FREDERICK, Md., June 12, 2017 /PRNewswire/ -- U.S. Silica
Holdings, Inc. (NYSE: SLCA) announced today that its Board of
Directors has approved the construction of a new, state-of-the-art
frac sand mine and plant in West
Texas to serve the rapidly-growing Permian Basin. The new
facility is expected to produce approximately 4 million tons
annually and is part of the Company's previously announced plan to
add approximately 8 to 10 million tons of new Brownfield and Greenfield capacity to meet
surging frac sand demand.
The $225 million project will be
funded from cash on hand and cash flow from operations and is
expected to be supported by long-term supply contracts with leading
oilfield companies, which include cash pre-payments. Construction
will begin immediately and initial production is scheduled for late
in the fourth quarter of 2017. The 3,200-acre site has over
30 years of reserves of fine grade 40/70 and 100 mesh sand with
excellent physical properties.
"We believe we've selected one of the most advantaged sites in
West Texas with good availability
of water, easy access to Interstate 20 and a location that is
equidistant to the hearts of both the Delaware and Midland Basins,'' said
Bryan Shinn, president and chief
executive officer. "Our focus is serving our customers. Those
customers told us clearly that they want more local sand supply in
the Permian to support future well completions. Their
willingness to negotiate long-term supply agreements for this new
capacity and to potentially commit their own capital to the project
demonstrates the confidence they have in U.S. Silica and the
tightness of the frac sand market now and in the future." Shinn
added that the Company expects to enter into similar agreements for
other capacity expansion projects currently underway.
Forward-looking Statements
Certain statements in this press release are "forward-looking
statements" made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995 and speak only as
of this date. Forward-looking statements made include any statement
that does not directly relate to any historical or current fact and
may include, but are not limited to, statements regarding U.S.
Silica's growth opportunities, strategy, future financial results,
forecasts, projections, plans and capital expenditures, and the
commercial silica industry. Forward-looking statements are based on
our current expectations and assumptions, which may not prove to be
accurate. These statements are not guarantees and are subject to
risks, uncertainties and changes in circumstances that are
difficult to predict. Many factors could cause actual results to
differ materially and adversely from these forward-looking
statements. Among these factors are: (1) fluctuations in demand for
commercial silica; (2) the cyclical nature of our customers'
businesses; (3) operating risks that are beyond our control; (4)
federal, state and local legislative and regulatory initiatives
relating to hydraulic fracturing; (5) our ability to implement our
capacity expansion plans within our current timetable and budget;
(6) loss of, or reduction in, business from our largest customers
or failure of our customers to pay amounts due to us; (7)
increasing costs or a lack of dependability or availability of
transportation services or infrastructure; (8) our substantial
indebtedness and pension obligations; (9) our ability to attract
and retain key personnel and truckload drivers; (10) silica-related
health issues and corresponding litigation; (11) seasonal and
severe weather conditions;
About U.S. Silica
U.S. Silica Holdings, Inc., a member of the Russell 2000, is a
leading producer of commercial silica used in the oil and gas
industry, and in a wide range of industrial applications. Over its
117-year history, U.S. Silica has developed core competencies in
mining, processing, logistics and materials science that enable it
to produce and cost-effectively deliver over 260 products to
customers across our end markets. The Company currently operates
nine industrial sand production plants and eight oil and gas sand
production plants. The Company is headquartered in Frederick, Maryland and also has offices
located in Chicago, Illinois and
Houston, Texas.
U.S. Silica Holdings, Inc.
Michael Lawson
Vice President of Investor Relations and Corporate
Communications
(301) 682-0304
lawsonm@ussilica.com
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SOURCE U.S. Silica Holdings, Inc.