For the most recent quarter, revenues at this oil and gas company rose 19%, to $405.4 million, while non-GAAP income increased $0.12, to $1.13 per share.
Unit Corporation (UNT)
from Ford Equity Research Report
We project that Unit Corporation (UNT) will strongly outperform the market over the next 6 to 12 months. This projection is based on our analysis of three key factors that influence common stock performance: earnings strength, relative valuation, and recent price movement.
Unit is an oil and natural gas contract drilling company. The company operates three segments: Contract Drilling, which contracts to drill onshore oil and natural gas wells for others and for its own account; Oil and Natural Gas, which explores, develops, acquires and produces oil and natural gas properties for its own account; and Mid-Stream, which buys, sells, gathers, processes and treats natural gas. As of Dec 31 2013, the company’s total proved reserves of natural gas, oil, and natural gas liquid were 581.8 million cubic feet, 21.8 million barrels, and 41.2 million barrels, respectively.
The company has enjoyed a very positive trend in earnings per share over the past 5 quarters and while recent estimates for the company have been raised by analysts, UNT has posted better than expected results. Based on operating earnings yield, the company is undervalued when compared to all of the companies we cover. Share price changes over the past year indicates that UNT will perform very well over the near term.
EPS increased from $3.78 to an estimated $4.25 over the past 5 quarters indicating an improving growth rates when adjusted for the volatility of earnings. This indicates an improvement in future earnings growth may occur. Analyst forecasts have recently been raised. Company recently reported better than expected results.
Unit Corp.'s operating earnings yield of 6.8% ranks above 80% of the other companies in the Ford universe of stocks, indicating that it is undervalued.
Unit Corp.'s stock price is up 36.2% in the last 12 months, down 3.5% in the past quarter and down 9.6% in the past month. This historical performance should lead to above average priceperformance in the next one to three months.
Richard Segarra, CFA, Ford Equity Research Report, www.fordequity.com, 800-842-0207, August 1, 2014