Boom for fracking sand suppliers means gold for investors

|By:, SA News Editor

"Sand is the new gold," as share prices surge for U.S. companies which supply sand to energy producers in response to the growing use of fracking to extract oil and natural gas from shale formations.

U.S. Silica (SLCA -0.4%), the biggest producer, has posted 52-week highs in nine of the past 10 trading sessions and has more than doubled YTD; Emerge Energy (EMES +0.9%) and Hi-Crush Partners (HCLP +2.7%) have posted respective YTD gains of 218% and 78%.

Demand for fracking sand next year will be 96% higher than in 2015, with shortages continuing for years, Morgan Stanley analyst Ole Storer predicts in raising his 12-month price target for SLCA to $80.