Frac Sand Companies Hit by Weakened Pricing in First Quarter
Frac sand companies Hi Crush and Covia were hit by weakened proppant pricing in the first quarter. Hi-Crush's revenue was down 1% sequentially, although adjusted operating margins increased to 2% from negative 1% due chiefly to lower G&A expense. Covia's revenue fell 3% due to an 8% fall in Energy segment revenue. Companywide adjusted operating margin fell to negative 8% from negative 6% previously. Our fair value estimates and no-moat ratings are unchanged for now.Hi-Crush revenue slipped ...
Covia Holdings is a holding company. Through its subsidiaries, the company provides minerals-based and material solutions for the Industrial and Energy markets. The company's Industrial segment provides raw products to the glass, ceramics, coatings, polymers, construction, foundry, filtration, sports and recreation and various other industries. The company's Energy segment provides the oil and gas industry a portfolio of raw frac sand, proppants, well-cementing additives, gravel-packing media and drilling mud additives that meet or exceed the American Petroleum Institute standards. The company's products serve hydraulic fracturing operations in the United States, Canada, Argentina, Mexico, China, and northern Europe.
Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.
Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.
We have operations in 27 countries.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.