Business
Unit Corporation Announces Sale of Its Contract Drilling Business
Unit Corporation Announces Sale of Its Contract Drilling Business.
About this update from Unit Corp.
[{"type":"text","content":"\r\n\r\n \r\n \r\n Unit Corporation Announces Sale of Its Contract Drilling Business\r\n \r\n \r\n\r\n\r\nUnit Corporation Announces Sale of Its Contract Drilling Business\r\n\r\n\r\n\r\n\r\n\r\n TULSA, Okla.--(BUSINESS WIRE)--\r\nUnit Corporation (OTCQX: UNTC) (Company) today announced that it signed and simultaneously closed a definitive agreement to sell its wholly-owned contract drilling subsidiary, Unit Drilling Company, to Cactus Drilling Company, L.L.C. in an all-cash deal for $120 million.\r\n\r\n\r\n \r\nThe board of directors of the Company (Board) approved the transaction upon the unanimous recommendation of the strategic transactions committee (Committee), which was comprised of independent directors and established to evaluate the transaction and potential alternatives thereto on behalf of the Company. Piper Sandler & Co. served as financial advisor to the Committee.\r\n\r\n\r\n \r\n“Divesting our contract drilling business allows us to sharpen our strategic focus on our upstream operations, where we see significant opportunities to create long-term value,” said Phil Frohlich, the Company’s CEO. “We remain committed to disciplined capital allocation, returning cash to shareholders through our dividend program, and pursuing attractive drilling prospects that complement our existing portfolio.”\r\n\r\n\r\n \r\nSpecific uses of the proceeds from the transaction will be determined by the Board in the future. The Company currently expects that its available tax attributes will substantially offset the gains from this transaction. The Company will continue to operate its upstream oil and gas segment and will evaluate opportunities to invest in new drilling projects to drive future growth. The Company also intends to continue its regular dividend program subject to the Board’s discretion.\r\n\r\n\r\n \r\nAbout Unit Corporation\r\n\r\n\r\n \r\nUnit Corporation is a Tulsa-based, publicly held energy company engaged through its subsidiary, Unit Petroleum Company, in oil and gas production. For more information about Unit Corporation, visit its website at http://www.unitcorp.com.\r\n\r\n\r\n \r\nForward-Looking Statements\r\n\r\n\r\n \r\nThis news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act. All statements, other th...