|   | [x] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) |
|--------|------------------------------------------------------|

|   | OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|----------------------------------------|

|   | OR |
|--------|----|

|   | [  ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) |
|--------|------------------------------------------------------------------|

|   | OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|----------------------------------------|

|   | Delaware                                       | 73-1283193                           |
|--------|------------------------------------------------|--------------------------------------|
|   | (State or other jurisdiction of incorporation) | (I.R.S. Employer Identification No.) |

|   | 7130 South Lewis, Suite 1000, Tulsa, Oklahoma | 74136      |
|--------|-----------------------------------------------|------------|
|   | (Address of principal executive offices)      | (Zip Code) |

|   | (918) 493-7700                                             |
|--------|------------------------------------------------------------|
|   | (Registrant’s telephone number, including area code) |

|   | None                                                 |
|--------|------------------------------------------------------|
|   | (Former name, former address and former fiscal year, |
|   | if changed since last report)                        |

|   | Yes [x] | No [  ] |
|--------|---------|-------------------|

|   | Yes [  ] | No [  ] |
|--------|--------------------|-------------------|

| Large accelerated filer [x] | Accelerated filer [  ] | Non-accelerated filer [  ] | Smaller reporting company [  ] |
|-----------------------------|----------------------------------|--------------------------------------|------------------------------------------|

|   | Yes [  ] | No [x] |
|--------|--------------------|--------|

|   |       |                                                             | Page   |
|--------|------------|------------------------------------------------------------------|--------|
|   |       |                                                             | Number |
|   |       | PART I. Financial Information                                    |   |
|   | Item 1.    | Financial Statements (Unaudited)                                 |   |
|   |       |                                                             |   |
|   |       | Condensed Consolidated Balance Sheets                            |   |
|   |       | June 30, 2009 and December 31, 2008                              | 3      |
|   |       |                                                             |   |
|   |       | Condensed Consolidated Statements of Operations                  |   |
|   |       | Three and Six Months Ended June 30, 2009 and 2008                | 5      |
|   |       |                                                             |   |
|   |       | Condensed Consolidated Statements of Cash Flows                  |   |
|   |       | Six Months Ended June 30, 2009 and 2008                          | 6      |
|   |       |                                                             |   |
|   |       | Condensed Consolidated Statements of Comprehensive Income (Loss) |   |
|   |       | Three and Six Months Ended June 30, 2009 and 2008                | 7      |
|   |       |                                                             |   |
|   |       | Notes to Condensed Consolidated Financial Statements             | 8      |
|   |       |                                                             |   |
|   |       | Report of Independent Registered Public Accounting Firm          | 23     |
|   |       |                                                             |   |
|   | Item 2.    | Management’s Discussion and Analysis of Financial          |   |
|   |       | Condition and Results of Operations                              | 24     |
|   |       |                                                             |   |
|   | Item 3.    | Quantitative and Qualitative Disclosure About Market Risk        | 47     |
|   |       |                                                             |   |
|   | Item 4.    | Controls and Procedures                                          | 48     |
|   |       |                                                             |   |
|   |       | PART II. Other Information                                       |   |
|   | Item 1.    | Legal Proceedings                                                | 48     |
|   |       |                                                             |   |
|   | Item 1A.   | Risk Factors                                                     | 48     |
|   |       |                                                             |   |
|   | Item 2.    | Unregistered Sales of Equity Securities and Use of Proceeds      | 49     |
|   |       |                                                             |   |
|   | Item 3.    | Defaults Upon Senior Securities                                  | 49     |
|   |       |                                                             |   |
|   | Item 4.    | Submission of Matters to a Vote of Security Holders              | 49     |
|   |       |                                                             |   |
|   | Item 5.    | Other Information                                                | 50     |
|   |       |                                                             |   |
|   | Item 6.    | Exhibits                                                         | 50     |
|   |       |                                                             |   |
|   | Signatures |                                                             | 51     |

|                                                                                                                   |   | June 30,                            |      |   |   | December 31, |   |
|------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------|-----------|--------|--------|--------------|--------|
|                                                                                                                   |   | 2009                                |      |   |   | 2008         |   |
|                                                                                                                   |   | (In thousands except share amounts) |      |
| ASSETS                                                                                                                 |   |                                |      |   |   |         |   |   |   |
| Current assets:                                                                                                        |   |                                |      |   |   |         |   |   |   |
| Cash and cash equivalents                                                                                              |   | $                                   | 957       |   |   |         | $      | 584 |   |
| Restricted cash                                                                                                        |   |                                | 20        |   |   |         |   | 20 |   |
| Accounts receivable, net of allowance for doubtful accounts of $4,893 at June 30, 2009 and $4,893 at December 31, 2008 |   |                                | 95,427    |   |   |         |   | 192,408 |   |
| Materials and supplies                                                                                                 |   |                                | 10,695    |   |   |         |   | 9,923 |   |
| Current derivative assets (Note 8)                                                                                     |   |                                | 49,166    |   |   |         |   | 52,177 |   |
| Current income tax receivable                                                                                          |   |                                | 4,798     |   |   |         |   | 11,768 |   |
| Prepaid expenses and other                                                                                             |   |                                | 15,862    |   |   |         |   | 19,705 |   |
| Total current assets                                                                                                   |   |                                | 176,925   |   |   |         |   | 286,585 |   |
|                                                                                                                   |   |                                |      |   |   |         |   |   |   |
| Property and equipment:                                                                                                |   |                                |      |   |   |         |   |   |   |
| Drilling equipment                                                                                                     |   |                                | 1,192,820 |   |   |         |   | 1,172,655 |   |
| Oil and natural gas properties, on the full cost                                                                       |   |                                |      |   |   |         |   |   |   |
| method:                                                                                                                |   |                                |      |   |   |         |   |   |   |
| Proved properties                                                                                                      |   |                                | 2,186,912 |   |   |         |   | 2,090,623 |   |
| Undeveloped leasehold not being amortized                                                                              |   |                                | 168,804   |   |   |         |   | 160,034 |   |
| Gas gathering and processing equipment                                                                                 |   |                                | 169,190   |   |   |         |   | 169,402 |   |
| Transportation equipment                                                                                               |   |                                | 31,978    |   |   |         |   | 33,611 |   |
| Other                                                                                                                  |   |                                | 22,738    |   |   |         |   | 22,484 |   |
|                                                                                                                   |   |                                | 3,772,442 |   |   |         |   | 3,648,809 |   |
| Less accumulated depreciation, depletion, amortization                                                                 |   |                                |      |   |   |         |   |   |   |
| and impairment                                                                                                         |   |                                | 1,810,759 |   |   |         |   | 1,447,157 |   |
| Net property and equipment                                                                                             |   |                                | 1,961,683 |   |   |         |   | 2,201,652 |   |
|                                                                                                                   |   |                                |      |   |   |         |   |   |   |
| Goodwill                                                                                                               |   |                                | 62,808    |   |   |         |   | 62,808 |   |
| Other intangible assets, net                                                                                           |   |                                | 7,409     |   |   |         |   | 9,384 |   |
| Non-current derivative assets (Note 8)                                                                                 |   |                                | 7,142     |   |   |         |   | 5,218 |   |
| Other assets                                                                                                           |   |                                | 17,436    |   |   |         |   | 16,219 |   |
| Total assets                                                                                                           |   | $                                   | 2,233,403 |   |   |         | $      | 2,581,866 |   |

|                                               |   | June 30,                            |      |   |   | December 31, |   |
|----------------------------------------------------|--------|-------------------------------------|-----------|--------|--------|--------------|--------|
|                                               |   | 2009                                |      |   |   | 2008         |   |
|                                               |   | (In thousands except share amounts) |      |
| LIABILITIES AND SHAREHOLDERS’ EQUITY         |   |                                |      |   |   |         |   |   |   |
| Current liabilities:                               |   |                                |      |   |   |         |   |   |   |
| Accounts payable                                   |   | $                                   | 50,042    |   |   |         | $      | 129,755 |   |
| Accrued liabilities                                |   |                                | 42,930    |   |   |         |   | 51,659 |   |
| Contract advances                                  |   |                                | 1,073     |   |   |         |   | 2,889 |   |
| Current portion of derivative liabilities (Note 8) |   |                                | 5,204     |   |   |         |   | 1,481 |   |
| Current portion of other liabilities (Note 4)      |   |                                | 10,640    |   |   |         |   | 10,615 |   |
| Total current liabilities                          |   |                                | 109,889   |   |   |         |   | 196,399 |   |
|                                               |   |                                |      |   |   |         |   |   |   |
| Long-term debt                                     |   |                                | 111,000   |   |   |         |   | 199,500 |   |
| Long-term derivative liabilities (Note 8)          |   |                                | 2,066     |   |   |         |   | 1,780 |   |
| Other long-term liabilities (Note 4)               |   |                                | 75,139    |   |   |         |   | 74,027 |   |
| Deferred income taxes                              |   |                                | 406,469   |   |   |         |   | 477,061 |   |
|                                               |   |                                |      |   |   |         |   |   |   |
| Shareholders’ equity:                        |   |                                |      |   |   |         |   |   |   |
| Preferred stock, $1.00 par value, 5,000,000 shares |   |                                |      |   |   |         |   |   |   |
|     authorized, none issued         |   |                                | —   |   |   |         |   | — |   |
| Common stock, $.20 par value, 175,000,000 shares   |   |                                |      |   |   |         |   |   |   |
| authorized, 47,518,000 and 47,255,964 shares       |   |                                |      |   |   |         |   |   |   |
| issued, respectively                               |   |                                | 9,369     |   |   |         |   | 9,325 |   |
| Capital in excess of par value                     |   |                                | 380,024   |   |   |         |   | 367,000 |   |
| Accumulated other comprehensive income             |   |                                | 31,419    |   |   |         |   | 33,284 |   |
| Retained earnings                                  |   |                                | 1,108,028 |   |   |         |   | 1,223,490 |   |
| Total shareholders’ equity                   |   |                                | 1,528,840 |   |   |         |   | 1,633,099 |   |
| Total liabilities and shareholders’ equity   |   | $                                   | 2,233,403 |   |   |         | $      | 2,581,866 |   |

