Unit Corp (UNTC) AI Stock Analysis

• Market Cap: $263.05M
• Dividend Yield: 18.66%
• Average Volume (3M): 12.76K
• Price to Earnings (P/E): 5.4
• Beta (1Y): 0.05
• Revenue Growth: -22.19%
• EPS Growth: -62.80%
• Country: US
• Employees: 516
• Sector: Energy
• Sector Strength: 54
• Industry: Oil & Gas Integrated
• EPS (TTM): 1.80
• Shares Outstanding: 9,815,349
• 10 Day Avg. Volume: 11,581
• 30 Day Avg. Volume: 12,762
• PEG Ratio: -0.16
• Price to Book (P/B): 1.08
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.18
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Unit Corp's stock score is primarily influenced by its attractive valuation, featuring a low P/E ratio and a high dividend yield. However, mixed financial performance with revenue volatility and potential liquidity challenges, coupled with technical indicators suggesting a cautious sentiment, balance out these positives. The absence of recent earnings call data or significant corporate events means the focus remains on existing financial and market trends.

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 three main segments: oil and natural gas exploration and production, contract drilling, and midstream services. The exploration and production segment involves the extraction and sale of oil and natural gas, which constitutes the primary source of revenue. The contract drilling segment offers onshore drilling services to other energy companies, providing a steady stream of income through service contracts. The midstream services segment involves the gathering, processing, and transportation of oil and natural gas, which supports the company's production activities and generates additional revenue through service fees. Strategic partnerships and joint ventures in resource-rich areas further enhance the company's revenue potential.

Unit Corp Financial Statement Overview

Summary

Unit Corp presents a strong financial position with enhanced profitability and stable cash flows. The company exhibits low leverage and a robust equity base, contributing to financial stability. Despite declining revenue, the solid profit margins and effective cash management support a positive financial outlook.

Income Statement

Unit Corp's income statement shows a strong profitability profile, with a high net profit margin of 37.25% in TTM (Trailing-Twelve-Months) and improved gross and EBIT margins due to cost management. However, there is a notable decline in revenue compared to previous years, which could indicate market challenges.

Balance Sheet

The balance sheet is solid with a low debt-to-equity ratio of 0.03, indicating financial stability and low leverage. The equity ratio is high at 82.39%, reflecting a strong equity base. The return on equity is robust at 37.08%, driven by high profitability.

Cash Flow

Cash flow analysis reveals stable free cash flow generation with a positive operating cash flow to net income ratio of 0.92 in TTM. There is a decrease in free cash flow growth, but the company maintains a good free cash flow to net income ratio of 0.70, highlighting efficient cash management.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
252.32M	327.29M	545.52M	638.72M	410.49M	674.63M
	Gross Profit
85.56M	135.79M	260.26M	198.81M	-51.80M	14.33M
	EBIT
63.11M	163.17M	243.98M	294.54M	-101.26M	325.51M
	EBITDA
123.32M	223.20M	169.26M	140.60M	-747.98M	251.66M
	Net Income Common Stockholders
94.00M	248.94M	148.37M	48.22M	-949.15M	-553.83M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.45M	60.78M	213.97M	64.14M	12.14M	571.00K
	Total Assets
2.70B	322.72M	469.25M	629.48M	649.70M	2.09B
	Total Debt
657.23M	7.83M	10.02M	35.12M	110.92M	786.12M
	Net Debt
650.78M	-52.95M	-203.95M	-29.02M	98.78M	785.55M
	Total Liabilities
1.10B	68.59M	106.63M	229.81M	224.11M	1.24B
	Stockholders Equity
1.39B	254.13M	362.63M	187.40M	179.22M	853.88M
Cash Flow		Free Cash Flow
65.80M	126.15M	129.03M	145.66M	44.55M	-140.92M
	Operating Cash Flow
86.41M	150.16M	159.42M	175.97M	74.76M	269.40M
	Investing Cash Flow
44.98M	57.98M	28.90M	36.20M	-22.40M	-394.56M
	Financing Cash Flow
-257.95M	-361.33M	-38.48M	-160.75M	-40.22M	119.29M

Unit Corp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 26.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 26.3 is above the 20-day moving average (MA) of 25.65, below the 50-day MA of 26.60, and below the 200-day MA of 27.13, indicating a neutral trend. The MACD of -0.13 indicates Negative momentum. The RSI at 54.05 is Neutral, neither overbought nor oversold. The STOCH value of 86.45 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
YPF	76 Outperform	$14.41B	5.99	22.65%	―	7.35%	―
TGS	72 Outperform	$4.51B	12.18	20.40%	―	37.43%	395.49%
NFG	70 Outperform	$7.20B	181.50	1.30%	2.58%	7.14%	-90.91%
SLNG	69 Neutral	$101.54M	67.23	2.37%	―	7.30%	208.99%
UNTC	63 Neutral	$263.05M	5.42	19.81%	18.66%	-22.19%	-62.80%
Sector *	56 Neutral	$7.27B	3.51	-4.45%	5.66%	0.09%	-52.20%