Atlas Energy closes US$450m Hi-Crush buy

Atlas Energy Solutions has closed on its US$450 million acquisition of Hi-Crush's Permian Basin proppant production assets and North American logistics operations.

The transaction comprises US$150 million in initial cash payment, US$175 million in AESI common stock shares, and US$125 million in deferred cash payments via a Seller’s Note. This merger brings together two prominent innovators in the Permian proppant sector, both holding substantial reserves of premium giant open dune sand in the region. It expands Atlas's logistics capabilities with the addition of Pronghorn, a leading provider of proppant logistics and wellsite services across multiple basins. By combining Atlas's leading logistics offering in the Delaware Basin (Dune Express) with Hi-Crush's logistics offerings in the Midland Basin (Oncore + Pronghorn), significant operational efficiencies are expected.

The transaction is slated for completion before the end of Q1 of 2024. Piper Sandler & Co. is the principal financial advisor to Atlas, with Goldman Sachs & Co. LLC also advising. Vinson & Elkins LLP serves as the legal advisor for the transaction. Moelis & Company LLC is the exclusive financial advisor to Hi-Crush, with legal advice provided by Baker Botts LLP.