Release Date: November 13, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Given the efficiency gains in completion and the rise in proppant demand per well, how do you see this evolving? Will it plateau or continue to rise? A: We've seen proppant per foot increase significantly, and while there might be some moderation, the demand for large amounts of sand on multi-well pads is driving overall demand. Longer laterals per well also contribute to increased sand usage.
Q: Can you provide guidance on pricing dynamics and contribution margin for 2024 and 2025? A: Pricing has been relatively flat, but we expect improvement in 2025 due to growing demand, particularly for natural gas and finer mesh sand. This should constrain Northern White supply and lead to pricing improvements.
Q: Regarding Industrial Products Solutions (IPS), you mentioned it could grow from 5% to 10% of volumes in 2025. Is this based on current orders or bids? A: The growth is based on ongoing business development, particularly in glass sand, which drives volume. While IPS is promising, frac sand will remain the primary volume driver.
Q: How are you approaching shareholder returns, and why was a special dividend chosen? A: Our approach is driven by consistent free cash flow generation and a stronger capital structure. We aim to be opportunistic, evaluating whether dividends or share buybacks offer better returns for shareholders.
Q: Can you update us on the Canadian market and your expectations for 2025 and beyond? A: The Canadian market is promising, especially with our Blair facility's logistics. The demand for natural gas and sand is expected to grow, supported by pipelines to the West Coast and LNG facilities.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.免责声明:投资有风险,本文并非投资建议,以上内容不应被视为任何金融产品的购买或出售要约、建议或邀请,作者或其他用户的任何相关讨论、评论或帖子也不应被视为此类内容。本文仅供一般参考,不考虑您的个人投资目标、财务状况或需求。TTM对信息的准确性和完整性不承担任何责任或保证,投资者应自行研究并在投资前寻求专业建议。