story in Reuters, "privately held Preferred Sands produces and distributes frac sand and proppant materials used predominately in oil and gas shale drilling. Its network of mines have the capacity to produce more than 9 billion pounds of sand every year."
Private equity firm KKR & Co
LP invested $680 million in the company to shore up its operations.
Moody's Investors Service said "the company's woes to competition in the frac
sand industry, its lack of high-quality sand reserves, and a
less developed logistical network relative to its major rivals."
Preferred Sands of Arizona says it has a total reserve size of 130 million tons of coarse sand. The Arizona mine is located 150 miles west of Albuquerque, New Mexico on the Navajo Reservation. The plant is capable of producing approximately 2 million tons per year.