Frack sand company Hi-Crush Partners LP (NYSE: HCLP) entered a series of deals Feb. 23, including the acquisition of a Permian Basin mine. The announcement came just as possible fears of an oversupply of grit roiled the sand market. Overall, sand stocks “took a beating” Feb. 23 over fears of frack sand surplus.Still, U.S. Silica (NYSE: SLCA) said it would expand its capacity to about 20 million tons per year from 12.5 million tons annually, John Daniel, senior research analyst for Piper Jaffray & Co., said in a report.The market’s knee-jerk reaction appeared to disregard U.S. Silica’s own temperance, chiefly that it could only bring, at most, 2 million more tons of capacity online by the end of 2017.“A bit more gasoline was thrown on the fire after the close as [Hi-Crush] announced … the acquisition of sand reserves in Texas with plans to build a 3 million ton per year facility,” Daniel said.
[Read More …]
Source: Daily Dose of ShaleDirectories.com News
February 27, 2017