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Frac-sand firm cited in Wisconsin is wrong one

Posted on: October 14th, 2014 by Bronson No Comments

Mining regulators in Trempealeau County, Wis., said Tuesday that they took action against the wrong company last week when inspectors discovered permit violations at a ­frac-sand mine in Arcadia.

The county’s Department of Land Management issued a news release saying that it had issued a “stop-work’’ order to Texas-based Superior Silica Sands; further investigation found that mining activity on the site known as the Guza mine was being conducted by Cameron Rail Site, a local company.

Click here to read the rest of the news article.



Correction Statement Issued by Trempealeau County, Naming Cameron Rail as the Party at Fault for the Mining Infraction on October 7, 2014, Not Superior Silica Sands.

Posted on: October 13th, 2014 by Bronson No Comments

Click here to read the correction statement.



Superior Silica Sands Announces Errors in Reported Violations

Posted on: October 9th, 2014 by Bronson No Comments

Southlake, Texas — October 8, 2014 — Superior Silica Sands LLC (“SSS”) today announced that it believes that a stop work order from the Trempealeau County, Wisconsin Department of Land Management with respect to SSS’s future Independence dry plant facility was issued by the county in error. SSS engaged in grading and excavating activities in the area with the intent to construct a dry plant to begin operations in 2015. The reported violations related to mining activities are attributable to a different operator who is currently engaged in frac sand mining in the area. SSS’s Independence frac sand mining facility is not engaged in any mining activities at this time. The error in Trempealeau County’s stop work order should not impact the current production process for SSS, and SSS is working with Trempealeau County to ensure the correct parties are subject to the stop work order.

SSS is a wholly owned subsidiary of Emerge Energy Services LP (“EMES”). Rick Shearer, President of SSS and Chief Executive Officer of EMES, commented, “While we are disappointed with the reports today that reflect the misunderstanding with the Trempealeau County Department of Land Management, Emerge Energy is still executing our growth plan. Our Thompson Hills mine and wet plant began operations last month and is already processing wet sand for our winter stockpile so that we can continue to supply our customers. Our dry plant at Arland, Wisconsin remains on schedule to start production this quarter. Further, we remain hopeful that our dry plant at Independence will start operations as early as the first or second quarter of 2015. Industry fundamentals remain strong, and we have been able to sign additional multi-year contracts since our last update in August. We now have 8.2 million tons under contract annually, with a weighted average remaining contract life of 4.2 years, which puts us well ahead of our contracting goals. We look forward to updating the investment community more in the coming weeks when we release our earnings.”

About Superior Silica Sands LLC
Superior Silica Sands LLC mines, produces, and distributes silica sand to be used as proppant products for the energy industry or for other industrial uses. The company was founded in 2001 and is based in Southlake, Texas. It has industrial sand production operations in Wisconsin and Texas. Superior Silica Sands LLC operates as a subsidiary of Emerge Energy Services LP.

About Emerge Energy Services LP
Emerge Energy Services LP (NYSE: EMES) is a growth-oriented limited partnership engaged in the businesses of mining, producing, and distributing silica sand, a key input for the hydraulic fracturing of oil and gas wells. Emerge Energy also processes transmix, distributes refined motor fuels and biodiesel, operates bulk motor fuel storage terminals, and provides complementary services.

Forward-Looking Statements
This release contains certain statements that are “forward-looking statements.” These statements can be identified by the use of forward-looking terminology including “may,” “believe,” “will,” “expect,” “anticipate,” or “estimate.” These forward-looking statements involve risks and uncertainties, and there can be no assurance that actual results will not differ materially from those expected by management of Emerge Energy Services LP. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements in the Emerge Energy Services LP annual report on Form 10-K with the SEC. The risk factors and other factors noted in the annual report could cause actual results to differ materially from those contained in any forward-looking statement. Except as required by law, Emerge Energy Services LP does not undertake any obligation to update or revise such forward-looking statements to reflect events or circumstances that occur after the date hereof.


