U.S. Silica (SLCA) 25 Feb 222021 Q4 Earnings call transcript

Good morning, and welcome to the U.S. Silica, Fourth Quarter 2021 earnings conference call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. pleasure President you of my Patricia your now Vice Gil, Investor is to to introduce host, It Relations. Thank you. And over to you.

good us Executive and Silica Officer Bryan And you Vice call today conference President you. morning, and Chief like the I'd Thank Executive our to call. for Leading joining Officer. fourth-quarter Donald today Chief 's U.S. Shinn Financial are for XXXX earnings everyone. thank Merril our

forward-looking standard I today. begin, remind like of risks cautionary statements remarks the would and uncertainties. the which Such are made our we Before predictions, other you that regarding certain are events and assumptions projections, current to future based nature statements, be expectations of are some which or to of will about on statements forward-looking subject

uncertainties, undertake discussion you forward-looking to our documents statements. For of encourage the press SEC. and the any not with risks these We release we company's complete do duty on and read to any a update file

refer of reconciliation now the leverage net of to and contribution to our may our consolidated we full I and such income over refer consolidated call, Shinn. call adjusted and for during margin this like Bryan the ratio. discussions that, public EBITDA or EBITDA with ratio to turn filings margin, to And please adjusted our segment measures Additionally, a press contribution leverage release would segment the non-GAAP today's as to Mr. CEO,

everyone. Good Patricia. morning, Thanks,

month, of of celebrating operating anniversary recent our the I'd Before discussing listing. This public a to results today, we're stock our significant review like corporate milestones. first couple XX-year

delivered growth. changing new integrated cycles, a business acquisitions, products, pandemic, navigated game through successfully developed we've back, Looking effectively managed strong and numerous

that than and strong XXXX at our X% than were of we've Well best history better safety the also our than safety times to demonstrated I'm industry contribution leadership. is proud more that core the our of margin over consistently unwavering One more I'm and our ever with company leading with values, of numerous full-year example results certainly health of a almost personal grew achievements, peers. and long-term company two report industrials and ESG fact, rich last we employees. way to the company's our commitment In at XX%. a CAGR CAGR, our decade, the dollars business happy

We also increased national with the owned is to average. also times women our focused U.S. Silica company managing efficiently diverse and spend on resources. two natural suppliers

recycled on Roof mine feet finally where year, continued more of For truckers than energy you Silica U.S. few spot homes. a just small have affiliated human should and a details. it out visit just be the signs check for of in making billion more than power installed our our the are reports drivers more roofing, in are sampling XXXX, trafficking, encourage trafficking Last the across example, than to our been while XXX saving This more and issued water XX to Granules network. were million on than we against to areas Cool enough is a trained And with partnership our XX reflective thousand truck solar in XXXX, weeks sustainability teams commercial square I where gallons XX additional XXXX difference we our of of road. website

versus revenue total XX% increased respectively other by XXXX. also XXXX, example, XX% for and numerous volume company in We sales annual delivered accomplishments noteworthy and

nineties. investor posted our equity trading added adjusted to and continuing also by finally, into up EBITDA XX% Sheet, returns our our debt. the we to of strong And XX% $XX and our with We cash debt grew reduce million Balance high

adjusted X% in the XXXX. EBITDA talk in of of QX with volumes a year. million, resulting total sequential about we how X% to and delivered now increases of was QX in a turn quarter versus X% We increase Let's $XX.X and strong finish financial results total which fourth revenues,

last Our continue during excellent most a segments from demand. that customer and moment, see price anticipated review efficiency in some of but demand holidays we uses significant Dan we let's the the were increases across dollars Industrial due than the down contribution improvements many to just time along that end marginally the the with higher and in didn't QX segments, was QX, market first as revenues. both will industrial saw driven to remains strong and volumes highlights with quarter. run in margin It customers that stronger segment robust discuss by the during to decade details results demand outpaced inflation.

compensate. We high swiftly life juices. sciences, But our and continued and as end surcharges demand which wine, also diverse such increase products, filtration and to used Costs for record during moved and experienced spirits, labor, purity services materials, quarter. markets, for team our increases in are high-end price to to the the implement industrial in quarter decisively

to we increases and raise as our margins I'm surcharges implemented that well. in holding to XXXX, report are necessary than as preserve XXXX to increases XX price continuing the more and During pleased prices we're and

of by gas For starting logistics in majority XX% activity, West our demand our the will for effective up this engineered oil of and Xst. stronger increases we example, be and month driven particularly segment, non-contracted earlier sequentially products March Texas. and customer that sand range shipments to announced price another round increased will for In

