59% throughout the first 9 months of
2022 in comparison with the primary 9 months of 2021 primarily as a result of absence of
exercise subsequent to March 1, 2022 on account of the deconsolidation of
Superior, partially offset by increased fuel, NGL, and condensate costs in addition to
increased buy volumes associated to the processing plant and gathering system
acquired in November 2021.

Normal and Administrative

Company basic and administrative bills elevated $3.5 million or 23%
throughout the first 9 months of 2022 as in comparison with the primary 9 months of
2021 primarily on account of increased worker and director compensation.

Curiosity Expense, Web


Curiosity expense, internet decreased $3.7 million between the comparative first 9
months of 2022 and 2021 primarily on account of a 93% lower in common long-term
debt excellent and a lower within the common rate of interest from 6.7% throughout
the primary 9 months of 2021 to 2.2% throughout the first 9 months of 2022. Our
common debt excellent decreased $53.6 million throughout the first 9 months of
2022 in comparison with the primary 9 months of 2021 primarily on account of funds made
underneath the Exit credit score settlement and the deconsolidation of Superior's
excellent long-term debt, partially offset by borrowings underneath the Superior
credit score settlement previous to deconsolidation.

Reorganization Objects, Web

Reorganization gadgets, internet signify any of the bills, features, and losses
incurred subsequent to and as a direct results of the Chapter 11 proceedings.

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Loss on Derivatives

The $31.1 million favorable change in loss on derivatives between the
comparative first 9 months of 2022 and 2021 is primarily on account of favorable
pricing adjustments on unsettled commodity spinoff positions and new commodity
spinoff positions executed throughout the second quarter of 2022, partially
offset by increased settlement funds pushed by increased common pricing.

Loss on Change in Truthful Worth of Warrants


The $16.7 million unfavorable change in loss on change in truthful worth of warrants
between the comparative first 9 months of 2022 and 2021 is primarily on account of
adjustments within the underlying assumptions used to estimate the truthful worth, together with
entity worth, volatility, period to train, and different inputs.

Loss on Deconsolidation of Superior

Loss on deconsolidation of $13.1 million throughout the first 9 months of 2022
represents the loss acknowledged on the March 1, 2022 deconsolidation of Superior.

Revenue Tax Expense, Web

We didn’t file revenue tax expense, internet throughout first 9 months of 2022 or
throughout the first 9 months of 2021 as a result of Firm’s full valuation
allowance towards our internet deferred tax asset.

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