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?
Motley Fool  Jan 10  Comment 
Frack sand producers posted jaw-dropping gains last year, and there may still be room to run.
Motley Fool  Jan 4  Comment 
Shares of CARBO Ceramics, Fairmount Santrol Holdings, U.S. Silica Holdings, Hi-Crush Partners, and Smart Sand all saw big gains last month.
Benzinga  Dec 12  Comment 
Shares of U.S. Silica Holdings Inc (NYSE: SLCA) have surged nearly 200 percent year-to-date and are trading at a substantial premium to other more traditional sub-sector stocks. “We believe the trade has more than run its course,” D.A....
Motley Fool  Nov 30  Comment 
Lower production from OPEC means more production from the U.S., right?


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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