Nick Cook, Editor
Issue #283 | August 5, 2020
Plenty of interesting information in this week’s newsletter. Deals are still being done and companies are positioning themselves to be ready when things open up again. Enjoy the newsletter and have a great rest of the week!
This strategic partnership joins Hexion’s leading resin and chemical expertise with Wayfinder’s new state-of-the-art manufacturing facility and logistics network.
US Silica collected $16.7mm in O&G customer shortfall penalties during 2Q20, which helped boost margins ahead of expectations (O&G contribution margin /ton was $23.53 in 2Q vs. $10.27 in 1Q largely due to these penalty payments – without those, cm/ton would have dropped q/q). US Silica estimates their shortfall payments in 3Q20 could total $5-$10mm.
Demand for sand used in hydraulic fracturing operations declined again in the second quarter, pushing Katy frac sand mine operator U.S. Silica to a loss.
Last week, there was an important hearing in the Covia bankruptcy case (100 participants were on the virtual courtroom’s line). At stake were motions to reject railcar leases (and in some cases the contents of the cars).
The Petroleum Connection has announced that the dates of the 9th Annual Frac Sand Supply & Logistics Conference have changed. Previously scheduled to be held in September, the new event dates are November 16-18, 2020.
On Wednesday afternoon, several newspapers (including the Dallas Morning News, Houston Chronicle, and Hart Energy) ran a public notice regarding a foreclosure sale involving Sand Revolution scheduled for August 13, 2020.
Solaris expects “the fully utilized U.S. frac crew count could be up between 35% and 45% sequentially in the third quarter” – an estimate based on currently recovered frac crew count holding for the rest of the quarter. Management says many of their customers have resumed “modest level” of completions activity in recent weeks.
2Q20 financial results are out for about 1/3rd of the public US Independent E&P universe that we monitor. Here’s how the E&P capex spending programs are trending vs. plan for the group of fifteen operators that have reported so far.
Houston oil company Castleton Resources entered into a $245 million deal to expand its presence in the natural gas-rich Haynesville Shale of East Texas and northern Louisiana.
In a virtual Wednesday evening hearing, U.S. Bankruptcy Judge Marvin Isgur gave the Tomball company more time to sort out its financial and legal issues and save as many of the jobs of its remaining 1,200 employees as possible.
The Bureau of Land Management published a final environmental review for a large oil and gas project proposed in Converse County on Thursday. If approved, it would clear the way for several energy firms to drill upwards of 5,000 new wells on about 1.5 million acres of land.
Six public pressure pumpers have reported earnings and hosted conference calls over the past week or two.
“Water Resources Development Act of 2020 (WRDA) reauthorization is a critical bill to ensure the Army Corps of Engineers can address vital infrastructure projects that enhance our national waterways; improve ports with additional dredging; protect our shorelines; and strengthen those areas prone to flooding and natural disasters. "
Environmentalists sought protections for decades for the dunes sagebrush lizard, but the U.S. Fish and Wildlife Service (FWS) announced on July 15 that the species would be considered for a listing under the federal Endangered Species Act (ESA).
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