Release Date: August 14, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you quantify the cost savings achieved and expected in the future? A: Lee Beckelman, CFO, explained that while it's challenging to quantify precisely, initiatives like hydro mining and labor management could reduce production costs by $1 to $2 per ton. William Young, COO, added that moving to electrically driven pumps helps mitigate diesel cost spikes, providing more cost stability.
Q: What are you seeing in terms of sand pricing in the spot market compared to contracted volumes? A: Lee Beckelman, CFO, noted that pricing has been relatively flat over the last few quarters. William Young, COO, added that while pricing varies by market, it has remained stable, with interest in contracting at mid-20s pricing levels. Charles Young, CEO, emphasized their strong rail logistics as a competitive advantage.
Q: How is the Canadian market performing, and what is the potential for growth? A: Lee Beckelman, CFO, stated that about 10% of sales are currently in Canada, with potential growth driven by LNG export capacity. William Young, COO, mentioned that their Blair mine's coarser sand aligns well with Canadian demand, allowing efficient use of their products.
Q: What is the expected impact of the Canadian rail strike on your operations? A: William Young, COO, indicated that the strike, primarily affecting Canada, should not impact their operations significantly in the Lower 48, where most of their volume is directed. They remain hopeful for a quick resolution.
Q: What are your plans for returning value to shareholders? A: Lee Beckelman, CFO, mentioned they are evaluating options such as dividends or share repurchases, considering cash flow consistency. They previously repurchased 11% of shares in 2023 and aim to continue delivering shareholder value.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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