The Fifth-Highest Oilfield Services Free Cash Earner in 3Q17

Fairmount Santrol Holdings’ (FMSA) cash from operating activities (or CFO) turned positive in 3Q17, compared to negative CFO in 3Q16. FMSA generated $53 million CFO in 3Q17. FMSA’s revenues more than doubled in the past year, which primarily led to the improvement in CFO in 3Q17.

Fairmount Santrol Holdings’ capital expenditure (or capex) increased 2.3x in the past year up to 3Q17. However, higher capex couldn’t offset CFO’s rise, which resulted in free cash flow (or FCF) turning positive to $31 million in 3Q17, compared to -$8.6 million a year ago. Compared to 2Q17, FMSA’s 3Q17 FCF was an improvement. FMSA was the fifth-highest oilfield services FCF earner in 3Q17.

FMSA is 5.0% of the SPDR S&P Oil & Gas Equipment & Services ETF (XES). XES fell 31% in the past one year compared to 46% fall in FMSA’s stock price during the same period.