Unit Corp. Ends Bid to Liquidate Properties Following Gulf Coast Asset Sale

Unit Corp. said it has agreed to sell its Gulf Coast oil and gas assets for $56 million but will end its bid to sell its remaining assets and instead seize the opportunity from rising commodity prices to increase its share buyback program.

Based in Tulsa, Okla., Unit Corp. began a divestiture program in early 2021 to sell its noncore oil and gas assets. The company had engaged Tudor, Pickering, Holt & Co. (TPH) in January of this year to sell all of its oil and gas properties and reserves. However, in a June 10 release, Unit said it ended its agreement with TPH due to changes in the price of oil, natural gas, and NGL and “general volatility in the market.”

In March, Unit did close on the sale of certain noncore wells and related leases located near the Oklahoma Panhandle for cash proceeds of $4.1 million, according to regulatory filings. It also sold other noncore oil and natural gas assets for net proceeds of $500,000 in the first quarter.