|                                | Three Months Ended                      |    |   | Six Months Ended |    |
|-------------------------------------|-----------------------------------------|---------|--------|------------------|---------|
|                                | June 30,                                |    |   | June 30,         |    |
|                                | 2009                                    |    | 2008   |             |    | 2009 |   | 2008 |   |
|                                |                                    |    |   |             |    |   |   |   |   |   |   |   |   |
|                                | (In thousands except per share amounts) |    |
| Revenues:                           |                                    |    |   |             |    |   |   |   |   |   |   |   |   |
| Contract drilling                   | $                                       | 49,883  |   | $                | 151,228 |   |   | $ | 138,582 |   | $ | 298,475 |   |
| Oil and natural gas                 |                                    | 89,601  |   |             | 164,299 |   |   |   | 178,505 |   |   | 294,301 |   |
| Gas gathering and processing        |                                    | 23,233  |   |             | 54,800  |   |   |   | 45,376 |   |   | 99,023 |   |
| Other income (expense), net         |                                    | 1,357   |   |             | (180    | ) |   |   | 2,673 |   |   | (290 | ) |
| Total revenues                      |                                    | 164,074 |   |             | 370,147 |   |   |   | 365,136 |   |   | 691,509 |   |
|                                |                                    |    |   |             |    |   |   |   |   |   |   |   |   |
| Expenses:                           |                                    |    |   |             |    |   |   |   |   |   |   |   |   |
| Contract drilling:                  |                                    |    |   |             |    |   |   |   |   |   |   |   |   |
| Operating costs                     |                                    | 29,779  |   |             | 78,278  |   |   |   | 80,109 |   |   | 152,739 |   |
| Depreciation                        |                                    | 10,261  |   |             | 16,988  |   |   |   | 22,880 |   |   | 32,352 |   |
| Oil and natural gas:                |                                    |    |   |             |    |   |   |   |   |   |   |   |   |
| Operating costs                     |                                    | 17,249  |   |             | 30,657  |   |   |   | 42,065 |   |   | 58,258 |   |
| Depreciation, depletion and         |                                    |    |   |             |    |   |   |   |   |   |   |   |   |
| amortization                        |                                    | 26,149  |   |             | 38,988  |   |   |   | 64,155 |   |   | 74,703 |   |
| Impairment of oil and natural       |                                    |    |   |             |    |   |   |   |   |   |   |   |   |
| gas properties (Note 2)             |                                    | — |   |             | — |   |   |   | 281,241 |   |   | — |   |
| Gas gathering and processing:       |                                    |    |   |             |    |   |   |   |   |   |   |   |   |
| Operating costs                     |                                    | 19,199  |   |             | 45,164  |   |   |   | 39,876 |   |   | 80,236 |   |
| Depreciation and amortization       |                                    | 4,110   |   |             | 3,663   |   |   |   | 8,171 |   |   | 7,144 |   |
| General and administrative          |                                    | 5,493   |   |             | 6,726   |   |   |   | 11,582 |   |   | 13,251 |   |
| Interest, net                       |                                    | 61      |   |             | 273     |   |   |   | 538 |   |   | 1,093 |   |
| Total operating expenses            |                                    | 112,301 |   |             | 220,737 |   |   |   | 550,617 |   |   | 419,776 |   |
| Income (loss) before income taxes   |                                    | 51,773  |   |             | 149,410 |   |   |   | (185,481 | ) |   | 271,733 |   |
|                                |                                    |    |   |             |    |   |   |   |   |   |   |   |   |
| Income tax expense (benefit):       |                                    |    |   |             |    |   |   |   |   |   |   |   |   |
| Current                             |                                    | 1,247   |   |             | 9,688   |   |   |   | 1,247 |   |   | 25,135 |   |
| Deferred                            |                                    | 18,495  |   |             | 45,594  |   |   |   | (71,266 | ) |   | 75,406 |   |
| Total income taxes                  |                                    | 19,742  |   |             | 55,282  |   |   |   | (70,019 | ) |   | 100,541 |   |
|                                |                                    |    |   |             |    |   |   |   |   |   |   |   |   |
| Net income (loss)                   | $                                       | 32,031  |   | $                | 94,128  |   |   | $ | (115,462 | ) | $ | 171,192 |   |
|                                |                                    |    |   |             |    |   |   |   |   |   |   |   |   |
| Net income (loss) per common share: |                                    |    |   |             |    |   |   |   |   |   |   |   |   |
| Basic                               | $                                       | 0.68    |   | $                | 2.02    |   |   | $ | (2.46 | ) | $ | 3.68 |   |
|                                |                                    |    |   |             |    |   |   |   |   |   |   |   |   |
| Diluted                             | $                                       | 0.68    |   | $                | 2.00    |   |   | $ | (2.46 | ) | $ | 3.65 |   |

|                                                  |   | Six Months Ended |     |
|-------------------------------------------------------|--------|------------------|----------|
|                                                  |   | June 30,         |     |
|                                                  |   | 2009             |     |   |   | 2008 |   |
|                                                  |   | (In thousands)   |     |
| OPERATING ACTIVITIES:                                 |   |             |     |   |   |   |   |   |   |
| Net income (loss)                                     |   | $                | (115,462 | ) |   |   | $ | 171,192 |   |
| Adjustments to reconcile net income to net cash       |   |             |     |   |   |   |   |   |   |
| provided by operating activities:                     |   |             |     |   |   |   |   |   |   |
| Depreciation, depletion and amortization              |   |             | 95,743   |   |   |   |   | 114,491 |   |
| Impairment of oil and natural gas properties (Note 2) |   |             | 281,241  |   |   |   |   | — |   |
| Unrealized loss on derivatives                        |   |             | 2,940    |   |   |   |   | — |   |
| Deferred tax expense (benefit)                        |   |             | (71,266  | ) |   |   |   | 75,406 |   |
| Other                                                 |   |             | 5,012    |   |   |   |   | 9,316 |   |
| Changes in operating assets and liabilities           |   |             |     |   |   |   |   |   |   |
| increasing (decreasing) cash:                         |   |             |     |   |   |   |   |   |   |
| Accounts receivable                                   |   |             | 96,981   |   |   |   |   | (23,005 | ) |
| Accounts payable                                      |   |             | 8,567    |   |   |   |   | (24,899 | ) |
| Material and supplies inventory                       |   |             | (772     | ) |   |   |   | (4,486 | ) |
| Accrued liabilities                                   |   |             | (4,105   | ) |   |   |   | 8,009 |   |
| Contract advances                                     |   |             | (1,816   | ) |   |   |   | (4,085 | ) |
| Other – net                                     |   |             | 11,779   |   |   |   |   | (1,551 | ) |
| Net cash provided by operating activities             |   |             | 308,842  |   |   |   |   | 320,388 |   |
|                                                  |   |             |     |   |   |   |   |   |   |
| INVESTING ACTIVITIES:                                 |   |             |     |   |   |   |   |   |   |
| Capital expenditures                                  |   |             | (193,326 | ) |   |   |   | (304,859 | ) |
| Proceeds from disposition of assets                   |   |             | 11,361   |   |   |   |   | 2,628 |   |
| Other - net                                           |   |             | —  |   |   |   |   | (214 | ) |
| Net cash used in investing activities                 |   |             | (181,965 | ) |   |   |   | (302,445 | ) |
|                                                  |   |             |     |   |   |   |   |   |   |
| FINANCING ACTIVITIES:                                 |   |             |     |   |   |   |   |   |   |
| Borrowings under line of credit                       |   |             | 71,100   |   |   |   |   | 129,100 |   |
| Payments under line of credit                         |   |             | (159,600 | ) |   |   |   | (146,900 | ) |
| Proceeds from exercise of stock options               |   |             | 17       |   |   |   |   | 2,138 |   |
| Tax benefit from stock options                        |   |             | —  |   |   |   |   | 746 |   |
| Book overdrafts                                       |   |             | (38,021  | ) |   |   |   | (3,166 | ) |
| Net cash used in financing activities                 |   |             | (126,504 | ) |   |   |   | (18,082 | ) |
|                                                  |   |             |     |   |   |   |   |   |   |
| Net increase (decrease) in cash and cash equivalents  |   |             | 373      |   |   |   |   | (139 | ) |
|                                                  |   |             |     |   |   |   |   |   |   |
| Cash and cash equivalents, beginning of period        |   |             | 584      |   |   |   |   | 1,076 |   |
| Cash and cash equivalents, end of period              |   | $                | 957      |   |   |   | $ | 937 |   |

|                                             |   | Three Months Ended |    |   | Six Months Ended |    |
|--------------------------------------------------|--------|--------------------|---------|--------|------------------|---------|
|                                             |   | June 30,           |    |   | June 30,         |    |
|                                             |   | 2009               |    | 2008   |             |    | 2009 |   | 2008 |   |
|                                             |   |               |    |   |             |    |   |   |   |   |   |   |   |   |
|                                             |   | (In thousands)     |    |
| Net income (loss)                                |   | $                  | 32,031  |   | $                | 94,128  |   |   | $ | (115,462 | ) | $ | 171,192 |   |
| Other comprehensive income                       |   |               |    |   |             |    |   |   |   |   |   |   |   |   |
| (loss), net of taxes:                            |   |               |    |   |             |    |   |   |   |   |   |   |   |   |
|     Change in value of derivative |   |               |    |   |             |    |   |   |   |   |   |   |   |   |
| instruments used as cash                         |   |               |    |   |             |    |   |   |   |   |   |   |   |   |
| flow hedges, net of tax of                       |   |               |    |   |             |    |   |   |   |   |   |   |   |   |
| $(8,038), ($24,911), $21,368                     |   |               |    |   |             |    |   |   |   |   |   |   |   |   |
| and ($38,205)                                    |   |               | (15,052 | )      |             | (42,418 | ) |   |   | 33,953 |   |   | (65,082 | ) |
| Reclassification - derivative                    |   |               |    |   |             |    |   |   |   |   |   |   |   |   |
| settlements, net of tax of                       |   |               |    |   |             |    |   |   |   |   |   |   |   |   |
| ($11,855), $5,186, ($21,702)                     |   |               |    |   |             |    |   |   |   |   |   |   |   |   |
| and $5,185                                       |   |               | (19,340 | )      |             | 8,828   |   |   |   | (35,894 | ) |   | 8,827 |   |
| Ineffective portion of derivatives,              |   |               |    |   |             |    |   |   |   |   |   |   |   |   |
| net of tax of $27, zero, $43                     |   |               |    |   |             |    |   |   |   |   |   |   |   |   |
| and zero                                         |   |               | 48      |   |             | — |   |   |   | 76 |   |   | — |   |
| Comprehensive income (loss)                      |   | $                  | (2,313  | )      | $                | 60,538  |   |   | $ | (117,327 | ) | $ | 114,937 |   |

| · | Balance Sheets at June 30, 2009 and December 31, 2008; |
|--------|--------------------------------------------------------|

| · | Statements of Operations for the three and six months ended June 30, 2009 and 2008; and |
|--------|-----------------------------------------------------------------------------------------|

| · | Cash Flows for the six months ended June 30, 2009 and 2008. |
|--------|-------------------------------------------------------------|

|                                                        |   |                                    |    | Weighted      |   |      |   |
|-------------------------------------------------------------|--------|-----------------------------------------|---------|---------------|--------|-----------|--------|
|                                                        |   | Income                                  |    | Shares        |   | Per-Share |   |
|                                                        |   | (Numerator)                             |    | (Denominator) |   | Amount    |   |
|                                                        |   | (In thousands except per share amounts) |    |
| For the three months ended                                  |   |                                    |    |          |   |      |   |   |   |   |
| June 30, 2009:                                              |   |                                    |    |          |   |      |   |   |   |   |
| Basic earnings per common share                             |   | $                                       | 32,031  |          |   | 47,008    |   | $ | 0.68 |   |
| Effect of dilutive stock options, restricted                |   |                                    |    |          |   |      |   |   |   |   |
| stock and stock appreciation rights                         |   |                                    | — |          |   | 350       |   |   | — |   |
| Diluted earnings per common share                           |   | $                                       | 32,031  |          |   | 47,358    |   | $ | 0.68 |   |
|                                                        |   |                                    |    |          |   |      |   |   |   |   |
| For the three months ended                                  |   |                                    |    |          |   |      |   |   |   |   |
| June 30, 2008:                                              |   |                                    |    |          |   |      |   |   |   |   |
| Basic earnings per common share                             |   | $                                       | 94,128  |          |   | 46,587    |   | $ | 2.02 |   |
| Effect of dilutive stock options, restricted                |   |                                    |    |          |   |      |   |   |   |   |
|     stock and stock appreciation rights |   |                                    | — |          |   | 417       |   |   | (0.02 | ) |
| Diluted earnings per common share                           |   | $                                       | 94,128  |          |   | 47,004    |   | $ | 2.00 |   |

|                   |   | Three Months Ended |
|------------------------|--------|--------------------|
|                   |   | June 30,           |
|                   |   | 2009               |   |   |   | 2008 |
|                   |   |               |   |   |   |   |   |   |
| Stock options and SARs |   |               | 362,717 |   |   |   |   | 28,000 |
|                   |   |               |   |   |   |   |   |   |
| Average Exercise Price |   | $                  | 47.66 |   |   |   | $ | 73.26 |

