Select Sands America Corp. Shuttered; Seeks Strategic Alternatives 

Select Sands Corp. announced a shuttering of the operations of its operating subsidiary, Select Sands America Corp., due to a confluence of factors negatively impacting the frac sand industry and the company. 

The decision comes as a response to the challenges posed by weak oil and gas activity in the basins served by the company, a diminished 2024 sales forecast, low product pricing, a slower-than-expected pivot to industrial sand markets, cash shortfalls, the burden of high interest rates on the company’s growing debt, and after meetings with the company’s bank in which it was unable to secure additional financing at this time that would have allowed operations to continue. The company is noncompliant with the terms of some of its existing loans and will continue to meet with its bank to discuss remedies.

The company has been diligently navigating through these challenges, seeking viable solutions to sustain operations. However, persistently adverse conditions have necessitated a strategic reassessment of its current standing.

During this shuttering of operations, Select Sands will explore strategic alternatives to ensure long-term viability, including the continuing pursuit of opportunities in the industrial sand markets. This approach underscores the company’s commitment to adaptability and resilience in the face of dynamic market forces.

Zig Vitols, president and CEO, stated, “While this decision was not made lightly, it is a necessary step to re-assess options in the interests of our stakeholders and position the company for future success. We greatly regret having to take this action and will continue to communicate with our stakeholders as we work to achieve a solution.”

Select Sands said it remains dedicated to its lenders, investors, employees, customers, and partners, and will provide updates if and when a reopening timeline is possible as developments unfold.

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