2024-02-16 08:04:46 ET
Summary
- Unit paid out $22.50 per share in dividends during December 2023.
- This reduces its cash on hand to around $8 per share.
- Unit may generate around $7 to $7.50 per share in 2024 free cash flow at current strip.
- Thus, its current $2.50 per share quarterly dividend is greater than its projected quarterly free cash flow during 2024.
- Unit can use cash on hand to support its current dividend, but longer term, a $2.50 per share quarterly dividend doesn't seem sustainable.
Unit Corporation (UNTC) paid out $22.50 per share in dividends in December 2023. As a result, it has significantly lower cash on hand now, which I estimate to be around $75 million at the end of 2023....
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Unit Corporation: A Look At Potential 2024 Results And Dividend Sustainability