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 pioneernrc.com