QUOTE AND NEWS
Motley Fool  Apr 24  Comment 
Management has remained on the offensive by acquiring a minerals mining company, but is it stretching its financial statement too thin in the process?
Benzinga  Apr 12  Comment 
Investors should consider adding exposure to the Deepwater/LNG space and simultaneously reduce exposure to the frac and sand space, including U.S. Silica Holdings Inc (NYSE: SLCA), according to Goldman Sachs. The Analyst Goldman Sachs' Waqar...
Motley Fool  Apr 10  Comment 
The frack sand supplier has seen its shares fall 24% in 2018.
Motley Fool  Mar 10  Comment 
While bargains are few and far between in a surging market, they can be found. Find out why UPS, GameStop and U.S. Silica made the list.
Motley Fool  Feb 21  Comment 
These stocks led the market down. Find out why.
Benzinga  Jan 17  Comment 
U.S. Silica Holdings Inc (NYSE: SLCA), a producer of commercial silica, could be a better bet for those investors looking for exposure to onshore U.S. oilfield services. The Analyst R.F. Lafferty analyst Jaime Perez initiated coverage of...
Motley Fool  Jan 9  Comment 
2017 started with so much promise for the frack sand industry, but somehow all the large players ended down more than 40%.




 

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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