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Texas Tie-Up Expands Proppant Transport Services Across North America

Three Texas oilfield service providers have merged to form 1845 Oil Field Services for proppant logistics and freight management in North America's onshore.

D&T Trucking, Rowdy Farms and Gila Hotshot on Thursday announced the tie-up, which would give customers access to a fleet of nearly 500 dedicated power units and a footprint in the Barnett, Eagle Ford, Haynesville and Woodford shales and the Permian Basin.

1845, to be headquartered in Weatherford, TX, would offer a 24/7 dispatch operation center and logistics technology for tracking and reporting deliveries. The merger also creates nationwide opportunities for drivers, owner-operators, brokers and partners.

Why the name?

"The 1845 Oil Field Services name is a nod to a heritage that goes back even further than the first hydraulic fracturing technology," spokeswoman Cathy Redenbaugh told NGI's Shale Daily. "In 1845, the Republic of Texas elected to unite with 27 other states to offer its strength, be part of something bigger and increase what it could offer its citizens through that union. The union of these companies represents our commitment to the idea of partnership."

D&E CEO Tim Buffington would assume the helm of the merged operators. He said the merger would integrate with customers' supply change management and provide oilfield transport more efficiently.

The number of employees combined post transaction is estimated at 200, Redenbaugh said.

Rowdy Farms founder Craig Gandy is to be the executive vice president of sales.

"1845 creates an opportunity to rapidly grow our strong independent contractor network," Gandy said. "Above all, 1845 offers our stakeholders greater financial stability."

The merger is backed by private equity AVC Partners, which focuses on logistics and transport businesses. No financial details were disclosed.

"We see a tremendous opportunity for an innovative capacity manager like 1845 in proppant logistics,” AVC management said. "Better utilization of existing equipment will increase the effective capacity available to customers and improve operating efficiencies. Application of real-time logistics technology and improved equipment utilization will lead to better service quality, less down time and ultimately lower service costs for the customer."

D&T, based in Weatherford, was established in 2007 to supply transport services to U.S. unconventional drilling operators. Southlake, TX-based Rowdy Farms provides proppant transportation services, primarily in the Eagle Ford in South Texas. Gila, based in Odessa, TX, primarily has served the Permian Basin in West Texas.

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