FORT WORTH, Texas, March 19, 2018 /PRNewswire/ -- CIG Logistics
announced today that it has reached agreement with U.S. Silica
Holdings, Inc. (NYSE: SLCA) for the acquisition of three large,
strategically-located transload terminals owned by U.S. Silica in
the Permian Basin and Eagle Ford and Marcellus shale plays.
These terminals are expected to serve as the foundation for a
broader strategic relationship between the two companies under
which CIG will serve as the preferred transload provider to U.S.
Silica in the Permian Basin and Eagle Ford shale play.
The three transload terminals purchased by CIG are located in
Odessa, Texas, Von Ormy, Texas and Benwood, West Virginia, and serve as critical
logistics hubs for the oil and gas industry in the Permian Basin,
Eagle Ford and Marcellus shale plays, respectively.
Consistent with CIG's existing transload network, the acquired
terminals are large scale and fit-for-purpose to meet the
challenges of handling increasing proppant volumes per well
throughout the unconventional shale basins in which they
operate. Additionally, as part of the transaction, CIG
Logistics will also operate U.S. Silica's facility in Seagraves, Texas.
''CIG is a best-in-class terminal operator with whom we have a
long-standing business relationship. This transaction further
cements our relationship with a top operator, further expands our
best-in-industry logistics footprint and allows us to focus our
internal resources on our growth priorities,'' said Tony Fox, Vice President, Supply Chain at U.S.
Silica. "As a part of this transaction, CIG will serve as the
preferred transload provider to U.S. Silica through its extensive
network in the Permian Basin and Eagle Ford shale play and will
partner with U.S. Silica on additional value-added logistics
services," he added.
With the agreement, CIG Logistics will strengthen its core
business of owning and operating transloading facilities to help
oil and gas producers improve supply chain logistics with increased
efficiencies, enhanced safety and reduced costs.
"U.S. Silica is a true leader in the proppant industry
supporting domestic oil and natural gas operations that drive the
nation's economic strength and energy independence," said CIG
Logistics Chief Executive Officer Jonathan
Green. "We're proud to further expand our partnership with
U.S. Silica and are confident this latest agreement demonstrates
the value our logistics expertise can deliver for our
customers."
About CIG Logistics
CIG Logistics is an independent
provider of end-to-end proppant logistics solutions to leading oil
and natural gas exploration and production companies, oilfield
services providers and proppant producers. CIG's logistics assets
include 18 strategically located proppant and well consumable
transload terminals and associated bulk storage silos across the
most active oil and natural gas basins in Texas, New
Mexico, Oklahoma, and
West Virginia. In addition to its
expansive transload network, CIG also owns and operates a modular
fleet of patented high-capacity last mile logistics trailers,
automated sand loading systems and mobile gravity fed containers
used to efficiently store and deliver proppant at well sites under
the SANDSTORM brand. Through CIG's proprietary PropLogistics
software, CIG is also able to offer its customers real-time
end-to-end monitoring of their proppant supply chain.
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 200 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.
Simmons & Company International, Energy Specialists of
Piper Jaffray, served as exclusive
financial advisor to U.S. Silica in the transaction.
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SOURCE CIG Logistics