|                                                        |   |                                    |     | Weighted      |   |      |   |
|-------------------------------------------------------------|--------|-----------------------------------------|----------|---------------|--------|-----------|--------|
|                                                        |   | Income/(Loss)                           |     | Shares        |   | Per-Share |   |
|                                                        |   | (Numerator)                             |     | (Denominator) |   | Amount    |   |
|                                                        |   | (In thousands except per share amounts) |     |
| For the six months ended                                    |   |                                    |     |          |   |      |   |   |   |   |
| June 30, 2009:                                              |   |                                    |     |          |   |      |   |   |   |   |
| Basic earnings (loss) per common share                      |   | $                                       | (115,462 | )             |   | 46,965    |   | $ | (2.46 | ) |
| Effect of dilutive stock options, restricted                |   |                                    |     |          |   |      |   |   |   |   |
| stock and stock appreciation rights                         |   |                                    | —  |          |   | —   |   |   | — |   |
| Diluted earnings (loss) per common share                    |   | $                                       | (115,462 | )             |   | 46,965    |   | $ | (2.46 | ) |
|                                                        |   |                                    |     |          |   |      |   |   |   |   |
| For the six months ended                                    |   |                                    |     |          |   |      |   |   |   |   |
| June 30, 2008:                                              |   |                                    |     |          |   |      |   |   |   |   |
| Basic earnings per common share                             |   | $                                       | 171,192  |          |   | 46,534    |   | $ | 3.68 |   |
| Effect of dilutive stock options, restricted                |   |                                    |     |          |   |      |   |   |   |   |
|     stock and stock appreciation rights |   |                                    | —  |          |   | 354       |   |   | (0.03 | ) |
| Diluted earnings per common share                           |   | $                                       | 171,192  |          |   | 46,888    |   | $ | 3.65 |   |

|                   |   | Six Months Ended |
|------------------------|--------|------------------|
|                   |   | June 30,         |
|                   |   | 2009             |   |   |   | 2008 |
|                   |   |             |   |   |   |   |   |   |
| Stock options and SARs |   |             | 376,717 |   |   |   |   | 56,000 |
|                   |   |             |   |   |   |   |   |   |
| Average Exercise Price |   | $                | 46.94 |   |   |   | $ | 67.83 |

|                                                   |   | June 30,       |    | December 31, |   |
|--------------------------------------------------------|--------|----------------|---------|--------------|--------|
|                                                   |   | 2009           |    | 2008         |   |
|                                                   |   | (In thousands) |    |
| Revolving credit facility,                             |   |           |    |         |   |   |   |
|   with interest of 2.4% at June 30, 2009 and |   |           |    |         |   |   |   |
|   3.2% at December 31, 2008                  |   | $              | 111,000 |         | $      | 199,500 |   |
| Less current portion                                   |   |           | — |         |   | — |   |
| Total long-term debt                                   |   | $              | 111,000 |         | $      | 199,500 |   |
|                                                   |   |           |    |         |   |   |   |

| ·   | the payment of dividends (other than stock dividends) during any fiscal year in excess of 25% of our consolidated net income for the preceding fiscal year; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the incurrence of additional debt with certain limited exceptions; and |
|--------------------|------------------------------------------------------------------------|

| ·   | the creation or existence of mortgages or liens, other than those in the ordinary course of business, on any of our properties, except in favor of our lenders. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | consolidated net worth of at least $900 million; |
|--------------------|--------------------------------------------------|

| ·   | a current ratio (as defined in the Credit Facility) of not less than 1 to 1; and |
|--------------------|----------------------------------------------------------------------------------|

| ·   | a leverage ratio of long-term debt to consolidated EBITDA (as defined in the Credit Facility) for the most recently ended rolling four fiscal quarters of no greater than 3.50 to 1.0. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                              |   |           | June 30, |   |   | December 31, |   |
|-----------------------------------|--------|----------------|----------|--------|--------|--------------|--------|
|                              |   |           | 2009     |   |   | 2008         |   |
|                              |   | (In thousands) |
|                              |   |           |     |   |   |         |   |
| Plugging liability                |   | $              | 50,586   |   | $      | 49,230       |   |
| Workers’ compensation       |   |           | 24,560   |   |   | 23,473       |   |
| Separation benefit plans          |   |           | 5,520    |   |   | 6,435        |   |
| Gas balancing liability           |   |           | 3,364    |   |   | 3,364        |   |
| Deferred compensation plan        |   |           | 1,749    |   |   | 2,030        |   |
| Retirement agreements             |   |           | —  |   |   | 110          |   |
|                              |   |           | 85,779   |   |   | 84,642       |   |
| Less current portion              |   |           | 10,640   |   |   | 10,615       |   |
| Total other long-term liabilities |   | $              | 75,139   |   | $      | 74,027       |   |

|                               |   | Six Months EndedJune 30, |   |
|------------------------------------|--------|--------------------------|--------|
|                               |   | 2009                     |   | 2008 |   |
|                               |   | (In thousands)           |   |
|                               |   |                     |   |   |   |   |   |
| Plugging liability, January 1:     |   | $                        | 49,230 |   | $ | 33,191 |   |
| Accretion of discount              |   |                     | 1,250  |   |   | 866 |   |
| Liability incurred                 |   |                     | 2,162  |   |   | 1,298 |   |
| Liability settled                  |   |                     | (2,071 | ) |   | (364 | ) |
| Revision of estimates              |   |                     | 15     |   |   | 85 |   |
| Plugging liability, June 30:       |   |                     | 50,586 |   |   | 35,076 |   |
| Less current portion               |   |                     | 968    |   |   | 735 |   |
| Total long-term plugging liability |   | $                        | 49,618 |   | $ | 34,341 |   |

   Modernization of Oil and Gas Reporting.  On December 31, 2008, the Securities and Exchange Commission (SEC) adopted major revisionsto its rules governing oil and gas company reporting requirements. These include provisions that permit the use of new technologies to determine proved reserves, and that allow companies to disclose their probable and possible reserves to investors. The current rules limit disclosure to only proved reserves. The new rules also require companies to report the independence and qualifications of the auditor of the reserve estimates and file reports when a third party is relied on to prepare reserves estimates. Thenew rules also require that oil and gas reserves be reported and the full cost ceiling value calculated using an average price based on the first-of-month posted price for each month in the prior twelve-month period. The new oil and gas reporting requirements are effective for annual reports on Form 10-K for fiscal years ending on or after December 31, 2009, with early adoption not permitted.  We are currently evaluating the impact the new rules may have on our consolidated financial statements. 

| ·   | The period after the balance sheet date during which management of a reporting entity should evaluate events or transactions that may occur for potential recognition or disclosure in the financial statements; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The circumstances under which an entity should recognize events or transactions occurring after the balance sheet date in its financial statements; and |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The disclosures that an entity should make about events or transactions that occurred after the balance sheet date. |
|--------------------|---------------------------------------------------------------------------------------------------------------------|

|                                           |   | Three Months Ended |    | Six Months Ended |   |
|------------------------------------------------|--------|--------------------|---------|------------------|--------|
|                                           |   | June 30,           |    | June 30,         |   |
|                                           |   | 2009               |    | 2008             |   | 2009 |   | 2008 |   |
|                                           |   |               |    |             |   |   |   |   |   |   |   |   |   |
| Options granted                                |   |               | 3,496   |             |   | 28,000 |   |   | 3,496 |   |   | 28,000 |   |
| Estimated fair value (in millions)             |   | $                  | 0.1     |             | $      | 0.7 |   | $ | 0.1 |   | $ | 0.7 |   |
| Estimate of stock volatility                   |   |               | 0.41    |             |   | 0.32 |   |   | 0.41 |   |   | 0.32 |   |
| Estimated dividend yield                       |   |               | — | %                |   | — | % |   | — | % |   | — | % |
| Risk free interest rate                        |   |               | 2       | %                |   | 3 | % |   | 2 | % |   | 3 | % |
| Expected life based on                         |   |               |    |             |   |   |   |   |   |   |   |   |   |
|     prior experience (in years) |   |               | 5       |             |   | 5 |   |   | 5 |   |   | 5 |   |
| Forfeiture rate                                |   |               | 5       | %                |   | 5 | % |   | 5 | % |   | 5 | % |

|                               |   | Three Months Ended |    | Six Months Ended |   |
|------------------------------------|--------|--------------------|---------|------------------|--------|
|                               |   | June 30,           |    | June 30,         |   |
|                               |   | 2009               |    | 2008             |   | 2009 |   | 2008 |   |
|                               |   |               |    |             |   |   |   |   |   |   |   |   |   |
| Shares granted                     |   |               | — |             |   | 8,750 |   |   | — |   |   | 23,250 |   |
|                               |   |               |    |             |   |   |   |   |   |   |   |   |   |
| Estimated fair value (in millions) |   | $                  | — |             | $      | 0.5 |   | $ | — |   | $ | 1.1 |   |
|                               |   |               |    |             |   |   |   |   |   |   |   |   |   |
| Percentage of shares granted       |   |               |    |             |   |   |   |   |   |   |   |   |   |
| Expected to be distributed         |   |               | — | %                |   | 89 | % |   | — | % |   | 89 | % |
|                               |   |               |    |             |   |   |   |   |   |   |   |   |   |

| Term                           |   | Amount                                    |   | Fixed Rate |   | Floating Rate |
|--------------------------------|--------|-------------------------------------------|--------|------------|--------|---------------|
| December 2007 – May 2012 |   | $     15,000,000 |   | 4.53%      |   | 3 month LIBOR |
| December 2007 – May 2012 |   | $     15,000,000 |   | 4.16%      |   | 3 month LIBOR |
|                           |   |                                      |   |       |   |          |

| ·   | Swaps.  We receive or pay a fixed price for the hedged commodity and pay or receive a floating market price to the counterparty.  The fixed-price payment and the floating-price payment are netted, resulting in a net amount due to or from the counterparty. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Collars.  A collar contains a fixed floor price (put) and a ceiling price (call).  If the market price exceeds the call strike price or falls below the put strike price, we receive the fixed price and pay the market price.  If the market price is between the call andthe put strike price, no payments are due from either party. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Basis Swaps. We receive or pay the NYMEX settlement value plus or minus a fixed delivery point price for the hedged commodity and pay or receive the published index price at the specified delivery point. We use basis swaps to hedge the price risk between NYMEX and its physical delivery points. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Term                              |   | Commodity                                   |   | Hedged Volume    |   | Weighted Average Fixed Price for Swaps |   | Hedged Market          |
|-----------------------------------|--------|---------------------------------------------|--------|------------------|--------|----------------------------------------|--------|------------------------|
| Jul’09 – Dec’09 |   | Crude oil - collar                          |   | 500 Bbl/day      |   | $100.00 put & $156.25 call         |   | WTI – NYMEX      |
| Jul’09 – Dec’09 |   | Crude oil – swap                      |   | 2,000 Bbl/day    |   | $51.87                                 |   | WTI – NYMEX      |
| Jul’09 – Dec’09 |   | Natural gas - collar                        |   | 10,000 MMBtu/day |   | $ 8.22 put & $10.80 call           |   | IF – NYMEX (HH)  |
| Jul’09 – Dec’09 |   | Natural gas – swap                    |   | 30,000 MMBtu/day |   | $ 7.01                                 |   | IF – Tenn Zone 0 |
| Jul’09 – Dec’09 |   | Natural gas – swap                    |   | 30,000 MMBtu/day |   | $ 6.32                                 |   | IF – CEGT        |
| Jul’09 – Dec’09 |   | Natural gas – swap                    |   | 25,000 MMBtu/day |   | $ 5.57                                 |   | IF – PEPL        |
|                              |   |                                        |   |             |   |                                   |   |                   |
| Jan’10 – Dec’10 |   | Crude oil - collar                          |   | 500 Bbl/day      |   | $65.00 put & $74.85 call           |   | WTI – NYMEX      |
| Jan’10 – Dec’10 |   | Crude oil – swap                      |   | 1,500 Bbl/day    |   | $61.36                                 |   | WTI – NYMEX      |
| Jan’10 – Dec’10 |   | Natural gas – swap                    |   | 15,000 MMBtu/day |   | $ 7.20                                 |   | IF – NYMEX (HH)  |
| Jan’10 – Dec’10 |   | Natural gas – swap                    |   | 20,000 MMBtu/day |   | $ 6.89                                 |   | IF – Tenn Zone 0 |
| Jan’10 – Dec’10 |   | Natural gas – swap                    |   | 30,000 MMBtu/day |   | $ 6.12                                 |   | IF – CEGT        |
| Jan’10 – Dec’10 |   | Natural gas – swap                    |   | 20,000 MMBtu/day |   | $ 5.67                                 |   | IF – PEPL        |
| Jan’10 – Dec’10 |   | Natural gas – basis differential swap |   | 10,000 MMBtu/day |   | ($0.79)                                |   | PEPL – NYMEX     |

