- Despite falling oil prices and a pummeling in the stock market, the companies that supply sand and guar gum for shale oil and gas companies say business remains strong and are not ready to call an end to a four-year boom spurred by fracking technology.
- "We have not seen any data or had any discussions that indicate lower demand for our sand," said Hi-Crush Partners (HCLP +6.2%) CEO Robert Rasmus after the company reported record Q3 revenues this week.
- HCLP has dropped more than 40% since the beginning of September, but Rasmus says almost 90% of its sand output was sold for 2015.
- After Q3 revenues in the oil and gas sector more than doubled, U.S. Silica (SLCA +4.8%) CEO Bryan Shinn said the company is "actively engaged in conversations with our customers about their future growth, and none has brought down their estimated requirements."