Preferred Proppants on Monday announced certain of its subsidiaries have sold its Bloomer, Wis., sand plant, access to frac sand reserves through lease agreements and royalty rights, as well as corresponding facilities and equipment to Frontier Sand for cash and future consideration.
“This sale, along with our previously announced Blair, Wis., transaction, is part of our strategy that was put in place during the previous market downturn to be the regional and in-basin leader within the space,” said Preferred Proppants founder and CEO Michael O’Neill.
Preferred’s localized footprint will include an expected three new Texas in-basin plants across the Permian Basin and Eagle Ford Shale play to complement its existing portfolio of assets that include its Genoa, Neb., and Sanders, Ariz., facilities, Kallanish Energy learns.
In pursuing a localization strategy, Preferred has been reducing its train car fleet as the company shifts its mine footprint locally to position more of its sales to be delivered by truck, avoiding costly rail freight charges for customers. In doing so, Preferred has shed almost 20% of its rail cars since last quarter.