Iron Oak Energy Solutions Announces Strategic Acquisition of Northern White Assets from HC Minerals, Inc. to Meet Growing Appalachia Demand
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.
Iron Oak Energy Solutions (NYSE:AESI) ha annunciato l'acquisizione strategica degli asset Northern White di HC Minerals, ampliando significativamente la propria presenza nella regione degli Appalachi. L'acquisizione include l'stabilimento di Wyeville, Wisconsin con oltre 3 milioni di tonnellate all'anno di capacità di Northern White Sand e asset terminalistici strategici nei bacini di Marcellus e Utica.
L'operazione porta la capacità produttiva totale a 37 milioni di tonnellate all'anno e la produzione di Northern White Sand a oltre 12 milioni di tonnellate annue. L'acquisizione garantisce accesso diretto a ferrovie di Classe I e comprende quattro terminal in posizioni chiave. La società ha ottenuto una nuova facilità di finanziamento a termine con Chambers Energy Capital e GoldenTree Asset Management per finanziare l'operazione, mantenendo il rapporto di leva al di sotto di 1x sull'EBITDA.
Iron Oak Energy Solutions (NYSE:AESI) ha anunciado la adquisición estratégica de los activos Northern White de HC Minerals, ampliando significativamente su presencia en la región de los Apalaches. La adquisición incluye la planta de Wyeville, Wisconsin con más de 3 millones de toneladas por año de capacidad de Northern White Sand y activos terminales estratégicos en las áreas de esquisto de Marcellus y Utica.
La operación eleva la capacidad de producción total a 37 millones de toneladas por año y la producción de Northern White Sand a más de 12 millones de toneladas anuales. La adquisición proporciona acceso directo a ferrocarriles de Clase I e incluye cuatro terminales en ubicaciones clave. La compañía aseguró una nueva facilidad de préstamo a plazo con Chambers Energy Capital y GoldenTree Asset Management para financiar la adquisición, manteniendo los niveles de apalancamiento por debajo de 1x EBITDA.
Iron Oak Energy Solutions (NYSE:AESI)는 Appalachia 지역에서의 입지를 크게 확장하는 HC Minerals의 Northern White 자산을 전략적으로 인수했다고 발표했습니다. 이번 인수에는 위이빌(Wyeville), 위스콘신 공장이 포함되며 Northern White Sand 연간 생산능력은 연간 300만 톤 이상이고, 마르셀러스(Marcellus) 및 우티카(Utica) 셰일 지역의 전략적 터미널 자산도 포함됩니다.
이 거래로 Iron Oak Energy의 총 생산능력은 연간 3,700만 톤으로, Northern White Sand 생산은 연간 1,200만 톤 이상으로 증가합니다. 인수는 Class I 철도에 대한 직접 접근을 제공하며 주요 지역에 네 곳의 터미널을 포함합니다. 회사는 인수 자금 조달을 위해 Chambers Energy Capital 및 GoldenTree Asset Management와 신규 기한부 대출(Term Loan) 약정을 체결했고, 레버리지 비율을 EBITDA의 1배 미만으로 유지하고 있습니다.
Iron Oak Energy Solutions (NYSE:AESI) a annoncé l'acquisition stratégique des actifs Northern White de HC Minerals, renforçant significativement sa présence dans la région des Appalaches. L'acquisition comprend l'usine de Wyeville, Wisconsin disposant de plus de 3 millions de tonnes par an de capacité de Northern White Sand et des actifs de terminaux stratégiques dans les bassins schisteux de Marcellus et Utica.
L'opération porte la capacité de production totale à 37 millions de tonnes par an et la production de Northern White Sand à plus de 12 millions de tonnes annuelles. L'acquisition offre un accès direct aux chemins de fer de classe I et comprend quatre terminaux situés à des emplacements clés. La société a obtenu une nouvelle facilité de prêt à terme auprès de Chambers Energy Capital et GoldenTree Asset Management pour financer l'acquisition, en maintenant un niveau d'endettement inférieur à 1x l'EBITDA.
Iron Oak Energy Solutions (NYSE:AESI) hat die strategische Übernahme der Northern-White-Assets von HC Minerals angekündigt und baut damit seine Präsenz in der Appalachen-Region deutlich aus. Zur Übernahme gehört die Wyeville (Wisconsin) Anlage mit einer Northern White Sand-Kapazität von über 3 Millionen Tonnen pro Jahr sowie strategische Terminalanlagen in den Marcellus- und Utica-Shale-Gebieten.
Der Deal erhöht die gesamte Produktionskapazität auf 37 Millionen Tonnen pro Jahr und die Northern White Sand-Produktion auf mehr als 12 Millionen Tonnen jährlich. Die Übernahme schafft direkten Zugang zu Class-I-Eisenbahnen und umfasst vier Terminals an Schlüssellagen. Zur Finanzierung der Akquisition sicherte sich das Unternehmen eine neue Term-Loan-Kreditfazilität mit Chambers Energy Capital und GoldenTree Asset Management und hält die Verschuldungsquote unter dem 1-fachen EBITDA.
- 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
- 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
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.
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
"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
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
Contact:
Iron Oak Energy Solutions
Media Relations
MediaRelations@ironoakenergy.com
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SOURCE Iron Oak Energy Solutions
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