Pioneer Natural Resources Acquires Brady Texas Frack Sand Mine – Carmeuse

Pioneer Natural Resources announced the acquisition of Carmeuse Holding S.A.’s industrial sands business in the U.S. for $297 million. The acquisition primarily adds a sand mine that is a great source of brown frack sand in Brady, TX. The acquisition is expected to save Pioneer $65-70 million per year.

Here are a few important highlights from the press release:

  • By securing supply at below market prices, we expect to reduce annual capital spending by $65 million to $70 million based on our estimated sand requirements and current market prices.”
  • Pioneer’s primary source for brown sand is CIS’ Brady mine. Prior to the acquisition, the Company expected approximately 700 thousand tons, or 60%, of its forecasted 2013 brown sand requirements to be sourced from this location.
  • The supply of brown sand is expected to continue to be tight as a result of increasing shale play drilling, with the price of brown sand expected to escalate further as the growth in demand for this proppant outpaces new supplies.
  • Pioneer estimates that it will save $65 million to $70 million per year by acquiring CIS.
  • First, output from the Brady mine can be doubled from one million tons per year to two million tons per year
  • CIS has 23 million tons of white sand reserves in Wisconsin, where plans to develop a mine with a production capacity of up to one million tons per year are being progressed.

Read the entire press release at

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R.T. Dukes

R.T. Dukes

Managing Editor at
R.T. is the managing editor of In prior roles, he advised major oil companies on strategy, the macro business environment, and opportunity screening. 2503 Robinhood, Houston, TX, 77005, U.S.A. | Telephone: 832.429.4790

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