Robert Lane
(817) 865-2541



Small Firm Strikes It Rich With Fracking Sand

Posted on: September 15th, 2014 by Bronson

A small Texas investment firm has discovered a gold mine in a pile of Wisconsin sand. Insight Equity Holdings LLC, a private-equity firm based in Southlake, Texas, manages $1.3 billion and has fewer than 20 investment specialists. The firm has scored about $500 million of gains for investors in 12 years of small-scale buyouts in various industries, a respectable figure but not enough to gain much recognition in Texas, let alone on…

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EMES CEO: Working Just to Keep Up with Demand

Posted on: August 21st, 2014 by Bronson No Comments

CNBC Mad Money’s Jim Cramer spoke with the Emerge Energy CEO Rick Shearer to hear more about the integral role it plays in hydraulic fracturing. Click here to see the video.



Interview on Fox Business – After the Bell with Rick Shearer, CEO of Emerge Energy Services

Posted on: July 2nd, 2014 by Bronson No Comments

Emerge Energy Services’ CEO Rick Shearer was recently interviewed on Fox Business – After the Bell. Click here to watch the interview.



Interview on CNBC Mad Money with Jim Cramer and Rick Shearer, CEO of Emerge Energy Services

Posted on: July 1st, 2014 by Bronson No Comments

Emerge Energy Services’ CEO Rick Shearer was recently interviewed by Jim Cramer of Mad Money on CNBC. Click here to see the interview.



The Past Year’s Hottest IPO Is …

Posted on: June 2nd, 2014 by Bronson No Comments

The hottest initial public offering from 2013 isn’t a cloud technology stock, or a biotech company with a promising cancer drug.

The company behind the top-performing IPO in the past 18 months digs sand.

Through Friday, sand-mining company Emerge Energy Services LP has rallied 462% since its debut on May 8, 2013, for the biggest share-price gain since its IPO among companies that went public last year, according to Dealogic.

Emerge Energy has been enjoyed brisk profit growth, selling sand to the oil and gas drillers behind America’s shale energy boom. In techniques such as hydraulic fracturing, drillers keep cracks in shale formations propped open with coarse-grained sand, allowing the oil or gas to through.

“We would credit it to strong industry fundamentals as well as the fact that our businesses themselves have performed well and generated significant cash flow and returns for investors and continue to look pretty strong,” Emerge Energy Chief Financial Officer Robert Lane said of the share performance.

The company is among a small handful of frac-sand producers that have gotten a warm reception from investors lately. Peers Hi-Crush Partners LP and U.S. Silica Holdings Inc. have both seen their shares climb more than 120% the past year.

“They’re a pure-play bet on that industry and that industry has taken off, sand being used for drilling,” said Hinds Howard, head of MLP research at asset-management firm CBRE Clarion Securities.

More broadly, shares of many of companies involved in U.S. energy production have outperformed broad-market benchmarks. Energy shares in the S&P 500 are up 6.4% this year, ahead of the overall index’s 3.8% advance. While much of the economy remains stuck in first gear, companies involved in the drilling of oil and gas in the U.S. have posted healthy top-line growth and had sufficient demand to hire and build new facilities.

Emerge Energy’s dividend-liked distributions have been part of its appeal. For the first quarter, it paid out $1.13, up from $1 in the fourth quarter. If annualized, the latest quarter’s payout would give Emerge Energy a dividend yield of 4.8%.

The company is structured as a master limited partnership, paying out much of its cash to investors each quarter. But unlike most of energy MLPs, which tend to make very stable payouts, Emerge Energy’s distributions can vary widely from quarter to quarter because it doesn’t manage its business with an eye toward keeping them stable.

Emerge Energy trades at a relatively rich 28-times forward earnings, according to FactSet—not exactly the low multiple investors expect from dividend-oriented plays, many of which are seen as safe, defensive investments.
Analysts caution that Emerge doesn’t fit into the mold of defensive MLPs.

“Sand pricing and supply is the Wild West of the energy sector,” Baird analysts wrote in an April note to clients.
Baird has the equivalent of a “buy” rating on Emerge Energy and a price target of $92, arguing in the recent note that distributions could at least double next year. But the analysts warned investors they should prepare for volatility driven by fluctuations in energy prices and uncertain supply-and-dynamics in the sand market.
CBRE’s Mr. Howard also sees risks with Emerge.

