Unit Corp. offloaded its remaining 50% ownership stake in Superior Pipeline Company to a group of private investors. (Source: Shutterstock)
Superior Pipeline Co. is rebranding after full ownership of the midstream company changed hands.
Superior investor SP Investor Holdings LLC—jointly owned by Canadian firm OPTrust and Swiss private equity firm Partners Group—acquired a 50% ownership stake in Superior from Unit Corp., the companies announced June 26. The transaction results in SP Investor owning 100% of Superior.
Unit Corp. entered into an agreement in late February to sell its 50% interest in Superior to SP Investor for $20 million, the company disclosed in regulatory filings.
Under the agreement, SP Investor would pay Unit Corp. $12 million upon closing and $8 million in deferred proceeds within 12 months of closing.
Tulsa, Oklahoma-based Superior, operator of pipeline, natural gas gathering and processing assets and gas treating plants in Texas, Appalachia and the Midcontinent, is rebranding to Superior Midstream LLC in conjunction with the deal closing.
“The Superior team is pleased with SP Investor’s committed partnership and name change, which will better align Superior to grow the company and increase shareholder value,” said Superior Midstream President and CEO Bill Ward. “The rebranding will better identify Superior within its peer group and define the natural gas gathering and processing infrastructure services we provide to our upstream customers.”
Superior Pipeline was formed in 1996 with partner Unit Corp., which owned 40% of the company at the time. Unit Corp. later acquired full ownership of Superior, which became a wholly owned midstream subsidiary of Unit.
Unit sold a 50% ownership stake in Superior to SP Investor for $300 million in 2018 as it looked to deploy more capital toward its E&P drilling program.
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Unit Corp. Selling Midstream Stake To Boost Drilling Program
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