Unit Company has accomplished the sale of its wholly owned subsidiary, Unit Drilling Firm, to Cactus Drilling Firm L.L.C. in an all-cash transaction valued at $120 million.
“Divesting our contract drilling enterprise permits us to sharpen our strategic deal with our upstream operations, the place we see vital alternatives to create long-term worth,” stated Phil Frohlich, Unit’s CEO. “We stay dedicated to disciplined capital allocation, returning money to shareholders by our dividend program, and pursuing enticing drilling prospects that complement our current portfolio.”
Unit stated the sale displays its plan to sharpen deal with upstream oil and fuel operations, the place it sees larger long-term development potential. CEO Phil Frohlich famous that proceeds will assist continued funding in drilling prospects and the corporate’s ongoing dividend program. Particular makes use of of the sale proceeds can be decided by the board, however Unit indicated that out there tax attributes are anticipated to offset positive factors from the transaction.
With the divestiture, Unit will now not function in contract drilling and can consider its upstream portfolio, evaluating new exploration and improvement alternatives.
