October 29, 2019
The continuing slowdown in shale and lower sand prices spelled trouble for US Silica Holdings in its 3Q report.
The Katy-based company’s revenue of $361.8M missed Wall Street targets by about $30 million, having fallen by 8% when compared to 2Q and by 14% year-over-year.
Still, overall tons sold, listed at 4.85M fell by just 1% compared to 2Q and increased 1% from the year-ago quarter.
US Silica’s oil and gas segment revenue ($243 million) fell 11% quarter-over-quarter and 20% year-over-year, while tons sold (3.89 million) slipped 1% over the previous quarter and made a 2% upward swing year-over-year.
The company stated that per-ton pricing was hurt as multiple new mines appeared in West Texas.
With sand markets oversupplied, slowing well activity contributed to increasingly-shrinking markets, with lower E&P activity making the market even worse, the company said
And looking ahead at the 4th quarter, US Silica said it expects a North American slowdown in sand volumes of about 10%, the result of a continued slowdown in well completions.