Sheru Chowdhry's questions to UNIT (UNTC) leadership • Q2 2019
Question
Sheru Chowdhry inquired about the Superior midstream assets, asking for the mix of fee-based versus price-sensitive contracts. He also sought to understand the weakness in the drilling segment, questioning how much was due to releasing rigs from their own E&P operations and whether any BOSS rigs were used internally.
Answer
Executive Robert H. Parks clarified that the midstream business is approximately two-thirds fee-based and one-third price-sensitive. Executive John Cromling explained that the drilling segment's weakness stemmed from spreading fixed costs over fewer operating rigs, not from the release of internal rigs, as intercompany profits are eliminated. He also confirmed that only SCR rigs, not BOSS rigs, were used for their own E&P operations.