U.S. Silica (SLCA) 28 Oct 222022 Q3 Earnings call transcript

Good morning, and welcome to the U.S. Silica Third Quarter 2022 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce you to Patricia Gil, Vice President of Investor Relations. Thank you.

You may begin.

morning, good and you, everyone. Thank thank I'd for joining today for like to U.S. us you Quarter Call. Silica's Earnings XXXX Third Conference Leading the President call Bryan Officer. Shinn; today are our Don our Chief Merril, Executive Vice and Financial and Chief Executive Officer,

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

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

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

an in generation company, earnings $XX month. and sequentially improved million debt realized delivered this coverage and logistics. This resulted revenue, repurchase proppant segments in driven Thanks, were QX, by Patricia, exceptional These increases prices of continued the outstanding to in additional affording opportunity of a sand price our morning, customer best by and delivered strong SandBox quarterly full performance execution in team. We segment, results mile print Industrial enjoyed fight at We impacts robust resulting in contract another and good to the the cash last inflationary everyone. further in financial earlier our us across margin our expansion years. business quarter both in higher in last tremendous talented demand X greater

far and further to and our the used of cash strong generation operating of year, So to in quarter fourth debt cash Spot in this XXXX, trends important the the supply sand saw well remained expect to substantial out of very total we prices demand flow a mile we million and repurchase strong and generate $XX sales we and have $XXX $XX sold details will and flow to performance our in to a the margins I'd our prices Gas ton last continue QX meaningfully achieve in us debt. Don balance the moment, some discuss reducing and Oil of balance like strengthen due which completion expand. net of but during range should particularly West just Texas. help review sand our proppant from our to effectively sheet first, objective quarter. In in per that tight and was approximately contract logistics, demand, and segment, SandBox and

quarter, with and During achieved third of in SandBox production business new record milestones month delivered we West Texas record the loads. sand in the August

to inflation. In segment reported the the in history. These users for across most holiday results market Volumes demand products product disruptions and customers of years, reservation of level keep anticipated shipments And strong our at QX, combat and end few balanced for we margin in sign a persisted upfront improved industrial been quarter. round paying supply the latest record expect effective weeks efficiency recently or price facilities ago. Overall, product operational included utilization driven to form Gas attractive underlying determined to With which sand energy to segment all September, fee against and our continue highest momentum, with rates continued our last of quarter, industrial was CRF, lines at current of we contracts. versus levels capacity surcharges cycle XX% gains increases second X. X% in a ranging have and were strong mix, secure our the to robust to our Industrial announced potential and beginning November and signed the non-contracted the increases the quarter across multiple sequentially results Oil with the fourth of contracts record and operate remained of finally, multiyear These major weather by and for positive for we segments segment another price improved many third strength contribution pace segment, in finished and quarter have seasonality. In cash very continue to from continued demand a customer demand. the second

the of quarter and on for a XXXX. my With growth few and the in an to then morning, with update of for I a our exciting want the summary our industrial fourth give remainder finish of portfolio outlook time opportunities this

New product industrial for innovation Silica. and portfolio the of profitable priorities remain U.S. growth product important our

and successes ramping our multiple sales panel contribution significant iron progress diesel towards will have support markets for signing finally, a inquiring the absorbent future key our demand newest product, different renewable glass numerous had first about the across products. increasing clay long-term dollars, up receiving new expansion of we filtration and for for including for customers purchase solar margin our manufacturing. And executing filtration U.S. we market, order diatomaceous product, earth high-purity pending the a first quarter, further our into pigment silica the diatomaceous white of service purchase made of our agreement During patent long-term for the contracts filtration ultra-low sale contract that products

tight expected years. of both several the these for that is Given supply be products to next the for

starting our oil effectively a to sector remain and off fourth continues with outlook gas. with for Energy out demand we really quarter, market QX be to start. the robust, and business and sold strong turn let's to Now

contracts economic-driven business, QX of expect our specific seasonal management. XX% to we're but is XXXX. demand, securing weakness. of new half be be to demand demand October it's expect of far. Typically, the to due Meanwhile, so unclear oilfield the extent so happen our we In declines in highest will sequentially to our our continue around weaker month tracking customer inventory we maintenance in attractive at in QX seasonally what fact, profitability XXXX part far, a back QX facility customer of Industrial not to year-end customer to and pricing. In combination Historically, in experiencing continues segment, strong XX% and profitability this

