Undervalued Oil & Gas Company (Unit Corporation: UNTC)

This is my first-ever posting on Reddit. Before reading the below facts and my outlook for Unit Corporation (UNTC), please know that I own the stock. That being said, I do feel that UNTC is a very attractively priced stock currently for investors (and perhaps traders). I could be wrong, so do your own additional research, make your own decision, and don’t invest more than you can afford to lose.

Unit Corp. (UNTC) is an oil & gas production company headquartered in Tulsa, OK. Currently, as of 4/19/26, UNTC’s stock price is about $31/share, and there are approximately 9.9 million shares outstanding, so UNTC's market cap is $307 million. After selling-off business lines in the spring of 2023 and the fall of 2025, UNTC is now a “pure play” oil & gas production company. As of 12/31/25, Unit Corp. has no debt and has $182 million of cash on its balance sheet (that is not a typo; the value of the cash on its balance sheet is equal to almost 60% of its market cap!). UNTC stock, which trades on the OTC Market, has been paying a $1.25 quarterly dividend (in addition to some special dividends), so if that continues, then investors earn a 16.0% annual dividend yield per UNTC’s current stock price. UNTC’s focus is the Anadarko Basin in Western Oklahoma which is a productive area that is getting increased attention from oil & gas companies. As of 12/31/25, UNTC has ownership of approximately 150,000 net acres in the Anadarko Basin, including significant holdings in the Cheroke Shale portion of the Anadarko Basin [Enverus Intelligence Research (EIR) has highlighted a burgeoning "land rush" in the Cherokee Shale within the Western Anadarko Basin, driven by tightening core shale inventory in mature basins like the Permian and Bakken]. For FYE 12/31/25, Unit Corp had Total Revenue of $102 million and had Net Income before Taxes of about $40 million [both of those numbers exclude the business lines sold] and depreciation of about $10 million, so EBITDA of about $50 million. Per Unit Corp’s 12/31/25 financial statements, this pre-tax Net Income was achieved with an average oil price of about $63.50/barrel in 2025. While UNTC has done some hedged sales of its production in 2026, I expect that the oil & gas market’s currently (as of 4/19/26) significantly higher prices than in 2025 will have a meaningfully positive impact on UNTC’s Revenue & Net Income in the current FYE 12/31/26. If we assume that the market price of oil & gas averages, say, 30% higher in 2026 than in 2025 (i.e. oil price of approx. $82.50), then, even with UNTC’s hedged sales, UNTC’s EBITDA will likely be at least $60 million and probably higher than that for FYE 12/31/26. [Obviously, if the price of oil is higher than the low $80s, then UNTC should/will be even more profitable in 2026.] It is also worth knowing that as of 12/31/25, Unit Corp had a $105 million net operating loss (NOL) because of the previously mentioned sales of its business lines; at an assumed 25% tax rate, this NOL is worth about $25 million. Putting all of the above information together, we can do a 12/31/26 (low-end?) market value estimate of UNTC:

EBITDA of $60 million x industry average of 6.0x EBITDA multiple = $360 million +

$182 million cash on balance sheet +

$25 million NOL =

Total Value of $567 million [divided by 9.9 million shares = $57/share for UNTC stock price]

This would be an 85% price return to UNTC investors; the likely dividends paid by UNTC will make the ‘total return’ (i.e. price return + income return) to investors even higher.

Furthermore, if we give some additional credit (i.e. value) to UNTC for its ownership of acreage in “heating-up” portions of the Anadarko (e.g. Cheroke Shale, Red Fork, and Woodford), then that could justify further upside to UNTC’s value and thus stock price. Could that possibly add another $20/share to UNTC's stock price? If so, this would be a 149% price return to UNTC investors; plus the added return from dividends.

If another larger oil & gas company wanted to buy Unit Corp, then it’s likely they would have to pay a premium to do so. Per Unit Corp’s March 2026 investor presentation that’s available on their website, “change of control ownership restrictions under Article XIV of the charter are now expired.” So Unit Corp. can now be purchased by another larger oil & gas company (e.g. SandRidge Energy, Devon Energy, Mach Natural Resources, or somebody else?)

All of the above makes me very bullish on UNTC, and as I said at the start of this posting, I own the stock.

P.S. – I will also mention that there are some buyable (and sellable) warrants on UNTC stock (ticker symbol: UNTCW). These have a maturity date of 9/3/27 and a strike price of $63.74, so for those who would prefer to take a more-risky bullish position regarding UNTC’s stock price, these warrants may (or may not) be attractive to purchase. FYI there is some litigation involving these warrants, so buyer beware and do our own research about that.