Energy Capital Partners has completed a recapitalization of Chieftain Sand and Proppant, a deal that marks the first investment from Energy Capital’s Mezzanine Opportunities Fund. Specific terms were not released. Chieftain Sand is a producer of frac sand that meets strict technical specifications for use in the oil and gas industry.
Energy Capital Partners (“ECP” or “Energy Capital”) today announced the completion of a recapitalization of Chieftain Sand and Proppant, LLC (“Chieftain Sand”) on July 25, 2012. This is the first investment from Energy Capital’s Mezzanine Opportunities Fund.
Chieftain Sand is a growing producer of frac sand that meets strict technical specifications for use in the oil and gas industry. Frac sand is required to permanently prop open factures created by the hydraulic fracturing process to unlock oil and gas from unconventional and conventional formations in North America. The growing demand for frac sand is driven by technology advancements in the hydraulic fracturing process that allows hydrocarbon extraction from formations where oil and gas exists but previously could not be brought economically to the surface, including the Eagle Ford Shale, the Bakken, as well as new strata in the Permian Basin and other established fields. The majority of all domestic oil and gas drilling and development utilizes frac sand, and it is also used to improve recoveries in existing producing wells.
Chieftain Sand chose to partner with Energy Capital because of ECP’s energy investing experience and flexibility in tailoring a capital structure to allow Chieftain Sand to execute its strategic growth plan.
Chieftain Sand owns and operates two frac sand production plants in Wisconsin and Arkansas. The Company recently commissioned its new production facility in western Wisconsin where the geologic resource yields the highest grade and most favorable particle size distribution for the specific frac sand products needed for oil and liquids-rich production.
“We are excited to become Chieftain Sand’s capital partner and fund its proven ability to serve the exacting and demanding requirements of the supply chains of the largest oil field services companies with the highest quality product and low-cost logistics capabilities,” said Energy Capital Partner’s Nazar Massouh.
“Our partnership with Energy Capital will provide Chieftain Sand with access to capital and a long-term strategic partner who can support our growth plan,” commented David Hanson, Chieftain Sand’s CEO.
About Chieftain Sand
Chieftain Sand and Proppant, LLC produces proppants used in the hydraulic fracturing process to increase the productivity of new and existing natural gas and oil wells. Chieftain Sand’s two production plants in Wisconsin and Arkansas serve all North American shale and conventional formations, including Eagle Ford, Permian, Bakken, Oklahoma, Mississippi Lime, Utica, Marcellus, Fayetteville, Haynesville, East Texas, Niobrara, and others. For more information, visit www.chieftainsand.com.
About Energy Capital Partners
Energy Capital Partners is a private equity firm with offices in Short Hills, New Jersey and San Diego, California. ECP has over $7 billion of capital commitments under management and is focused on investing in the power generation, electric transmission, midstream gas, renewable energy, oil field services and environmental services sectors of North America’s energy infrastructure. The fund’s management has substantial experience leading successful energy companies and energy infrastructure investments.