As needs. the with local sand assist our local we customers to selling sand key White completion from Permian, well network in availability our tightened Northern began

Given increased quarter and as half number XXXX. And the contracts be very into delivery trend and finally to mile securing a for that demand in the is balance continued have what first quarter has we expected XXXX. sand of been the saw Proppant for supply services market, and logistics prices last customers very tight during throughout the and insistent a strong executed we on of

XXXX. with time update our a the finish the in industrial my want then outlook With growing of an morning, summary and this rest of for our give I to quarter first on portfolio

made materials minerals value value technology, in and segment the and investments which development new commercial food chains, industrial are we've product such few essential have high strategic construction, leader Over manufacturing. which renewable glass to as production, position beverage ingredients critical and helped years, residential in biopharma energy, and our a and as past advanced

contribution that turbines beneficial for have are particulate ingredients in generated numerous In goals. to filter their the revenues energy, and emission including goals. excited that in chains for environmentally In age discuss were offerings customers ESG growth progress for we We're the publicly environmentally our support new also reduce panels, important for and margin let's of and honored growth to industrial products, are achieving value these and raw and product solar cleaner announced XXXX, water despite XX% speaking key to a happy energy goal XXXX segment industrial materials that filters. transition to help with that report products Green Diesel, essential rate logistics, wind new pricing society, consumption, to of supply an from We by to and margin and run products. meet our bold our industrial XXXX, incremental inflationary headwinds. I'm exit chain, million $XX in the contribution on

our is approximately XXXX top development goal, priority. met industrial We're expecting new margin, million the to in that of as product portfolio will rate products During new we run and a contribution exit ongoing increase our $XX further remains this still year, planned.

multi-year ground whole in product, including new negotiating diesel products. successes we of During trials clay customer agreements the of bold engineered market. our Very and this grain supply goal, support adsorbents the next green new our quarter, numerous for Ever-White successful Cristobalite targeting had

and high-value Numerous this customer product. So line rapidly with our has alternatives Springs ramping And as year. us to completion the up trials sales which accelerate to space. of more silicone per commercialization existing the is successful X finally, facility, potential in the of of to the asked million reinforcing replace key rubber limestone ingredients mine in product processing capacity filler produce across Testing has fact our developmental that Berkeley fillers. tons than at deposits customers of and

now business we quarter product remains first the market a strong turn demand this for to anticipate of segment. Let's and Industrial our for and good XXXX. quarter outlook

of East January storms and higher costs the month Coast issues. winter impacted shutdowns, causing Coast West mines, some maintenance our transportation and strong of temporary During negatively however,

these costs sequentially As higher challenges, QX are volumes slightly to operational only a be be of higher. and will result forecasted

to additional quarter in given but products is back precisely, the shipping. of to international ship the hard half We forecast of it are the working current uncertainties

address wanted our status the strategic recently that segment. of Before to of I leaving announced review industrials,

of We further today, segment. continue I to our consider as no potential options, is including a a of broad of sale have range share. and The ongoing to information process separation or industrial

operational challenges very Turning The exacerbating and increased Proppant, of out and competitors in sold what contract are Northern of minds prices seeing we're oil market. already we're and sand. gas and a essentially meaningful to customer tight demand and reported our was combination increases for both local segment, spot White further at sand

up to to first that we complementary all Given be operational assets. our With at dollars quarter least contribution expect XX% and XX% minds, segment performance, strong well-placed Sandbox sequentially. margin

able White been Northern sand. Permian to with have net for obtain customer both and price new increases We contracts,

flat be the QX overall we to to volumes to not in with $XX market year benchmark. up be far, and to are basis, trucking, So to be company. an expected setting challenging. ton, our per XXXX slightly is remain across outstanding Overall, expected experiencing long-term contribution is issues up are labor is margin unit the but expected On above activity an

segment, increases. ISP demand several further base are well-positioned price expected driven expansion are with We our our uses. supported for by and fast-growing in GDP new new end in robust for Increased margins product that adoption, opportunities by growth business,

first commodity Our sand increasing margins oil constructive forecast Sandbox the higher prices, of demand, pricing proppant the and profit and half demand contract the support gas We're improved well. as and strong coverage through strong and should our customer segment, year. and for

Finally, cash call that, to the will more results detail. our balance flow who turn year, generate discuss Don. delivering Don free our significant continue to and I to in this sheet. our we Merril, financial over will CFO expect With

morning, everyone. good And Thanks.

in when the As stated, XX% general customer adjusted non-cash assisted the the in X% higher mostly $XX.X to compensation, $XX.X supported that quarter, $XX.X an depreciation, driven or million gains, and and in Bryan to expense strong by sequentially million such decreased EBITDA of employee as increase by QX fourth sequentially inflation. sequentially, administrative and compared stock Selling total expenses, acquisition-related a efficiency to quarter. pricing million, and and increased increase expenses quarter merger prior our was offsetting amortization an for X% depletion, demand, expenses for

was effective discrete Our XX ended the a December rate XXXX XX%, including quarter of benefit for / tax items.

