Mammoth Prices A 3-Year Take Or Pay Frac Sand Contract At $44/ton

Mammoth Energy Services announced Thursday that it has signed a three-year take or pay deal to provide Wisconsin frac sand to an undisclosed pressure pumper. The contract contemplates annual volumes of 720,000 tons comprised of several different grades including 20/40, 30/50, and 40/70. We have thoughts on pricing relative to recent benchmarks, what this means for Mammoth’s capacity, what site this will come from, and what this means for capacity reactivations in this update.

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