| Term                              |   | Commodity                                   |   | Hedged Volume    |   | Basis Differential |   | Hedged Market      |
|-----------------------------------|--------|---------------------------------------------|--------|------------------|--------|--------------------|--------|--------------------|
| Jul’09 – Dec’09 |   | Natural gas – basis differential swap |   | 10,000 MMBtu/day |   | ($1.02)            |   | PEPL – NYMEX |
| Jul’09 – Dec’09 |   | Natural gas – basis differential swap |   | 10,000 MMBtu/day |   | ($1.10)            |   | CEGT – NYMEX |

| Term                              |   | Commodity                |   | Hedged Volume    |   | Weighted Average Fixed Price |   | Hedged Market             |
|-----------------------------------|--------|--------------------------|--------|------------------|--------|------------------------------|--------|---------------------------|
| Jul’09                      |   | Liquids – swap (1) |   | 735,168 Gal/mo   |   | $0.66                        |   | OPIS – Mont Belvieu |
| Jul’09                      |   | Liquids – swap (1) |   | 555,072 Gal/mo   |   | $0.63                        |   | OPIS – Conway       |
| Aug’09 – Dec’09 |   | Liquids – swap (1) |   | 1,723,050 Gal/mo |   | $0.66                        |   | OPIS – Mont Belvieu |
| Aug’09 – Dec’09 |   | Liquids – swap (1) |   | 1,300,950 Gal/mo |   | $0.65                        |   | OPIS – Conway       |

|                                                    |   |                          |    | Derivative Assets |
|---------------------------------------------------------|--------|-------------------------------|---------|-------------------|
|                                                    |   |                          |    | Fair Value        |
|                                                    |   |                          |    | June 30,          |   | December 31, |
|                                                    |   | Balance Sheet Location        |    | 2009              |   | 2008 |
| Derivatives designated as hedging instruments           |   | (In thousands)                |
|                                                    |   |                          |    |              |   |   |   |   |
| Commodity derivatives:                                  |   |                          |    |              |   |   |   |   |
| Current                                                 |   | Current derivative assets     |    | $                 | 49,166 |   | $ | 51,130 |
| Long-term                                               |   | Non-current derivative assets |    |              | 7,142 |   |   | 5,218 |
| Total derivatives designated as hedging instruments     |   |                          | 56,308  |              |   | 56,348 |
|                                                    |   |                          |    |              |   |   |
|                                                    |   |                          |    |              |   |   |
| Derivatives not designated as hedging instruments       |   |                          |    |              |   |   |
|                                                    |   |                          |    |              |   |   |
| Commodity derivatives:                                  |   |                          |    |              |   |   |   |   |
| Current                                                 |   | Current derivative assets     |    |              | — |   |   | 1,047 |
| Total derivatives not designated as hedging instruments |   |                          | — |              |   | 1,047 |
|                                                    |   |                          |    |              |   |   |
| Total derivative assets                                 |   | $                             | 56,308  |              | $ | 57,395 |

|                                                    |   |                                      |   | Derivative Liabilities |
|---------------------------------------------------------|--------|-------------------------------------------|--------|------------------------|
|                                                    |   |                                      |   | Fair Value             |
|                                                    |   |                                      |   | June 30,               |   | December 31, |
|                                                    |   | Balance Sheet Location                    |   | 2009                   |   | 2008 |
| Derivatives designated as hedging instruments           |   | (In thousands)                            |
|                                                    |   |                                      |   |                   |   |   |   |   |
| Interest rate swaps:                                    |   |                                      |   |                   |   |   |   |   |
| Current                                                 |   | Current portion of derivative liabilities |   | $                      | 675 |   | $ | 736 |
| Long-term                                               |   | Other long-term derivative liabilities    |   |                   | 1,294 |   |   | 1,780 |
| Commodity derivatives:                                  |   |                                      |   |                   |   |   |   |   |
| Current                                                 |   | Current portion of derivative liabilities |   |                   | 2,756 |   |   | 745 |
| Long-term                                               |   | Other long-term derivative liabilities    |   |                   | 772 |   |   | — |
| Total derivatives designated as hedging instruments     |   |                                      | 5,497  |                   |   | 3,261 |
|                                                    |   |                                      |   |                   |   |   |   |   |
|                                                    |   |                                      |   |                   |   |   |   |   |
| Derivatives not designated as hedging instruments       |   |                                      |   |                   |   |   |
|                                                    |   |                                      |   |                   |   |   |   |   |
| Commodity derivatives (basis swaps):                    |   |                                      |   |                   |   |   |   |   |
| Current                                                 |   | Current portion of derivative liabilities |   |                   | 1,773 |   |   | — |
| Total derivatives not designated as hedging instruments |   |                                      | 1,773  |                   |   | — |
|                                                    |   |                                      |   |                   |   |   |   |   |
| Total derivative liabilities                            |   |                                      |   | $                      | 7,270 |   | $ | 3,261 |

| Derivatives in Cash Flow Hedging Relationships |   |   | Amount of Gain or (Loss) Recognized in OCI on Derivative (Effective Portion) (1) |   |
|------------------------------------------------|--------|--------|----------------------------------------------------------------------------------|--------|
|                                           |   | 2009   |                                                                             |   | 2008 |   |
|                                           |   |   | (In thousands)                                                                   |   |
| Interest rate swaps                            |   | $      | (1,220                                                                           | )      |   | $ | (343 | ) |
| Commodity derivatives                          |   |   | 32,639                                                                           |   |   |   | (54,753 | ) |
| Total                                          |   | $      | 31,419                                                                           |   |   | $ | (55,096 | ) |

----

| Derivative Instrument | Location of Gain or (Loss) Reclassified from Accumulated OCI into Income & Location of Gain or (Loss) Recognized in Income |   | Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (1) |    | Amount of Gain or (Loss) Recognized in Income  (2) |   |
|-----------------------|--------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------|---------|--------------------------------------------------------------|--------|
|                  |                                                                                                                           |   | 2009                                                                       |    | 2008                                                         |   |   | 2009 |   |   | 2008 |   |
|                  |                                                                                                                           |   | (In thousands)                                                             |    |
| Commodity derivatives | Oil and natural gas revenue                                                                                                    |   | $                                                                          | 31,444  |                                                         | $      | (13,418 | )  | $ | (75 | )  | $ | — |   |
| Commodity derivatives | Gas gathering and processing revenue                                                                                           |   |                                                                       | — |                                                         |   | (1,429 | )  |   | — |   |   | — |   |
| Commodity derivatives | Gas gathering and processing operating costs                                                                                   |   |                                                                       | — |                                                         |   | 939 |   |   | — |   |   | — |   |
| Interest rate swaps   | Interest, net                                                                                                                  |   |                                                                       | (249    | )                                                            |   | (106 | ) |   | — |   |   | — |   |
|                  | Total                                                                                                                          |   | $                                                                          | 31,195  |                                                         | $      | (14,014 | )  | $ | (75 | ) | $ | — |   |

----

| Derivatives Not Designated as Hedging Instruments |   | Location of Gain or (Loss) Recognized in Income on Derivative |   | Amount of Gain or (Loss) Recognized in Income on Derivative |   |
|---------------------------------------------------|--------|---------------------------------------------------------------|--------|-------------------------------------------------------------|--------|
|                                              |   |                                                          |   | 2009                                                        |   | 2008 |   |
|                                              |   |                                                          |   | (In thousands)                                              |   |
|                                              |   |                                                          |   |                                                        |   |   |   |   |   |
| Commodity derivatives (basis swaps)               |   | Oil and natural gas revenue                                   |   | $                                                           | (1,283 | ) | $ | — |   |
| Total                                             |   |                                                          |   | $                                                           | (1,283 | ) | $ | — |   |

| Derivative Instrument | Location of Gain or (Loss) Reclassified from Accumulated OCI into Income & Location of Gain or (Loss) Recognized in Income |   | Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (1) |    | Amount of Gain or (Loss) Recognized in Income  (2) |   |
|-----------------------|--------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------|---------|--------------------------------------------------------------|--------|
|                  |                                                                                                                           |   | 2009                                                                       |    | 2008                                                         |   |   | 2009 |   |   | 2008 |   |
|                  |                                                                                                                           |   | (In thousands)                                                             |    |
| Commodity derivatives | Oil and natural gas revenue                                                                                                    |   | $                                                                          | 58,033  |                                                         | $      | (13,530 | )  | $ | (119 | )  | $ | — |   |
| Commodity derivatives | Gas gathering and processing revenue                                                                                           |   |                                                                       | — |                                                         |   | (1,548 | )  |   | — |   |   | — |   |
| Commodity derivatives | Gas gathering and processing operating costs                                                                                   |   |                                                                       | — |                                                         |   | 1,121 |   |   | — |   |   | — |   |
| Interest rate swaps   | Interest, net                                                                                                                  |   |                                                                       | (437    | )                                                            |   | (55 | ) |   | — |   |   | — |   |
|                  | Total                                                                                                                          |   | $                                                                          | 57,596  |                                                         | $      | (14,012 | )  | $ | (119 | ) | $ | — |   |

----

| Derivatives Not Designated as Hedging Instruments |   | Location of Gain or (Loss) Recognized in Income on Derivative |   | Amount of Gain or (Loss) Recognized in Income on Derivative |   |
|---------------------------------------------------|--------|---------------------------------------------------------------|--------|-------------------------------------------------------------|--------|
|                                              |   |                                                          |   | 2009                                                        |   | 2008 |   |
|                                              |   |                                                          |   | (In thousands)                                              |   |
|                                              |   |                                                          |   |                                                        |   |   |   |   |   |
| Commodity derivatives (basis swaps)               |   | Oil and natural gas revenue                                   |   | $                                                           | (2,391 | ) | $ | — |   |
| Total                                             |   |                                                          |   | $                                                           | (2,391 | ) | $ | — |   |

| ·   | Level 1 - unadjusted quoted prices in active markets for identical assets and liabilities. |
|--------------------|--------------------------------------------------------------------------------------------|

| ·   | Level 2 - significant observable pricing inputs other than quoted prices included within level 1 that are either directly or indirectly observable as of the reporting date.  Essentially, inputs (variables used in the pricing models) that are derived principally from or corroborated by observable market data. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Level 3 - generally unobservable inputs which are developed based on the best information available and may include our own internal data. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------|

|                            |    June 30, 2009 |   |
|---------------------------------|---------------------------------|--------|
|                            |                            |   | Level 1 |   |   | Level 2 |   |   | Level 3 |   |   | Total |   |
|                            | (In thousands)                  |
| Financial assets (liabilities): |                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest rate swaps             |                            | $      | — |   | $ | — |   | $ | (1,969 | ) | $ | (1,969 | ) |
| Commodity derivatives           |                            | $      | — |   | $ | 1,814 |   | $ | 49,193 |   | $ | 51,007 |   |