Now move results. operating of a with on segment let our detailed me review

Specialty fourth quarter. Our reported Segment Industrial Products. historically and a stronger

a and contribution to also a cost company was pricing margin ton the $X.XX which our X% increasing These oil eclipsed in helped Segment was in third contribution gas million that as in demand impacts quarter. segment ton. ton from were by compared favorable, million to In an tons, $XX.X ISP the third segment of quarter increase fact, for loads Industrial Volumes had by products sequential volumes to segment segment the to became delivered inflation. the margin XX% contribution sequentially mitigate per increased that issues the X% the per Sandbox quarter, X.X fourth XX% increase time we were specialty sequentially basis, oil fourth-quarter increased and net a million, persistent year. and per sequentially of On XX% contribution the XXXX, to in XX%. aided our $XX.XX driven reported results pricing margin public sequentially of quarter. the the $XXX.X Revenue increased an the since compared overall X% segment first a gas increase and improvements. for the totaled same in many for The actions, on when quarter revenue and $XXX.X fourth flat well of as prior basis while and logistics the essentially for increased quarter and margin which billion a fourth a

Cash Flow Turning to Statement. the

the year million generated flow expenditures in a flow. in $XXX.X free million $XX.X operations. and During full of from capital We cash invested delivered $XXX XXXX, million of we cash

million much and primarily product $XX.X as invested for facility we and almost the quarter, first of equipment. current of fourth capital, maintenance upgrades combined three well as quarters as the During as expansions, new

million awaiting allocating our million. Additionally, refund after as decreased equivalents December At available approximately XXst, revolver million sequentially of cash company's letters credit on drawn XXXX quarter-end, and cash and $XX X% to we're credit. still the had anxiously $XX.X Act $XXX.X million. of $X $XXX CARES IRS of for our under The had today, facility

Balance Looking end. on focused the XXXX, forward remain Balance Sheet on of million plus the $XXX our to Sheet we delivering year's by with goal

accordingly spending be We of future spending the for maximize to the up growth XXXX XXXX SG&A expect increased billion in capital activity anticipate to $XX full at XX% an decline will and the be on to We to our XX%, with to manage DD&A $XX range projects emphasis spending due capital of depreciated some on full-year profitability to about to end investments is expenses past expense primarily to and due X% anticipated becoming inflation. Full-year XXXX. fully year.

estimated a the continued Sheet past recap, increased has benefit XXXX a is Our strengthen tax by our for XX%. Balance over effective XX%. rate year. cash-on-hand year-over-year basis, our has To to At of

to first but with balance with of our net to Balance especially call investments two aim debt as The nearing the not of towards related and stated, company proactive we And quarter XXXX, the over Sheet pricing further expect $XX and Carriers manage to that the in the goal only leverage issues, and our business the prove swift XXXX of remaining IRS that, still reduce afternoon, near Bryan. and allow cash approximately net segments, three to on yesterday in including reduced in continue times we've to in we levered million the receive Our has the I Industrial order balance further flow and taken turn laser-focused actions Products net the effectively to XX%, We logistics for and refunds our our back inflation I been by remain the our announcement our segment. throughout resiliency that future. Act will Specialty closer XXXX. of of

of Thanks, listing. Don. more enterprise the stock year our celebrating a on Sheet and a We our our become XXXX with public commitments major for Silica. a delivered to product portfolio, our expand Balance strong was anniversary important continuing and company's U.S. history to sustainable milestone strengthen XX-year clearly and industrial in our while

year and price With Our is XXXX. would an determination you to well-positioned Operator, that the increases be to margins here successful we're through lines for surcharges questions. I outstanding that maintain and profit proving believe open please in for

gentlemen, and floor open Ladies the session. now Instructions] you. [Operator you. Thank is for Thank question-and-answer

ahead. first Stephen question The of the with line Please Stifel. Gengaro from comes go

Good morning.

