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Emerge Energy Services Investors

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Emerge Energy Services LP Responds to Industry-wide Railroad Service Issues

Fort Worth, Texas - February 19, 2018 - Emerge Energy Services LP today announced that its subsidiary Superior Silica Sands LLC ("SSS") has issued a response to the recent announcements made by leading oilfield service companies regarding railroad service issues. As noted by these leading oilfield service companies, harsh weather conditions and the continued surge in frac sand demand are straining railroad networks across the country, particularly the Canadian National Railway ("CN"). Please see below for SSS's response issued to customers and to various social media outlets:

We want to provide an update regarding the CN system-wide service outage that has affected some outbound shipments and to make you aware of some measures SSS has already implemented to maximize our shipping flexibility in the rare event of a rail outage.

Please note that: 

  • Our latest communications from the CN indicate that operations have begun to resume and we currently have activity on a portion of outbound CN shipments.
  • Our Northern White infrastructure utilizes a triangle of three closely located dry plants in Wisconsin. This strategic layout allows for rail shipment flexibility that is unique to SSS in that it gives us access to multiple railways, including the Union Pacific and Burlington Northern and Santa Fe ("BNSF") rail lines.
  • In addition, SSS proactively arranged a delivery option on BNSF that now gives us access to ship direct via three Class 1 rail carriers. We are currently increasing unit train shipments on the BNSF.
  • SSS has a strong trucking network in Wisconsin to transport loads reliably and at short notice to our various loadouts. We have no shortage of trucks or drivers.

With these above measures, we were able to divert empty railcars onto the BNSF and maximize alternate shipping routes to continue supplying the market with as much high quality frac sand as possible during the CN service pause.

We will notify you of updates on any CN direct shipments, while our Union Pacific and BNSF shipping is escalated and performing as scheduled. 

Please contact us with any questions, details or additional clarification.

 

 About Emerge Energy Services LP

 

Emerge Energy Services LP (NYSE: EMES) is a growth-oriented limited partnership engaged in the business of mining, producing, and distributing silica sand, a key input for the hydraulic fracturing of oil and natural gas wells, through its subsidiary Superior Silica Sands LLC.

 

 

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