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Unit Corp. To Sell 50% Stake In Midstream Subsidiary For $300 Mln - Quick Facts

Unit Corp. (UNT) said it has agreed to sell a 50 percent equity interest in its wholly owned subsidiary, Superior Pipeline Company, LLC for cash proceeds of $300 million.

The purchaser, SP Investor Holdings, LLC or Superior Holdings, is jointly owned by OPTrust and funds managed and/or advised by Partners Group, a global private markets investment manager.

Unit Corp. expects the sale to close April 3, 2018. Before closing, Superior's employees will become employees of Superior Midstream Operating LLC, a wholly owned subsidiary of Unit, and will operate Superior after the closing.

Unit Corp. will use proceeds from the sale to accelerate the drilling program of its upstream subsidiary, Unit Petroleum Company; make additional capital investments in the jointly owned Superior; to reduce corporate debt; and for general working capital purposes.

Superior buys, sells and treats natural gas for third parties and Unit. It operates three natural gas treatment plants, 13 processing plants, 22 active gathering systems, and about 1,455 miles of pipeline. Its processing capacity is 340 million cubic feet per day. Superior and its subsidiaries operate in Oklahoma, Texas, Kansas, Pennsylvania, and West Virginia.

Larry Pinkston, CEO and President of Unit Corp., said, "We are very pleased to announce this transaction with OPTrust and Partners Group. The transaction, which implies a value for the midstream segment of $600 million, not only recognizes the significant value that Unit has already created with Superior but gives our partners and Unit the opportunity to continue to expand Superior."

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