Good evening. or morning

I on in you there's the your be say we talk out, of start I in the think but shuttered of have things so backdrop couple to me. A capacity in to aggregate, I and like out, If of to think couple will XX,XXX of I some about capacity? you on, tons had, a just first, may -- could what's of trying oil sort a gas questions sold and front, Northern I'm that that? mean, White what's handle current And get you when sold essentially

good a question, It's very Steven.

is there's will, still we works tons. look of they turned our I is out if sold whether going as at in tight we calculating of everybody of have think not everything that sorts the of coming up Super and Alright the what so up. math you say add about tightest, issues, online. today, you be somewhere and you million so a I future if in the in capacity reality $XX That's they're things what anticipate on right that staffed, labor the we and near was all basically $XX.X scheduled to to day all is, you And now today. like I pick that observed, back a have we don't other Permian going I by we're closer currently to have XX.X or million in and my right but economical if are everything what up would issues now perfectly it's there picks and winter time, and there's have like Permian few now, our not feel back as sites effectively, ton if that the where and issues today kinds basically is we there QX. capacity, just trucking those it's number I so XX% the anytime operating need

think gas up appears the we I you're how -contracted significant Can XX market curious because but lines, you on prices hearing to XX, White increases fall in that? bucks contribution of And good drag we're below of we're you. mean, spot a leverage bit. dollar operating it's be you're Permian we number, What's the oil Northern front, that what a I spot and when stuff, per Permian, just Thank sort the get thinking to when about, thinking of you pricing contribution from hearing on we kind talk are to trying un in handle about Great. about in and sort that just what, a about ton pretty contracted leverage, think it in ton price to the I'm true I'm like first going XX how the increases margin the should that a directly just and I'm it per guide what mean, on so curious. should quarter about versus

will most fall bottom right that think I So pricing to the of line.

a are gas natural Now, up prices bit.

some had And so a expect that reported to our I've of a further is sand we of been sorts issues say time mostly there, gas, of number natural operational there, line minute that's first were of fall see offset bottlenecks as capacity and constructive sights the we labor tight are we given talking have think that, we to continue how of out I in environment just around and And lot things. around that competitors drive pricing. market widely most be and about the out our pretty and going dryers to a a gigantic that that operational There sort your obviously ago a and use also that working. question this the Permian. I tightened to bottom that will we're that's seen at small going as But for lot that it's to our with quite

line before, have has operational and yet. And not I I issues markets see the as drop keep basins White we're the somewhat get logistics in think because in run I the that's of think about Northern will come bottlenecks, tight maybe pricing limited, going well think of continued but pretty we'll contracted. as about and bottom to into said that's I Do so leverage transportation sand we most for these and transportation really though been capacity As mind quickly when the play just XX-XX% I into example, think now. that some solved, for to

those. So that that that, we say have might get XX% and the but that on kind renegotiated Many we are XX% contracts to spot we spot did get expect, were that heavily because those won't increases market, we'll piece, still renewed in uplift necessarily though, or of either of massive the see price just we contracted. you recently

So a something be tons that a our selling it that we're $XX or of be but positive, will won't ton that. expect like that, be most the going in Permian or that like don't to $XX

final the sustainable but imagine you And line, the first margin would contribution that that quarter, year. about per throughout of in mentioned you benchmark. just and $XX your one as would back get I'll north I think ton

those see issues to minute like will issues, in the at ago, be, just the at it, any the trucking, for as way given rest X X we I issues, operational we're of and think it going year. you staffing the it of a seems about see and almost it think mentioned, if continued think supply chain look or I I we'll

and expect be lid going we'll we keep that is strong. think I demand a to So very the on supply definitely

I inflation forecasts ago. spending so in or and was we're months E&P's drilling just all one a XX% think year-on-year completions just ago lot it of I increase than spend. terms and outlook about a a saw up adjusted XX% of talking to that's higher to week see starting couple

into So to the that's going we spend going have see going greater market smack and even operators, private supply this demand I more, that of think of with to today. perhaps some to run tight kind we're

Great thank you.

