Raymond James sees a recovery in sand prices
Although Hi Crush Partners (ticker: HCLP) missed on its Q2 earnings, reporting $84 million in revenues or $0.31 per unit in earnings, Raymond James believes the company still has long-term potential following a recovery in sand prices. “We believe a rig count recovery and intensity trends should support a recovery in sand pricing through the coming cycle,” a note from the analysts said.
Raymond James maintained its positive outlook on HCLP, saying the company gave price concessions to maintain market-share, a wise-move, according to the analysts. “At our current rig count, we expect proppant intensity trends will support a ~40% increase year-over-year in 2016, helping fuel a price recovery in 2017 to support resumed distribution growth.”
Study: Preferred Sands’ Genoa Sand outperformed Premium White Sand by up to 12% in the DJ Basin
Preferred Sands, a proppant technology company, announced that a third-party study conducted by NavPort found wells using Preferred Sands’ Genoa Sand proppant outperformed wells using Premium White Sand at comparable vertical depths by up to 29%, according to a company press release.
NavPort sampled deep horizontal wells in Weld County, Colorado, using disclosed public well data for its comparisons. The NavPort analysis looked at information including well operators, well trajectory, hydrocarbon type, and well distance.
The study found that wells targeting the Niobrara Shale at an average true vertical depth of 7,500 feet saw production up to 12% higher from using the Genoa Sands compared to the Premium White Sand after an average of 10 months. The Genoa Sand also offered cost savings for customers in the DJ basins of “$400-$700 per car, compared to all other mines in Illinois, Wisconsin, Minnesota or Missouri, based on Genoa’s geographic proximity to the DJ Basin,” said the press release.
Frac sand deployment goes big: 5-million pound mobile silo
Solaris Oilfield Infrastructure announced the initial deployment of the company’s 5-million-pound Mobile Sand Silo System. The new 12-silo system will complement the company’s existing six-silo, 2.5-million-pound fleet, according to the company press release.
According to Solaris, its 5-million-pound system was able to complete a zipper frac of two wells on a pad in the Permian Basin, delivering sand at an average rate of nearly 23,000 pounds per minute into two blenders simultaneously. The 12-silo system completed 34 frac stages and delivered 30 million pounds of sand during the four-day completion of both wells. The system allows for 22 frac sand trucks to simultaneously unload sand at the well site, resulting in an effective truck offload rate of approximately 1.65 million pounds per hour and eliminating truck demurrage on site.
Canadian frac-sand company Brilliant Sands (ticker: BRSD) announced recently that it had engaged Morton Jagodich Incorporated (MJI) to assist with the exploration and development of BSI’s frac sand projects in Alberta and Manitoba, Canada. The move would help Brilliant Sands “quickly and efficiently refine our three projects into a first-class mining operation and begin the production of our frac sand projects,” said company President and CEO Marc Andrews.
The company’s three project include its McClelland Property, which is 100% owned by the by BRSD; its Alberta Project, located within trucking distance of well-heads in the Alberta Basin; and the Washow Property, located in Manitoba, which produces Northern White sand, similar to the sands produced in Wisconsin.