A debt-free, cash-heavy Anadarko E&P that has sold its non-core businesses to become a high-yield “harvest vehicle,” trading at a steep discount to cash-plus-reserves while living and dying by commodity prices and dividend discipline.
Overview
Unit Corporation has been rebuilt from a formerly diversified energy operator into a streamlined, debt-free upstream producer. Through its subsidiary Unit Petroleum Company, UNTC now focuses almost exclusively on E&P in the Anadarko Basin and parts of the Texas Panhandle, selling oil, natural gas, and NGLs to third-party purchasers at market prices, often supported by hedging. The last five years reflect a deliberate “harvest strategy”: monetizing non-core and service businesses to return capital to shareholders. Key milestones include exiting midstream via the 2023 sale of its remaining interest in Superior Pipeline for $20M and, most importantly, selling the contract drilling subsidiary (including 14 high-spec BOSS rigs) to Cactus Drilling in October 2025 for $120M cash. UNTC’s continuing operations grew in 2025 (9M revenue $77.56M, +13.6% YoY), aided by higher natural gas realizations, while its balance sheet and NOLs create an unusually large cushion to support an aggressive dividend model.