“If sand prices all of a sudden went down, their distribution and their unit price would go down,” said Mr. Howard. “It’s designed to be volatile and it’s designed to be tied to production and prices of that stuff.”



Fracking Sand Spurs Grain-Like Silos for Rail Transport: Freight

Posted on: April 17th, 2014 by Bronson No Comments

The U.S. shale oil boom is putting millions of tons of sand onto North American railroads, enabling carriers to pack trains full instead of hauling just a handful of cars at a time.

With help from Union Pacific Corp. (UNP:US) and Warren Buffett’s BNSF Railway Co., the sleepy silica sand industry that once mostly supplied glassmakers now ships more than 20 million tons of the material a year. Buyers including Halliburton Co.(HAL:US) and Schlumberger Ltd. (SLB:US) use the sand in hydraulic fracturing at oil fields in Texas and North Dakota.

Miners such as Emerge Energy Services LP, U.S. Silica Holdings Inc. (SLCA:US)and Hi-Crush Partners LP (HCLP:US) are taking a page from the grain industry’s playbook to deliver sand faster and cheaper. They’re building facilities at their mines to load unit trains, which move just one type of cargo, and near oil fields to empty them.

“The customers more and more are saying ‘We don’t want the headache of logistics. That’s on you,’” Rick Shearer, chief executive officer of Southlake, Texas-basedEmerge (EMES:US), said in an April 14 phone interview. “We’ve scrambled to put in a network of storage and trans-load sites all over North America.”

Click here to read the entire news article.



Evergreen Transloading and SSS Announce the Opening of the Sexsmith, Alberta Mega Centre

Posted on: April 7th, 2014 by Bronson No Comments

Sexsmith, AlbertaApril 7, 2014 –Evergreen Transloading (“Evergreen”) and Superior Silica Sands LLC (“SSS”) announce the opening of a new Mega Centre sand transloading facility in Sexsmith, Alberta.  The Sexsmith Mega Centre will serve the strong demand for high quality, Northern White silica sand as proppant for the oil and gas industry in the Western Canadian Sedimentary Basin.

The site, located adjacent to CN Rail’s current station in Grande Prairie, AB, will be operated by Evergreen and will provide exclusively Northern White silica sand from SSS.  The facility initially opens with capacity for 45-railcars and two 2,000 ton silos, and will add four additional silos over the coming months.  The total capacity will be 12,000 tons, expected to be fully in service by June 2014.

“Evergreen is pleased to be in partnership with SSS and CN, and is excited to be opening the state of the art facility,” said Ryan Peterson, CEO of Evergreen.  “The 102 acre property will position Evergreen well to accommodate future expansions and allow the terminal to grow as our customers’ needs may develop.”

“The WCSB has been one of our major markets since we opened our Barron plant at the end of 2012,” said Rick Shearer, President and CEO of both SSS and its parent company, Emerge Energy Services LP (“Emerge Energy”).  “With this facility, we continue to show our dedication to bringing the highest quality natural frac sand available on the market today to the WCSB.”

“CN’s network is uniquely positioned to provide Wisconsin frac sand producers efficient access to key North American shale deposits, including those in Western Canadian Sedimentary Basin. We are pleased to work with Evergreen Transloading and Superior Silica Sands on this Sexsmith Terminal project,” said Doug Macdonald – Vice President Industrial Products of CN Rail.

“Over the past five years, CN’s frac sand market has grown by nearly 300%, rising to more than 50,000 carloads in 2013. Our end-to-end service focus has supported that growth, and we expect to achieve C$300 million in frac sand revenue by 2015.”


About CN
CN (TSX: CNR) (NYSE: CNI) is a true backbone of the economy, transporting approximately C$250 billion worth of goods annually for a wide range of business sectors, ranging from resource products to manufactured products to consumer goods, across a rail network spanning Canada and mid-America. CN – Canadian National Railway Company, along with its operating railway subsidiaries – serves the cities and ports of Vancouver, Prince Rupert, B.C., Montreal, Halifax, New Orleans, and Mobile, Ala., and the metropolitan areas of Toronto, Edmonton, Winnipeg, Calgary, Chicago, Memphis, Detroit, Duluth, Minn./Superior, Wis., and Jackson, Miss., with connections to all points in North America.

