Recommendation: Buy Share Price (as of 11/27/12): $43.36 Sonja Xholi Vince Tasso Palmer Pawlusiak James Berta Unit Corp. (UNT) NYSE

Three Subsidiaries Unit Drilling Company Unit Petroleum Company Unit Superior Pipeline Company

Unit Drilling Company Wholly owned subsidiary 127 onshore rigs Anadarko and Arkoma basins, Rocky Mountains, Texas, and Louisiana

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Unit Petroleum Company 116 MMBoe of reserves, primarily in the Anadarko and Arkoma Basins Operate more than 300,000 acres combined in the Granite Wash Play, Marmaton, Wilcox and Bakken Shale Recently sold 4,756 net acres, 35% of total acreage in Bakken play, to QEP Resources, Inc. for $228.0 million Acquired 84,000 acres from Noble Energy.

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Superior Pipeline Company Full service oil services company Provides natural gas and natural gas liquids refining and transportation Located in the Texas/Oklahoma panhandle, Central/Western Oklahoma, Southeastern Texas and Appalachia Provide 525,000 gallons/day of natural gas liquids

Industry/Macro Outlook Oil prices could decrease due to European recession. Natural gas prices could increase due to a predicted cold winter. Contract drilling segment could be effected by future Obama administration regulation. Drilling demand expected to increase by 8.1% annually. Increased demand for alternative energy.

Fundamentals Current Price: $43.36 Market Cap: 2.11Bil Beta: 1.50 P/E: PEG: 0.6 Low Debt Stable Growth Y/Y Long-Term Value Stock

Latest Earnings Report Net income of $46.6 Million or.97 cents per share. Total revenues for Q3 $317.8 Million. Increasing liquids production for 11 th quarter in a row. Hedges significantly outperform market price for commodities.

B in Rev B in Rev. Subsidiary Rev. (Percent of Total Rev.) Contract Drilling 0.4B (40.1%) 0.3B (35.9%) Oil & Nat Gas0.5B (42.7%) 0.4B (45.5%) Pipeline & Mid-Stream 0.2B (17.2%) 0.1B (17.5%)

Revenue Contribution

Key Ratios vs. Peers Unit Corp.*Peer Avg.Industry Avg. Market Cap (Billions)2.07 P/E P/S P/B Profit Margin10.37%4.96%8.7% EPS ROE7.25%4.08%1.00% Beta *Top Peers are PTEN, PES, and NBR

Recent Stock Performance

Potential Risks Debt. $645.2 Million Cash Commodity prices

Drivers They have been increasing liquids production consistently They are well diversified into several drilling segments. They have outperformed industry Low debt, solid hedges, good fundamentals. Solid growth in profitable segments.

DCF Valuation

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