Twin Eagle Sand Logistics LLC said Sept. 21 it acquired a West Virginia frack sand terminaling asset, marking the Houston-based company's entry into the Northeast Marcellus and Utica shale market.
Twin Eagle purchased the terminaling asset, located near Bridgeport, West Virginia, from Process Transloading Bridgeport for an undisclosed amount. The terminal serves the southern Utica and Marcellus sand logistic markets with more than 130 railcar spots and 20,000 tons of flat and silo storage, according to the company release.
Despite already being well-established shale plays, Griff Jones, Twin Eagle's CEO, said he believes the Marcellus and Utica have “significant growth potential given sand technology advancements and infrastructure additions needed to address logistical constraints.”
“We are excited to expand our terminaling footprint into the Northeast as we look for ways to better serve our customers across the Twin Eagle network,” Jones said in a statement.
Twin Eagle Sand Logistics is a subsidiary of Twin Eagle Resource Management LLC and currently has assets in the Eagle Ford, Permian, Denver-Julesburg and Powder River basins.
The company said its current terminals, combined, control more than 1,600 rail car spaces with nearly 85,000 tons of storage capacity. In addition, Twin Eagle is also constructing 30,000 tons of silo capacity in the Permian in Big Spring, Texas.
Broussard previously spent four years working for Schlumberger and held a number of management positions with Baker Hughes over an 11-year period, latterly as regional operations manager for lower completions in the Gulf of Mexico.
Oil and gas companies should carefully review their contingent consideration and earnout provisions in purchase and sale agreements and be prepared for the reporting and valuation challenges that come with them.
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