Austin-based Atlas Energy Solutions said Tuesday it agreed to acquire all Permian Basin proppant production assets and North American logistics operations of Houston-based Hi-Crush in a transaction valued at $450 million. The transaction includes $150 million upfront cash, $175 million in stock and $125 million in deferred cash. Atlas said the combination “brings together two of the leading innovators in the Permian proppant space and two of the largest holders of premium giant open dune sand reserves and resources in the Permian.”
Production capacity is forecast at 28 million tons with 80 percent of the 2024 capacity contracted. The deal combines Atlas’ Delaware Basin-leading logistics offering (Dune Express) with Hi-Crush’s Midland Basin logistics offerings (Oncore and Pronghorn) to drive operational efficiencies.
Bud Brigham, Atlas CEO, said, “Both companies have led the industry’s innovations to drive efficiencies in proppant and logistics in different but complementary ways… Their technologies and best practices as well as their complementary geographical footprint should compound constructively to the benefit of our shareholders.”