|                                                     |   | Net Derivatives                          |    |
|----------------------------------------------------------|--------|------------------------------------------|---------|
|                                                     |   | For the Three Months Ended June 30, 2009 |    |   | For the Six Months Ended June 30, 2009 |   |
|                                                     |   | Interest Rate Swaps                      |    |   | Commodity Swaps and Collars |   |   | Interest Rate Swaps |   |   | Commodity Swaps and Collars |   |
|                                                     |   |                                     |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                     |   | (In thousands)                           |    |
| Beginning of period                                      |   | $                                        | (2,479  | ) |   | $ | 109,413 |   |   |    $ | (2,516 |   ) |   |    $ | 58,508 |   |
| Total gains or losses (realized and unrealized):         |   |                                     |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Included in earnings (loss) (1)                          |   |                                     | (249    | ) |   |   | 28,248 |   |   |   | (437 | ) |   |   | 52,126 |   |
| Included in other comprehensive income (loss)            |   |                                     | 510     |   |   |   | (59,248 | ) |   |   | 547 |   |   |   | (6,375 | ) |
| Purchases, issuance and settlements                      |   |                                     | 249     |   |   |   | (29,220 | ) |   |   | 437 |   |   |   | (55,066 | ) |
| End of period                                            |   | $                                        | (1,969  | ) |   | $ | 49,193 |   |   | $ | (1,969 | ) |   | $ | 49,193 |   |
|                                                     |   |                                     |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total gains (losses) for the period included in earnings |   |                                     |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| attributable to the change in unrealized gain (loss)     |   |                                     |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| relating to assets still held as of June 30, 2009        |   | $                                        | — |   |   | $ | (972 | ) |   | $ | — |   |   | $ | (2,940 | ) |

|   | (1) Interest rate swaps and commodity sales swaps and collars are reported in the condensed consolidated statements of operations in interest, net and revenues, respectively. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                 |   | Three Months Ended |    | Six Months Ended |   |
|--------------------------------------|--------|--------------------|---------|------------------|--------|
|                                 |   | June 30,           |    | June 30,         |   |
|                                 |   | 2009               |    | 2008             |   | 2009 |   | 2008 |   |
|                                 |   |               |    |             |   |   |   |   |   |   |   |   |   |
|                                 |   | (In thousands)     |    |
| Revenues:                            |   |               |    |             |   |   |   |   |   |   |   |   |   |
| Contract drilling                    |   | $                  | 53,124  |             | $      | 167,109 |   | $ | 144,448 |   | $ | 331,023 |   |
| Elimination of inter-segment revenue |   |               | 3,241   |             |   | 15,881 |   |   | 5,866 |   |   | 32,548 |   |
| Contract drilling net of             |   |               |    |             |   |   |   |   |   |   |   |   |   |
| inter-segment revenue                |   |               | 49,883  |             |   | 151,228 |   |   | 138,582 |   |   | 298,475 |   |
|                                 |   |               |    |             |   |   |   |   |   |   |   |   |   |
| Oil and natural gas                  |   |               | 89,601  |             |   | 164,299 |   |   | 178,505 |   |   | 294,301 |   |
|                                 |   |               |    |             |   |   |   |   |   |   |   |   |   |
| Gas gathering and processing         |   |               | 30,303  |             |   | 73,729 |   |   | 60,959 |   |   | 130,288 |   |
| Elimination of inter-segment revenue |   |               | 7,070   |             |   | 18,929 |   |   | 15,583 |   |   | 31,265 |   |
| Gas gathering and processing         |   |               |    |             |   |   |   |   |   |   |   |   |   |
| net of inter-segment revenue         |   |               | 23,233  |             |   | 54,800 |   |   | 45,376 |   |   | 99,023 |   |
|                                 |   |               |    |             |   |   |   |   |   |   |   |   |   |
| Other                                |   |               | 1,357   |             |   | (180 | ) |   | 2,673 |   |   | (290 | ) |
| Total revenues                       |   | $                  | 164,074 |             | $      | 370,147 |   | $ | 365,136 |   | $ | 691,509 |   |
|                                 |   |               |    |             |   |   |   |   |   |   |   |   |   |
| Operating income (loss) (1):         |   |               |    |             |   |   |   |   |   |   |   |   |   |
| Contract drilling                    |   | $                  | 9,843   |             | $      | 55,962 |   | $ | 35,593 |   | $ | 113,384 |   |
| Oil and natural gas (2)              |   |               | 46,203  |             |   | 94,654 |   |   | (208,956 | ) |   | 161,340 |   |
| Gas gathering and processing         |   |               | (76     | )                |   | 5,973 |   |   | (2,671 | ) |   | 11,643 |   |
| Total operating income (loss)        |   |               | 55,970  |             |   | 156,589 |   |   | (176,034 | ) |   | 286,367 |   |
| General and administrative expense   |   |               | (5,493  | )                |   | (6,726 | ) |   | (11,582 | ) |   | (13,251 | ) |
| Interest expense, net                |   |               | (61     | )                |   |  (273 | ) |   | (538 | ) |   |  (1,093 | ) |
| Other income - net                   |   |               | 1,357   |             |   | (180 | ) |   | 2,673 |   |   | (290 | ) |
| Income (loss) before income taxes    |   | $                  | 51,773  |             | $      | 149,410 |   | $ | (185,481 | ) | $ | 271,733 |   |

| (1)   | Operating income (loss) is total operating revenues less operating expenses, depreciation, depletion, amortization and impairment and does not include non-operating revenues, general corporate expenses, interest expense or income taxes. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | In March 2009, we had an impairment of oil and natural gas properties of $281.2 million pre-tax ($175.1 million net of tax) due to low commodity prices at the end of the first quarter 2009. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·  General                           |
|-----------------------------------------------------|
| ·  Business Outlook                  |
| ·  Executive Summary                 |
| ·  Financial Condition and Liquidity |
| ·  New Accounting Pronouncements     |
| ·  Results of Operations             |

|  ·  Contract Drilling – carried out by our subsidiary Unit Drilling Company and its subsidiaries. This segment contracts to drill onshore oil and natural gas wells for others and for our own account.                                                        |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  ·   Oil and Natural Gas – carried out by our subsidiary Unit Petroleum Company. This segment explores, develops, acquires and produces oil and natural gas properties for our own account.                                                          |
|  ·   Gas Gathering and Processing (Mid-Stream) – carried out by our subsidiary Superior Pipeline Company, L.L.C. and its subsidiaries. This segment buys, sells, gathers, processes and treats natural gas for third parties and forour own account. |

| Date              |   | Gas Spot Price Henry Hub      ($ per MMBtu) |   | Crude Oil WTI-Cushing, OK ($ per Bbl) |
|-------------------|--------|----------------------------------------------------------------------|--------|--------------------------------------------|
| July 1, 2008      |   | $                                                                    | 13.19  |                                       | $ | 140.99 |
| August 1, 2008    |   | $                                                                    | 9.26   |                                       | $ | 125.10 |
| September 1, 2008 |   | $                                                                    | 8.24   |                                       | $ | 115.48 |
| October 1, 2008   |   | $                                                                    | 7.17   |                                       | $ | 98.55 |
| November 1, 2008  |   | $                                                                    | 6.20   |                                       | $ | 67.81 |
| December 1, 2008  |   | $                                                                    | 6.44   |                                       | $ | 49.28 |
| January 1, 2009   |   | $                                                                    | 5.63   |                                       | $ | 44.61 |
| February 1, 2009  |   | $                                                                    | 4.77   |                                       | $ | 41.70 |
| March 1, 2009     |   | $                                                                    | 4.04   |                                       | $ | 44.76 |
| April 1, 2009     |   | $                                                                    | 3.58   |                                       | $ | 48.39 |
| May 1, 2009       |   | $                                                                    | 3.25   |                                       | $ | 53.20 |

| June 1, 2009   |   | $ | 3.93 |   | $ | 68.58 |
|----------------|--------|---|------|--------|---|-------|
| July 1, 2009   |   | $ | 3.72 |   | $ | 69.31 |
| August 1, 2009 |   | $ | 3.34 |   | $ | 69.45 |

| Period         |   | Average Rigs in Use |   | Average Dayrates |   |
|----------------|--------|---------------------|--------|------------------|--------|
| July 2008      |   | 108.8               |   |             | $      | 18,276 |   |
| August 2008    |   | 111.2               |   |             | $      | 18,624 |   |
| September 2008 |   | 112.1               |   |             | $      | 19,044 |   |
| October 2008   |   | 111.5               |   |             | $      | 19,229 |   |
| November 2008  |   | 97.8                |   |             | $      | 19,426 |   |
| December 2008  |   | 81.0                |   |             | $      | 19,352 |   |
| January 2009   |   | 63.8                |   |             | $      | 18,993 |   |
| February 2009  |   | 52.2                |   |             | $      | 18,414 |   |
| March 2009     |   | 42.2                |   |             | $      | 18,356 |   |
| April 2009     |   | 37.3                |   |             | $      | 17,749 |   |
| May 2009       |   | 30.2                |   |             | $      | 17,429 |   |
| June 2009      |   | 27.5                |   |             | $      | 16,616 | (1) |

| (1)   | The average dayrates in June 2009 include 13 term contracts, of which one is up for renewal during the third quarter of 2009, seven are up for renewal during the fourth quarter of 2009 and the remaining five are up for renewal beyond 2009. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | In March 2009, we incurred a non-cash ceiling test write down of our oil and natural gas properties of $281.2 million pre-tax ($175.1 million net of tax) as a result of a decline in commodity prices as compared to those existing at year end 2008. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | As a result of lower commodity prices combined with service costs that remain relatively high, we have reduced the number of gross wells our oil and natural gas segment plans to drill in 2009 by approximately 57% from the number of gross wells drilled in 2008. We also curtailed approximately 800 MMcf of production due to low commodity prices during thefirst six months of 2009. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | In late 2008, as a result of the significant decline in commodity prices and the resulting drop in demand for our drilling rigs, we stored a 1,500 horsepower diesel electric drilling rig that was scheduled to be placed into service in North Dakota during the first quarter of 2009. The mobilization has been delayed pending final negotiation with our customer.In addition, after discussions with our customers, we postponed the construction of eight additional drilling rigs we had previously anticipated building and instead substituted drilling rigs we already owned.  As a result of existing contractual obligations, we expect to take delivery of a new drilling rig during the fourth quarter of 2009. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Due to declining commodity prices of oil and natural gas, several of our drilling rig customers have significantly reduced their drilling budgets for 2009, resulting in a significant reduction in the average utilization of our drilling rig fleet.  Our average utilization rate was 79% for the year ended December 31, 2008, 61% for the month ofDecember 2008, 32% for the month of March 2009 and 21% for the month of June 2009. We currently expect this rate to continue to be depressed throughout 2009. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We have reduced our total 2009 estimated capital expenditures for all three of our business segments by approximately 57% compared to 2008, excluding acquisitions, in order to focus keeping our capital expenditures within anticipated internally generated cash flow. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Reduced prices for ethane resulted in curtailment of certain liquids production early in the first quarter of 2009, however with the increase in second quarter ethane prices, we did not have any curtailments of liquids production during the second quarter of 2009. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Commitments to purchase two new processing plants were cancelled in 2009. |
|--------------------|---------------------------------------------------------------------------|

|  ·  the demand for and the dayrates we receive for our drilling rigs;                                                                       |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  ·  the quantity of natural gas, oil and NGLs we produce;                                                                                   |
|  ·  the prices we receive for our natural gas production and, to a lesser extent, the prices we receive for our oil and NGL production; and |
|  ·  the margins we obtain from our natural gas gathering and processing contracts.                                                          |

