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This Week’s Market Buzz

  • Dakota Plains Holdings Inc. reported that frac sand transloading volumes were 195,000 tons in the second quarter compared to 110,000 tons in the first quarter of 2015, a 78 percent increase. Revenue from frac sand transloading was $1.6 million for second quarter compared to $0.2 million for the second quarter 2014. The increase in revenue was due to the fact that the frac sand transloading operations did not commence until June 2014. The company transloaded 195,000 short tons of frac sand during the second quarter 2015, which was the highest quarterly throughput to date.
  • In Hi-Crush Partners second quarter report, Robert E. Rasmus, co-chief executive officer, said, “The increasingly negative impacts of rig count and sand price declines in the second quarter more than offset positive trends of increased frac intensity. We now believe low levels of completion activity and sand demand will persist in the third quarter, pushing a recovery of demand and price increases further into the future. We believe in the long-term fundamentals driving increased sand demand, and are taking steps to further improve our competitive position."
  • According to the Chippewa Herald, 58 workers of the Iron Mountain Trap Rock Co. were laid off from the Chippewa Sand facility in Bloomer, Wis. The layoffs occurred after Iron Mountain was notified by Silica Superior Sands, the company Iron Mountain contracts with for frac sand at the Chippewa Sand facility, will no longer needed Iron Mountain’s services. They expect the layoffs to be temporary.