(Source: Shutterstock.com)
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
Equinor’s Norwegian LNG Plant Likely Shuttered for a Week
2025-01-02 - An outage at Equinor’s Arctic facility, Hammerfest LNG, will temporarily close Europe’s largest LNG export facility.
Belcher: Heed the Harsh Lessons from Europe’s Net-Zero Perils
2024-12-30 - The EU’s aggressive climate stance is wreaking economic havoc and mounting regulations could hurt the U.S. LNG industry.
NatGas Prices Jump on Forecast of Widespread Freeze
2024-12-30 - The National Weather Service predicts a mid-month, lingering cold snap for much of the U.S., prompting natural gas prices to increase by roughly $0.50 per MMBtu.
Cheniere Produces First LNG in Corpus Christi Expansion Project
2024-12-30 - Houston-based Cheniere adds to quickly growing U.S. production capacity.
Geopolitical Tensions Complicate Oil Price Predictions
2024-10-14 - Geopolitical tensions around the world are an ongoing wildcard for oil prices in the near-term, according to BOK Financial Securities’ Dennis Kissler. U.S. producers will have to pivot off of whatever hand they are dealt.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.