Seeking Alpha: Unit Corp Doesn't Seem To Get Full Benefit Of The Doubt

Investors typically like "clean" investment stories where there are not a lot of moving parts or unusual combinations of businesses - this is why there used to be something called a "conglomerate discount", though that has largely gone away over the years. I mention this as the opener for the piece because I believe it's an important part of the investment story around Unit Corp (UNT) - a smallish energy company with operations in exploration and production, land-based drilling, and midstream.

Although Unit Corp has done reasonably well over the years, particularly with respect to growing its reserves and shifting its resource base away from gas and toward liquids, the stock doesn't really reflect the multiples you'd expect from its mix of operations. There are certainly some operational risks tied to the company's E&P activities and the U.S. land drilling market is unlikely to show a real recovery until 2015, but I do believe Unit shareholders have reason to expect at least a little more upside in these shares.

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Unit Corp Doesn't Seem To Get Full Benefit Of The Doubt