Unit Corp. completed a divestiture of non-core oil and gas assets in the Texas Panhandle for net cash proceeds of $50 million.
Tulsa, Oklahoma-based Unit Corp. said the transaction included approximately 51,000 net acres held by a wholly-owned subsidiary, Unit Petroleum Co. (UPC). The buyer was not disclosed.
Proceeds from the non-core asset sale will be used to fund Unit’s conditional special dividend of $5 per common share. The dividend is payable on Dec. 27 to shareholders of record as of Dec. 18.
“This transaction is a great example of our strategy to prune our non-core assets and return value to our shareholders,” Unit CEO Phil Frohlich said in a Dec. 13 press release.
UPC will retain its core position in the Granite Wash; the company has properties in Roberts and Hemphill counties, Texas.
Last year, Unit sold wells and leases near the Texas Gulf Coast for cash proceeds of $45.4 million, according to regulatory filings.
UPC has oil and gas assets located primarily in Texas and Oklahoma.
Earlier this year, Unit divested its 50% interest in midstream subsidiary Superior Pipeline Co. for $20 million.
RELATED: Unit Corp. Sells Ownership Stake in Superior Pipeline to Investment Group
Recommended Reading
CEO: Continental Adds Midland Basin Acreage, Explores Woodford, Barnett
2024-04-11 - Continental Resources is adding leases in Midland and Ector counties, Texas, as the private E&P hunts for drilling locations to explore. Continental is also testing deeper Barnett and Woodford intervals across its Permian footprint, CEO Doug Lawler said in an exclusive interview.
CNX, Appalachia Peers Defer Completions as NatGas Prices Languish
2024-04-25 - Henry Hub blues: CNX Resources and other Appalachia producers are slashing production and deferring well completions as natural gas spot prices hover near record lows.
Equinor Says EQT Asset Swap Upgrades International Portfolio
2024-04-30 - Equinor CFO Torgrim Reitan says the company’s recent U.S. asset swap with EQT Corp. was an example of the European company “high-grading” its international E&P portfolio.
Barnett & Beyond: Marathon, Oxy, Peers Testing Deeper Permian Zones
2024-04-29 - Marathon Oil, Occidental, Continental Resources and others are reaching under the Permian’s popular benches for new drilling locations. Analysts think there are areas of the basin where the Permian’s deeper zones can compete for capital.
CNOOC Makes 100 MMton Oilfield Discovery in Bohai Sea
2024-03-18 - CNOOC said the Qinhuangdao 27-3 oilfield has been tested to produce approximately 742 bbl/d of oil from a single well.