Michael Filloon
Oil & gas, energy, hedge fund manager, commodities

Bakken Update: Frac Sand Pricing Could Go Parabolic In Q3 2014

Demand continues for frac sand in the United States. In 2013, significant supply hit the market. This decreased average pricing. Current expectations are for a pricing rebound, as demand is increasing. Although we are seeing an overall decrease in the number of rigs drilling in the U.S., frac sand intensity continues to increase. US Silica (NYSE:SLCA) could be the best way to play this. I initially recommended SLCA back in early August. This has worked out well as the stock is up 46%. It is currently expanding production, and may have the best logistics in the business. It has underperformed other players in the industry, but may have more upside. Operators have started to adopt a new completion...

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