CARBO Ceramics 1Q16: $25M Loss, Drillers Not Completing Wells

| | |
CARBO logoIn addition to watching companies that operate drilling rigs, like Patterson-UTI Energy (see today's companion story) for indications of how well (or not) the drilling industry is doing, another type of company to watch is a proppant company--the companies that supply sand and ceramic beads used in fracking. CARBO Ceramics is one of the premier such companies. Yesterday CARBO issued their first quarter 2016 update. Like Patterson, the news wasn't so good. CARBO lost $25 million in 1Q16. In some cases E&Ps (exploration and production companies, or "drillers" here on MDN) are electing to complete previously drilled wells--and that's good for CARBO. But in many cases drillers are electing to leave already-drilled wells uncompleted, i.e. not fracked, and that's bad for CARBO. Here's more of the good, the bad and ugly for CARBO Ceramics in 1Q16...

To view this content, log into your member account. (Not a member? Join Today!)