Houston-based Hi-Crush Partners LP, a provider of sand used in hydraulic fracturing, has bought a popular dune site in West Texas to boost its reserves.
Hi-Crush (ticker: HCLP) purchased the former Dunes at Kermit and is preparing the roughly 1,200-acre site near state Highway 115 and FM 874, according to the Houston Chronicle. The mining is expected to create around 70 jobs and yield mined sand for about the next three decades.
The Dunes at Kermit, one of the biggest recreational areas in the Southwest, closed late last year. The area had attracted all-terrain vehicles to ride the sand dunes and included spots for picnics and RV hookups, the Carlsbad Current-Argus reports.
Meanwhile, Hi-Crush is in expansion mode and recently announced a couple of acquisitions. The company announced in a Feb. 23 press release it’s paying $275 million for Dallas-based Permian Basin Sand Co., which owns a 1,226-acre frac sand reserve. At the same time, the company also announced it was buying Hi-Crush Whitehall LLC from its sponsor, Hi-Crush Proppants LLC, in a $140 million drop-down deal. The Whitehall entity owns Hi-Crush Proppants’ raw frac sand processing facility in Wisconsin.
“During the second half of 2017, we expect to operate 13.4 million tons of low-cost production across sand grades and types, which coupled with our industry-leading logistics network and last-mile capabilities, provides for the long-term success of Hi-Crush and our stakeholders,” CEO Robert Rasmus said in the release.
Hi-Crush Partners went public in 2012.
