Hot Growth Special Report 2006 >



Unit (UNT)

Forget tricky international supply chains; Unit is getting its oil right here. Headquartered in Tulsa, the oil and gas drilling company operates in locales from Colorado to Louisiana. Its three subsidiaries -- Unit Drilling Unit Petroleum and Superior Pipeline -- got a boost as oil prices climbed from an average $37 per barrel in 2004 to an average $50 in 2005. The company started in 1963 with just three rigs. Over the past three years, Unit's annual profit growth jumped an average 122%, to a record $212.4 million on $885.6 million in revenue, also an all-time high. And with new rigs sprouting up every month, the company's lucrative operations show no signs of slowing down. Last year, it spent more than $100 million on oil and natural gas properties in Oklahoma, Arkansas, and Texas. Shareholders are pumped for more hot growth to come.

Company Info

2005 Rank


Market Value*
($ Millions)


($ Millions)


Sales Growth
(3-yr. avg. annual)

68.2 %

($ Millions)


Profit Growth
(3-yr. avg. annual)

122.1 %

Return on Inv. Capital (3-yr.)

11.5 %

Share Price
12-Mo. Hi/Lo


Share Price
As of 4/28/06


Return on Equity

28.1 %

P/E Ratio


No. of Employees


Industry Oil & Gas Drilling


Location Tulsa
Phone 918 493-7700
*Trailing 12 months
Stock price data as of 4/28/06
DATA: Standard & Poor's Compustat

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Company Snapshot

Unit Corp., through its subsidiaries, engages in contract drilling, oil and gas exploration and production, and natural gas gathering, processing, and treating operations primarily in the U.S. The company operates in three segments: Contract Drilling, Oil and Natural Gas, and Gas Gathering and Processing. The Contract Drilling segment involves the land contract drilling of oil and natural gas wells -- and drills onshore natural gas and oil wells for various oil and gas companies. This segment operates principally in the Oklahoma and Texas areas of the Anadarko and Arkoma Basins, the north Texas Barnett Shale, the Texas Gulf Coast and east Texas, and the Rocky Mountain regions of Wyoming and Colorado. The Oil and Natural Gas segment explores, develops, acquires, and produces oil and natural gas. It has producing oil and natural gas properties, undeveloped leaseholds, and related assets primarily in Oklahoma, Texas, Louisiana, and New Mexico; and to a lesser extent in Arkansas, North Dakota, Colorado, Wyoming, Montana, Alabama, Kansas, Mississippi, and Michigan, as well as in Canada. The Gas Gathering and Processing segment buys, sells, gathers, and treats natural gas on its own and for third parties. As of Dec. 31, 2005, the company had estimated, proved, developed, and undeveloped reserves of 9,871 MBbls of oil and 352,841 MMcf of natural gas. Unit Corp. was founded in 1963 and is based in Tulsa, Okla.

Data provided by Capital IQ
Larry D. Pinkston

Larry D. Pinkston, 51

Chief Executive Officer, President and Director

Total Compensation*

$ 475,577

Total Options Value*

$ 1,995,295

* Fiscal Year 2005

East Central University - BS

Executive Bio

Larry Pinkston has been president of Unit since August, 2003, and chief executive since April, 2005. Pinkston has been chief operating officer since February, 2004. Pinkston joined Unit in December, 1981. He served as corporate budget director and assistant controller prior to being appointed controller in February, 1985. Pinkston was treasurer from December, 1986, and vice-president and chief financial officer from May, 1989, to February, 2004. In December 2002, he was elected to the additional position of executive vice-president. Pinkston has been a director of Unit since January, 2004. He serves on the advisory board of Eagle Energy Partners. He holds a BS in accounting from East Central University of Oklahoma and is a certified public accountant.

Management Team

Key Executives

Larry D. Pinkston; Mark E. Schell; David T. Merrill; John G. Nikkel

Board Directors

Robert J. Sullivan; Gary R. Christopher; J. Michael Adcock; Don Cook; William B. Morgan; John H. Williams; King P. Kirchner; John G. Nikkel; Larry D. Pinkston

Executive Data provided by Capital IQ