Iron Oak Energy Solutions Announces Strategic Acquisition of Northern White Assets from HC Minerals, Inc. to Meet Growing Appalachia Demand

Rhea-AI Summary

Iron Oak Energy Solutions (NYSE:AESI) has announced the strategic acquisition of HC Minerals' Northern White assets, significantly expanding its presence in the Appalachia region. The acquisition includes the Wyeville, Wisconsin plant with over 3 million tons per year of Northern White Sand capacity and strategic terminal assets in the Marcellus and Utica shale plays.

The deal increases Iron Oak Energy's total production capacity to 37 million tons per year and Northern White Sand production to over 12 million tons annually. The acquisition provides direct access to Class I railways and includes four terminals in key locations. The company secured a new term loan facility with Chambers Energy Capital and GoldenTree Asset Management to fund the acquisition, maintaining leverage levels below one turn of EBITDA.

Positive

• Increases total production capacity to 37 million tons per year
• Adds over 3 million tons of Northern White Sand capacity through Wyeville plant
• Gains direct access to Union Pacific Railroad and Class I railways
• Acquires four strategic terminals in Marcellus and Utica basins
• Maintains strong balance sheet with leverage below 1x EBITDA
• Expands presence in largest U.S. natural gas shale play

Negative

• Takes on additional debt through new term loan facility
• Integration risks with multiple recent acquisitions including Black Mountain Sand, Covia Energy, and High Roller Sand

Insights

Mergers & Acquisitions Analyst

Iron Oak Energy's strategic acquisition of HC Minerals' Northern White assets strengthens its position in Appalachian natural gas markets with minimal debt impact.

This acquisition represents a strategic vertical integration for Iron Oak Energy, substantially increasing its Northern White Sand production capacity from approximately 9 million to over 12 million tons annually. The deal's primary value lies in three key components: production scale, logistical advantages, and market positioning.

The Wyeville plant acquisition provides Iron Oak with a cost-efficient dredge mining operation that has direct access to Union Pacific Railroad—creating a critical logistics advantage for serving Appalachian customers. The four terminal acquisitions strategically positioned in the Marcellus and Utica basins further enhance distribution efficiency, reducing transportation costs and delivery times.

This move demonstrates Iron Oak's calculated positioning toward natural gas markets. By increasing exposure to the Marcellus and Utica plays, the company is aligning with three significant demand drivers: growing power generation needs, expanding data center infrastructure, and increasing LNG exports—all fundamental tailwinds for natural gas demand.

The financial structure is particularly notable. The company secured a new term loan with Chambers Energy Capital and GoldenTree that includes a committed delayed draw feature, providing capital flexibility for future growth. Most impressively, post-acquisition leverage remains below 1x EBITDA, indicating minimal balance sheet stress despite the expansion. This conservative financial approach suggests management's discipline and potential capacity for additional acquisitions.

This represents Iron Oak's fourth significant integration following Black Mountain Sand, Covia Energy, and High Roller Sand, establishing the company as a consolidation leader in the fragmented proppant supply market with total production capacity now reaching 37 million tons annually across diverse basins.

Acquisition further scales Iron Oak Energy's Northern White platform, enhancing support for Marcellus and Utica clients, with superior capacity, distribution, and efficiency.

• Acquired assets include the Wyeville, Wisconsin plant, with over three million tons per year of Northern White Sand capacity, and strategic terminal distribution assets in the heart of Marcellus and Utica shale plays.
• Acquisition provides Iron Oak Energy's Northern White Sand assets direct access to multiple Class I railways serving the Appalachia region, creating a highly advantaged and efficient distribution network for operators.
• Increases Iron Oak Energy's total production capacity to 37 million tons per year, with balanced exposure to both oil and natural gas basins.

HOUSTON, Aug. 11, 2025 /PRNewswire/ -- Iron Oak Energy Solutions LLC (Iron Oak Energy or the Company), a leading multi-basin proppant supplier for North American oil and gas companies, today announced the acquisition of the Northern White assets of HC Minerals, Inc. The enhanced production capabilities and distribution network significantly expands Iron Oak Energy's ability to serve customers in the largest U.S. natural gas shale play.

Building on the successful integration of Black Mountain Sand, Covia Energy, and High Roller Sand, Iron Oak Energy continues to execute on its growth strategy with the acquisition of HC Minerals' Northern White Sand assets. The acquisition includes HC Minerals' production facility in Wyeville, Wisconsin, and increases Iron Oak Energy's total Northern White Sand production capacity to over twelve million tons per year. Utilizing cost-effective dredge mining techniques with direct access to the Union Pacific Railroad, the Wyeville plant enhances Iron Oak Energy's production scale, optionality, and ability to serve growing client needs. The acquisition also extends the Company's market reach with the addition of four highly complementary terminals strategically located in the Marcellus and Utica basins.