(ph.). Stephen Thanks,

ahead. the line The Thank Evercore next of with question from Hoh ISI. comes Please Samantha go you.

guys. morning, Good

Good morning, Samantha.

of to that. update could kind a technology on about doing Maybe line was in are several you just that maybe there? I fast-growth on I you guys use. the was if energy Europe's I on to curious ISP. side, expand outline stuff wondering Hi. release press know opportunities about in you an shift the conversation cleaning, of but the some new and maybe

a so with folks hitting thanks on a that Yeah, and working Samantha. things rate processing million necessary of about and to had support, about hit your everyone in that of XXXX, for that familiar and just exit of put manufacturer that talk new that's uses goal growth nice -- a exit that a us bold in ground example, was goal in run for we XXXX that, going will quickly. us. be the so ISP be the maybe rate rate $XX replacements fumed past, margin for and silicas we of Green a just We're going put end we'd of Green question we've synthetic it silica, on a and We're will we call, and is think again very contribution getting the growing to that point, but stake new and growth for great fast next for and so XXXX It's in are product I to a precipitated some one. in those aid Diesel million products next talked one for for another be context opportunity $XX big some are Diesel the not the as to to

routes mortars. like white a also there's and cementitious a and good for to We right market think really polymers of additives materials

have I into go will think there. We that products

for blood purity then industries. of that a new, And our manufacturing, into or very biopharma think which have filtration additives also I be high high new new lot will go glass Biotech, We filtration, interesting. products and

and be already one of moving The those biggest some are ones are to the are of those launched pretty Cristobalite. come, would so that some new And quickly. that

we make that in product it ever-white mill Georgia. that's So

counter-top couple companies I contracts that customers big market, the well going think very contracts. up We into I really very think well. signing a so and go are recently, of signed will that's with market-leading

Our and in already Granules. in and back same our remarks the facility of dozens We really one square actually a roofing commercial there's them of million XXXX to product are ready quickly. have just of line. about XXXX. of prepared a I portfolio of that that the It's that or -- -- about like or the going just mark that And million talked we like literally pipeline It's have industrials. two and calculated realm covered opportunities launch product exciting things pretty, that's launched with It's I is pretty that $XX for we we really that Georgia. went in we many about. feet XX to one definitely made in whole Cool in other our just Roof that at time here so get to either not things, products pretty said we going,

you great. Hey sales know have some I guys into Europe.

Just but box any Europe year? demand you've you checked Are Russia? about coming from this thinking is there exposure maybe to this

It's a great question.

think Before horrific by is our which basically out go thoughts who might wishes about this answer is But best our situation. short and be, nothing. impacted business personally anyone being to I even what the impacts

of most here our know As you in North America. revenue

we're good U.S. there. in company X%, Ukraine, about shape total exposure or revenue is outside nothing and only in so Our the almost Russia

We then move thank actually about your some the on you just of at do maybe perspective competitors any you And on of XX-XX.X conversation And reactivating mine? back have of that industry, clarifying shifting capacity to production to gas. cover great. intention sites, the starting you shuttered but kind million for maybe your the you from see reactivate to no Okay, tons.

really in get reason we is, Everyone hard a that don't that. part of struggling, find to we're for of the think to just industry folks right in terms of that's labor it's that one and that lot see the run capacity. is So shortages I particularly seeing now. they to Permian today reasons find the very And in the the facilities have of

even reason. And very the shut it's are restart of to for delivered probably the the to. a I mine, mines, they're wants think that challenging cost who for on a of all reason wanted down who to And try that go in think So is I going be to recruit they a costs. to anyone if curve high typically shutdown today, lot up mines they're terms

so they umbrella that's not price able to the the providers clearing And to will market folks ours, a us thing the be operation online, if provide profitability industry. come back just and higher worst us in are even be do than the a low-cost their in that sustainable so for substantially will because be for like who

much bringing Sandbox to And Sandbox. pretty of then this out maybe Are well? guys just correlating, you sold back your capacity as think it. about

of out also. tons the that tight the out Basically sold Sandbox, market. and and are. essentially to we is sand the we're extremely put equipment Sandbox have We in between

you do Northern pulled can with and in White just volumes to was Can Okay, XQ ship stand rail-cars, where access you you then of on start that Permian's. the as in more out volumes. you like any maybe storage update be have us XX% to

question out great rail-cars of actually a it's storage. and -- all of we That's our taken have

you may with As power. chain things today tight will the another continue. I the know, get and supply are pretty reason to that tough It's rail also, bottlenecks think it's

to the an hook days. by get time now your get that rail-cars. to cycle to And has come that issues is several them, up your empty to having site right is back the engine your whole to so So refill industry increased to the your rail-cars one of other and site can you

at operating, more just the want effectively operate cars you And to means that system. so try to let more to what you into tons you alone the is rail if need were level get

do for And for the that also and sure that's market. So to support drill this, the for pricing, to is our I they obviously going are of constructive wells complete points but tight be be and they continued my we concern think make to very to can all customers to me, the want able year. expected

customers back So we with the market haven't -- consistently customers very and we're all We're that there. we've working that the that top any is customers, of closely promised heard the news delivering disappointed as our of some that the biggest especially from good yet. only ones out are from

we to so to sure and our do make ourselves And low Smith. over customers don't want costs have to ability support what we're very our we that plan there, as the we keep well until going get

and was for That's quarter. on That Bryan, congrats it the good great. Thanks, me.

care. take much very you Thank

with Thank go you. John comes Daniel ahead. The Please next Partners. Energy question line Daniel from of the

Hey, good morning, team.

