Sentences with phrase «frac sand»

However, given the company's strong balance sheet, future growth plans, and the strong long - term potential future of America's shale oil and gas production, I remain bullish on frac sand producers in general, and US Silica specifically.

US Silica (NYSE: SLCA), one of America's largest producers of frac sand, just announced stunning growth yet missed analyst expectations.

As long as investors in frac sand suppliers are aware of the risks of that prolonged depressed energy prices, an overdue market correction, and industry overcapacity pose, then they can adjust their holdings accordingly as part of a diversified portfolio that can minimize the risks of devastating, permanent losses.

If that remains the case, demand for frac sand will remain high, and that means there's a decent chance U.S. Silica shareholders could do quite well as the cycle shifts back to growth mode.

The increased use of fracking has been an economic boon for many states, not only those with fracking, but also those with supporting industries such as frac sand mining or associated machinery manufacturing.

Learn three reasons why these three frac sand suppliers might be in for further crashing share pr...

In fact, the entire frac sand industry, including US Silica's competitors, Hi - Crush Partners (NYSE: HCLP), and Emerge Energy Services (NYSE: EMES), have very strong balance sheets.

Tagged with: frac sand mining Mark Miller Rob Cowles state assembly state senate Van Wanggaard wetlands

Even without any contract cancellations, 30 % of US Silica's production is exposed to potentially falling frac sand prices in the spot market, which could mean 2015's financial results decline compared to the record results of 2014.

The company has largely «earned» this, with its earnings falling hard and fast along with the contraction in demand for its biggest product: frac sand used for oil and gas production from shale and other tight formations.

After seeing earnings fall steadily (and turn into losses in 2016), U.S. Silica reported a $ 2.5 million profit in the first quarter as frac sand volumes and revenue increased both year over year and sequentially.

... For example, if we see a 30 % to 35 % reduction in average rig count, we estimate that raw frac sand demand could decline by as much as 15 % to 20 % from 2014 levels.

The rail industry is now busier than ever hauling frac sand across the numerous shale plays.

Strong balance sheets should allow frac sand producers to weather the current storm However, despite the uncertainty that plunging crude prices present, US Silica isn't likely to face any liquidity problems in the year ahead.

However, their long - term contracts and the fact that greater use of frac sand is one way for oil and gas companies to maximize productivity from each well means that demand declines might prove smaller than those of other oil services companies.

This might result in frac sand prices crashing and could eviscerate these companies» margins and share prices in the long term.

Witnessing the adoption of the fracking process fuel demand for frac sand is just one example.

As frac sand demand continues to increase, explorers have taken on the task of finding and developing new projects.

Things to watch going forward In my opinion, the biggest risk to frac sand producers such as US Silica is that some of these highly lucrative contracts might get cancelled if low oil prices extend into the second half of the year.

The worst oil collapse since the financial crisis has crushed energy stocks — frac sand supplier...

Business from shale oil production, especially transporting «frac sand» from mines in Wisconsin to prime regions such as the Bakken in North Dakota and the Eagle Ford in Texas where oil is extracted by hydraulic fracturing, expanded around 25 % from 2013, building on three years of fast growth.

Along with other rail companies, it's shipping more crude, frac sand and grain and it's doing more intermodal business — taking goods to another mode of transportation, such as ship or plane — than it has in the past.

The frac sand producer reinstated its lucrative dividend in November, but shares have gone sidewa...

In my coverage of U.S. Silica Holdings (NYSE: SLCA), as well as the frac sand industry in general, I've explained to readers the long - term growth potential these investments represent.

This in turn would likely force oil and gas producers, which have been purchasing frac sand in record quantities, to slow new purchases, driving down the price of frac sand and hurting producers» margins.

However, should slowing global economic growth or recession result in a long - term reduction (three to five years) in energy prices, then U.S. Silica and its peers will face the prospect of their current lucrative contracts expiring and themselves sitting atop literal mountains of frac sand, while demand may have fallen off a cliff.

Overproduction of frac sand is a risk Demand for frac sand has been growing at 28.3 % annually and is expected to continue growing at over 10 % through 2022.

The article goes on to explain that this «frac sand» is normally high - purity quartz that can withstand between 6,000 and 14,000 pounds of pressure per square inch.

The long - term contracts these companies have secured for this increased production means that a short - term decline in energy prices, and thus demand for frac sand, isn't a major concern.

As this table shows, all three frac sand producers have current ratios (short - term assets divided by short - term liabilities) and quick ratios (liquid assets divided by short - term liabilities) much greater than 1, signifying strong balance sheets that should allow all three to weather the current oil crash.

FRAC SAND: A company plans to argue in court today that a Minnesota county's ban on frac sand mining violates the Commerce Clause of the U.S. Constitution.