Wednesday, August 02, 2017 7:19:40 PM
Fracing sand big business...
So far this year three frack sand producers, including U.S. Silica (NYSE:SLCA) and Hi-Crush Partners (NYSE:HCLP), have announced new frack sand mines in Texas to feed the red-hot Permian Basin. U.S. Silica is building a $225 million mine that can produce 4 million tons of sand per year, while Hi-Crush Partners spent $275 million to buy Permian Basin Sand, which is building a 3-million-ton-per-year facility. Given the proximity of these mines to drilling sites for oil and gas, it will save producers in the region $40 to $60 per ton because they won't need to bring the sand in by train from mines in Wisconsin, which is where Smart Sand operates. Because of that, Smart Sand SND will be at a competitive disadvantage and would likely need to cut its prices to make up for the transportation costs just to compete. SND was down graded from a target of $20 to a target of $8...
HCLP has a target of $17-20...reported earnings after the close today...Share price is UP $0.50 (6%) after hours...at $8.90...
Hi-Crush Partners LP (HCLP), "Hi-Crush" or the "Partnership", today reported second quarter 2017 results. Revenues for the second quarter of 2017 totaled $135.2 million on sales of 2,112,516 tons of frac sand. This compares to $83.4 million of revenues on sales of 1,384,887 tons of frac sand in the first quarter of 2017. The limited partners' interest in net income was $16.4 million for the second quarter of 2017, resulting in basic and diluted earnings of $0.18 per limited partner unit.
HCLP
So far this year three frack sand producers, including U.S. Silica (NYSE:SLCA) and Hi-Crush Partners (NYSE:HCLP), have announced new frack sand mines in Texas to feed the red-hot Permian Basin. U.S. Silica is building a $225 million mine that can produce 4 million tons of sand per year, while Hi-Crush Partners spent $275 million to buy Permian Basin Sand, which is building a 3-million-ton-per-year facility. Given the proximity of these mines to drilling sites for oil and gas, it will save producers in the region $40 to $60 per ton because they won't need to bring the sand in by train from mines in Wisconsin, which is where Smart Sand operates. Because of that, Smart Sand SND will be at a competitive disadvantage and would likely need to cut its prices to make up for the transportation costs just to compete. SND was down graded from a target of $20 to a target of $8...
HCLP has a target of $17-20...reported earnings after the close today...Share price is UP $0.50 (6%) after hours...at $8.90...
Hi-Crush Partners LP (HCLP), "Hi-Crush" or the "Partnership", today reported second quarter 2017 results. Revenues for the second quarter of 2017 totaled $135.2 million on sales of 2,112,516 tons of frac sand. This compares to $83.4 million of revenues on sales of 1,384,887 tons of frac sand in the first quarter of 2017. The limited partners' interest in net income was $16.4 million for the second quarter of 2017, resulting in basic and diluted earnings of $0.18 per limited partner unit.
HCLP
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