Atlas Energy Solutions has announced its acquisition of Hi-Crush’s Permian Basin proppant production assets and North American logistics operations for approximately $450 million. This acquisition will solidify Atlas Energy Solutions as the largest proppant producer in the United States.
What are Proppants?
Proppants are solid materials, typically sand, used to maintain an induced hydraulic fracture open to enhance oil-and-gas recovery processes.
Dominion in the Permian Basin
Both companies involved in the deal are known for holding premium giant open dune sand reserves and resources in the Permian Basin. This region, located in the Southwest United States, has become a key area for many oil producers in the country.
Combining Strengths
The merger will bring together Atlas’s leading logistics services in the Delaware Basin with Hi-Crush’s dominant logistics offerings in the Midland Basin. This strategic move is expected to streamline operations and drive efficiencies for both companies.
Atlas Energy Solutions will make an initial payment of $150 million in cash, along with $175 million in stock. Additionally, the company will issue a $125 million seller’s note for deferred cash payments. Certain portions of the overall price are subject to adjustment based on post-closing assessments.