About Emerge Energy Services LP
Emerge Energy Services LP (NYSE: EMES) is a growth-oriented limited partnership engaged in the businesses of mining, producing, and distributing silica sand, a key input for the hydraulic fracturing of oil and gas wells.  Emerge Energy also processes transmix, distributes refined motor fuels and biodiesel, operates bulk motor fuel storage terminals, and provides complementary services.

About Evergreen Transloading
Locally owned and operated, Evergreen Transloading is part of a closely held group of companies that specializes in bulk material handling for the Oil and Gas industry.



Mark Hallman
(905) 669-3384

Emerge Energy Services
Robert Lane
(817) 865-2541

Evergreen Transloading
Ryan Peterson
(780) 832-7558



Energy Company Finds a Fortune In The Sandbox

Posted on: March 7th, 2014 by Bronson

If there’s one thing the Earth is not short of, it’s sand. Anyone who’s ever walked on a beach or driven across a desert can tell you that. What you might not know is that not all sand is created equal. That white, powdery stuff you toss in your kid’s sandbox might be good for playing around in, but there’s a reason you can get 50 pounds of it for a few bucks at your local hardware store. It’s just regular, run-of-the-mill sand.

Frac sand, though, that’s a different story. This is a durable, high-purity quartz sand with very round grains that, if it were human, would probably look down its nose at everyone else.

Emerge Energy Services (EMES) knows all about the high perch frac sand occupies in the sand world. The company, which operates as a limited partnership, is one of the leading miners and suppliers of frac sand used in the hydraulic

Click here to read the entire news article.



DNR Air Quality Data Gives Sand Mining a Clean Bill of Health Voters Support Sand Mining Industry, WMC Poll

Posted on: March 6th, 2014 by Bronson No Comments

Madison – The Wisconsin chamber of commerce (WMC) announced new evidence demonstrating a strong record of compliance with air regulations by Wisconsin’s industrial sand mining industry, and new statewide voter polling showing strong support for sand mining.

The Department of Natural Resources (DNR) has been posting air quality data online from selected sand mines across Wisconsin.

The Wisconsin sand mining is 10 times cleaner than required under federal regulations. Also, WMC’s poll found nearly 2/3rds of voters support making it easier to site a sand mine.

The DNR research from thirteen mines indicates average concentrations of particulate matter or PM 10, the particles normally emitted from sand mines and plants, of 13.8 micrograms per cubic meter. National health-based standards set by the United States Environmental Protection Agency (EPA) are set nearly eleven times higher at 150 micrograms per cubic meter.

“DNR’s data demonstrates that the fears regarding air emissions from non-metallic mines in Wisconsin are completely overblown,” said Eric Bott, Director of Environmental and Energy Policy for WMC. “Wisconsin’s non-metallic mines are operating well within the strict confines and regulations applied by U.S. EPA and DNR.”

WMC also released new polling data showing nearly 3-1 support for the sand mining industry in Wisconsin. A survey of 505 likely voters conducted by the Tarrance Group from February 23-25 asked if voters would support streamlining sand mining regulations to create jobs and make America less dependent on overseas oil. Respondents overwhelmingly supported streamlining mining regulations with 64% responding favorably, to just 23% opposed.

“Voters are soundly rejecting the massive campaign to tarnish Wisconsin’s sand mining industry and are instead standing for job creation and American energy independence,” said Bott. “Wisconsin sand mines are playing a vital role in reducing our dependence on overseas oil, lowering energy prices for families, and bringing manufacturers back to the states from abroad.”

Sand from Wisconsin serves as proppant, a key component in the hydraulic fracturing process that is driving U.S. energy independence and leading to lower fuel and electricity prices. Recent studies estimate that hydraulic fracturing has created more than 22,000 Wisconsin jobs and is saving the average family $1,200 a year in reduced energy prices.

For more information contact Eric Bott at WMC, (608) 258-3400.



EMES – Emerge Victorious This Year With This MLP

Posted on: December 22nd, 2013 by Bronson No Comments

This column is part of InvestorPlace’s 10 Best Stocks for 2014 contest. Jon Markman’s pick for the contest is Emerge Energy Services LP (EMES).

