Unit Corporation has completed the sale of its wholly owned subsidiary, Unit Drilling Company, to Cactus Drilling Company L.L.C. in an all-cash transaction valued at $120 million.
“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, Unit’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.”
Unit said the sale reflects its plan to sharpen focus on upstream oil and gas operations, where it sees greater long-term growth potential. CEO Phil Frohlich noted that proceeds will support continued investment in drilling prospects and the company’s ongoing dividend program. Specific uses of the sale proceeds will be determined by the board, but Unit indicated that available tax attributes are expected to offset gains from the transaction.
With the divestiture, Unit will no longer operate in contract drilling and will concentrate on its upstream portfolio, evaluating new exploration and development opportunities.
Source: worldoil.com