We historical for line expect QX profitability those in 'XX will with the Industrials norms. be

position our and without capacity. production for efficiently adding XXXX, segment an running to levels cash Oil sequential maximizing our out We're further is committed our Looking generation. and incremental in and growth operations excellent Gas to

will the market as absorbed year-over-year to projected demand that by additions supply be easily proppant believe and remain we tight. Additionally, the forecasted industry X% supply is

More attractive this importantly, as well we've that our recently. customers given the appear signed contracts to believe multiyear

contract to of oil discipline a and strong and continue to a constructive reliable We further pricing from customer and to sheet. logistics with sand that competitive further operations strong our higher and our strengthen expect mix, in will reputation crude believe margins enhance low-cost XXXX sand proppant and continue free cash help combination provider. SandBox coverage coupled balance maintain as flow We generate significant

and segment. Turning Products Specialty to our Industrial

to sales of base case for our a continuing our outlook. volumes carefully forecast increased variety develop are XXXX is factors Currently, to improving We evaluate with XXXX margins.

regarding lot but key are of relatively there's that sign indications demand yet in with meaningful several not they obviously, impacts, contracts recessionary attractive encouraged continuing seen and are a potential have next bullish customers that long-term noise us. right the of We year to now. I'm market

high-return customer of While on growth results new to high call, Don? that, Don XXXX through we Merril, and with we outlook I more development say call productivity detail. in plan earnings our over combination certainty margin ISP financial our invest more the to on will a who our product discuss growth to turn in improvements, to and the have acquisition, will remains will continue our next projects. And on focus new CFO,

Bryan, good Thanks, morning, and everyone.

as X.X decreased quarter both increased elevated customer reported by to favorable we increased were margin our product revenue million. the by higher stated, driven lower total to to X% of XX% the total quarter. Depreciation, supported million. the million $XX.X strong tons prior but X% contribution amortization million demand, general $XXX.X Bryan margin expenses Adjusted decreased by $XXX.X and $XXX.X stock-based and administrative company robust insurance to million, Overall in quarter, another and remained in marginally X% sold costs and third segments X% EBITDA sequentially depletion increased As for X% total sequentially million. Selling, decreased expense quarter expansion QX compensation tons. to pricing, of mix. Compared in $XX.X mostly quarter. The to the to

including ended XX, September tax was XX%, items. the XXXX, Our rate discrete quarter effective for

the Oil prior when Now by prior move to strength continued on segment Sandbox for increase let were basis Gas of million tons, in results. a improved million X% decreased X.X totaled the million, by ton XX% segment for of second was last segment improving quarter. Segment The compared demand compared mile logistics. revenue Oil delivered contribution ongoing and customer both to increased $XXX.X while our the operating the driven detailed positive of and the an quarter XX% a margin on for Gas $XX.XX. with compared pricing & its results to loads Volumes which $XX.X quarter-over-quarter to per quarter. expansion, third These X% quarter, reported review and marginally proppant and me

contribution Specialty margin continued and to basis, a compared the a million Specialty offsetting the segment And to and and slightly favorable second tons. Products ISP prior inflation operational price new historical Products record X,XXX,XXX Our margin per with segment per basis and increased $XXX.X increased ton. and for compared increases, our totaled a sequentially on the to X% Volumes revenues were when $XX.XX X% for increased Industrial efficiencies. On sequentially X% the Industrial higher quarter mix segment the totaled quarter. segment due contribution sequential ton of product

the to Turning statement. flow cash

quarter, During under projects. The $XX.X the growth from our of cash and million a completing million and with flow XX, invested million $XXX At $XX.X credit. in and primarily $XX.X for million allocating facility after end, on had after September for million facility credit letters $XXX.X of of third drawn cash we cash available loan we July. company's $X revolver equivalents XXXX, quarter maintenance operations, million repurchase $XXX the capital totaled delivered

to actions X.Xx, the was trailing the EBITDA already sheet at adjusted have strengthen the ratio balance below end our XXXX of And successful. Our of XX-month target quarter, our debt levered. net been X.Xx to third

internal a our we cash levels outstanding oversubscribed term earlier flow, our retired with latest year-to-date, once projections portion discount month. debt of loan of cash was the $XX utilizing par repurchase for generated Given our to hand. million This at meaningful coupled opportunity seized cash loan was a this again term on repurchase operating to future flow our free and

