A second silica sand proppant distributor in a week has filed Chapter 11 bankruptcy, thanks to a drop in demand in the oil and gas sector.
Emerge Energy Services LP filed in Delaware stating it has nearly $330 million in assets while debts total $266 million. The Southlake, Texas company says it wants to set aside railroad hauling leases as part of the reorganization plan.
The company blamed its debt on a drop in well completions and an increase in competition for fracking sand distribution. It also attributed the debt to its acquisition of a sand-production site near San Antonio that has not met production expectations. It also said it experienced a 40% drop in revenue last year.
Shale Support has three frack sand operartions in the Marcellus-Utica region.
Last week Louisiana-based fracking sand producer Shale Support Global Holdings LLC also filed for Chapter 11 bankruptcy.