RADNOR, Pa.--(BUSINESS WIRE)--Preferred Proppants, LLC (“Preferred Sands” or “Preferred” or the “Company”) today announced certain subsidiaries of Preferred have sold its Bloomer, Wisconsin sand plant, access to frac sand reserves through lease agreements and royalty rights, as well as corresponding facilities and equipment (collectively, the “Bloomer” transaction) to Frontier Sand, LLC for cash and future consideration, subject to closing and post-closing adjustments.
Commenting on the Bloomer transaction, Founder and CEO Michael O’Neill said, “This sale, along with our previously announced Blair, Wisconsin transaction, is part of our strategy that was put in place during the previous market downturn to be the regional and in-basin leader within the space. We are strong believers in the shift to regional and local sand as the primary source of supply to the major basins, and have now sold all of our assets that don’t support that strategy.”
Preferred’s localized footprint will include an expected three new Texas in-basin plants across the Permian and Eagle Ford shale to complement its existing portfolio of assets that include its Genoa, NE and Sanders, AZ facilities. The Genoa and Sanders facilities provide regionally accessed sand and, at Genoa, coated proppants as well, including coarse mesh sizes, as well as other product offerings to multiple basins.
The Bloomer transaction, as well as the sale of the previously announced Blair, Wisconsin facility, combined with other strategic actions undertaken by the Company, have been the culmination of a plan put in place almost three years ago to be the lowest cost-landed-at-well (CLAW) regional and in-basin provider of frac sand.
In pursuing a localization strategy, Preferred has been reducing its train car fleet as the Company shifts its mine footprint locally to position more of its sales to be delivered by truck, avoiding costly rail freight charges for customers. In doing so, Preferred has shed almost one-fifth of its rail cars since last quarter.
About Preferred Sands
With strategic regional plant locations in Arizona and Nebraska, as well as several new Texas plants expected in 2018, Preferred Sands services exploration & production and oilfield service companies throughout North America and is continuously recognized for its environmental responsibility and achievements in health and safety as an industry-leading operator.
Preferred Sands is also one of North America’s leading manufacturers and providers of high-quality and innovative proppant technologies. Preferred’s innovative proppant technology solutions include Preferred Polymeric Proppants, the most advanced downhole coated proppant technology designed for maximum production efficiency; FloPRO PTT™, proppant transport technology designed for superior proppant distribution; and DustPRO™, the first dust prevention technology designed to reduce airborne particles during all sand transfer points. These pioneering products have earned Preferred world-wide recognition as a leader in innovative and sustainable technologies throughout the oil and gas, chemical, and technology industries.
The company’s various awards include a finalist for the World Petroleum Council’s Technological Development recognition in 2017; 2014 CPI Polyurethane Innovation Award for Improving Oil Productivity; 2014 R&D 100 Award for Improving Oil Productivity; 2013 Oil & Gas Awards for Environmental Initiative of the Year, Industry Supplier of the Year, and Excellence in Environmental Stewardship; and 2012 Ernst & Young Entrepreneur of the Year in Energy, Cleantech, and Natural Resources.
For more information about Preferred Sands, visit www.PreferredSands.com.