Iron Oak Energy Acquires HC Minerals' Northern White Assets To Boost Shale Play Supply

(RTTNews) - Iron Oak Energy Solutions LLC, a major multi-basin proppant supplier to North America's oil and gas sector, has acquired the Northern White Sand assets of HC Minerals, Inc. (AESI), expanding its ability to serve the largest U.S. natural gas shale play.

This acquisition builds on Iron Oak's earlier integrations of Black Mountain Sand, Covia Energy, and High Roller Sand. It adds HC Minerals' Wyeville, Wisconsin production facility, capable of over 12 million tons of Northern White Sand annually, along with four strategically placed terminals in the Marcellus and Utica basins.

The facility's cost-efficient dredge mining and direct Union Pacific Railroad access enhance production scale, flexibility, and service reach.

Alongside the acquisition, Iron Oak secured a new term loan facility from Chambers Energy Capital and GoldenTree Asset Management, including a delayed draw option to fund future growth. The company maintains strong liquidity and low leverage post-financing.

CEO Michael Segura noted that the acquisition aligns with Iron Oak's growth strategy, citing expected demand increases in natural gas basins driven by power generation, data center expansion, and LNG exports. He emphasized that HC Minerals' expertise in production, logistics, and supply chain will enhance Iron Oak's ability to meet demand efficiently.

HC Minerals CEO Dirk Hallen expressed pride in his team's achievements over five years and confidence that Iron Oak's leadership will ensure the employees' continued success.

CFO Jeff Wood highlighted that the financing strengthens Iron Oak's strategic flexibility while keeping leverage well below one turn of EBITDA.

AESI currently trades at $11.44 or 2.18% lower on the NYSE.