Guidance to top end of previous forecast.
Expect HCLP to do the same
WLL posting record wells with increased proppant. Beatdown of these suppliers is way out of line with the fundamentals
yes, the lemmings are wrong. idiots fail to understand that the price of oil would have to fall under $75 to impact new drilling and changes in completion techniques will result in more sand demand even if new starts do decline
because it increases the number of funds that can invest in it since some funds are limited to investing in dividend payers only....DUH
I think they are targeting Russian arctic exploration as it is much more likely to take significant market share than US shale production. there are some massive reserves int he Russian arctic but it takes $70 + to get it. Saudis see Russia and China cozying up and want to head off the massive investment required to turn those arctic exploration wells into productive fields. If it slows down US shale that is just a bonus
I think they are more concerned about Russian arctic oil and deepwater African oil. that production could dwarf us shale, especially Russian arctic.
real estate development in SW Florida (Naples) can't keep up with housing demand here right now. electricians and framers in short supply
already out of hand and way oversold. the hedge gains this and next quarter are going to be substantial. hopefully they were aggressive in hedging into 2015 but I suspect Saudi will hold prices down as long as they need to to shut down some Russian arctic drilling, hurt Iran, and convince the rest of opec that the cuts must get spread across the board. hopefully 0 doesn't give Iran the green light to ship as much as they want but that bobblehead of a president will probably let Iran do whatever they want.
we are one shoulder fired missile into a tanker in the suez away from $150. or one Israeli attack on Iran nuke facilities, or one big Isis surge into southern Iraq, or ....any other of a hundred possible blowups in the ME.
as long as they are showing a profit it isn't dumping. Saudis are doing what they have done before and trying to stifle the competition, specifically deepwater Brazil, arctic Russia, and US shale. Once some of the larger exploration projects get shelved they will tighten up again.
Amazing how the suppliers are getting crushed as the demand continues to ramp up. Wish I had more powder, never been a fan of margins but might have to play the game a little as these levels are out of whack with the reality
FREDERICK, Md., Sept. 10, 2014 /PRNewswire/ -- U.S. Silica Holdings, Inc. (NYSE: SLCA) announced today that it is increasing its guidance for full year, 2014 Adjusted EBITDA from a range of $215 million to $225 million to a range of $230 million to $240 million, based on the strength of the markets for both of its operating segments. Additionally, the Company is reiterating its full year 2014 guidance for capital expenditures in the range of $95 million to $105 million and an effective tax rate of approximately 27 percent. The Company is planning to report its third quarter, 2014 financial results on Wednesday, Oct. 29, 2014 after the close of the market.
there is blood in the street, some of it mine but I will hold at these levels as I am no good at timing the bounce. Saudi's need around $95 to balance their budget at the volumes they are pumping is the last I read. Not sure if they are trying to crush Iran/Russia or US shale production but they are certainly targeting somebody by dropping their prices like they have.
friends that are truck drivers that deliver sand in Texas and Colorado have told me that they are being pushed to work more and more hours and deliveries are behind schedule but they are taking everything they can get off of rail and not much is sitting at the railhead offload points. Assume that bakken deliveries are limited too
increased production provides more to sell at spot prices
Good stuff. Thanks for posting. Currently many completion crews in all the basins are being delayed due to lack of sand at wellheads.
quarterly results will be solid if not stellar as they have been able to sell more at spot prices.
sell off in sand is way overdone as the price of oil isn't impacting the demand curve and with a cold winter the gas drilling should accelerate and increase demand even further.