Customers cancelling new projects right and left: sand producers cancelling new expansions due to projected over capacity'; customers under pricing pressures; customers getting price and volume relief on long term contracts; sand producers getting much lower broker ratings; projected rising interest rates will hurt sand guys and customers; new sand contracts will be in a buyer's market mentality; sand producers are lowering dividend and earnings and cash flow projections; investors interested in yield have many more and better options for stable dividends than sand producers; nothing on the horizon to drive sand producer stocks higher and with people selling into rallies to move their money elsewhere; etc.
Company has cash but with rest of pipeline thin and with less lucrative potential, they will burn through their cash getting any portion of their pipeline into phase III (even if they are lucky in testing). Holding will just let thew cash leak away and if anything promising looks on the horizon they will have to issue new share very cheap to try to get anything through. In short, no reason to hold this one.
Distribution cut substantially with the company projecting a distribution total for the year of only $3; new plant expansions killed; oil prices projected not to make a big recovery; competitors have shuttered capacity as well; new fracking wells are way down in oil patch; new stories of earthquakes related to fracking and enviro issues arise again; customers will ask for and receive contract concessions on volume and price; customers will have earnings/cash flow protections in their business only as long as hedges live; etc. EMES will be lucky to hold $30 this summer.
truly lousy earnings report, fall in NAV extremely disturbing. Hopefully all this has already been built into the stock price. Dividend declared looks imprudently high as an effort to prop up the stock price.