Smart Sand and Canadian Pacific Railway Limited (TSX: CP) (NYSE: CP) today announced a strategic long-term partnership under which the two companies will supply and ship premium, Northern White frac sand to the unconventional oil and gas industry in key North America producing regions (including the Bakken and Eagle Ford formations, and the Utica and Marcellus Shales). The two companies also announced the partnership's first initiative: building a new frac sand transload facility, expected to be the region's largest, in Makoti, North Dakota that will serve the Bakken formation in the Williston Basin beginning in early 2013.
"We are excited to partner with transportation leader Canadian Pacific to bring our combined expertise to those companies working in the Bakken Shale formation," said Charles Young, founder, president and board member of Smart Sand. "Smart Sand offers substantial dry sand capacity and 100-plus years of proven reserves, plus direct rail access for unit trains. We believe the new North Dakota transload facility offers a unique combination of cost effectiveness, reliability and product flexibility. We look forward to offering similar services in other producing regions while building strong relationships in the Williston Basin."
"Smart Sand has prime resources and processing capabilities which align well with CP's shipping presence in the energy sector. This agreement with Smart Sand demonstrates our commitment to provide our customers with end-to-end transportation service that is competitive and reliable," said Jane O'Hagan, CP's Executive Vice President and Chief Marketing Officer.
Smart Sand's primary facility, which opened in late June 2012 and is located on the CP rail line in Oakdale, Wisconsin, will supply premium Northern White frac sand in a broad range of mesh sizes to the new transload facility. Based on Smart Sand's initial processing capacity of more than one million tons per year, plus the company's extensive proven reserves, the facility will be able to quickly fulfill long- and short-term orders while providing direct rail access for unit trains.
We are pleased this partnership with Smart Sand will take full advantage of CP's strategic network and experience in the energy industry. Together, we will supply a reliable stream of high quality Northern White frac sand. We look forward to serving many companies in the region as we grow our partnership with Smart Sand," O'Hagan added.
Canadian Pacific is the only North American railroad to serve the Bakken Formation, the Alberta Industrial Heartland and the Marcellus Shale. In addition, CP is the only Class I railway to connect the energy hubs of the U.S. Midwest, Alberta and Saskatchewan to the Northeast U.S. Through its network to the Northeast U.S. and through the Kansas City gateway to the U.S. Gulf Coast, CP is able to partner with the energy industry to facilitate growth in moving oil and energy-related materials. Each year, CP moves hundreds of thousands of carloads of energy-related products, including crude oil, sulphur, fuels, diluents and materials key to the energy industry, such as pipe and frac sand.
About Smart Sand
Smart Sand, Inc. (smartsand.net) is one of the leading providers of high-quality proppant and related logistics services to the oil and gas industry in North America. All of Smart Sand's facilities are located near major rail transport lines, ensuring reliable, cost-effective delivery to major shale plays in the U.S. and Canada.
About Canadian Pacific
Canadian Pacific (cpr.ca) operates a North American transcontinental railway providing freight transportation services, logistics solutions and supply chain expertise. Incorporating best-in-class technology and environmental practices, CP is re-defining itself as a modern 21st century transportation company built on safety, service reliability and operational efficiency.
Owen Blicksilver Public Relations, Inc.
P: 732-264-1131 - E: Kristin[.]blicksilverpr.com.
P: 845-507-0571 - E: Jennifer[.]blicksilverpr.com.