TULSA, Okla. – On December 13, 2023, Unit Corporation (OTCQX: UNTC) (Company) completed the previously announced sale of certain non-core oil and gas assets in the Texas Panhandle (the “Divested Assets”) to a third party for net cash proceeds received at closing of $50 million, subject to customary post-closing adjustments pursuant to the terms of the purchase and sale agreement.
The proceeds from the sale will be used to fund the Company’s previously announced conditional special cash dividend of $5.00 per share of common stock to be paid on December 27, 2023, to shareholders of record as of the close of business on December 18, 2023.
The Divested Assets consist of approximately 51,000 net acres in the Texas Panhandle held by the Company’s wholly owned subsidiary, Unit Petroleum Company (UPC). UPC is retaining its core Granite Wash properties located in Roberts and Hemphill Counties, Texas.
Phil Frohlich, the Company’s Chief Executive Officer, stated, “This transaction is a great example of our strategy to prune our non-core assets and return value to our shareholders.”
About Unit Corporation
Unit Corporation is a Tulsa-based, publicly held energy company engaged through its wholly-owned subsidiaries in oil and gas production and contract drilling. For more information about Unit Corporation, visit its website at http://www.unitcorp.com.
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act. All statements, other than statements of historical facts, included in this release that address activities, events, or developments that the Company expects, believes, or anticipates will or may occur are forward-looking statements. Several risks and uncertainties could cause actual results to differ materially from these statements, including changes in commodity prices, the productive capabilities of the Company’s wells, future demand for oil and natural gas, future drilling rig utilization and dayrates, projected rate of the Company’s oil and natural gas production, the amount available to the Company for borrowings, its anticipated borrowing needs under its credit agreements, the number of wells to be drilled by the Company’s oil and natural gas segment, the potential productive capability of its prospective plays, and other factors described occasionally in the Company’s publicly available OTC and SEC reports. The Company assumes no obligation to update publicly such forward-looking statements, whether because of new information, future events, or otherwise.