Select Sands Corp. (SLSDF)

[JenningsB]

Downgrades today...using more Texas sand.

Fracking Industry Digs Texas Sand -- Market Talk
8:23 am ET July 20, 2017 (Dow Jones) Print

8:23 ET - Credit Suisse notes a bifurcation in the world of frac sand as the oil industry in Texas suddenly starts using locally-mined sand for fracking rather than hauling it expensively by train from mines in Wisconsin. The firm downgrades to neutral from outperform a pair of companies levered to Wisconsin's once-revered Northern White sand -- Fairmount Santrol (FMSA) and Smart Sand (SND) -- but keeps its outperform rating on US Silica (SLCA) and Hi-Crush Partners (HCLP), which have added mines in west Texas's Permian Basin. "Frankly, we are surprised at how much Texas capacity can be used as proppant [sand], and is being developed." ([e-mail])