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U.S. Silica's (SLCA) Unit Wins Last-Mile Logistics Contract

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U.S. Silica Holdings, Inc. announced that its last-mile containerized solution, SandBox Logistics, was granted a full-service agreement for multiple crews with Chesapeake Energy starting this month.

SandBox will provide trucking, equipment, wellsite labor along with mobile transload capabilities for Chesapeake's operations in South Texas. However, exact terms of the deal have not been disclosed.

Notably, SandBox deployed roughly 90 crews by the end of December 2018 and it expects a significant number of new crew starts during 2019.

U.S. Silica’s shares have plunged 57% in the past six months compared with the industry’s 10.5% decline.  



In October 2018, U.S. Silica stated that it envisions a seasonal slowdown in Industrial and Specialty Products (ISP) volumes and seasonal decline in higher margin ground product sales in the fourth quarter as customers idle production facility for major maintenance and holidays.

U.S. Silica is likely to gain from expansion actions in the Permian Basin. The Sandbox buyout is expected to make a significant contribution. The company is also focusing on preserving capital and reducing costs.

 

Zacks Rank & Stocks to Consider

U.S. Silica currently carries a Zacks Rank #3 (Hold).

A few better-ranked stocks in the basic materials space is Ingevity Corporation (NGVT - Free Report) , sporting a Zacks Rank #1 (Strong Buy); along with CF Industries Holdings, Inc. (CF - Free Report) and Cameco Corporation (CCJ - Free Report) , carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Ingevity has an expected earnings growth rate of 21.5% for 2019. The company’s shares have gained 17.9% in the past year.  

CF Industries has an expected earnings growth rate of 70.5% for 2019. The company’s shares have moved up 7% in the past year.

Cameco has an expected earnings growth rate of 20% for 2019. Its shares have rallied 26% in a year’s time.

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