Dan Loeb's Bearish View on Frac Sand Stocks
Earlier this week, I showed you how the share prices of frac sand suppliers have crashed since February and have generated a lot of pain for shareholders.
Here is the not so pretty picture:
Ticker
Company
2017 Share Price Peak
Current Share Price
Decline
% Decline
SLCA
U.S. Silica
$61.49
$37.39
$24.10
39%
EMES
Emerge Energy
$24.45
$11.19
$13.26
54%
HCLP
Hi-Crush
$23.30
$13.37
$9.93
43%
FMSA
Fairmount Santrol
$13.12
$5.00
$8.12
62%
Shareholders...
It has been a rough couple of months for the shareholders of the big four frac sand suppliers.
At the start of 2017 everyone--including me--was buying into the bullish story for these companies based on the industry trend of sand, sand and more sand. Sand has been the #1 efficiency...
A Six Percent And Growing Royalty On Surging Permian Production
At this point I’m sure you are familiar with charts like the one below.
This chart shows where production in the Permian Basin is going over the next four or five years.
This is the chart from one analyst. I can show...
What’s the most un-sustainable part of the global energy complex?
Maybe you would say co-ordinated OPEC production cuts.
Or perhaps you would bring up high growth rates of shale producers.
If you talked about the lack of free cash flow among shale producers you would be getting warm…
But for me, when I...
Investors don’t need to hire Sherlock Holmes to help them see what it did to the balance sheet of Cenovus (CVE-NYSE/TSX) after spending $17.7 billion to buy most of Conoco-Phillips (COP-NYSE) Canadian assets this week.
It’s a whopper of a deal.
In total what is being acquired adds 298,000 BOE/day of...
I found the Holy Grail of Energy Stocks.
No more volatility. No more ups and downs. No more trading.
Just a secure, certain dividend stream that I think will grow every year--for the next 14 years.
In fact, it might even get increased a couple times a year.
How do I know this? ...
Investors are trained by analysts and management to talk about oil prices when looking at energy stocks.
But that’s a misnomer; a mistake even—especially in the United States, where the hydrocarbon geology is deeper and gassier than Canada. And natural gas is worth a lot less than oil.
Investors sadly pay...
