RasoolMohammad1 wrote: The Future Of Northern White Sand Panel (Participants From Rystad, High Roller Sand, Badger Mining, Covia)- San Antonio Frac Sand Conference
In order from left to right are Dave Frattaroli, Cody Wickersheim, and Erik Nystrom Photo credit: Badger Mining
“Older guys that have been around a while agree – this is as bad as we’ve ever seen it in this business. Life doesn’t have to be fair, but at some point you’ve gotta say stop… pricing is just way too low.”
“We all thought all these new mines wouldn’t come online. They did. Now each mine operator thinks they aren’t going to be the one to fold.”
“Margins on NWS are better than in-basin sand.”
“We expected the railroads to defend their business, but we’ve had no assistance from them to help us survive.”
“We have not seen any customers make the switch back to NWS from in-basin sand.”
“I believe in quality sand making a quality well, but cost is king. That said, not all in-basin sands are created equal… by a long-shot.”
“Consolidation makes sense only in a couple instances. The capacity situation is ridiculous. Balance sheets are ugly. Why would you be a consolidator? Bankruptcy doesn’t make assets go away either.”
“Next year there will be a surprising amount of bond holders that will be frac sand owners.”
“We wouldn’t add capacity in a market that looks anything like this.”
On mothballed plants, the Covia speaker said: “It would be a timescale of months to turn our closed facilities back on. We haven’t dismantled any plants.”
Source:InfillThinking