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ProFrac Holding Corp. To Acquire West Texas Sand Operations
WILLOW PARK, Texas, June 21, 2022 /PRNewswire/ -- ProFrac Holding Corp. (NASDAQ: PFHC) ("ProFrac" or the "Company") announced today that its subsidiary,
About this update from Profrac Holding Corp.
[{"type":"text","content":"WILLOW PARK, Texas, June 21, 2022 /PRNewswire/ -- ProFrac Holding Corp. (NASDAQ: PFHC) (\"ProFrac\" or the \"Company\") announced today that its subsidiary, ProFrac Holdings II, LLC, has entered into a definitive agreement to acquire SP Silica of Monahans, LLC, and SP Silica Sales, LLC (collectively, \"Monahans\"), the West Texas subsidiaries of Signal Peak Silica, for approximately $90 million. No additional terms were disclosed.\nLadd Wilks, ProFrac Holding Corp.'s Chief Executive Officer, stated, \"Our acquisition of Signal Peak Silica's Permian Basin operations is the latest example of scaling our vertical integration strategy as we continue to consolidate supply chain components to better serve our customers, lower our costs and improve our operating margins and profitability.\" \nMatt Wilks, Executive Chairman, added, \"The Monahans operation brings us a dedicated and dynamic workforce and, by the third quarter of 2022, would expand our total to three in-basin sand mines within the ProFrac portfolio. SPS Monahans provides nearly 3 million tons of annual sand production capacity of 40/70 and 100 mesh and includes nearly 25,000 tons of on-site storage. Once closed, this transaction brings our companywide annual sand production capacity to approximately 6 million tons, which is expected to increase to approximately 8 million tons when we complete our West Munger facility in the Permian, which is expected to occur by the third quarter of 2022.\"\nPiper Sandler & Co. served as exclusive financial advisor to ProFrac on the acquisition and Winston & Strawn LLP is acting as ProFrac's legal counsel on the transaction. Evercore served as exclusive financial advisor to Signal Peak Silica and Sidley Austin LLP is acting as Signal Peak Silica's legal counsel on the transaction.\nAbout ProFrac Holding Corp. \nProFrac Holding Corp. is a growth-oriented, vertically integrated and innovation-driven energy services company providing hydraulic fracturing, completion services and other complementary products and services to leading upstream oil and gas companies engaged in the exploration and production (\"E&P\") of North American unconventional oil and natural gas resources. Founded in 2016, The Company was built to be the go-to service provider for E&P companies' most demanding hydraulic fracturing needs. ProFrac is focused on employing new...