Iron Oak Energy Solutions LLC, a prominent proppant supplier in North America, has announced its acquisition of High Roller Sand, a leading provider of frac sand with operations in Winkler County, Texas. This strategic move enhances Iron Oak’s capabilities in the Permian Basin, a region that accounts for over half of the total proppant demand in the United States.
Expanding Presence in the Permian Basin
High Roller Sand operates a state-of-the-art facility in Winkler County, strategically positioned to serve both the Midland and Delaware Basins. The facility boasts an annual production capacity of up to four million tons of proppant, essential for hydraulic fracturing operations in the region. With this acquisition, Iron Oak Energy now operates five large-scale facilities across the Permian Basin: four in Winkler County and one in Crane County, Texas.
Michael Segura, President and CEO of Iron Oak Energy, emphasized the significance of this acquisition, stating that as leading operators continue to consolidate in the Permian Basin, the addition of High Roller increases their supply capabilities and enhances their network to better serve the growing needs of their customers. This acquisition aligns with Iron Oak Energy’s disciplined growth plan to expand through additions of high-quality and low-cost facilities that broaden their reach and capabilities.
Implications for the Permian Basin
The acquisition of High Roller Sand by Iron Oak Energy is a positive development for the Permian Basin for several reasons:
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Enhanced Supply Chain Efficiency: With increased production capacity and strategically located facilities, Iron Oak can more effectively meet the escalating demand for proppant in the region, ensuring a more reliable supply chain for oil and gas operators.
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Economic Growth: The expansion of Iron Oak’s operations is likely to stimulate local economies in Winkler and Crane Counties through job creation and increased economic activity associated with facility operations.
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Support for Increased Drilling Activity: As drilling techniques evolve, requiring higher proppant intensity and longer lateral wells, the augmented capacity positions Iron Oak to support these advancements, thereby contributing to the overall growth and efficiency of operations in the Permian Basin.
In addition to its Permian Basin operations, Iron Oak Energy operates two top-tier in-basin facilities in the Eagle Ford Shale, located in Atascosa and Dimmit Counties, Texas. The company also manages two northern white sand facilities in Wedron, Illinois, and Tunnel City, Wisconsin. These northern white assets are integrated into Class 1 railroad systems with an extensive network of terminals, enabling efficient delivery of products to major oil and natural gas shale plays throughout North America. Following the acquisition, Iron Oak Energy’s total annual production capacity grows to 34 million tons, further establishing the company as a leading, diversified North American proppant producer.
