For some quick background, SLCA is the second largest domestic producer of a specialized mineral called commercial silica. In its largest end market, oil & gas proponents, its frac sand is used to stimulate and maintain the flow of hydrocarbons in horizontally drilled oil & gas wells. The recent technological advances in the hydraulic fracturing process, which have made the extraction of large volumes of oil & gas from shale formations economically feasible, has spurred a lot of demand for SLCA's frac sand. Oil & Gas accounts for about 55% of revs with the remaining 45% being sold for industrial applications, including glassmaking and chemical manufacturing. SLCA call this its Industrial & Specialty Products (ISP) segment.
SLCA produces a wide range of frac sand sizes and it's one of the few commercial silica producers capable of rail delivery of large quantities of frac sand to each of the major US shale basins. As a result, the company has become a preferred supplier and it's experiencing high demand for its frac sand. To meet this demand, over the past couple of years, SLCA has increased production capacity
Yes customers will buy from SLCA because the are one of the few commercial silica producers capable of rail delivery of large quantities of frac sand to each of the major US shale basins