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.
SOURCE CIG Logistics