Mammoth Energy Services, Inc. announced that its subsidiaries, Piranha Proppant LLC and Taylor Frac, LLC, have entered into two sand supply agreements with third-party service providers with terms of 12 months and 21 months, respectively, beginning on January 1, 2023.
Under the terms of the agreements, the Oklahoma City-based Company’s subsidiaries have agreed to supply, in aggregate, approximately 1.75 million tons of sand across multiple grades (20/40, 30/50, and 40/70) over the contract periods.
The third-party service providers were not identified in the announcement. Nor was the value of the contract.
Arty Straehla, Chief Executive Officer, commented, “As we move into 2023, the execution of these sand supply agreements at attractive pricing provides a solid foundation for predictable cash flow in our natural sand proppant division. We believe the timing of these contracts is prudent for capturing favorable pricing and utilizing the capacity of our sand mines by producing all of the grades of sand we can provide.”
Mammoth is an integrated, growth-oriented energy services company focused on the construction and repair of the electric grid for private utilities, public investor-owned utilities and co-operative utilities through its infrastructure services businesses.
The Company also provides products and services to enable the exploration and development of North American onshore unconventional oil and natural gas reserves. Mammoth’s suite of services and products include: infrastructure services, well completion services, natural sand and proppant services, drilling services and other energy services.