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Just last week the two stocks were crushed after Fairmount Santrol Holdings $FMSA said they would join its rivals and open a new sand mine in the Permian basin. The concern is all this expansion could lead to overcapacity when the mines come online over coming months. Haliburton $HAL also warned in its earnings report that fracking were “putting ion the breaks”
That was a big hit after such a decline and then a miss in that environment was tough. Though they are making money now but as you said stock price got way head of itself.
The rise and fall has eerie similarities to o&g stocks and oil itself – eventually reality catches up – seems it hasn’t yet on oil. Market forces at work.
Black Mountain Sand & Diamondback Energy Enter Into Long Term Sand Supply Agreement
Black Mountain Sand has signed a long-term supply contract with Diamondback Energy to supply frac sand starting in 2018. The contract includes committed capacity out of Black Mountains two 4 Mtpa facilities and 1.5 billion tons of in-basin frac sand reserves.
U.S. Silica Holdings SLCA down 0.80 (- 2.88%) to 27.00
Hi-Crush Partners HCLP down0.43 (-4.62%) to 8.78U.S. Silica Holdings has completed the acquisition of Mississippi Sand for a purchase price of $95.4 million.
The acquisition includes a 1.1 Mtpa sand plant in Festus, Missouri, 30 million tons of frac sand reserves and a distribution network of five barge terminals and three rails terminals with a throughput capacity of 2.2 Mtpa. The purchase also included a 1 Mtpa dry plant near Seagraves, Texas that is currently idled.
Jefferies Named $SLCA one of top 5 Oil service stocks of 2018
U.S. Silica Holdings Inc. $SLCA down big which Jefferies calls upside potential. Currently operates nine industrial sand production plants and eight oil and gas sand production plants. With the price of oil stabilizing, many of the short-sellers that targeted the frac sand companies may be starting to cover their positions.
Jefferies price target is $58 with the stock closing at $25.83
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