To buy proppant buisness and relatecd logistics assets.
FTS International plans to sell its proppant business and related logistics assets to Fairmount Minerals for an undisclosed amount.
FTSI and Fairmount are entering into a long-term supply agreement whereby Santrol, a Fairmount Minerals’ company, will supply FTSI with proppant.
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 to reduce its debt. The sale is expected to close by the end of the third quarter.
FTSI Chief Executive Officer Greg Lanham said, “The sale of these assets will enable FTSI to further streamline our business strategy and place greater focus on our core well completion business.”
Fairmount Minerals President and CEO Jenniffer Deckard said, “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 gave financial advice to FTSI for the transaction. FTSI provides well completion services, including pressure pumping and wireline, for the oil and gas industry. The company is based in Fort Worth, Texas.