"This acquisition represents another important step in our growth strategy and highlights the quality of the opportunities available to us as a leading multi-basin proppant supplier," said Michael Segura, President and Chief Executive Officer of Iron Oak Energy. "We anticipate strong demand growth in natural gas basins, particularly the Marcellus and Utica regions, driven by rising power generation needs, expanding data center infrastructure, and growing LNG exports. The HC Minerals team brings deep expertise in proppant production, rail logistics, and supply chain operations; capabilities that are well aligned with our business. By expanding both our geographic footprint and production scale, we are even better positioned to meet customer demand with speed and efficiency."

HC Minerals CEO Dirk Hallen remarked, "This is an exciting day for HC Minerals as it represents the culmination of the journey we set out on nearly five years ago. I am so proud of what the entire team has achieved together over that time thanks to the relentless efforts of our employees, the continued support of our clients, and the unwavering commitment of our partners at Clearlake Capital and Whitebox Advisors. Getting to know Michael and his leadership team at Iron Oak makes me confident that our employees will be in great hands moving forward, and we wish them all the best as they embark on this new chapter."

Concurrent with the closing of the HC Minerals acquisition, Iron Oak Energy entered into a new term loan facility with Chambers Energy Capital and GoldenTree Asset Management. The term loan includes a committed delayed draw feature which allows for incremental capital to support Iron Oak Energy's future growth.

"We are excited to partner with Chambers Energy Capital and GoldenTree to fund this strategic acquisition and position the Company with additional financial flexibility," said Jeff Wood, Chief Financial Officer of Iron Oak Energy. "Pro forma for the financing, Iron Oak Energy's balance sheet and liquidity position remain strong, with leverage levels well below a single turn of EBITDA."

Jefferies LLC acted as Sole Placement Agent for the term loan facility, and Porter Hedges and Latham & Watkins acted as legal advisors to Iron Oak Energy. Moelis & Co. acted as financial advisor and Baker Botts acted as legal advisor to HC Minerals. 

About Iron Oak Energy

Iron Oak Energy is a leading diversified proppant provider in North America with ten active production facilities and the capability to supply every major shale basin across North America. The Company provides in-basin sand to operators from strategically positioned facilities in the Permian Basin and Eagle Ford Shale and supplies premium northern white sand to operators primarily in the Marcellus, Utica, Bakken, and DJ Basins. The Company is privately held and is backed by Anchorage Capital Advisors L.P., Golden Gate Capital, NGP, and High Roller Group. Iron Oak Energy is headquartered in The Woodlands, Texas. For more information, please visit www.ironoakenergy.com.

About HC Minerals Inc.

HC Minerals, Inc. ("HC Minerals") was spun out from Hi-Crush Inc. ("Hi-Crush") in March of 2024 in conjunction with Hi-Crush's sale to Atlas Energy Solutions (NYSE: AESI). HC Minerals owns and operates advantaged northern white sand mines in Wisconsin as well as the leading rail terminal network for frac sand in Appalachia. Clearlake Capital Group. and Whitebox Advisors LLC are the controlling shareholders of HC Minerals Inc.

Contact:

Iron Oak Energy Solutions
Media Relations
MediaRelations@ironoakenergy.com

View original content to download multimedia:https://www.prnewswire.com/news-releases/iron-oak-energy-solutions-announces-strategic-acquisition-of-northern-white-assets-from-hc-minerals-inc-to-meet-growing-appalachia-demand-302526462.html

SOURCE Iron Oak Energy Solutions

FAQ

What assets did Iron Oak Energy (AESI) acquire from HC Minerals?

Iron Oak Energy acquired HC Minerals' Wyeville, Wisconsin plant with over 3 million tons per year of Northern White Sand capacity, plus four strategic terminals in the Marcellus and Utica basins.

How much will Iron Oak Energy's production capacity increase after the HC Minerals acquisition?

The acquisition increases Iron Oak Energy's total production capacity to 37 million tons per year, with Northern White Sand production capacity exceeding 12 million tons annually.

How is Iron Oak Energy (AESI) financing the HC Minerals acquisition?

The acquisition is financed through a new term loan facility with Chambers Energy Capital and GoldenTree Asset Management, maintaining leverage levels below one turn of EBITDA.

What are the strategic benefits of Iron Oak Energy's HC Minerals acquisition?

The acquisition provides direct access to Class I railways, expands presence in the largest U.S. natural gas shale play, adds four strategic terminals, and increases production capacity to meet growing demand in Marcellus and Utica regions.

Who were the advisors for Iron Oak Energy's acquisition of HC Minerals?

Jefferies LLC was the Sole Placement Agent for the term loan, Porter Hedges and Latham & Watkins were legal advisors to Iron Oak Energy, while Moelis & Co. and Baker Botts advised HC Minerals.