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CARBO Ceramics -12% after customer decides to cut back on ceramic use

  • CARBO Ceramics (CRR -12.2%) plunges after one of its largest customers, energy exploration company Rosetta Resources (ROSE +0.3%), said it would stop using ceramics on some of its wells.
  • In its Q2 earnings report, ROSE said it would switch to using sand proppant for its Eagle Ford wells and no longer use ceramic proppant.
  • ROSE's decision appears to have caught CRR by surprise, William Blair analyst Brandon Dobell says, adding that CRR believes it will quickly find buyers for the ceramic it was going to sell to ROSE; in the unexpected event that CRR is unable to sell any of the ceramic that was supposed to go to ROSE, Dobell says CRR's 2015 EPS would drop to $2.90-$3.48 from his previous estimate of $5.24.
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Comments (2)
  • Clayton Rulli
    , contributor
    Comments (3187) | Send Message
     
    If its so easy to find another buyer why didn't they sell them additional product anyways? Please fill me in
    5 Aug 2014, 01:30 PM Reply Like
  • Azzie
    , contributor
    Comments (17) | Send Message
     
    Frackers prefer using frac sand, particularly northern white, which is less expensive than ceramics and comparable in production results. Buy slca, hclp, and emes on dips.
    17 Sep 2014, 04:41 PM Reply Like
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