|   |   |
|--------|--------|

|                                                |   | June 30,                          |      |    | %      |      |
|-----------------------------------------------------|--------|-----------------------------------|-----------|---------|--------|-----------|
|                                                |   |                              | 2009      |    |   | 2008      |   |   | Change |  (2) |
|                                                |   | (In thousands except percentages) |      |
| Working capital                                     |   | $                                 | 67,036    |    | $      | 26,682    |   |   | 151 | % |
| Long-term debt                                      |   | $                                 | 111,000   |    | $      | 102,800   |   |   | 8 | % |
| Shareholders’ equity (1)                      |   | $                                 | 1,528,840 |    | $      | 1,563,706 |   |   | (2 | )% |
| Ratio of long-term debt to total capitalization (1) |   |                              | 7         | %       |   | 6         | % |   | 17 | % |
| Net income (loss) (1)                               |   | $                                 | (115,462  | )  | $      | 171,192   |   |   | (167 | )% |
| Net cash provided by operating activities           |   | $                                 | 308,842   |    | $      | 320,388   |   |   | (4 | )% |
| Net cash used in investing activities               |   | $                                 | (181,965  | )       | $      | (302,445  | ) |   | (40 | )% |
| Net cash used in financing activities               |   | $                                 | (126,504  | )       | $      | (18,082   | )  |   | NM | % |

| (1)   | In March 2009, we incurred a non-cash ceiling test write down of our oil and natural gas properties of $281.2 million pre-tax ($175.1 million net of tax) due to low commodity prices at quarter-end. The write down impacted our 2009 shareholders’ equity, ratio of long-term debt to total capitalization and net income.  There was no impacton our compliance with the covenants contained in our Credit Facility. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | NM – A percentage calculation is not meaningful due to a zero-value denominator or a percentage change greater than 200. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------|

|                                                        |   | Six Months Ended June 30, |    |   | %      |    |
|-------------------------------------------------------------|--------|---------------------------|---------|--------|--------|---------|
|                                                        |   |                      | 2009    |   |   | 2008    |   |   | Change |   |
| Contract Drilling:                                          |   |                      |    |   |   |    |   |   |   |   |
| Average number of our drilling rigs in use during           |   |                      |    |   |   |    |   |   |   |   |
| the period                                                  |   |                      | 42.1    |   |   | 102.5   |   |   | (59 | )% |
| Total number of drilling rigs owned at the end              |   |                      |    |   |   |    |   |   |   |   |
| of the period                                               |   |                      | 131     |   |   | 131     |   |   | — | % |
| Average dayrate                                             |   | $                         | 18,141  |   | $      | 17,943  |   |   | 1 | % |
| Oil and Natural Gas:                                        |   |                      |    |   |   |    |   |   |   |   |
| Oil production (MBbls)                                      |   |                      | 691     |   |   | 626     |   |   | 10 | % |
| Natural gas liquids production (MBbls)                      |   |                      | 784     |   |   | 655     |   |   | 20 | % |
| Natural gas production (MMcf)                               |   |                      | 22,861  |   |   | 23,009  |   |   | (1 | )% |
| Average oil price per barrel received                       |   | $                         | 52.69   |   | $      | 98.08   |   |   | (46 | )% |
| Average oil price per barrel received excluding hedges      |   | $                         | 46.11   |   | $      | 109.42  |   |   | (58 | )% |
| Average NGL price per barrel received                       |   | $                         | 21.29   |   | $      | 54.56   |   |   | (61 | )% |
| Average NGL price per barrel received excluding hedges      |   | $                         | 21.29   |   | $      | 54.43   |   |   | (61 | )% |
| Average natural gas price per mcf received                  |   | $                         | 5.47    |   | $      | 8.43    |   |   | (35 | )% |
| Average natural gas price per mcf received excluding hedges |   | $                         | 3.11    |   | $      | 8.71    |   |   | (64 | )% |
| Mid-Stream:                                                 |   |                      |    |   |   |    |   |   |   |   |
| Gas gathered—MMBtu/day                                |   |                      | 189,980 |   |   | 203,047 |   |   | (6 | )% |
| Gas processed—MMBtu/day                               |   |                      | 74,074  |   |   | 63,671  |   |   | 16 | % |
| Gas liquids sold — gallons/day                        |   |                      | 228,998 |   |   | 193,027 |   |   | 19 | % |
| Number of natural gas gathering systems                     |   |                      | 33      |   |   | 36      |   |   | (8 | )% |
| Number of processing plants                                 |   |                      | 8       |   |   | 8       |   |   | — | % |

| Lender                              |   | Participation Interest |
|-------------------------------------|--------|------------------------|
| Bank of Oklahoma, N.A.              |   | 18.75%                 |
| Bank of America, N.A.               |   | 18.75%                 |
| BMO Capital Markets Financing, Inc. |   | 18.75%                 |
| Compass Bank                        |   | 17.50%                 |
| Comerica Bank                       |   | 08.75%                 |
| Fortis Capital Corp.                |   | 08.75%                 |
| Calyon New York Branch              |   | 08.75%                 |
|                                |   | 100.00%                |

|   |   |
|--------|--------|

|  ·  the payment of dividends (other than stock dividends) during any fiscal year in excess of 25% of our         |
|--------------------------------------------------------------------------------------------------------------------------------------|
|     consolidated net income for the preceding fiscal year;                                                            |
|  ·  the incurrence of additional debt with certain very limited exceptions; and                                  |
|  ·  the creation or existence of mortgages or liens, other than those in the ordinary course of business, on any |
|     of our properties, except in favor of our lenders.                                                                |

|   |   |
|--------|--------|

|  ·  a consolidated net worth of at least $900.0 million;                                                  |
|-------------------------------------------------------------------------------------------------------------------------------|
|  ·  a current ratio (as defined in the Credit Facility) of not less than 1 to 1; and                      |
|  ·  a leverage ratio of long-term debt to consolidated EBITDA (as defined in the Credit Facility) for the |
|      most recently ended rolling four fiscal quarters of no greater than 3.50 to 1.0.                     |

| Term                           |   | Amount                                    |   | Fixed Rate |   | Floating Rate |
|--------------------------------|--------|-------------------------------------------|--------|------------|--------|---------------|
|                           |   |                                      |   |       |   |          |
| December 2007 – May 2012 |   | $     15,000,000 |   | 4.53%      |   | 3 month LIBOR |
| December 2007 – May 2012 |   | $     15,000,000 |   | 4.16%      |   | 3 month LIBOR |

|                                |   | Payments Due by Period |    |
|-------------------------------------|--------|------------------------|---------|
|                                |   |                   |    |   |   | Less Than |   |   | 2-3 |   |   | 4-5 |   |   | After |   |
|                                |   |                   | Total   |   |   | 1 Year |   |   | Years |   |   | Years |   |   | 5 Years |   |
|                                |   |                   |    |   |   |   |   | (In thousands) |   |   |   |   |   |   |   |
| Bank debt (1)                       |   | $                      | 118,809 |   | $ | 3,259 |   | $ | 115,550 |   | $ | — |   | $ | — |   |
| Operating leases (2)                |   |                   | 1,770   |   |   | 1,301 |   |   | 469 |   |   | — |   |   | — |   |
| Drill pipe, drilling components and |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| equipment purchases (3)             |   |                   | 41,601  |   |   | 41,601 |   |   | — |   |   | — |   |   | — |   |
| Total contractual obligations       |   | $                      | 162,180 |   | $ | 46,161 |   | $ | 116,019 |   | $ | — |   | $ | — |   |

| (1) | See previous discussion in MD&A regarding our Credit Facility. This obligation is presented in accordance with the terms of the Credit Facility and includes interest calculated using our June 30, 2009 interest rate of 2.9% which includes the effect of the interest rate swaps. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | We lease office space or yards in Tulsa, Oklahoma; Canadian and Houston, Texas; Englewood and Denver, Colorado; Pinedale, Wyoming; and Pittsburgh, Pennsylvania under the terms of operating leases expiring through January, 2012. Additionally, we have several equipment leases and lease space on short-term commitments to stack excess drilling rig equipment and production inventory. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | For the next twelve months, we have committed to purchase approximately $41.6 million of new drilling rig components, drill pipe, drill collars and related equipment. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |
|--------|--------|

|                                               |   | Estimated Amount of Commitment Expiration Per Period |    |
|----------------------------------------------------|--------|------------------------------------------------------|---------|
|                                               |   |                                                 |    |   |   | Less |   |   |   |   |   |   |   |   |   |   |
|                                               |   |                                                 | Total   |   |   | Than 1 |   |   | 2-3 |   |   | 4-5 |   |   | After 5 |   |
| Other Commitments                                  |   |                                                 | Accrued |   |   | Year |   |   | Years |   |   | Years |   |   | Years |   |
|                                               |   |  (In thousands)                                 |    |
| Deferred compensation plan (1)                     |   | $                                                    | 1,749   |   |   | Unknown |   |   | Unknown |   |   | Unknown |   |   | Unknown |   |
| Separation benefit plans (2)                       |   | $                                                    | 5,520   |   | $ | 1,505 |   |   | Unknown |   |   | Unknown |   |   | Unknown |   |
| Derivative liabilities – commodity hedges    |   | $                                                    | 5,301   |   | $ | 4,529 |   | $ | 772 |   | $ | — |   | $ | — |   |
| Derivative liabilities – interest rate swaps |   | $                                                    | 1,969   |   | $ | 675 |   | $ | 1,294 |   | $ | — |   | $ | — |   |
| Plugging liability (3)                             |   | $                                                    | 50,586  |   | $ | 968 |   | $ | 12,192 |   | $ | 3,014 |   | $ | 34,412 |   |
| Gas balancing liability (4)                        |   | $                                                    | 3,364   |   |   | Unknown |   |   | Unknown |   |   | Unknown |   |   | Unknown |   |
| Repurchase obligations (5)                         |   | $                                                    | — |   |   | Unknown |   |   | Unknown |   |   | Unknown |   |   | Unknown |   |
| Workers’ compensation liability (6)          |   | $                                                    | 24,560  |   | $ | 8,167 |   | $ | 3,475 |   | $ | 1,184 |   | $ | 11,734 |   |

| (1) | We provide a salary deferral plan which allows participants to defer the recognition of salary for income tax purposes until actual distribution of benefits, which occurs at either termination of employment, death or certain defined unforeseeable emergency hardships. We recognize payroll expense and record a liability, included in other long-term liabilities in our Condensed Consolidated Balance Sheet, at the time ofdeferral. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Effective January 1, 1997, we adopted a separation benefit plan (“Separation Plan”). The Separation Plan allows eligible employees whose employment with us is involuntarily terminated or, in the case of an employee who has completed 20 years of service, voluntarily or involuntarily terminated, to receive benefits equivalent to four weeks salary for every whole year of service completed with the company upto a maximum of 104 weeks. To receive payments the recipient must waive any claims against us in exchange for receiving the separation benefits. On October 28, 1997, we adopted a Separation Benefit Plan for Senior Management (“Senior Plan”). The Senior Plan provides certain officers and key executives of the company with benefits generally equivalent to the Separation Plan. The Compensation Committee of the Board of Directors has absolute discretion in the selection of the individuals covered in thisplan. On May 5, 2004 we also adopted the Special Separation Benefit Plan (“Special Plan”). This plan is identical to the Separation Benefit Plan with the exception that the benefits under the plan vest on the earliest of a participant’s reaching the age of 65 or serving 20 years with the company. On December 31, 2008, all these plans were amended to bring the plans into compliance with Section 409A of the Internal Revenue Code of 1986, as amended.  At June 30, 2009, there were 31 eligibleemployees to participate in the Special Plan. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | When a well is drilled or acquired, under Financial Accounting Standards No. 143 (FAS 143), “Accounting for Asset Retirement Obligations,” we have recorded the fair value of liabilities associated with the retirement of long-lived assets (mainly plugging and abandonment costs for our depleted wells). |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | We have recorded a liability for those properties we believe do not have sufficient oil, NGLs and natural gas reserves to allow the under-produced owners to recover their under-production from future production volumes. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | We formed The Unit 1984 Oil and Gas Limited Partnership and the 1986 Energy Income Limited Partnership along with private limited partnerships (the “Partnerships”) with certain qualified employees, officers and directors from 1984 through 2008, with a subsidiary of ours serving as general partner. The Partnerships were formed for the purpose of conducting oil and natural gas acquisition, drilling and developmentoperations and serving as co-general partner with us in any additional limited partnerships formed during that year. The Partnerships participated on a proportionate basis with us in most drilling operations and most producing property acquisitions commenced by us for our own account during the period from the formation of the Partnership through December 31 of that year. These partnership agreements require, on the election of a limited partner, that we repurchase the limited partner’s interest at amountsto be determined by appraisal in the future. Such repurchases in any one year are limited to 20% of the units outstanding. We made repurchases of $1,000 in 2009, $241,000 in 2008 and did not have any repurchases in 2007. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6)   | We have recorded a liability for future estimated payments related to workers’ compensation claims primarily associated with our contract drilling segment. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Term                           |   | Amount                                |   | Fixed Rate |   | Floating Rate |   | Fair Value Asset (Liability)                                                                             |
|--------------------------------|--------|---------------------------------------|--------|------------|--------|---------------|--------|----------------------------------------------------------------------------------------------------------|
| ($ in thousands)               |
| December 2007 – May 2012 |   | $     15,000 |   | 4.53%      |   | 3 month LIBOR |   | $                (1,064) |
| December 2007 – May 2012 |   | $     15,000 |   | 4.16%      |   | 3 month LIBOR |   |            (905)                                  |
|                           |   |                                  |   |       |   |          |   | $                (1,969) |

