Frac sand supplier U.S. Silica Holdings Inc reported a smaller-than-expected quarterly loss on Feb. 19, helped by growth in its industrial and specialty products unit.
Sales in the industrial & specialty products segment more than doubled to $113.8 million in the fourth quarter.
The company has been investing in this unit as it records slowing growth in its oil and gas proppant segment, with oil producers hampered by tight pipeline capacity and lower crude prices holding back on completing wells.
The Maryland-based company said revenue from the oil and gas proppants business, its biggest, fell about 20 percent to $243.5 million.
Oil and gas sand proppant sales were also hurt by pricing pressure from a combination of low demand and additional local sand capacity coming on line in the Permian, Chief Executive Officer Bryan Shinn said in a statement.
The miner, which supplies sand to U.S. shale producers for use in fracking, posted a net loss of $256.1 million, or $3.44 per share, in the quarter ended Dec. 31, compared with net income of $72 million, or 88 cents per share, a year earlier.
The company recorded $265.7 million in impairment costs in the latest quarter.
Excluding items, the company recorded a loss of 4 cents per share, smaller than analysts' estimates of a loss of 7 cents, according to data from Refinitiv.
Total sales fell 0.8% to $357.4 million.
Recommended Reading
Seadrill Sells Three Jackups for $338MM to Gulf Drilling International
2024-05-17 - Seadrill Ltd. is also selling its 50% equity interest in the joint venture that operates the rigs offshore Qatar.
Could Crescent, SilverBow Buy More in South Texas After $2.1B Deal?
2024-05-17 - The combination of Crescent Energy and SilverBow Resources will yield one of the Eagle Ford’s top producers—and the pro forma E&P could look to gobble up more acreage in South Texas after closing.
Permian Powerhouse: Apache Doubles Down on Core Assets After Callon Acquisition
2024-05-16 - Apache CEO John Christmann detailed plans for the Permian Basin and Suriname during the SUPER DUG Conference & Expo.
Crescent Energy to Buy Eagle Ford’s SilverBow for $2.1 Billion
2024-05-16 - Crescent Energy’s acquisition of SilverBow Resources will create the second largest Eagle Ford Shale E&P with production of about 250,000 boe/d, the companies said.
Diamondback’s Van’t Hof Plays Coy on Potential Delaware Divestiture
2024-05-16 - Diamondback Energy’s President and CFO Kaes Van't Hof also addressed new Permian exploration and the lack of “fun” dealing with the FTC on its deal to buy Endeavor Energy Resources.