US Silica SLCA: Valuation Out of Whack

US Silica (SLCA) has 15 facilities in all and uses 5,000 railcars to transport material to 36 transload facilities in oil and gas basins and to other customers. 
Business has been very, very good heretofore, with the company barely able to keep up with demand. And then oil prices crashed.
However, US Silica has been benefiting from the trend toward longer laterals being drilled, more sand being used per frac stage, and more stages per well, with some firms doubling or tripling their sand usage because of the excellent payback in terms of increased production. (more)

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