Emerge Energy Services LP (NYSE:EMES) Files An 8-K Entry into a Material Definitive Agreement

ME Staff 8-k
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Emerge Energy Services LP (NYSE:EMES) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01. Entry into a Material Definitive Agreement.

On July19, 2017, Superior Silica Sands LLC (“SSS”), a wholly owned operating subsidiary of Emerge Energy Services LP (“Emerge Energy”), and EP Energy E&P Company, L.P. (“Customer”) entered into a Sand Supply Agreement (the “Supply Agreement”), effective as of January1, 2017. The Supply Agreement is structured as a take-or-pay agreement to which SSS will supply sand and proppants to Customer at a price per ton that may be adjusted on a quarterly basis by mutual agreement. If Customer fails to purchase the committed annual volume for any applicable contract year, the Supply Agreement provides Emerge Energy with compensation for its lost margins on such unpurchased sand at a fixed price per ton.

The term of the Supply Agreement expires on January1, 2020 and may be terminated early by either party upon 30 days’ written notice, provided that if SSS provides notice of termination while then performing services under the Supply Agreement, such termination shall not be effective until 30 days after the completion of such services. The Supply Agreement may also be terminated upon the occurrence of certain specified events; including, without limitation, an uncured breach of the Supply Agreement.

Emerge Energy intends to submit a FOIA Confidential Treatment Request to the Securities and Exchange Commission to Rule24b-2 under the Securities Exchange Act of 1934, as amended, requesting that it be permitted to redact certain confidential commercial terms of the Supply Agreement. The omitted material will be included in the request for confidential treatment. The foregoing summary does not purport to be complete and is qualified in its entirety by reference to the Supply Agreement, a redacted copy of which will be attached as an exhibit to Emerge Energy’s Quarterly Report on Form10-Q for the quarterly period ended June30, 2017.


About Emerge Energy Services LP (NYSE:EMES)

Emerge Energy Services LP owns, operates, acquires and develops a portfolio of energy service assets. The Company’s segments include Sand segment, Fuel segment and Corporate. The Company’s Sand segment consists of the production and sale of various grades of industrial sand primarily used in the extraction of oil and natural gas, as well as the production of building products and foundry materials. Its Fuel segment operates approximately two terminals and over two transmix processing facilities that are located in the Dallas-Fort Worth, Texas area and Birmingham, Alabama. In addition to refining transmix, the Fuel segment sells a suite of complementary fuel products and services, including third-party terminaling services, certain reclamation services and blending of renewable fuels. The Company’s other services include blending of renewable fuels into petroleum products, and the manufacture of biodiesel at its Birmingham facility.