DI Industries, Inc. Sells Oil and Gas Property Interests to Unit Petroleum Company

Strategic Insights -

DI Industries, Inc., a holding company headquartered in Houston, Texas, has announced the sale of its producing oil and gas property interests to Unit Petroleum Company, a subsidiary of Unit Corporation, of Tulsa, Okla. The sale, which is expected to close in July 1995, will see DI Industries receive a cash sales price of $4.2 million, subject to further adjustment.

As part of its plan to move back to its core business of drilling contracting and expansion in South America, DI Industries has discontinued its Foundation Division in 1994. The company plans to use the net proceeds from this sale for corporate working capital purposes directed toward its core business and to reduce debt. This sale marks a strategic step for DI Industries, Inc. as it focuses on its core drilling contracting and international expansion initiatives.

Key Takeaways:

  • DI Industries, Inc. has entered into a contract to sell its producing oil and gas property interests to Unit Petroleum Company for a cash sales price of $4.2 million.
  • The sale is expected to close in July 1995 after completion of the transfer of title of the properties.
  • For the nine months ended Dec. 31, 1994, revenues from the Company's oil and gas segment represented $1.7 million out of total consolidated revenues of $52.7 million.
  • DI Industries plans to use the net proceeds from this sale to reduce debt and focus on its core drilling contracting business.
  • The company has discontinued its Foundation Division in 1994 as part of its efforts to move back to its core business of drilling contracting and expansion in South America.
  • Max M. Dillard, president of DI Industries, Inc., remarked that the sale is consistent with the company's plan to move back to its core business and expansion in South America.
  • The sale marks a strategic step for DI Industries, Inc. as it focuses on its core drilling contracting and international expansion initiatives.

Statistics:

  • $4.2 million: Cash sales price of the sale of producing oil and gas property interests.
  • $1.7 million: Revenues from the Company's oil and gas segment for the nine months ended Dec. 31, 1994.
  • $52.7 million: Total consolidated revenues for the nine months ended Dec. 31, 1994.
  • July 1995: Expected closing date of the sale of oil and gas property interests.

Sources:

  • PRNewswire, "DI Industries, Inc. Announces Sale of Oil and Gas Property Interests," June 7, 1995.
  • Amex: DRL.