Fri, Apr. 24, 9:05 AM
- Emerge Energy Services (NYSE:EMES) -7.7% premarket after announcing it is cutting its quarterly distribution by 29% to $1.00/unit from $1.41, as the slowdown in drilling activity hits proppant suppliers and other industry suppliers.
- EMES also revises its full year distribution guidance to ~$3.00/unit.
- Baird downgrades EMES to Underperform from Neutral and lowers its price target to $30 from $50, and expects other frac sand miners such as HCLP and SLCA to sell off on the news (Briefing.com).
Wed, Feb. 25, 9:24 AM| 3 Comments
Tue, Feb. 24, 5:39 PM
Tue, Feb. 24, 5:23 PM
- U.S. Silica (NYSE:SLCA) -12% AH after posting slightly weaker than expected Q4 earnings but suspending guidance for adjusted EBITDA "due to the current lack of visibility in our oil and gas business."
- SLCA says it anticipates 2015 capex of $100M-$120M.
- Says overall tons sold during Q4 rose 43% Y/Y to 3M tons; for the full year, overall tons sold increased 34% Y/Y to 10.9M tons.
Dec. 31, 2014, 2:50 PM
- U.S. Silica (NYSE:SLCA) CEO Bryan Shinn discloses he bought 4K shares yesterday at $25.43. Director Peter Bernard bought 5K shares at $25.41.
- COO Peter Winkler has also bought shares in December following SLCA's oil price-driven plunge, as have directors Michael Stice, Charles Shaver, and William Kacal.
- SLCA is closing the year down 23% YTD, and 64% from a September high of $73.43.
- Yesterday: Fracking sand plays sell off again
Dec. 30, 2014, 11:09 AM
- With WTI crude now trading near $54/barrel, fracking sand plays Hi-Crush Partners (HCLP -4.3%), U.S. Silica (SLCA -2.7%), and Emerge Energy (EMES -7.5%) are posting fresh losses.
- Baker Hughes has reported U.S. rigs targeting oil fell by 37 in the week ending Dec. 26 to 1,499. Idle rigs were at their highest level since 2012. Nonetheless, Goldman thinks U.S. producers might further boost production (already at its highest levels in more than three decades) in an attempt to grab share from OPEC, albeit while moving rigs to lower-cost fields.
- Several SA authors have defended U.S. Silica (I, II, III, IV) over the last month, citing its valuation and a belief frac sand demand should remain healthy even if oil prices stay under pressure. The company added to its buyback last week.
Dec. 23, 2014, 3:58 PM
- U.S. Silica (SLCA +2.9%) is higher a day after its board authorized an increase in the company's share repurchase program to as much as $50M from $25M, which the company says reflects confidence in its long-term strategy.
- Also, SLCA has been seeing some recent insider buying, including nearly $47K in purchases yesterday from two company directors.
Dec. 9, 2014, 3:48 PM
- U.S. Silica (SLCA +4.7%) enjoys strong gains after Ariel Investments' John Rogers names the stock as one of his favorites, citing valuation at less than 10x next year's earnings and down more than 50% in the current quarter.
- Rogers sees SLCA as a leader in the frac sand business, he likes the support provided by long-term contracts, and believes it will weather the current rough period for energy stocks.
- Rogers also recommends International Speedway (ISCA -1.3%), seeing a rebound in auto racing as the economy improves, and Brady Corp. (BRC +4.9%), citing valuation and new management.
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, 12:45 PM
Nov. 26, 2014, 9:51 AM
- Wells Fargo has downgraded U.S. Silica (NYSE:SLCA) to Market Perform, and slashed its valuation range to $47-$54 from $53-$60. The firm cites lower oil prices, and a belief oil E&P spend will remain weak.
- Peer Hi-Crush Partners (NYSE:HCLP) is also off.
- Previous: Lower crude prices could affect fracking sand
Nov. 7, 2014, 11:48 AM
- 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."
Oct. 29, 2014, 5:21 PM
Sep. 24, 2014, 11:18 AM
- Hi-Crush Partners (HCLP +6.8%) is upgraded to Buy from Hold with a $66 price target at Wunderlich, citing predictable growth and solid fundamentals.
- The recent pullback in oil prices that has impacted E&P stocks has also taken a toll on frac sand stocks, particularly HCLP; the firm says the group's fall is much greater than the drop in oil prices and the E&P index, but demand for Northern White Sand remains inelastic in the near term.
- Wunderlich continues to prefer Emerge Energy (EMES +4.8%) to HCLP on a risk-adjusted basis, but it rates both stocks at Buy.
- Not mentioned in the report, U.S. Silica (SLCA +3.5%) also is moving higher today.
Sep. 23, 2014, 12:58 PM
- Hi-Crush Partners (HCLP -5.8%) is sharply lower, apparently due to a negative mention last night from Jim Cramer, who urged investors to avoid the stock as well as U.S. Silica (SLCA -2.3%) after big gains YTD.
- "At the end of the day, this stuff is just sand and sand is plentiful," Cramer says, adding that oil drillers could switch to another substance in place of sand for fracking if the sand ever gets too expensive.
- The only frac sand play Cramer likes - and only if one must own a stock in the space - is Emerge Energy Services (EMES -5.8%).
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%.
SLCA vs. ETF Alternatives
US Silica Holdings Inc together with its subsidiaries is a domestic producer of commercial silica, a specialized mineral that is a critical input into an end markets. Its products include Oil & Gas Proppants, Fine Ground Silica, FLORISIL & Aplite.
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