What: Shares of Unit Corporation (NYSE:UNT) jumped as much as 30% today after the company announced a boost to its full-year guidance.
So what: Management said today that production growth for the oil and gas segment would be 6% to 8% for 2015, up from previous guidance of 2% to 4% growth. Capital expenditures are also expected to be about $30 million less than previously budgeted because of lower spending in oil and gas.
One of the positive notes came from a customer who wanted to terminate two BOSS drilling rig contracts early. The customer has apparently agreed to keep one rig, and the other rig is already contracted to a third-party operator.
Now what: This is a small ray of hope in a tough energy market right now, but I'd be cautious about getting too bullish today. Analysts aren't expecting anything near a profit in 2015, and even higher growth may not change that narrative. I'd like to see where net income stabilizes long-term before jumping in, because I think there's still a lot of turbulence ahead for oil and natural gas drillers.
Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.