Unit Corp (UNTC) AI Stock Analysis

• Market Cap: $337.84M
• Dividend Yield: 16.5%
• Average Volume (3M): 15.09K
• Price to Earnings (P/E): 7.3
• Beta (1Y): 0.03
• Revenue Growth: -18.35%
• EPS Growth: -39.38%
• Country: US
• Employees: 516
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Integrated
• EPS (TTM): -0.52
• Shares Outstanding: 9,815,349
• 10 Day Avg. Volume: 21,756
• 30 Day Avg. Volume: 15,089
• PEG Ratio: -0.58
• Price to Book (P/B): 1.09
• Price to Sales (P/S): 3.00
• P/FCF Ratio: 4.55
• Enterprise Value/Market Cap: 0.47
• Enterprise Value/Revenue: 0.93
• Enterprise Value/Gross Profit: 2.40
• Enterprise Value/Ebitda: 2.31
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: $40.00 ▲(18.27% Upside)
• Action: Upgraded Date: 03/14/26
• Date: Action: Upgraded 03/14/26

The score is led by strong financial quality (near-zero leverage and solid recent cash generation) and supportive valuation (low P/E and high dividend yield). The main constraints are the sharp 2025 revenue drop and elevated near-term technical risk from overbought momentum signals.

Positive Factors

Conservative balance sheet

Near-zero leverage and a sizable equity base materially improve resilience to commodity cycles and downturns. A conservative balance sheet preserves financial flexibility for capex, infrastructure investment, or sustaining dividends, reducing refinancing risk over the medium term.

Solid cash generation

Consistent operating and free cash flow, with FCF growth in 2025, supports durable internal funding of operations, capital spending and distributions. Strong cash conversion relative to debt levels enhances long-term solvency and strategic optionality despite year-to-year swings.

Diversified energy operations

A multi-segment model (E&P, contract drilling, and gathering/processing) reduces reliance on a single commodity cycle and creates multiple cash engines. Midstream fees and drilling services can smooth earnings and provide counter-cyclical revenue when production or commodity prices weaken.

Negative Factors

Revenue volatility / sharp 2025 decline

A ~50% revenue drop in 2025 signals structural exposure to volatile production, price swings, or asset changes. Large top-line declines strain margin sustainability, reduce cash cushion, and complicate medium-term planning for capex and payouts, raising execution risk.

Earnings and ROE volatility

Wide swings in profitability and ROE indicate earnings are highly cyclical or impacted by non-recurring items. This undermines predictability of profits and cash flows, making it harder to assess sustainable earning power and to set reliable capital allocation policy.

Declining revenue and EPS trends

Negative multi-year trends in revenue and EPS reduce internal funding capacity and hinder long-term growth. Persistent declines limit the firm's ability to expand or absorb shocks, and increase reliance on operational improvements or external financing to restore growth.

Unit Corp Business Overview & Revenue Model

Company Description

Unit Corp (UNTC) is a diversified energy company based in the United States, primarily engaged in the exploration and production of oil and natural gas. The company operates through three main segments: Oil and Natural Gas, Contract Drilling, and Natural Gas Gathering and Processing. Unit Corp focuses on developing its extensive resource base and enhancing its operational efficiency to deliver reliable energy solutions while adhering to safety and environmental standards.

How the Company Makes Money

Unit Corp generates revenue primarily through the sale of crude oil, natural gas, and natural gas liquids produced from its exploration and production activities. The company also earns income from its contract drilling services, which involve providing drilling rigs and related services to exploration and production companies. Additional revenue streams include fees from natural gas gathering and processing services, where Unit Corp transports and processes natural gas for third-party producers. Key partnerships with other energy firms and strategic investments in infrastructure further bolster its earnings. Additionally, fluctuations in oil and gas prices significantly impact the company's revenue, making market conditions a crucial factor in its financial performance.

Unit Corp Financial Statement Overview

Summary

Strong overall financial profile driven by very low leverage and solid recent operating/free cash flow. Offsetting this is a major sustainability risk: revenue volatility and a sharp decline in 2025, plus historically swingy profitability that may reflect cyclical and/or non-recurring factors.

Income Statement

Profitability has improved materially versus 2020, with 2024–2025 showing healthy gross and operating margins and consistently positive net income. However, the top line has been highly volatile and shrinking: revenue fell modestly in 2024 and then dropped sharply in 2025 (down ~50% year over year). Net margins also appear unusually elevated in 2023, suggesting earnings may have been boosted by items that did not repeat, which raises sustainability risk despite strong recent profitability.

Balance Sheet

The balance sheet looks conservatively positioned: debt is very low relative to equity in 2024–2025 (near-zero leverage), and equity remains sizable versus total assets. This is a major improvement from 2020, when leverage was much higher. The main caution is that returns on equity have been very volatile (deeply negative in 2020 and extremely high in 2023), indicating earnings power can swing meaningfully with the cycle and/or non-recurring factors.

Cash Flow

Cash generation is a clear strength: operating cash flow and free cash flow are solid in 2024–2025, with free cash flow growing in 2025 and covering a meaningful portion of net income. Operating cash flow is also more than sufficient relative to debt levels in recent years. The weaker points are year-to-year volatility (free cash flow declined in 2024 and has fluctuated over time) and the fact that free cash flow has not consistently matched net income one-for-one, suggesting some earnings may not fully translate into cash every year.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	102.28M	237.61M	327.29M	545.52M	638.72M
Gross Profit	49.91M	77.89M	135.79M	260.26M	198.81M
EBITDA	37.92M	78.12M	223.20M	169.26M	140.60M
Net Income	41.83M	47.24M	248.94M	148.37M	48.22M
Balance Sheet
Total Assets	341.58M	289.24M	322.72M	469.25M	629.48M
Cash, Cash Equivalents and Short-Term Investments	181.71M	48.88M	60.78M	213.97M	64.14M
Total Debt	1.78M	6.54M	7.83M	10.02M	35.12M
Total Liabilities	60.51M	56.72M	68.59M	106.63M	229.81M
Stockholders Equity	281.07M	232.52M	254.13M	362.63M	187.40M
Cash Flow
Free Cash Flow	67.46M	49.07M	126.15M	129.03M	145.66M
Operating Cash Flow	91.05M	75.22M	150.16M	159.42M	175.97M
Investing Cash Flow	93.49M	-11.58M	57.98M	28.90M	36.20M
Financing Cash Flow	-51.72M	-75.53M	-361.33M	-38.48M	-160.75M

Unit Corp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 33.82
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 33.82 is above the 20-day moving average (MA) of 33.41, above the 50-day MA of 31.99, and above the 200-day MA of 28.63, indicating a bullish trend. The MACD of 0.80 indicates Negative momentum. The RSI at 64.23 is Neutral, neither overbought nor oversold. The STOCH value of 28.53 is Neutral, 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	78 Outperform	$337.84M	7.33	16.62%	16.50%	-18.35%	-39.38%
NFG	71 Outperform	$8.88B	10.05	21.09%	2.57%	28.56%	593.72%
EC	67 Neutral	$29.81B	12.89	11.20%	18.88%	-7.45%	-28.80%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
YPF	57 Neutral	$17.20B	-17.14	-2.22%	―	-2.76%	56.81%
SLNG	56 Neutral	$70.11M	-62.49	-2.05%	―	-2.40%	-74.09%
SKYQ	45 Neutral	$12.68M	-0.93	-192.25%	―	―	―