John.

X Hey one What mentioned $XX the like it perfectly? it's take $XX.X. but went everything I Bryan, tons, it but to perfectly, them so one, is call you get dumb everything quick million to and work would effective $XX.X capacity apologize, of questions might sound to if a just

mix, so Mesh, or There coarser products capacity a XX-XX the John. and selling some the great are not couple are XX-XX, wants still that of One waste. there's a sand, so and have XX-XX, to take well we everyone lesser things, Northern to is extent XXX and for so in White the market

nobody grades really there's the sand As nothing know, wants a ground, take can you when out it. four most wants, folks grade, do the ton you industry with the mixed and you that if of get of a

That's you the railroads is issues around there's rail-cars. if it. You make With grades have will, rest up, don't that, part logistics. make have Northern want. And don't people of just don't the of where show the it big to White, we to that a

Permian. Out our in throttle mines, like to the have local the We back sites. in

in the well, a doing you is re that frac of People trucks come Simon Somebody are particularly as short in. in hurting get - supply Permian. out and

a maybe some in from their are and are these reaching of complex and going to solve why I all full things earlier, future. things foreseeable as inhibit us problems capacity to extent, these for to the easy those industry things greater and So tight think I others the said stay that's are not

pretty it, an the they take committed grades? any sand quality the Mesh? coarser not they quickly, where way scenario customers for Do the describe or may need where the be you And that to -- because right opportunity they see of is sacrificing is XXX XX-XX, your but say, are to

I are XXXX you're a and are what it going the the to feel cost ship the so chain down years ago few increase XXXX a popular. north see before sand so but get that happens pretty we'll about those really committed and local was Permian in became and like from customers again whole obviously, like massive coming talking to the grades the

but want I to sand you mine you either. same the what that by they're for run a but start-up see mobile way, in wet all solutions a and go need people are fairly still it's those did out somewhere, do something, or think occasional the we've conversations And if that mobile mine the limited. to Permian’s. still well, it fighting if some seen we're people around you not perfect or of We

solve really the it problems. So doesn't

was - quoted something you the versus I of it standpoint. Right. see months you that would tell us I I reality. that noise I'm want just price a mean, how to touch out a that week leading-edge he of do from numbers, separate lot price -- steady what's we're we on and silliness on of the deck prices, Steven hear $XX curious activity up now a where now, starting silly had leading-edge sort XX months XX from from brought just ton. to stuff this is completion can mean, on the and seem the settling And rising

Sure.

that So for two we in ton something occasionally sell but a $XX -- Permian the or or like

Right.

not the that's price. really -- true spot

in edge probably price leading spot true the somewhere the today, think is I mid-XXs.

Right.

on trying it Contracts negotiate low XX something thing, to in as reasonable shortfall upper to get is does a it, a has it's If that. be to a of mid depending much where no prices a If to to getting low the mid the sort other contract it's Those and to are If just some It's '. probably somebody in situation. and other a thirties ties with it's somewhere. thirties, make behind straight up are deal, the were where that happy higher a or everybody upper twenties problem. do getting start mid the deal, than maybe signed to there way

growing release asking any Fair mentioned are last the for you me your enough. in that the the contracts. you customers in color for Can is talked interest and And that about then and provide duration today? one the

whole conversation the customer So is really interesting.

months get customers and right? increase, hey, you go if we go need back say, to few to ago, really a we'd So a price

Right.

it's to that that where industry. morphed situation now And And in is then it to we're right? everyone customers long-term is, prices. in going are calling " "Hey, a price " product, a will increase to, this the get recognizes definitely saying, I conversation us and the problem think "What take

up and we most the with the working go sign adjust are in that market contracts mechanisms looking might pricing to and with either think put I astute to have to or down. multi-year us customers are deal where

we've over in we're this sand or and who what with going years. support and a on programs doesn't. what industry fifth to credible learned X, X long-term issue get astute frac suppliers But thing works our can believe the think as a again, for the so of see the they around really their two out contract want I locked completion generation next X, customers

you much Q&A. questions for let the Thank and Right. in me answering very

John. Thanks,

Thank you. the go The ahead. line Morgan Stanley. comes question Please next Kutz Daniel of with from

morning. Hey, thanks. Good

Good morning.

