Founder at Stock Spin-off Investing, Stock Spin-Off Investing

Richard Howe

Founder at Stock Spin-off Investing

Stock Spin-Off Investing

Generate attractive returns by taking advantage of inefficiencies in the stock spin-off market.

Stock Spin-offs

Event-Driven

<ul><li>With oil prices moving materially higher following the conflict in Iran, I’ve updated my projections for Unit Corp and increased my price target.</li><li>Net-net, I estimate UNTC is worth ~$48/share, implying ~47% upside. In the interim, investors are paid to wait with a ~17% dividend yield, while management continues to grow reserves on an annual basis.</li><li>Importantly, management explicitly highlighted the expiration of change-of-control restrictions, which suggests the company may be positioning for a potential sale.</li></ul>

With oil prices moving materially higher following the conflict in Iran, I’ve updated my projections for Unit Corp and increased my price target.Net-net, I estimate UNTC is worth ~$48/share, implying ~47% upside. In the interim, investors are paid to wait with a ~17% dividend yield, while management continues to grow reserves on an annual basis.Importantly, management explicitly highlighted the expiration of change-of-control restrictions, which suggests the company may be positioning for a potential sale.

<ul><li>On February 27, 2026, Atrium Therapeutics (RNA) was spun off from Avinity Biosciences before it was acquired by Novartis (NVS).</li><li>The stock has performed relatively well in initial trading considering the market volatility.</li><li>Novartis acquired Avidity’s RNA therapeutics platform and pipeline focused on neuromuscular diseases. </li></ul>

On February 27, 2026, Atrium Therapeutics (RNA) was spun off from Avinity Biosciences before it was acquired by Novartis (NVS).The stock has performed relatively well in initial trading considering the market volatility.Novartis acquired Avidity’s RNA therapeutics platform and pipeline focused on neuromuscular diseases. 

Equity Bottom-Up

<ul><li>Last week, I spoke to the CFO of Unit Corp and wanted to share a brief update (full notes from my call below).</li><li>The big surprise this quarter was that production GREW (+16% y/y in the quarter). I’ve become used to seeing 10% to 15% annual declines, and while management had guided that production would start to flatten out given increased drilling activity, it was still very nice to see.</li><li>The company is in the process of drilling 2 net new wells this year and results have been quite strong.</li></ul>

Last week, I spoke to the CFO of Unit Corp and wanted to share a brief update (full notes from my call below).The big surprise this quarter was that production GREW (+16% y/y in the quarter). I’ve become used to seeing 10% to 15% annual declines, and while management had guided that production would start to flatten out given increased drilling activity, it was still very nice to see.The company is in the process of drilling 2 net new wells this year and results have been quite strong.

Unit Corp – Updating Projections After a Strong Q2

<ul><li>This week, I spoke to the CFO of Unit Corp and updated my investment case on Unit Corp.</li><li>I think Unit Corp looks very cheap. On a consolidated basis, the stock is trading at ~5.6x FCF.</li><li>This doesn’t sound that cheap for an oil and gas company. But results are depressed.</li></ul>

This week, I spoke to the CFO of Unit Corp and updated my investment case on Unit Corp.I think Unit Corp looks very cheap. On a consolidated basis, the stock is trading at ~5.6x FCF.This doesn’t sound that cheap for an oil and gas company. But results are depressed.

Fundamental Analyses, Contrarian Cashflows

Contrarian Cashflows

Fundamental Analyses

The purpose of Contrarian Cashflows is to document my investment research and share it with everyone who is interested in value investing. My long term aspiration for Contrarian Cashflows is to become a platform for professional investors and serious amateurs where they can get inspiration and discuss investing-related topics.
I plan to publish one company deep dive per month that is guided by my investment approach. All information I use for my write-ups is publicly available and most of the time directly sourced from public filings issued by the respective companies. To guarantee maximum transparency, for every post I provide a list of all used sources in the resources section.
Contrarian Cashflows is built around the principles of respect, honesty, open-mindedness and a touch of humour. Please consider these principles in any engagement interaction with me, other readers and the content on this blog. Misbehaviour is not tolerated.
If you want to reach out to me directly, the best way is via LinkedIn, Twitter or email. You can find the details at my homepage contrariancashflows.com

Thematic (Sector/Industry)

<ul><li>Each week, I’ll share five intriguing investment ideas that recently caught my attention. These ideas are meant to spark your research and help you kickstart the week ahead with fresh insights.</li><li>Because these ideas are the result of my first-level idea generation process, they require more in depth research. Therefore, the ideas will often be concise, with occasional references to valuable work from other practitioners that I encourage you to explore.</li><li>If you have something fascinating to share that could benefit me and the wider community, don’t hesitate to send it my way—I’d love to hear from you!</li></ul>

Each week, I’ll share five intriguing investment ideas that recently caught my attention. These ideas are meant to spark your research and help you kickstart the week ahead with fresh insights.Because these ideas are the result of my first-level idea generation process, they require more in depth research. Therefore, the ideas will often be concise, with occasional references to valuable work from other practitioners that I encourage you to explore.If you have something fascinating to share that could benefit me and the wider community, don’t hesitate to send it my way—I’d love to hear from you!

United States

Unit Corporation, through its subsidiaries, contracts to drill onshore oil and natural gas wells, as well as develops, acquires, and produces oil and natural gas properties. The Company's operations are located primarily in the Anadarko and Arkoma Basins, as well as the south Texas and Permian Basins. Unit also has producing properties in other states and Canada.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Unit Corp (UNTC US)

UNTC: Increasing My Price Target

With oil prices moving materially higher following the conflict in Iran, I’ve updated my projections for Unit Corp and increased my price target.

Richard Howe

Weekly Update (UNTC, LBTYA, RNA)

On February 27, 2026, Atrium Therapeutics (RNA) was spun off from Avinity Biosciences before it was acquired by Novartis (NVS). The stock has...

Richard Howe

Unit Corp – Updating Projections After a Strong Q2

Last week, I spoke to the CFO of Unit Corp and wanted to share a brief update (full notes from my call below). The big surprise this quarter was...

Richard Howe

Unit Corp - A Mid Year Update

I think Unit Corp looks very cheap. On a consolidated basis, the stock is trading at ~5.6x FCF. I think Unit Corp looks very cheap. On a...

Richard Howe

Monday Delight: 06/10/25

Each week, I’ll share five intriguing investment ideas that recently caught my attention. These ideas are meant to spark your research and help...

Contrarian Cashflows

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)