QUOTE AND NEWS
Motley Fool  Jul 7  Comment 
A combination of falling oil prices and increasing capacity is fueling a big sell-off in Fairmount Santrol Holdings, U.S. Silica, Smart Sand, and Hi-Crush Partners.
Motley Fool  Jun 1  Comment 
The frack sand leader has more than doubled its cash position since the end of 2015. How is that possible given the oil industry's tumult?
Motley Fool  May 22  Comment 
If you think that oil and gas production has grown at a fast pace lately, then you haven't looked at frack sand production growth.
Motley Fool  Apr 26  Comment 
Sales have been surging over the past couple of quarters, but this time, U.S. Silica was able to translate those into bottom-line results.
Motley Fool  Mar 21  Comment 
Hi-Crush Partners, Smart Sand, Fairmont Santrol, Emerge Energy Service, and U.S. Silica all fell sharply as crude oil prices hit a four-month low.
Motley Fool  Mar 9  Comment 
Fairmount Santrol Holdings' weak results sent fellow frack-sand producers Smart Sand, U.S. Silica Holdings, Hi-Crush Partners, and Emerge Energy Services sinking today.
Motley Fool  Mar 8  Comment 
After two plus years of managing the downturn, U.S. Silica Holdings is ready to put the pedal to the metal on its growth.
Motley Fool  Mar 2  Comment 
Apparently, Wall Street wanted more than just higher sales this past quarter.
Motley Fool  Feb 23  Comment 
Frack sand volumes increased an impressive 34%, so where are the positive net income results?




 

U.S Silica (NYSE:SLCA) produces and sells silica for commercials uses. The company makes money by selling its end product to oil and gas, glass making, chemical, solar panel, and other industries. However, US Silica's largest customers are oil and gas companies which use the silica in hyrdofracking. US Silica mines and distributes its products within the United States.[1]


Business Overview

For the first nine months of 2011, US Silica reported a total sales of $212M. This compares to $20.2M in net income. For comparison, the same period in 2010 resulted in $185M in sales and $7.6M in net income.[2]


New Updates

The company's initial public offering of stock on the NYSE occurred on January 31, 2012. The company offered 11.8M shares each for $17. This was within the $16-$18 initial price range. The deal raised a total of $200M. The lead mangers of the deal were Morgan Stanley (MS), BofA, and Jefferies Group (JEF).[3]

Trends & Forces

Reliance on Oil & Gas

US Silica's largest end market is the oil and gas industry which uses the silica as "frac sand." This sand is injected with water under high pressure in order to generate fractures in the rock. These fractures improve the well's oil or gas output.[4] However, this practice, known as hyrdofracking, has undergone scrutiny both by the public and by regulatory officials. The fear is that such practices can contaminate the water streams. If this practice is regulated, US Silica's largest market will likely decrease its demand for silica.[5]

  1. SLCA S-1/A 2012 PROSPECTUS SUMMARY "Our Company" pg. 1-2
  2. SLCA S-1/A 2012 PROSPECTUS SUMMARY "Summary Historical Combined Financial and Operating Data" pg. 11-12
  3. Renaissance Capital - IPO Home "U.S. Silica prices IPO at $17 midpoint" 1 Feb 2012
  4. SLCA S-1/A 2012 PROSPECTUS SUMMARY "Risk Factors" pg. 15-18
  5. New York Times "Extracting Natural Gas from Rock" 26 Feb 2011
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