in So perspective. that remarks. our gas ISP the I be perspective, unpack you oil capital high spending missed wondering would from versus XXXX prepared guys my Any from just the color great. can you first there I is and guidance if apologies was plans, shared, question But we're about and maintenance if growth incremental this

And be is away on of the after take that right guidance to our $XX so spending is somewhere XX about maintenance between growth million capex. going going $XX Yeah, majority the of million million projects. XX to million be to to

little you that bit very normally of The spending because to reason why going is -- a be a products. a the would wider we're range growth gave we we opportunistically ISP on

things our the is keep as we what what versus product ramp and As that's between start nice in looking when a right? projects to start industrial side. slated I eye growth the spend in our delta against as Trying we're up, balance those an get we'll dollars the we we really would maintenance do that then to the measure at have sheet balance well, guidance acceptance, on to of majority flow spending, customer with these that operating new ISP. growth cash is and say between the how the

Done that's good this speaking we that. news Balance some got Sheet, morning of so share wants to

very So prepared talked in so you our heard we remarks, $XX IRS bank million about my fortuitously, this morning got the we account. in refund,

our this longer that have the have actually account morning. We So, talk about in in that. no to bank I

It's Great amazing. news.

great is news. It

Thanks color. Capex Thanks. for

positive the of So even? the expecting expecting just operating indicated are you comments flow following think and more managing free on to shares Is in in generally planning remarks, can or generate about think break going cash this up there, the cash flow. that to you bogey do cash I anything there think us free positive you're be capital help prepared about that the below is be spend you're to to magnitude year. expecting to than meaningfully The to

one again, shooting can see. it. way the other by ISP billion But Which But That million cash the cash might Sheet that, projects year to the to the million of to our worth or we're side would In capital the debt. that talked right or the us. based about net I free to end other. about Balance remarks, we now, a my flow reduce little a of on on we that $XX continue talking bogey do the overall $XXX of in vary choose spend overall we're of bit way year. If prepared imply for high XXX one have our move a

all think we adding sheet spend keep that around balance ratio lower sheet kind about, of and to thinking to about cash a we're things continue our like of XXXX to have debt. we ISP helps but balance of million program And and to and get the we're us well. kind I we just right committed a and now, net business. getting that, the growth I that I are And where the be as talked rate want that able leverage for prospects that and to Dan, $XX refining think call gas it onetime kind point refund. looking much to gas run XXXX, increase oil to things get on And Obviously, thing, think and the what to another reaching as in medium-term us and IRS into the cash it's on by track oil given our

like given I let out even our more base things maybe now, we to cash the years, of gas more looking cash, the and lot over years. a tailwind as that'll we how to modeling, think next our on us going feel is balance to I right So oil next so years hopefully, next to well X X great just as in of few had over couple generate look operate over get a sheet the be than

Thanks and a turn back. guys it congrats cash on lot I'll for influx, the color again the

Dan. Thanks,

question you. please Lee with line go the ahead. from comes Thank Barclays, Derrick of next The

Good morning.

Derek. Hi

-- morning. California

up sources, energy plans renewable to panels. So and turbines all your those, California wind of and solar kind there. get love and to to bold put including pretty the the your long-term take your part I'd of Utility, out Obviously and exposure on solar products they some Public goal XXXX XXXX new wind. then the beyond on that's

So what a do of just fit that how about maybe talk you out moment, to take is just could market. California as as and trying came you into kind what far guys

as question, we sort as that changes, revenue transformational energy Derrick, something call of great into, Today, would imagine. them. have about that a goes think energy, important environmentally value It's it's XX% lot, and of you a we renewable can about we our

that be which to up it turning in I sources, this there. But as well as is And are solar panels wind going big it Diesel also into Green recycling is market and talked one oil earlier, Diesel. cleaning that, interesting variety of and a from very about number We're a which well.