|                         |   |   | July – December 2009 |   | January – December 2010 |
|------------------------------|--------|--------|----------------------------|--------|-------------------------------|
| Daily oil production         |   |   | 65                         | %      |                          | 52 | % |
| Daily natural gas production |   |   | 77                         | %      |                          | 69 | % |

|                                          | Three Months Ended June 30, |    |   | Six Months Ended June 30, |   |
|-----------------------------------------------|-----------------------------|---------|--------|---------------------------|--------|
|                                          | 2009                        |    |   | 2008                      |   |   | 2009 |   |   | 2008 |   |
|                                          |                        |    |   |                      |   |   |   |   |   |   |   |   |   |   |   |
|                                          | (In thousands)              |    |
| Increases (decreases) in:                     |                        |    |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Oil and natural gas revenue:                  |                        |    |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Realized gains (losses) on oil and            |                        |    |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| natural gas derivatives                       | $                           | 31,058  |   |                      | $      | (13,418 | ) |   | $ | 58,463 |   |   | $ | (13,530 | ) |
| Unrealized losses on ineffectiveness          |                        |    |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| of cash flow hedges                           |                        | (75     | )      |                      |   | — |   |   |   | (119 | ) |   |   | — |   |
| Unrealized losses on non-qualifying           |                        |    |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| oil and natural gas derivatives               |                        | (897    | )      |                      |   | — |   |   |   | (2,821 | ) |   |   | — |   |
| Total increase on oil and natural             |                        |    |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| gas revenues due to derivatives               |                        | 30,086  |   |                      |   | (13,418 | ) |   |   | 55,523 |   |   |   | (13,530 | ) |
| Gas gathering and processing                  |                        |    |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| revenue (all realized gains (losses))         |                        | — |   |                      |   | (1,429 | ) |   |   | — |   |   |   | (1,548 | ) |
| Gas gathering and processing                  |                        |    |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| operating costs (all realized (gains) losses) |                        | — |   |                      |   | (939 | ) |   |   | — |   |   |   | (1,121 | ) |
|                                          |                        |    |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Impact on pre-tax earnings                    | $                           | 30,086  |   |                      | $      | (13,908 | ) |   | $ | 55,523 |   |   | $ | (13,957 | ) |

| ·   | The period after the balance sheet date during which management of a reporting entity should evaluate events or transactions that may occur for potential recognition or disclosure in the financial statements; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The circumstances under which an entity should recognize events or transactions occurring after the balance sheet date in its financial statements; and |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The disclosures that an entity should make about events or transactions that occurred after the balance sheet date. |
|--------------------|---------------------------------------------------------------------------------------------------------------------|

 The adoption of this standard will change how we reference various elements of U.S. GAAP when preparing our financial statement disclosures, butwill have no impact on our financial position, results of operation or cash flows.

|                                                                    |   |  Quarter Ended June 30, |        |   | Percent |        |
|-------------------------------------------------------------------------|--------|------------------------------|-------------|--------|---------|-------------|
|                                                                    |   |                         | 2009        |   |    | 2008        |   |   | Change |   |
|                                                                    |   |                         |        |   |    |        |   |   |   |   |
| Total revenue                                                           |   | $                            | 164,074,000 |   | $       | 370,147,000 |   |   | (56 | )% |
| Net income                                                              |   | $                            | 32,031,000  |   | $       | 94,128,000  |   |   | (66 | )% |
| Contract Drilling:                                                      |   |                         |        |   |    |        |   |   |   |   |
| Revenue                                                                 |   | $                            | 49,883,000  |   | $       | 151,228,000 |   |   | (67 | )% |
| Operating costs excluding depreciation                                  |   | $                            | 29,779,000  |   | $       | 78,278,000  |   |   | (62 | )% |
| Percentage of revenue from daywork contracts                            |   |                         | 100         | %      |    | 100         | % |   | — | % |
| Average number of drilling rigs in use                                  |   |                         | 31.6        |   |    | 104.5       |   |   | (70 | )% |
| Average dayrate on daywork contracts                                    |   | $                            | 17,335      |   | $       | 17,890      |   |   | (3 | )% |
| Depreciation                                                            |   | $                            | 10,261,000  |   | $       | 16,988,000  |   |   | (40 | )% |
| Oil and Natural Gas:                                                    |   |                         |        |   |    |        |   |   |   |   |
| Revenue                                                                 |   | $                            | 89,601,000  |   | $       | 164,299,000 |   |   | (45 | )% |
| Operating costs excluding depreciation, depletion                       |   |                         |        |   |    |        |   |   |   |   |
| and amortization                                                        |   | $                            | 17,249,000  |   | $       | 30,657,000  |   |   | (44 | )% |
| Average oil price (Bbl)                                                 |   | $                            | 54.84       |   | $       | 102.23      |   |   | (46 | )% |
| Average NGL price (Bbl)                                                 |   | $                            | 23.88       |   | $       | 56.78       |   |   | (58 | )% |
| Average natural gas price (Mcf)                                         |   | $                            | 5.49        |   | $       | 9.16        |   |   | (40 | )% |
| Oil production (Bbl)                                                    |   |                         | 348,000     |   |    | 335,000     |   |   | 4 | % |
| NGL production (Bbl)                                                    |   |                         | 391,000     |   |    | 350,000     |   |   | 12 | % |
| Natural gas production (Mcf)                                            |   |                         | 10,999,000  |   |    | 11,848,000  |   |   | (7 | )% |
| Depreciation, depletion and amortization                                |   |                         |        |   |    |        |   |   |   |   |
|    rate (Mcfe)                                           |   | $                            | 1.68        |   | $       | 2.43        |   |   | (31 | )% |
| Depreciation, depletion and amortization                                |   | $                            | 26,149,000  |   | $       | 38,988,000  |   |   | (33 | )% |
| Mid-Stream Operations:                                                  |   |                         |        |   |    |        |   |   |   |   |
| Revenue                                                                 |   | $                            | 23,233,000  |   | $       | 54,800,000  |   |   | (58 | )% |
| Operating costs excluding depreciation                                  |   |                         |        |   |    |        |   |   |   |   |
| and amortization                                                        |   | $                            | 19,199,000  |   | $       | 45,164,000  |   |   | (57 | )% |
| Depreciation and amortization                                           |   | $                            | 4,110,000   |   | $       | 3,663,000   |   |   | 12 | % |
| Gas gathered—MMBtu/day                                            |   |                         | 187,666     |   |    | 205,397     |   |   | (9 | )% |
| Gas processed—MMBtu/day                                           |   |                         | 75,481      |   |    | 67,545      |   |   | 12 | % |
|        Gas liquids sold—gallons/day |   |                         | 239,121     |   |    | 202,130     |   |   | 18 | % |
|                                                                    |   |                         |        |   |    |        |   |   |   |   |
| General and administrative expense                                      |   | $                            | 5,493,000   |   | $       | 6,726,000   |   |   | (18 | )% |
| Interest expense, net                                                   |   | $                            | 61,000      |   | $       | 273,000     |   |   | (78 | )% |
| Income tax expense                                                      |   | $                            | 19,742,000  |   | $       | 55,282,000  |   |   | (64 | )% |
| Average interest rate                                                   |   |                         | 3.6         | %      |    | 4.4         | % |   | (18 | )% |
| Average long-term debt outstanding                                      |   | $                            | 140,678,000 |   | $       | 114,423,000 |   |   | 23 | % |

|                                                                    |   |  Six Months Ended June 30, |         |    | Percent |  (1)   |
|-------------------------------------------------------------------------|--------|---------------------------------|--------------|---------|---------|-------------|
|                                                                    |   |                            | 2009         |    |    | 2008        |   |   | Change |   |
|                                                                    |   |                            |         |    |    |        |   |   |   |   |
| Total revenue                                                           |   | $                               | 365,136,000  |    | $       | 691,509,000 |   |   | (47 | )% |
| Net income (loss)                                                       |   | $                               | (115,462,000 | )  | $       | 171,192,000 |   |   | (167 | )% |
| Contract Drilling:                                                      |   |                            |         |    |    |        |   |   |   |   |
| Revenue                                                                 |   | $                               | 138,582,000  |    | $       | 298,475,000 |   |   | (54 | )% |
| Operating costs excluding depreciation                                  |   | $                               | 80,109,000   |    | $       | 152,739,000 |   |   | (48 | )% |
| Percentage of revenue from daywork contracts                            |   |                            | 100          | %       |    | 100         | % |   | — | % |
| Average number of drilling rigs in use                                  |   |                            | 42.1         |    |    | 102.5       |   |   | (59 | )% |
| Average dayrate on daywork contracts                                    |   | $                               | 18,141       |    | $       | 17,943      |   |   | 1 | % |
| Depreciation                                                            |   | $                               | 22,880,000   |    | $       | 32,352,000  |   |   | (29 | )% |
| Oil and Natural Gas:                                                    |   |                            |         |    |    |        |   |   |   |   |
| Revenue                                                                 |   | $                               | 178,505,000  |    | $       | 294,301,000 |   |   | (39 | )% |
| Operating costs excluding depreciation,                                 |   |                            |         |    |    |        |   |   |   |   |
| depletion, amortization and impairment                                  |   | $                               | 42,065,000   |    | $       | 58,258,000  |   |   | (28 | )% |
| Average oil price (Bbl)                                                 |   | $                               | 52.69        |    | $       | 98.08       |   |   | (46 | )% |
| Average NGL price (Bbl)                                                 |   | $                               | 21.29        |    | $       | 54.56       |   |   | (61 | )% |
| Average natural gas price (Mcf)                                         |   | $                               | 5.47         |    | $       | 8.43        |   |   | (35 | )% |
| Oil production (Bbl)                                                    |   |                            | 691,000      |    |    | 626,000     |   |   | 10 | % |
| NGL production (Bbl)                                                    |   |                            | 784,000      |    |    | 655,000     |   |   | 20 | % |
| Natural gas production (Mcf)                                            |   |                            | 22,861,000   |    |    | 23,009,000  |   |   | (1 | )% |
| Depreciation, depletion and amortization                                |   |                            |         |    |    |        |   |   |   |   |
|    rate (Mcfe)                                           |   | $                               | 2.01         |    | $       | 2.42        |   |   | (17 | )% |
| Depreciation, depletion and amortization                                |   | $                               | 64,155,000   |    | $       | 74,703,000  |   |   | (14 | )% |
| Impairment of oil and natural gas properties                            |   | $                               | 281,241,000  |    | $       | —     |   |   | NM | % |
| Mid-Stream Operations:                                                  |   |                            |         |    |    |        |   |   |   |   |
| Revenue                                                                 |   | $                               | 45,376,000   |    | $       | 99,023,000  |   |   | (54 | )% |
| Operating costs excluding depreciation                                  |   |                            |         |    |    |        |   |   |   |   |
| and amortization                                                        |   | $                               | 39,876,000   |    | $       | 80,236,000  |   |   | (50 | )% |
| Depreciation and amortization                                           |   | $                               | 8,171,000    |    | $       | 7,144,000   |   |   | 14 | % |
| Gas gathered—MMBtu/day                                            |   |                            | 189,980      |    |    | 203,047     |   |   | (6 | )% |
| Gas processed—MMBtu/day                                           |   |                            | 74,074       |    |    | 63,671      |   |   | 16 | % |
|        Gas liquids sold—gallons/day |   |                            | 228,998      |    |    | 193,027     |   |   | 19 | % |
|                                                                    |   |                            |         |    |    |        |   |   |   |   |
| General and administrative expense                                      |   | $                               | 11,582,000   |    | $       | 13,251,000  |   |   | (13 | )% |
| Interest expense                                                        |   | $                               | 538,000      |    | $       | 1,093,000   |   |   | (51 | )% |
| Income tax expense (benefit)                                            |   | $                               | (70,019,000  | )       | $       | 100,541,000 |   |   | (170 | )% |
| Average interest rate                                                   |   |                            | 3.8          | %       |    | 5.0         | % |   | (24 | )% |
| Average long-term debt outstanding                                      |   | $                               | 168,074,000  |    | $       | 126,209,000 |   |   | 33 | % |

