About six months ago, I thought that Unit Corp. (NYSE:UNT) was undervalued by about 20% to 25% as the company's awkward mix of E&P, land drilling, and midstream assets led it to being overlooked. The shares have risen more than 27% since then, with much of that coming on good fourth quarter results and a significant improvement in sentiment for land drillers and service providers. Enthusiasm over land drillers may be getting a little overdone, but Unit still looks too cheap on a sum-of-the-parts basis and offers worthwhile upside from its E&P drilling program.
The Right Mix In The Fourth Quarter
Unit reported 5% sequential production growth in the fourth quarter, with oil production up 9% and NGL...
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