Hi-Crush Inc. Announces Agreement to Deploy its Sixth OnCore In-Field Mine Unit with Pioneer Natural Resources in the Permian Basin

Rhea-AI Summary

Hi-Crush Inc. has entered into an agreement with Pioneer Natural Resources (NYSE:PXD) to deploy its sixth OnCore mobile mining unit in the Midland Basin. This marks Hi-Crush's second deployment for Pioneer, following the successful operation of OnCore #4 since September 2022. The OnCore units produce damp sand for frac sand supply, significantly reducing costs and emissions by moving the mining process closer to the wellsites. Dirk Hallen, CEO of Hi-Crush, emphasized the relationship's success, highlighting improved efficiency and cost savings for Pioneer.

Positive

• Deployment of a sixth OnCore unit signifies expansion of partnership with Pioneer, enhancing market position.
• OnCore units reduce completion costs and GHG emissions, driving efficiency in operations.
• Successful operation of previous unit has established trust and effectiveness in collaboration.

Negative

• None.

Expanded relationship will be Pioneer’s second mobile damp sand mine facility with Hi-Crush’s OnCore business unit, furthering Hi-Crush’s leadership in “in-field” mining and logistics

HOUSTON--(BUSINESS WIRE)-- Hi-Crush Inc., or "Hi-Crush", today announced that it has entered into an agreement with Pioneer Natural Resources (NYSE:PXD), or “Pioneer”, to deploy Hi-Crush’s sixth OnCore mobile mining unit to supply frac sand for use in Pioneer’s well completions activity in the Midland Basin. This will be Hi-Crush’s second OnCore deployment with Pioneer following the successful commencement of operations at OnCore #4 in September 2022, and Hi-Crush’s fifth OnCore deployment within the Midland Basin.

“We are excited and honored to deepen our relationship with Pioneer, one of the most respected and innovative operators in the Permian Basin, and to continue to enhance our position as the clear industry leader in in-field mining and damp sand production and logistics,” said Dirk Hallen, Chief Executive Officer of Hi-Crush. “We believe Pioneer’s desire to quickly move ahead with another OnCore unit is a testament to the end-to-end field execution they have experienced from both OnCore’s mining and Pronghorn’s logistics and wellsite teams, as well as the quantifiable savings in completions costs and emissions they have enjoyed. We look forward to continuing to build on our track record of success on behalf of Pioneer in order to improve efficiency, drive down costs and reduce greenhouse gas (“GHG”) emissions through this expanded relationship in the Midland Basin,” said Hallen.

OnCore Processing LLC, or “OnCore”, a wholly owned subsidiary of Hi-Crush, operates mobile mining units that exclusively produce damp sand for use in operators’ well completions. By moving the source of frac sand supply “in-field” to within unparalleled proximity of operators’ acreage and wellsites, and by eliminating the process and equipment necessary to fully dry the sand produced at each unit, OnCore drives a significant reduction in its clients’ well costs while delivering meaningful environmental and safety benefits. Reducing the overall distance between the mine site and the wellsite and eliminating natural gas-fired dryers traditionally used to produce dry sand enables OnCore to reduce the transportation costs and number of trucks needed to supply each well, and to lower GHG emissions through fewer miles driven and less natural gas used during the production process.

About Hi-Crush

Hi-Crush Inc., together with its subsidiaries, is a fully-integrated provider of proppant and logistics services for hydraulic fracturing operations, offering frac sand production, advanced wellsite storage systems, flexible last mile services, and innovative software for real-time visibility and management across the entire supply chain. Hi-Crush’s strategic suite of solutions provides US oil and gas operators and service companies with the ability to build safety, reliability, and efficiency into every completion. For more information, please visit Hi-Crush’s website at www.hicrushinc.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230321005041/en/

Brian McConn, Senior Vice President of Sales, Supply Chain & Business Development

(713) 980-6213

bmcconn@hicrush.com

Source: Hi-Crush Inc.

FAQ

What is the recent agreement between Hi-Crush and Pioneer Natural Resources?

Hi-Crush has signed an agreement to deploy its sixth OnCore mobile mining unit for Pioneer Natural Resources in the Midland Basin.

How does the OnCore unit benefit Pioneer Natural Resources?

The OnCore unit significantly reduces completion costs and GHG emissions by producing damp sand closer to the wellsites.

When was the previous OnCore unit deployed by Hi-Crush for Pioneer?

The previous OnCore unit, OnCore #4, began operations in September 2022.

What is Hi-Crush's role in the frac sand supply chain?

Hi-Crush provides mobile mining units that produce damp sand for well completions, enhancing efficiency and reducing costs.

What impact does the OnCore unit have on GHG emissions?

The OnCore unit decreases GHG emissions by reducing transportation needs and eliminating natural gas use in drying processes.