QUOTE AND NEWS
Motley Fool  Aug 17  Comment 
Despite a terrible day on Wall Street, these stocks climbed. Find out why.
Motley Fool  Aug 8  Comment 
Don't let the summer heat stop you from buying shares of these five promising businesses.
Motley Fool  Aug 2  Comment 
Revenue was up, earnings were up, and the company is spending more on expanding production. What isn't there to like?
Benzinga  Aug 2  Comment 
Jefferies lowered U.S. Silica Holdings Inc (NYSE: SLCA) price target from $65 to $45. U.S. Silica shares closed at $26.49 on Tuesday. Stifel cut the price target for MACOM Technology Solutions Holdings Inc (NASDAQ: MTSI) from $64 to $57....
Motley Fool  Aug 1  Comment 
Revenue more than doubled, earnings were within Wall Street expectations, and it's reinvesting in the business. What's not to like?
MarketWatch  Jul 31  Comment 
U.S. Silica Holdings Inc. shares dropped in the extended session Monday after the oil and gas industry silica supplier's quarterly results fell short of Wall Street expectations. U.S. Silica shares dropped 7.5% to $26.95 after hours. The company...
Motley Fool  Jul 24  Comment 
These stocks fell sharply even though the market on the whole was close to flat. Find out why.
Motley Fool  Jul 24  Comment 
Fairmount Santrol Holdings is the latest frack-sand producer adding capacity in that red-hot oil play, which could lead to a glut of sand in the coming months.
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.




 

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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