If you’ve been reading financial headlines at all recently, you’re surely aware that the stock market has undergone a massive bullish run in 2013. But now I would like to shift your view to the horizon and consider a position that I suspect has a shot at being very successful in 2014 and beyond.

I sense that the drilling of “unconventional” oil and gas formations in the U.S. will continue to gain steam, and feel that traders and investors alike should be looking for ways to participate. With that in mind, my idea for you is Emerge Energy Services LP (EMES).

Click here to read the rest of the news article.



Wisconsin at “Global Epicenter” of Frac Sand Mining Industry

Posted on: October 10th, 2013 by admin No Comments

In Wisconsin, frac sand is the new gold. And by most accounts, the rush is only beginning.The type of ancient, coarse-grained sand that form the hills and river bluffs of west central Wisconsin is now highly prized by the oil and gas industry.

Used in a process called hydraulic fracturing, or “fracking,” the sand is mixed with water and chemicals, then injected at high pressure into shale rock formations, forcing out formerly difficult-to-extract deposits of oil and natural gas.

Fracking is why the U.S. is now producing more of its own petroleum than ever before, moving from importing 60 percent of its oil in 2007 to just 33 percent today, including Canadian imports. And almost all the oil and gas being produced in this country is coming via fracking.

For that reason – and because Wisconsin has some of the best frac sand deposits in the world – the state is suddenly center stage on the world energy scene, despite having no fossil fuels of its own.

“Wisconsin is the global epicenter, and we’re just getting started,” said Richard Shearer, president and CEO of Superior Silica Sands, which is headquartered in Ft. Worth, Texas, but has significant mining operations in this state.

Shearer was a featured speaker Wednesday at the 7th annual Wisconsin Freight Rail Day at Madison’s Concourse Hotel, where frac sand was the major topic of conversation. Rail is the least expensive way to move large quantities of sand from Wisconsin to drilling sites in North Dakota, Pennsylvania, Texas and beyond.

Click here to read the entire news article.



Superior Silica Sands on Wall Street

Posted on: October 9th, 2013 by admin No Comments

Officials with Superior Silica Sands, a company doing business in Barron County, helped ring the closing bell on Aug. 27 at the New York Stock Exchange. They included Rick Shearer, third from left, president and Chief Executive Officer, and Jim Walker, far left, director of operations for the company’s properties near New Auburn and in the towns of Arland and Clinton. Superior Silica Sands is owned by Texas-based Insight Equity, a venture capital firm. Officials with that company attended the bell-ringing, including Ted Beneski, CEO of Insight Equities and Chairman of Emerge Energy Services, parent company for Superior Silica Sands, and Victor Vescovo, far right, Chief Operating Officer for Insight Equity.

Click here to read the news article.




Superior Silica named Outstanding New Business

Posted on: October 2nd, 2013 by admin No Comments

Superior Silica Sands was named the Outstanding New Business at the annual awards banquet for the Barron County Economic Development Corp. on Thursday, Sept. 26. Two Rice Lake businesses, Henry Wisconsin and American Excelsior, also received special recognition.Superior Silica was formed in 2008 when a private equity firm, Insight Equity, acquired a family owned sand mining operation in central Texas. Since then the growth of the company has been unprecedented, now comprising the fourth largest frac sand supplier in the nation. It entered Barron County in 2011 with the construction of a sand processing plant at New Auburn. Over the next year it added two sand mines and a second, larger plant in the Town of Clinton, near Poskin. That Clinton project included collaboration with Canadian National Railroad to rebuild 38 miles of rail line through the heart of Barron County.

The revived rail service is expected to lead to opportunities for other businesses. Superior Silica now directly or indirectly employs more than 210 people in its Barron County operations. Its success has resulted in it becoming the lead business in a recent public stock offering on the New York Stock Exchange under the name Emerge Energy Services. In addition to sand for hydraulic fracturing in oil and gas wells, the company produces sand for foundries, golf courses and construction uses. Henry Wisconsin received the Outstanding Growth Award.

Click here to read the entire news article.



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