Wed, Nov. 4, 9:56 AM
- Emerge Energy Services (EMES -13%) plunges at the open after reporting a Q3 loss that came in far worse than expectations, while revenues slightly beat estimates but still fell 40% Y/Y.
- EMES warns that drilling and well completion activity levels will be "extremely weak" in Q4, and now expect that any market recovery in the frac sand business will not occur until H2 2016 or potentially not until 2017.
- EMES says its sand segment generated Q3 EBITDA of $4.2M on 7% lower sales volume of 799K tons; market pricing and prices negotiated with customers continue to decline at the plant and in-basin.
- EMES says it has been able to significantly lower production costs but fixed rail expense, which includes both operating leases and railcar storage costs, remains significant.
- After surging yesterday, shares prices of frac sand companies are broadly lower today: HCLP -7.1%, FMSA -7.6%, SLCA -4.8%, CRR -0.3%.
Wed, Oct. 28, 10:59 AM
- U.S. Silica (SLCA +26.3%) rallies despite reporting a larger than expected Q3 loss, as investors apparently breathe a sigh of relief that results weren't even worse following recent negative announcements from its frac sand peers.
- SLCA says it sold 2.6M tons in Q3, down 12% Y/Y but up 16% Q/Q; the company cautions that it expects to see a sequential decline in Q4 volumes and margins in its oil and gas business as drilling and completion activity likely will slow significantly.
- SLCA says it continues to refrain from providing guidance for adjusted EBITDA due to the current lack of visibility in its oil and gas business.
- Frac sand peers also are rising: EMES +14.4%, HCLP +9.3%, CRR +8.8%, FMSA +4.8%.
Tue, Oct. 27, 9:51 AM
- Emerge Energy Services (EMES -9.2%) sinks at the open after Baird cuts its price target to zero from $3, believing there are much better risk/reward propositions available to investors in higher-yielding quality MLPs.
- Baird discourages investors from bottom fishing in frac sand suppliers, which it believes present going concern risk, and that aggressive traders should remain short until the oil market shows materially better fundamentals; tax-loss selling also is likely to present further downside risk through 2015, the firm adds.
- Frac sand peer Hi-Crush Partners (HCLP -14.8%) suspended its distribution following yesterday's market close; SLCA -4.7%, CRR -0.3%, FMSA -2.9%.
Mon, Oct. 26, 5:21 PM
- Hi-Crush Partners (NYSE:HCLP) -14.9% AH on news it is suspending its quarterly distribution due to challenging market conditions.
- HCLP says the suspension "is about prudent preservation of capital, building market share and positioning Hi-Crush for the eventual market turnaround. We continue to believe the fundamentals for increased frac sand demand over the long-term are favorable, but the recovery will take longer than previously thought."
- HCLP follows peer Emerge Energy as the second frac sand producer in recent days to suspend its distribution; EMES -2.6%, SLCA -1.5%, CRR -0.2% AH.
Fri, Oct. 23, 9:49 AM
- Emerge Energy Services (EMES -29.3%) plunges at the open following last night's announcement that it will not make a Q3 cash distribution because it did not generate distributable cash flow.
- Analysts are weighing in, with Stifel issuing a Sell recommendation with a $1 price target, saying it "would not rule out an equity value going to zero should the [frac sand] industry continue to struggle and banks tighten."
- Baird says "look out below," reiterating its Underperform rating and cutting its price target to $3 from $5 previously.
- Wunderlich lowers it price target to $4 from $7, expecting EMES likely to suffer multiple quarters without a distribution (Briefing.com).
- Frac sand peers also are lower: HCLP -10.3%, CRR -9.9%, FMSA -4.2%, SLCA -0.3%.
Thu, Oct. 22, 4:59 PM
- Emerge Energy Services (NYSE:EMES) -9.1% AH on news it will not pay a Q3 distribution after saying it did not generate sufficient cash during the quarter to do so.
- EMES cites the challenging oil and natural gas frac sand market and the volatility in wholesale fuel prices during the period.
- Frac sand peers are sharply lower on the news: HCLP -8.7%, SLCA -5.2%, CRR -2% AH.
Fri, Sep. 25, 9:12 AM
- Emerge Energy Services (NYSE:EMES) -16.9% premarket after withdrawing its 2015 distribution guidance of $2.50-$3.00/unit due to difficult market conditions in its sand and fuels segments from pressure on oil and natural gas prices. with no expectation for further guidance this year.
- On the news. Stifel downgrades EMES to Sell with an $8 price target and sharply reduces earnings estimates, noting this is the third time management has revised 2015 guidance.
- Also pointing out looming debt covenant issues, Baird cuts EMES to Underperform with a $7 target and expects weakness in other proppant producers, including CRR, FMSA, HCLP and SLCA (Briefing.com).
Wed, Jul. 29, 3:56 PM
- U.S. Silica's (SLCA +15.7%) surprising Q2 earnings beat, even as revenues fall 28% and frac sand revenue plunge nearly 40% Y/Y, is leading all proppant providers higher as trading nears the close.
- SLCA says it sold 2.3M tons during Q2, down 13% Y/Y and 15% Q/Q, but management says it sees some stabilization in its core business.
- The company continues to refrain from providing guidance due to the current lack of visibility in its oil and gas business.
- Also: HCLP +6.1%, EMES +12%, CRR +3.3%.
Thu, Apr. 30, 12:45 PM
Nov. 28, 2014, 12:48 PM
- Fracking sand plays U.S. Silica (SLCA -26.3%), Hi-Crush Partners (HCLP -17.3%), and Emerge Energy (EMES -16.5%) are among the many energy names sporting double-digit declines in response to OPEC's decision not to cut crude production, and the resulting plunge in crude prices. As are proppant providers Carbo Ceramics (CRR -16.2%) and FMSA Holdings (FMSA -16.5%).
- Wells Fargo's Wednesday downgrade of U.S. Silica was well-timed.
Nov. 28, 2014, 7:48 AM
- The oil market will need to balance via slower U.S. shale growth and OPEC cuts at some later date (their next meeting is on June 5), says Goldman's Brian Singer, maintaining his team's WTI oil price outlook of $70-$75 per barrel for next year.
- Among the energy sub-sectors, refiners and pipelines continue as favorites, and five of Goldman's eleven energy and utilities stocks on the Americas Conviction Buy list are from midstream/refining: KMI, MWE, PAGP, TRGP, TSO (all are lower premarket on oil's tumble).
- Not buyers of oil services and E&P names, Goldman nevertheless does have favorites in these areas: CRR, BAS, RIG.
Sep. 22, 2014, 12:46 PM
Sep. 22, 2014, 9:08 AM
Sep. 22, 2014, 8:41 AM| Sep. 22, 2014, 8:41 AM | 4 Comments
Sep. 19, 2014, 9:24 AM
Sep. 17, 2014, 3:56 PM
- CARBO Ceramics (CRR -4.9%) is sharply lower after Iberia cut its price target for CRR shares to $85 from $108, as well as 2014 earnings estimates, citing lower expected ceramic sales volumes due to bad weather and delays to the pad drilling program.
- Iberia says it is concerned the issues may drag into Q4 and 2015, keeping an Underperform rating on the shares.
- Elsewhere, HCLP -1.8%, SLCA +1.3%.
Carbo Ceramics Inc is engaged in the supply of ceramic proppant. It provides fracture simulation software, fracture design, engineering and consulting services and a broad range of technologies for spill prevention, containment and countermeasures.
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