Houston-based Covia Energy and Black Mountain Sand said last week they will merge in an all-stock transaction. The combined company will operate under the name Iron Oak Energy Solutions as a leading proppant supplier in North America with annual production of 30 million tons of sand. Assets include sand mines in Permian Basin and Eagle Ford Shale. Michael Segura, president and CEO of Covia, will be president and CEO.
Segura said Nov. 4, “Iron Oak Energy is well positioned to pursue further mergers and acquisitions… Our diversified network of production facilities and significant storage position in the Permian Basin provide the scale, reliability and deliverability of volumes required to meet the increasing proppant demands of longer-lateral, high intensity completions.”
Iron Oak Energy supplies frac sand to operators in the Delaware and Midland basins from three facilities in Winkler County and another in Crane County with 16 million tons of annual production capacity and 100,000 tons of storage.