Unit Acquires PetroCorp
Unit Corporation has signed a letter of intent with PetroCorp Incorporated to acquire all outstanding shares of PetroCorp for approximately $190,000,000. The acquisition price is to be paid using a combination of 2,000,000 shares of Unit Corporation stock and cash.
PetroCorp, a Tulsa-based company, explores and develops oil and natural gas properties primarily in Texas and Oklahoma. Allocation of the purchase price is approximately $101 million to working capital, $78 million to proved reserves and the remaining $11 million to undeveloped leasehold and partnership interest.
Consummation of the transaction is subject to several conditions typical of transactions such as this. It is anticipated that the transaction will be immediately accretive to earnings and cash flow per share.
John G. Nikkel, Chief Executive Officer of Unit Corporation said, "The acquisition fits Unit's mission of creating value for our shareholders on a per share basis."
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