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Re: AgSEC post# 36

Thursday, 03/09/2017 4:56:53 PM

Thursday, March 09, 2017 4:56:53 PM

Post# of 158
In a word - Timing.

SLSDF is an emerging frac sand player. They may have no real market share to speak of but that can be quickly remedied.

The industry leading competitors were all built on $100 oil...profits were plenty but so was their appetite for debt.

They're also hamstrung by fire sale contracts...many of which remain active today. They were written out of times of desperation.

Another consideration is SLSDF has an considerable geographic advantage. They're quarry is closer to the oil patches that matter.

Competitors will have higher freight cost to pass on to their customers.

The amount of sand we're talking about to frac just one well in 2017 vs prior years is truly staggering. Think trainload instead of truck loads for a single well. Estimates on DUC's alone is approx. 4,000 wells. Demand is a looming giant.

The last factor to consider has more to do with a new geo-political environment. Trump is pro-domestic oil. I look for policies to unshackle domestic production.

Marker:
Select Sands Corp. ( (SLSDF)
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