QUOTE AND NEWS
Motley Fool  Jul 15  Comment 
The frack sand producer's results are also weighing down peers Hi-Crush Partners, Emerge Energy Services, and U.S. Silica.
Motley Fool  Jul 2  Comment 
Higher oil and gas prices in June helped propel shares of Emerge Energy Services, Fairmount Santrol Holdings, Hi-Crush Partners, and U.S. Silica Holdings for the second straight month.
Motley Fool  Jun 2  Comment 
Even the idea of $50 oil had the US Silica Holdings Inc., Fairmount Santrol Holdings Inc., and Hi-Crush Partner LP's stocks in a frenzy this past month.
Forbes  May 12  Comment 
The most recent short interest data has been released for the 04/29/2016 settlement date, which shows a 2,085,594 share decrease in total short interest for US Silica Holdings, Inc. (NYSE: SLCA), to 10,007,081, a decrease of 17.25% since...
Motley Fool  Apr 21  Comment 
Recently rising crude prices sent frack-sand stocks soaring. Here are three reasons this situation may end up being a short-term reprieve and why the rest of the year may be far less rosy.
Forbes  Apr 18  Comment 
In trading on Monday, the Oil Services ETF (OIH) is outperforming other ETFs, up about 2.2% on the day.  Components of that ETF showing particular strength include shares of US Silica Holdings (SLCA), up about 4.8% and shares of Baker Hughes...
Motley Fool  Apr 9  Comment 
The mere suggestion that it could strengthen its position in the frack sand market through an acquisition was enough to send U.S. Silica's shares higher last month.
Motley Fool  Apr 5  Comment 
Investors are hoping that its new CFO will help turn things around for the indebted sand supplier.




 

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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