ProFrac Holding Corp. has entered into a definitive agreement to acquire the Eagle Ford sand mining operations of Monarch Silica LLC, the company said on Dec. 5.
The transaction, financial details of which were not disclosed, is expected to close by the end of 2022.
Monarch's production capacity is expected to expand to nearly 4 million tons per year by first-quarter 2023, positioning ProFrac to bundle internally sourced proppant across its active fleets in the region, the company said.
Monarch Silica opened in 2019 and produces “high-quality silica sand for the Eagle Ford oil and gas industry,” according to the company’s website. Monarch’s redundant production loop provides certainty of supply for customers, providing assurance that products are available as needed. Monarch’s proximity to Eagle Ford acreage allows customers to capture cost savings and boost returns on hydrocarbon production, the company said.
ProFrac executive chairman Matt Wilks said the company will add the Monarch mine to a growing portfolio of in-basin sand mines it operates through Alpine Silica.
“This transaction further demonstrates ProFrac's commitment to its vertical integration strategy, providing the company with access to high-quality, local proppant in the Eagle Ford, where we currently operate eight active fleets,” Wilks said.
Winston & Strawn is acting as ProFrac's legal counsel on the transaction. Piper Sandler & Co. served as exclusive financial adviser to Monarch, and Chamberlain, Hrdlicka, White, Williams & Aughtry, P.C. is serving as Monarch's legal counsel.
ProFrac Holding Corp. is a vertically integrated services company founded in 2016 providing hydraulic fracturing, completion services and other complementary products and services to leading upstream oil and gas companies engaged in the exploration and production of North American unconventional oil and natural gas resources.
Monarch Silica is part of the Welch Family Mining Company, which has been mining sand in Texas for over the last 40 years.
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