Yahoo Finance Why It's Worth Adding Unit (UNT) Stock to Your Portfolio Now
Unit Corporation’s UNT upbeat prospects make it a promising pick.
The company currently has a Zacks Rank #1 (Strong Buy) and a VGM Score of A. Our research shows that stocks with a VGM Score of A or B when combined with a Zacks Rank #1 or 2 (Buy) offer the best opportunities for investors.
Let’s delve deeper to analyze the factors that make this energy player an attractive investment option.
Through its subsidiaries, Unit Corporation is involved in exploiting and producing natural gas and crude resources. The company also offers contract drilling services to upstream players and processes and gathers natural gas.
Notably, through its wholly owned affiliate Unit Petroleum Company, the company has access to 150 million barrels of oil equivalent (MMBoE) of reserves in prospective basins like Anadarko and Arkoma. Since 2001, the company’s reserve base saw a compound annual growth rate of 8% through 2017. Unit Corporation also had an impressive reserve replacement ratio of 176% over the same time frame, reflecting strong production prospects.
Unit Corporation also provides contract drilling services through Unit Drilling Company with an onshore fleet base of 96 rigs. This makes the company among the largest drilling players in onshore resources of the domestic market. Importantly, the rigs operate in the Rocky Mountains and the Gulf Coast’s Louisiana and Texas regions along with exposure to basins like Anadarko and Arkoma.
In Superior Pipeline Company, L.L.C., Unit Corporation has a 50% ownership, through which it conducts midstream operations like gathering, processing and transporting natural gas and natural gas liquids.
Overall, with majority of production comprising natural gas, through both its upstream and midstream operations, Unit Corporation is well placed to capitalize on the mounting demand for clean energy.
The positive developments are reflected in Unit Corporation’s impressive pricing chart. Over the past year, the stock has rallied 29.9% against the industry’s 12.8% decline.
Other Stocks to Consider
Other prospective players in the energy space are Shell Midstream Partners LP SHLX, Oasis Midstream Partners LP OMP and Petroleo Brasileiro S.A. or Petrobras PBR. While Oasis Midstream carries a Zacks Rank #2, Shell Midstream and Petrobras sport a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shell Midstream Partners has an average positive earnings surprise of 7.9% for the last four quarters.
Oasis Midstream will likely see earnings growth of 323.3% and 60.1% in 2018 and 2019, respectively.
Petrobras’ bottom line beat the Zacks Consensus Estimate in three of the trailing four quarters, the average beat being 10.4%.
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Shell Midstream Partners, L.P. (SHLX) : Free Stock Analysis Report
Petroleo Brasileiro S.A.- Petrobras (PBR) : Free Stock Analysis Report
Unit Corporation (UNT) : Free Stock Analysis Report
Oasis Midstream Partners LP (OMP) : Free Stock Analysis Report
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