Dallas-based Pioneer Natural Resources Company announced it intends to close one of its sand mines and move operations to the western part of Texas, all in the name of cutting costs and saving money.
The sand mine located at Brady, northwest of Austin is being shut down in the first quarter of 2019 when the company expects to have all if its proppant supplied from operations in West Texas. As a result, Pioneer anticipates savings of $400,000 per well and it expects to see a noncash after-tax charge of nearly $400 million in the fourth quarter of 2018.
Timothy L. Dove, Pioneer President and CEO said the move will cut costs for the company and increase efficiencies.
“Our Brady sand mine and other Brady sand sources have been an integral part of Pioneer’s success and were critical in our transition to horizontal shale development. However, new West Texas sand mines with their low cost of mining and proximity to our Permian acreage position have provided us a more cost-effective, long-term source of sand supply.”
Pioneer is a major operator in the West Panhandle gas field in the Texas Panhandle where it operates more than 700 wells. It also owns the Fain gas processing plant located in the heart of the field.