HOUSTON, Sept. 22, 2014 /PRNewswire/ -- CARBO Ceramics Inc. (NYSE: CRR) today provided an update concerning marketplace conditions and related impact to sales volumes.
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- The Company is seeing a growing number of operators experiment with the use of more sand in their well completions. While sand demand is increasing, the Company believes the conductivity and production benefits of its ceramic proppant are needed in today's reservoirs. Nevertheless, these changes are adversely impacting the Company's sales volumes.
- The Company has experienced increased price competition on ceramic proppant sales from both domestic and international manufacturers, especially in the Bakken.
- Some of the Company's clients are encountering delays in their well completions. These delays will impact some sales that the Company expected to make in September 2014.
- As a result, the Company currently expects that its third quarter 2014 ceramic proppant sales volumes will be similar to those sold in the first quarter of 2014.
President and Chief Executive Officer Gary Kolstad commented, "In an industry where we are only recovering approximately 5 percent of the oil in the shale plays, we believe there is a need for both our current and future production enhancement technologies. The fundamental technical reasons wells need fracture conductivity have not changed. As such, we are committed to moving forward with the technologies we have, and are developing, to increase the estimated ultimate recovery (EUR) of wells. This commitment includes the continued retrofit of a plant to enable production of KRYPTOSPHERE products.
"We plan to manage the current competitive pricing environment, caused by proppant oversupply, by focusing on sales volumes and introducing new technologies."
CARBO is an oilfield services technology company providing industry-leading products and services for:
Our Production Enhancement businesses increase E&P Operators' Production and EUR…by providing industry leading technology to Design, Build, and Optimize the FracTM.
Our Environmental Services business protects E&P Operators' assets, minimizes environmental risk, and lowers operating costs (LOE).
The statements in this news release that are not historical statements, including statements regarding our future financial and operating performance, are forward-looking statements within the meaning of the federal securities laws, including the Private Securities Litigation Reform Act of 1995. All forward-looking statements are based on management's current expectations and estimates, which involve risks and uncertainties that could cause actual results to differ materially from those expressed in forward-looking statements. Among these factors are changes in overall economic conditions, changes in the cost of raw materials and natural gas used in manufacturing our products, our ability to manage distribution costs effectively, changes in demand and prices charged for our products, changes in the demand for, or price of, oil and natural gas, risks of increased competition, technological, manufacturing, distribution and product development risks, loss of key customers, changes in government regulations, foreign and domestic political and legislative risks, the risks of war and international and domestic terrorism, risks associated with foreign operations and foreign currency exchange rates and controls, weather-related risks and other risks and uncertainties described in our publicly available filings with the Securities and Exchange Commission. We assume no obligation to update forward-looking statements, except as required by law.
SOURCE CARBO Ceramics Inc.