Solar, glass, On Michigan that Rockwood at are particular, supplying work what few the and there. protect our the road solar we of First down couple next Solar think it of supplying And up they'll you to the I sand to And in wood site well-positioned on up panel site, our largest circuitry the for covered right may have accommodate to China sitting look they make next our specifically sitting they're source I the we major extremely we if years. efficiently, First perhaps country's grow; we'll be be we're doing, you not we're so which think so the from pure need do, outside the what panel backyard panels who manufacturer the happens in of most to to obviously are that manufacturer, and interior And that to expecting happens years to in expand ultra-clear, continue the solar over area side, industry a have glass only solar literally just expand. ultra-pure in rock and in glass that.

be feel for to grow going as is you as well, we very a good big us the Diesel about play how can we renewable solar so energy and said. So with Green green that

there ISP. for from your back run million going at million $XX XXXX, of over be $XX 'XX? to That any I of can Don guys new could Capex. rate the guideposts Is XXXX. of and years? to go few what the be it's know you're growth. the pulled Now about that's like helpful. of the maybe next different products bold to goals keeping Capex, you doubling want maintenance mind, provided with Can to give apart kind I you in the required to some talk as us, But to support between Capex you and 'XX, that drivers going growth cadence by these way in for

three the years, all out up we add 'XX if that have. say you 'XX, So 'XX, next, over we capital look and and the growth so

think typically is million between the then of stuff there beyond everything and as cases, $XXX-XXX in there, it. we somewhere is for some maintenance over some I for course we'll bigger growing or years, is at some version As us the still look in anyway, that need those Don maintenance growth but three of specifically, said, XX-XX currently

our in less get Our out, 'XX $XXX see million always current finding 'XX. we than what's in thought maintenance ways come let's but top of cash clever 'XX, the so about with We're growth would capital we on and things pretty that model. Capex, team to that's need though. of where is Capex done we Say

Okay, very Thank you. helpful.

Derrick. Thanks,

the you. comes go of Gengaro with next from question ahead. Stephen Thank Please line The Stifel.

have taking two quick the I follow ups. ones. Thanks for

about given seeing hearing of change shortages you Sandbox? first, we're sand in in the what any are The dynamics around frac Permian,

industry do to sand, So And up I also very done of gets I opposed if different yet pairs think that of go shop, help as XX% the things at through that I gives to Sandbox think of and a can the another Steven, Proppant a multiple offering are when last moved think to love nicely that look all today, in get parties a Sandbox that volumes you us is think us sand the the because that is through having one-stop interesting that and so for about definitely to the helps it's around tight, lever complementary customers Sandbox. I our we of and customers it mile. with goes value to kind successful the at sure. especially time chain, go things And be

you're then it's that's if deduct but starting Is mid-XXXX. but a have for your beyond like $XX point? on seems momentum you come view? reasonable looked I'm it million you've that not in at shortfall that flat seems revenues, starting 'XX that to are think, It after -- is to a and current things reasonable you $XXX like point this, I in willing Okay, consensus, thanks, flat, about sure but over and million the little EBITDA got a

Yeah.

me comment As on you tough for specifically. said, it's that to

at of parts oilfield the look think between obviously the to industrial. way the best it I and sum is

the somewhere way really have it you zip as the up talk it I build think we pieces code, right you're but in the you from about know. to that's and generally

Okay --

that code. in numbers, would for Bryan, the I We guidance reiterate with don't zip right but it's give

Thank Great. you.

Thanks, Stephen.

gentlemen. you. Thank and Ladies

comments. like turn session. At over floor to We of Shinn for to question-and-answer you. Thank Mr. have end the reached this closing I back would Bryan time, the

Thank you, Operator.

to close you As we bring key our I'd three all call thoughts. like to today, with a leave

further to got think IRS well I great one capital number to for about margin we sheet. $XX refund to times committed hearing we're way a our as the the talked able multiple number continue efforts, strengthen generate to on be we as discipline, flow free million. of news and balance continue First, That's today, should implement sustainably and that, of our to cash improvement and do and we us objective positive the we're that another we

can goals Q&A stakeholders said $XXX today, to extensively I very and remain we by shareholders have nice least and XXXX. think get in on our cash as trajectory of in earlier went for proud I industrial I ahead, of about look support focused a think we're energy. about a bold down that, products. the to And portfolio, that and second, about very sheet for new our at I the strong industry-leading prepared questions of extremely other end. of execution product I'm think you I that achieve a million propels our as we year we product business And and very we that balance heard And value remain talked remarks to growing us that will a growth to my excited talked excited and confident track help company finally, that and portfolio came create supporting number we our our cleaner industrial chains. very - important products one robust different and then up on value our best-in-class segments, and substantial environmentally diverse strategy, so through transition as about.

look our again with you all everyone for again today thanks So be joining safe speaking Stay to and forward call we well. quarter. and next

and today's Silica, you in your U.S. interest event. concludes and participation thank gentlemen, Ladies for this

You webcast this may Thank time. line and logoff at the disconnect your you.