Unit Corp. (UNT)

[dan_s]

I have updated my Net Income & Cash Flow Forecast model and posted it under the Sweet 16 tab. Using a 6X multiple of operating cash flow per share, my Fair Value Estimate is now $80.70/share.

I am not the only one seeing this. Read this:
http://seekingalpha.com/article/1794102 ... urce=yahoo

I believe UNT is being undervalued by the market because it is lumped in with the Onshore Drillers. In fact it is an E&P company that happens to have a profitable drilling division. They also have a midstream division that is very profitable.

Unit Corp. has a rock solid Balance Sheet - very conservative. Oil & gas production will be up more than 17% this year and I believe they have at least 10% production growth locked in for 2014. They are focused on increasing their liquids production.

The only reason I can see for the current share price is that they are not in the high profile shale plays.

At today's share price, I see very little downside risk and more than 50% upside (assuming the market figures this out).