Unit Corp (UNTC) AI Stock Analysis

• Market Cap: $317.04M
• Dividend Yield: 21.01%
• Average Volume (3M): 16.78K
• Price to Earnings (P/E): 5.4
• Beta (1Y): 0.14
• Revenue Growth: -15.26%
• EPS Growth: -48.26%
• Country: US
• Employees: 516
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Integrated
• EPS (TTM): 2.22
• Shares Outstanding: 9,815,349
• 10 Day Avg. Volume: 30,047
• 30 Day Avg. Volume: 16,776
• PEG Ratio: -0.08
• Price to Book (P/B): 1.27
• Price to Sales (P/S): 1.25
• P/FCF Ratio: 6.04
• Enterprise Value/Market Cap: 0.65
• Enterprise Value/Revenue: 0.88
• Enterprise Value/Gross Profit: 2.59
• Enterprise Value/Ebitda: 2.38
• 1Y Price Target: $33.00
• Price Target Upside: 2.17% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 77 Outperform
• Price Target: $33.00 ▲(2.17% Upside)

Unit Corp's strong financial recovery and robust valuation metrics are the primary drivers of its high score. The company's impressive revenue growth and profitability improvements, combined with a low P/E ratio and high dividend yield, make it an attractive investment. Technical indicators support a stable outlook, although recent declines in free cash flow growth should be monitored.

Unit Corp Business Overview & Revenue Model

Company Description

Unit Corporation, together with its subsidiaries, engages in the exploration, acquisition, development, and production of oil and natural gas properties in the United States. It operates through three segments: Oil and Natural Gas, Contract Drilling, and Mid-Stream. The Oil and Natural Gas segment explores for, acquires, develops, and produces oil and natural gas properties. Its producing oil and natural gas properties, unproved properties, and related assets are primarily located in Oklahoma and Texas, as well as in Colorado, Kansas, Louisiana, Montana, New Mexico, North Dakota, Utah, and Wyoming. The Contract Drilling segment is involved in the drilling of onshore oil and natural gas wells for a range of other oil and natural gas companies primarily in Oklahoma, Texas, New Mexico, Wyoming, and North Dakota. It has 21 drilling rigs in its fleet. The Mid-Stream segment buys, sells, gathers, processes, and treats natural gas for third parties. This segment operates three natural gas treatment plants, 12 processing plants, 18 gathering systems, and approximately 3,822 miles of pipeline in Oklahoma, Texas, Kansas, Pennsylvania, and West Virginia. Unit Corporation was incorporated in 1963 and is headquartered in Tulsa, Oklahoma.

How the Company Makes Money

Unit Corp generates revenue through the sale of oil, natural gas, and natural gas liquids that it extracts from its owned and operated wells. The company's key revenue streams include the production and sale of these hydrocarbons, which are sold to various end users, including refiners, utilities, and other energy companies. Additionally, Unit Corp earns income through its midstream operations, which involve gathering and processing natural gas for third parties, generating fees for these services. Partnerships with other exploration and production companies may also contribute to its earnings, allowing Unit Corp to expand its operational footprint and share exploration and development costs.

Unit Corp Financial Statement Overview

Summary

Unit Corp demonstrates a strong financial recovery with impressive revenue growth and profitability improvements. The balance sheet is robust with low leverage, enhancing financial stability. While cash flow metrics are generally positive, recent declines in free cash flow growth warrant attention.

Income Statement

Unit Corp's income statement shows a strong recovery from previous losses, with a significant improvement in net profit margin to 20.98% in the TTM period. The company has achieved a remarkable revenue growth rate of 99.5% in the TTM, indicating a robust turnaround. However, historical volatility in revenue growth and margins suggests potential risks in maintaining this trajectory.

Balance Sheet

The balance sheet is solid, with a low debt-to-equity ratio of 0.024 in the TTM, reflecting strong financial stability. Return on equity is healthy at 20.03%, indicating efficient use of equity capital. The equity ratio is also strong, suggesting a well-capitalized position. However, the decrease in stockholders' equity over time could be a concern if not addressed.

Cash Flow

Cash flow analysis reveals a stable operating cash flow to net income ratio of 2.58 in the TTM, indicating good cash generation relative to profits. However, free cash flow growth has been negative recently, which could impact future liquidity. The free cash flow to net income ratio remains healthy, suggesting adequate cash flow coverage.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	236.21M	237.61M	327.29M	545.52M	638.72M	410.49M
Gross Profit	80.06M	77.89M	135.79M	260.26M	198.81M	-51.80M
EBITDA	87.02M	78.12M	223.20M	169.26M	140.60M	-747.98M
Net Income	59.67M	47.24M	248.94M	148.37M	48.22M	-949.15M
Balance Sheet
Total Assets	300.75M	289.24M	322.72M	469.25M	629.48M	649.70M
Cash, Cash Equivalents and Short-Term Investments	55.13M	48.88M	60.78M	213.97M	64.14M	12.14M
Total Debt	5.55M	6.54M	7.83M	10.02M	35.12M	110.92M
Total Liabilities	53.66M	56.72M	68.59M	106.63M	229.81M	224.11M
Stockholders Equity	247.08M	232.52M	254.13M	362.63M	187.40M	179.22M
Cash Flow
Free Cash Flow	44.47M	49.07M	126.15M	129.03M	145.66M	44.55M
Operating Cash Flow	81.91M	75.22M	150.16M	159.42M	175.97M	74.76M
Investing Cash Flow	-32.60M	-11.58M	57.98M	28.90M	36.20M	-22.40M
Financing Cash Flow	-74.99M	-75.53M	-361.33M	-38.48M	-160.75M	-40.22M

Unit Corp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 32.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UNTC, the sentiment is Positive. The current price of 32.3 is above the 20-day moving average (MA) of 30.70, above the 50-day MA of 28.86, and above the 200-day MA of 26.63, indicating a bullish trend. The MACD of 1.21 indicates Negative momentum. The RSI at 69.16 is Neutral, neither overbought nor oversold. The STOCH value of 80.03 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for UNTC.

Unit Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UNTC	77 Outperform	$317.04M	5.37	23.67%	21.01%	-15.26%	-48.26%
NFG	76 Outperform	7.92B	32.79	8.18%	2.37%	19.59%	-21.86%
YPF	72 Outperform	10.74B	8.56	0.00%	―	4.28%	0.00%
TGS	62 Neutral	3.24B	9.38	13.74%	4.38%	30.25%	170.05%
SLNG	46 Neutral	73.41M	82.23	1.36%	―	-3.01%	-67.03%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%