| (1)   | NM – A percentage calculation is not meaningful due to a zero-value denominator or a percentage change greater than 200. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------|

|   | • |   | the amount and nature of our future capital expenditures and how we expect to fund our capital expenditures; |
|--------|---------|--------|--------------------------------------------------------------------------------------------------------------|
|   | • |   | the amount of wells to be drilled or reworked;                                                               |
|   | • |   | prices for oil and natural gas;                                                                              |
|   | • |   | demand for oil and natural gas;                                                                              |
|   | • |   | our exploration prospects;                                                                                   |
|   | • |   | estimates of our proved oil and natural gas reserves;                                                        |
|   | • |   | oil and natural gas reserve potential;                                                                       |
|   | • |   | development and infill drilling potential;                                                                   |
|   | • |   | our drilling prospects;                                                                                      |
|   | • |   | expansion and other development trends of the oil and natural gas industry;                                  |
|   | • |   | our business strategy;                                                                                       |
|   | • |   | production of oil and natural gas reserves;                                                                  |
|   | • |   | growth potential for our mid-stream operations;                                                              |
|   | • |   | gathering systems and processing plants we plan to construct or acquire;                                     |
|   | • |   | volumes and prices for natural gas gathered and processed;                                                   |
|   | • |   | expansion and growth of our business and operations;                                                         |
|   | • |   | demand for our drilling rigs and drilling rig rates; and                                                     |
|   | • |   | our belief that the final outcome of our legal proceedings will not materially affect our financial results. |

|   | • |   | the risk factors discussed in this report and in the documents we incorporate by reference; |
|--------|---------|--------|---------------------------------------------------------------------------------------------|
|   | • |   | general economic, market or business conditions;                                            |
|   | • |   | the nature or lack of business opportunities that we pursue;                                |
|   | • |   | demand for our land drilling services;                                                      |
|   | • |   | changes in laws or regulations;                                                             |
|   | • |   | the time period associated with the current decrease in commodity prices; and               |
|   | • |   | other factors, most of which are beyond our control.                                        |

| Term                              |   | Commodity                                   |   | Hedged Volume    |   | Weighted Average Fixed Price for Swaps |   | Hedged Market          |
|-----------------------------------|--------|---------------------------------------------|--------|------------------|--------|----------------------------------------|--------|------------------------|
| Jul’09 – Dec’09 |   | Crude oil - collar                          |   | 500 Bbl/day      |   | $100.00 put & $156.25 call         |   | WTI – NYMEX      |
| Jul’09 – Dec’09 |   | Crude oil – swap                      |   | 2,000 Bbl/day    |   | $51.87                                 |   | WTI – NYMEX      |
| Jul’09 – Dec’09 |   | Natural gas - collar                        |   | 10,000 MMBtu/day |   | $ 8.22 put & $10.80 call           |   | IF – NYMEX (HH)  |
| Jul’09 – Dec’09 |   | Natural gas – swap                    |   | 30,000 MMBtu/day |   | $ 7.01                                 |   | IF – Tenn Zone 0 |
| Jul’09 – Dec’09 |   | Natural gas – swap                    |   | 30,000 MMBtu/day |   | $ 6.32                                 |   | IF – CEGT        |
| Jul’09 – Dec’09 |   | Natural gas – swap                    |   | 25,000 MMBtu/day |   | $ 5.57                                 |   | IF – PEPL        |
|                              |   |                                        |   |             |   |                                   |   |                   |
| Jan’10 – Dec’10 |   | Crude oil - collar                          |   | 500 Bbl/day      |   | $65.00 put & $74.85 call           |   | WTI – NYMEX      |
| Jan’10 – Dec’10 |   | Crude oil – swap                      |   | 1,500 Bbl/day    |   | $61.36                                 |   | WTI – NYMEX      |
| Jan’10 – Dec’10 |   | Natural gas – swap                    |   | 15,000 MMBtu/day |   | $ 7.20                                 |   | IF – NYMEX (HH)  |
| Jan’10 – Dec’10 |   | Natural gas – swap                    |   | 20,000 MMBtu/day |   | $ 6.89                                 |   | IF – Tenn Zone 0 |
| Jan’10 – Dec’10 |   | Natural gas – swap                    |   | 30,000 MMBtu/day |   | $ 6.12                                 |   | IF – CEGT        |
| Jan’10 – Dec’10 |   | Natural gas – swap                    |   | 20,000 MMBtu/day |   | $ 5.67                                 |   | IF – PEPL        |
| Jan’10 – Dec’10 |   | Natural gas – basis differential swap |   | 10,000 MMBtu/day |   | ($0.79)                                |   | PEPL – NYMEX     |

| Term                              |   | Commodity                                   |   | Hedged Volume    |   | Basis Differential |   | Hedged Market      |
|-----------------------------------|--------|---------------------------------------------|--------|------------------|--------|--------------------|--------|--------------------|
| Jul’09 – Dec’09 |   | Natural gas – basis differential swap |   | 10,000 MMBtu/day |   | ($1.02)            |   | PEPL – NYMEX |
| Jul’09 – Dec’09 |   | Natural gas – basis differential swap |   | 10,000 MMBtu/day |   | ($1.10)            |   | CEGT – NYMEX |

| Term                              |   | Commodity                |   | Hedged Volume    |   | Weighted Average Fixed Price |   | Hedged Market             |
|-----------------------------------|--------|--------------------------|--------|------------------|--------|------------------------------|--------|---------------------------|
| Jul’09                      |   | Liquids – swap (1) |   | 735,168 Gal/mo   |   | $0.66                        |   | OPIS – Mont Belvieu |
| Jul’09                      |   | Liquids – swap (1) |   | 555,072 Gal/mo   |   | $0.63                        |   | OPIS – Conway       |
| Aug’09 – Dec’09 |   | Liquids – swap (1) |   | 1,723,050 Gal/mo |   | $0.66                        |   | OPIS – Mont Belvieu |
| Aug’09 – Dec’09 |   | Liquids – swap (1) |   | 1,300,950 Gal/mo |   | $0.65                        |   | OPIS – Conway       |

| Period                                          |         | (a)TotalNumber ofSharesPurchased (1) |         | (b) Average Price Paid Per Share(2) |    | (c)TotalNumberof SharesPurchasedAs Part ofPubliclyAnnouncedPlans orPrograms (1) |    | (d)MaximumNumber (orApproximateDollar Value)of SharesThat MayYet BePurchasedUnder thePlans orPrograms |
|-------------------------------------------------|--------------|--------------------------------------|--------------|--------------------------------------------------------------|---------|---------------------------------------------------------------------------------|---------|------------------------------------------------------------------------------------------------------------|
|  April 1, 2009 to April 30, 2009 |    | —                              |    | $                                                            | — |                                                                       | — |                                                                                                  | — |
|  May 1, 2009 to May 31, 2009          |    | —                              |    |                                                         | — |                                                                       | — |                                                                                                  | — |
|  June 1, 2009 to June 30, 2009        |    | 269                                  |    |                                                         | 35.03   |                                                                       | 269     |                                                                                                  | — |
|                                            |    |                                 |    |                                                         |    |                                                                       |    |                                                                                                  |   |
| Total                                           |    | 269                                  |    | $                                                            | 35.03   |                                                                       | 269     |                                                                                                  | — |

----

| (1)    | The shares were repurchased to remit withholding of taxes on the value of stock distributed with the June 11, 2009 vesting distribution for grants previously made from our “Unit Corporation Stock and Incentive Compensation Plan” adopted May 3, 2006. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                  |
| (2)    | The price paid per common share represents the closing sales price of a share of our common stock as reported by the NYSE on the day that the stock was acquired by us.                                                                                               |

| I.   | Election of Director Nominees John G. Nikkel, Gary R. Christopher and Robert J. Sullivan Jr. for a three-year term expiring in 2012. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------|

|                   |   | Numbers of |   | Against or |
|------------------------|--------|------------|--------|------------|
| Nominee                |   | Votes For  |   | Withheld   |
| John G. Nikkel         |   | 35,450,371 |   | 6,262,883  |
| Gary R. Christopher    |   | 35,632,969 |   | 6,080,285  |
| Robert J. Sullivan Jr. |   | 35,775,326 |   | 5,937,928  |

| II. | Ratification of the appointment of PricewaterhouseCoopers LLP as our independent registered public accounting firm for the fiscal year 2009. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------|

| For -     | 41,340,949 |
|-----------|------------|
| Against - | 325,582    |
| Abstain - | 49,633     |

|   | 15     | Letter re:  Unaudited Interim Financial Information.                    |
|--------|--------|-----------------------------------------------------------------------------------|
|   |   |                                                                              |
|   | 31.1   | Certification of Chief Executive Officer under Rule 13a – 14(a) of the      |
|   |   | Exchange Act.                                                                     |
|   |   |                                                                              |
|   | 31.2   | Certification of Chief Financial Officer under Rule 13a – 14(a) of the      |
|   |   | Exchange Act.                                                                     |
|   |   |                                                                              |
|   | 32     | Certification of Chief Executive Officer and Chief Financial Officer under        |
|   |   | Rule 13a – 14(a) of the Exchange Act and 18 U.S.C. Section 1350, as adopted |
|   |   | under Section 906 of the Sarbanes-Oxley Act of 2002.                              |

|                            |                                 | Unit Corporation |
|---------------------------------|--------------------------------------|------------------|
|                            |                                 |             |
| Date:  August 4, 2009 | By:  /s/ Larry D. Pinkston |
|                            | LARRY D. PINKSTON                    |
|                            | Chief Executive Officer and Director |
|                            |                                 |
| Date:  August 4, 2009 | By:  /s/ David T. Merrill  |
|                            | DAVID T. MERRILL                     |
|                            | Chief Financial Officer and          |
|                            | Treasurer                            |