Atlas Sand has been one of the quieter outfits in the Permian Basin sand rush this year – a new entrant flying below the radar. Not anymore.
On December 19, 2017 the company press released bold growth aspirations that if executed would make them bigger than either of the two largest frac sand suppliers (Unimin and US Silica) in the country today (based on existing production).
With the recent closing of their Monahans property deal, the company released a ton of new information about their assets and strategy today.
The company activated a new website and published detailed spec sheets. But most importantly, they issued a press release with some eye-catching statements about future capacity.
We’ve been assuming Atlas brings two plants online next year worth about 6mmtpa. That hasn’t changed. But their plans beyond that are newly disclosed.
The Company announced plans to bring on at least 12 million tons of total production potential in the Permian Basin, possibly as early as the end of 2019.
Moreover, management stated they “could potentially double that capacity to 24 million tons in 2020 or 2021.” If Atlas fully built out to the 24mmtpa potential they claimed they have their sights set on, that would make them larger than any single frac sand producer in the current United States market.
We’d also note that this aggressive growth disclosure is likely to curb any remaining appetite for incremental mines / investment in the Permian Basin.