Unit Corp (UNT)

dan_s · Post by **dan_s** » Fri Jan 31, 2014 2:56 pm

Unit Corp. (UNT): An updated Net Income & Cash Flow Forecast has been posted under the Sweet 16 Tab.

Unit Corp. may be the Sweet 16 company that will benefit the most from increasing natural gas and NGL prices. Production was up 17% in 2013 and the midpoint of their guidance is for a 16.4% increase in 2014.

2014 production should be 53,000 boepd (52% natural gas, 25% NGLs and 23% crude oil).

My earnings per share forecast is $4.64 for 2014, which is above First Call's range of $3.61 to $4.13. Only six analysts have provided estimates to First Call and their forecasts have been going down over the last 90 days. This tells me that they are still using very low natural gas and NGL prices for 2014.

Assuming Unit sticks with their production guidance for 2014, I think this one will see several upgrades after they release year-end results.