Pioneer Natural Resources Company (NYSE:PXD) has signed an agreement with a subsidiary of Carmeuse Holding S.A. (Luxemburg) to acquire its U.S. industrial sands business, Carmeuse Industrial Sands, for approximately $297 million.
CIS’ sand mine in Brady, Texas, has more than 30 years of proven brown sand reserve life and is the industry’s largest resource base for brown sand in the U.S. The Brady mine currently has sales capacity of approximately one million tons annually.
Scott Sheffield, Chairman and CEO, stated, “When Carmeuse recently announced plans to sell its U.S. sand business, we viewed this as a strategic opportunity to secure high-quality, low-cost and logistically advantaged brown sand supply to support our growing fracture stimulation requirements in three of our four core Texas growth assets – the Spraberry vertical, horizontal Wolfcamp Shale and Barnett Shale Combo plays. By securing supply at below market prices, we expect to reduce annual capital spending by $65 million to $70 million based on our estimated sand requirements and current market prices.”
CIS’ management team has agreed to join Pioneer. The acquisition will be funded from available cash and is expected to close late in the first quarter or early in the second quarter of 2012.
CIS’ other assets include two outlets (Bakersfield, California and Colorado Springs, Colorado) for other grades of sand produced in Brady, two sand mines in Ohio (Glass Rock and Millwood) which produce oilfield and industrial sands, one sand mine in California (Orange County) which produces construction and recreational sand, and an oilfield cement material processing plant in Riverside, California.
Recommended Reading
Kissler: OPEC+ Likely to Buoy Crude Prices—At Least Somewhat
2024-03-18 - By keeping its voluntary production cuts, OPEC+ is sending a clear signal that oil prices need to be sustainable for both producers and consumers.
Buffett: ‘No Interest’ in Occidental Takeover, Praises 'Hallelujah!' Shale
2024-02-27 - Berkshire Hathaway’s Warren Buffett added that the U.S. electric power situation is “ominous.”
Range Resources Holds Production Steady in 1Q 2024
2024-04-24 - NGLs are providing a boost for Range Resources as the company waits for natural gas demand to rebound.
Uinta Basin: 50% More Oil for Twice the Proppant
2024-03-06 - The higher-intensity completions are costing an average of 35% fewer dollars spent per barrel of oil equivalent of output, Crescent Energy told investors and analysts on March 5.
Canadian Natural Resources Boosting Production in Oil Sands
2024-03-04 - Canadian Natural Resources will increase its quarterly dividend following record production volumes in the quarter.