New Mountain Vantage reports 5.2% stake in Unit Corp.

[ghrcap]

"New Mountain Vantage said it had and may continue to have discussions with Unit Corp.'s management regarding means of increasing shareholder value. New Mountain disclosed that it also had and may continue to have discussions with the company's management and board regarding the board structure and management compensation." (theflyonthewall)

[dan_s]

This is very interesting news. IMO Unit is grossly undervalued by the market, especially if natural gas prices push over $4.

Unit could spin off their E&P subsidiary.

I think the management team is rock solid. They just need to get out more to tell their story, which is a good one. Take a look at my forecast for Unit (under the Sweet 16 Tab) and you see very strong fundamentals.

[ghrcap]

Unit hosted an Analyst Day yesterday and the slides they used are available on the company's website. "Preliminary 2014 Production Guidance 15% - 18% Growth"

[ghrcap]

EnerCom summarizes Unit's Analyst Day in NYC last week and includes some comments from analysts.
http://www.oilandgas360.com/unit-corpor ... 3-20578753

[dan_s]

I just updated the Sweet 16 spreadsheet. RRC and UNT are only two up for the week, which is rather weird since oil and gas prices are up.

My take is that a lot of fund managers that don't really understand the fundamentals for this sector rotated out to retail and tech. I think they will be back as year-end approaches. Q4 results and year-end reserve reports should be very strong.