Year-to-date fall

Emerge Energy Services (EMES) and Hi-Crush Partners (HCLP), which are frac sand MLPs, have fallen 45.0% and 60.0%, respectively, YTD (year-to-date). In comparison, Fairmount Santrol Holdings (FMSA) has fallen 75.0% YTD, and U.S. Silica Holdings (SLCA) has fallen nearly 50.0%. These frac sand companies have underperformed the broader energy sector. The Energy Select Sector SPDR ETF (XLE) has fallen nearly 14.0% so far in 2017.

Energy sector stocks have been impacted by crude oil prices during the year. Crude oil has fallen nearly 10.0% YTD.

HCLP, EMES: Does the 2017 Fall Make Frac Sand MLPs Attractive?

In this series, we’ll look at the recent operational performances of HCLP and EMES. We’ll also analyze their distributable cash flows and capital expenditures, compare their valuations, and look at the main factors that may drive these stocks in the future. We’ll look at the trends in short interest as well as institutional ownership for these two stocks. Finally, we’ll see Wall Street analysts’ recommendations for HCLP and EMES.

The above graph compares the YTD stock performances of Fairmount Santrol Holdings, U.S. Silica Holdings, Hi-Crush Partners, and Emerge Energy Services.

Factors impacting frac sand producers

Hi-Crush Partners produces and distributes monocrystalline sand, a specific mineral used as a proppant to boost the recovery rates of hydrocarbons from gas and oil wells.

Emerge Energy Services produces and distributes silica sand, which is used in the hydraulic fracturing of oil and gas wells.

Since the demand for frac sand directly depends on drilling activity, frac sand stocks tend to have a high correlation with crude oil production and prices. So it’s useful to monitor the changes in rig counts as an indicator of the level of drilling activity. Let’s look at the current US rig counts in the next part of this series.

Latest articles

This year, Pfizer (PFE) stock has fallen 0.34% and Bristol-Myers Squibb (BMY) stock has fallen 6.48%. Both companies are focused on strengthening their position in the high-growth oncology and immunology markets. Let's take a closer look at each.

Walt Disney’s (DIS) latest movie, Toy Story 4, has reportedly broken records in the opening weekend with $118 million in sales. However, the opening weekend collection was behind analysts’ expectations of at least $150 million in the first weekend.

24 Jun

Will Home Depot’s Upward Momentum to Continue?

WRITTEN BY Rajiv Nanjapla

As of June 21, Home Depot (HD) was trading at $209.39, which implies a rise of 9.7% since the announcement of its first-quarter earnings on May 21. Also, the company was trading at a premium of 32.4% from its 52-week low of $158.09 and a discount of 2.8% from its 52-week high of $215.43.

On June 21, Aurora Cannabis (ACB) made an announcement that indicated that it will move towards higher margin vape products. In addition, the company also believes concentrates and edibles will command higher margins. In anticipation of this development, the company announced the expansion of its facility to capitalize on growth related to these segments.

Shares of Mondelēz International (MDLZ) are scaling new heights thanks to its stellar gains so far this year. Mondelēz stock is up 38.0% on a YTD (year-to-date) basis, and it closed at $55.25—just a shade lower than its 52-week high of $55.71—on June 21.

24 Jun

How Long Will Facebook's Libra Fuel Bitcoin Rally?

WRITTEN BY Mayur Sontakke, CFA, FRM

Ever since the news about Facebook’s (FB) cryptocurrency project broke, Bitcoin has rallied on the hope that Facebook’s entry in the space will help make cryptocurrencies mainstream. Facebook’s cryptocurrency will be called Libra and will be governed by an association with 28 founding members across industries.

172.31.59.107