FORT WORTH, Texas--(BUSINESS WIRE)--FTS International (FTSI) announced today that it has entered into an agreement to sell substantially all of the assets of its proppant business and related logistics assets to Fairmount Minerals (Fairmount). To continue providing our customers with quality well completion services, FTSI and Fairmount are entering into a long-term supply agreement whereby Santrol, a Fairmount Minerals’ company, will supply FTSI’s proppant needs now and in the future.
The transaction will include substantially all of FTSI’s sand mines, raw sand processing plants, resin coating plants, railroad transload sites and various other properties and facilities. FTSI will retain its “last mile” trucking operations, which are used to transport proppant from transload sites to well locations.
FTSI intends to use the net proceeds from the sale for debt reduction. The sale is expected to close by the end of the third quarter. The terms of the transaction are not being disclosed by the parties.
FTSI Chief Executive Officer Greg Lanham commented, “This is a winning partnership for FTSI, our employees and our customers. The sale of these assets will enable FTSI to further streamline our business strategy and place greater focus on our core well completion business. We are proud of our colleagues who have built very strong proppant and logistic operations, and I know they will continue to serve customers with the same high standards and service.”
Fairmount Minerals President and CEO Jenniffer Deckard commented, “This compelling opportunity aligns directly with Fairmount’s strategic plan for enhancing our product portfolio, industry expertise, and geographic reach in order to further fulfill the commitment to our valued customers to help them work more efficiently and more productively.”
Wells Fargo Securities, LLC served as the exclusive financial advisor to FTSI.
FTS International (www.ftsi.com) is a leading provider of well completion services, including pressure pumping and wireline, for the oil and gas industry. Exploration and production companies use FTSI’s products, services and expertise to enhance recovery rates from oil and gas wells, primarily in unconventional plays.