Energy company Unit Corporation has closed the sale of certain non-core oil and gas assets in the Texas Panhandle region to an undisclosed third party in a deal worth $50m.

The deal with the third party was signed in October 2023 to sell certain wells and related leases in the Texas Panhandle.

Under the deal terms, Unit Corporation offloaded approximately 51,000 net acres in the region that are owned by its wholly owned subsidiary, UPC.

However, UPC will continue to operate its core Granite Wash properties in Roberts and Hemphill Counties, Texas.

Unit Corporation plans to use proceeds from the sale to fund its previously announced conditional special cash dividend of $5 per share of common stock.

This dividend is due to be paid on 27 December 2023 to shareholders of record, as of close of business on 18 December 2023.

Unit Corporation CEO Phil Frohlich said: “This transaction is a great example of our strategy to prune our non-core assets and return value to our shareholders.”

UPC operates wells in three key areas of Oklahoma and Texas that have a well-diversified mix of oil and natural gas.

Frohlich earlier said: “We continue to return value to our shareholders with a dividend paid during the quarter of $2.50 per share while also maintaining a strong cash position of $206.6m. We believe our recently announced agreement to sell certain properties in the Texas Panhandle furthers our approach of streamlining our operations and maximising the value of our assets.”

In November 2023, Unit Corporation reported $28.8m as net income attributable to the company in the three months that ended on 30 September 2023, as against $55.8m recorded in the same period a year ago.

Revenue for the period stood at $80.2m, compared with $120.3m for the three months that ended on 30 September 2022.

Through its subsidiaries, Unit Corporation is engaged in the production and contract drilling of oil and natural gas.