Unit Corporation’s sale of a 50% equity interest in Superior Pipeline Company, LLC


Unit was advised by Tudor, Pickering, Holt & Co. on financial matters and Vinson & Elkins LLP on legal matters.

Unit Corporation (NYSE: UNT) has agreed to sell a fifty percent (50%) equity interest in its wholly owned subsidiary, Superior Pipeline Company, LLC for cash proceeds of $300 million. The purchaser, SP Investor Holdings, LLC (Superior Holdings), is jointly owned by OPTrust and funds managed and/or advised by Partners Group, a global private markets investment manager. The sale is expected 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.

Proceeds from the sale will be used to accelerate the drilling program of Unit’s 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, gathers, processes, and treats natural gas for third parties and Unit. It operates three natural gas treatment plants, 13 processing plants, 22 active gathering systems, and approximately 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.

Unit Corporation, through its subsidiaries, contracts to drill onshore oil and natural gas wells, as well as develops, acquires, and produces oil and natural gas properties. The company, led by Larry D Pinkston, Robert H Parks Jr and John Cromling in 2017 recorded $739 Million Revenues.

Vinson & Elkins advised Unit Corporation with a team including partner Doug Bland (Picture) with senior associate Luke Edney and associates Danny Hatch, Joclynn Townsend and Ed Vaunder. Also advising were partner John Lynch; partner Stephen Jacobson and associate Amy Benford; partner Tom Wilson; partner Billy Vigdor and associate Evan Miller; and partner Larry Nettles.

Involved fees earner: Douglas Bland – Vinson & Elkins LLP; Luke Edney – Vinson & Elkins LLP; Daniel Hatch – Vinson & Elkins LLP; Joclynn Townsend – Vinson & Elkins LLP; Edward Vaunder – Vinson & Elkins LLP; John Edward Lynch – Vinson & Elkins LLP; Stephen Jacobson – Vinson & Elkins LLP; Amy Benford – Vinson & Elkins LLP; Thomas Wilson – Vinson & Elkins LLP; William Vigdor – Vinson & Elkins LLP; Evan Miller – Vinson & Elkins LLP; Larry Nettles – Vinson & Elkins LLP;

Law Firms: Vinson & Elkins LLP;

Clients: Unit Corporation;

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Author: Ambrogio Visconti