interest million best immediately rate the environment. our this as of we rising shareholders, total repurchased far returns considering we view a of year, accretive of So our to $XXX have the loan, option which especially term current providing

and will for for Looking selective growth forward, we the operating of to sheet. We emphasis robust flexibility remain continue to the ISP to remainder managing delever balance levels disciplined our to we year, on maximize investing growth, we at will that funding cash and forecast our the flow to continue organically committed our our in business further future capital an in us facilities operating effectively generate maintaining with be profitability. accordingly spending, segment projects the allowing

for related XX% supplier merger in full XX% to acquisition-related year-over-year, forecast year year the the mostly be spending range XXXX past for expense first XX% the XXXX. the SG&A and end to the guide of strategic decrease the full is became depreciated half We capital review the expenses million. and $XX anticipated Our to termination approximately of due and to other expenses remains quarter, DD&A million increased year to in year primarily $XX still contract the up inflation. Full fully of investments, costs alternatives to due in which XXXX to at first activity

segments. sheet Our full is stability is free tax and the for to have are and visibility on contracting cash generation. X actions main manage provide rate balance inflation strengthening by quarters allowing issues year our our our effective The the and for we effectively taken pricing XX%. In conclusion, flow the future XXXX company that continue for business focusing estimated priority to

to XXXX, of including improving flow, remainder with balance Bryan. with and investments I'll year the heading the call we cash capital our turn that, aim net leverage this into over For to back ratio. And our further

QX. Don. performance continued of results I'm our proud expect in team very QX, we in that the Thanks, excellent and delivered

pave While operator, and strengthening also and drive expanding industrial to open initiatives positions meaningful portfolio we next profitability, to our and that, please market the the over to extend numerous continue X our product will to for sheet you our path lines balance X leading questions. the years. With growth

the from line first Stifel. with comes Gengaro [Operator of question Instructions] Stephen Our

me, for things you So mind. I have if X don't

get of The you can capacity very is at first your because front the a efficiency good what I'm as get type market sense a just to the you there would be, obviously, your if oil this look and When facilities, obviously, of to demand sense is? a on of just I'm and of is kind current trying what remains is it gas a quarterly has on trying good. tight as been deliver good, volume year. basis? upside volumes

million question, out said on we're great as a now. got we around capacity sold year per Stephen. And a proppants And of on. tons little It's our before, sand XX.X%, we've essentially bit more right somewhere turned maybe

now. so running right And we're rate that to pretty close

incremental about thinking nameplate some our customer that lot That sure are satisfy volume So squeezing said, don't perspective. are make to our can of see a we that demand. I we sort from least do capacity at able tinkering a teams always out additional ways of to upside,

So the have ideas. sort have, we're what will come up of creative right pretty But we some and that we capacity team our with I'm now. sure close is to basically,

contract trend on coverage, kind and you ton out look Great. into higher? obviously, And oil over what's X to margins embedded contract coverage, been based pricing extremely you X continue good per next of year. has to in this quarters, in mentioned gas When the your should contribution and

now, So you believe XXXX, just pushing are our you and to of other capacity look coverage, our it's talking say, we've sold this And that of team day. our that into with contract sales project contract about interesting. I XX% already forward, if XX% was XXXX under got for I where right the we at XX% really if for XXXX. upwards

were at good a the throughout Prices price example, really amazingly XX% we've would look basis. to visibility quarter, for say than have across the this if out about from on here. I ranged you And across quarterly past just that more all up along up year, prices had we way So basins. X.X% there basins. the the increasing

those think next So tailwinds to contracts, prices as I you will those can a quarters pricing we're over signing of extending some we lot contracts couple had And be and in QX. contracts of future expect some of contracts. Obviously, in updated. embedded in of older see the

feel like I tailwind in pricing for be So will a us the future.

of comes Samantha Hoh Evercore. from Our from next line question the

quarter. Congrats on the great

more you but continue XX%? pricing maybe seeing line to of last Just the questioning, where are up go than

for a had This pricing. of going that of terms and White was basins up couple White sand saw we sand where a we Northern So up lot. Northern a big in quarter

So a job negotiating market. and great increases contracts team those getting price the in our by out

Great. Okay.

of per about lately thinking I've sand been was things well. One intensity the

think sand you big -- trend for the terms I And intensity your the you I business, in how up. how about how your you spoke if, just say, of you grow there was do pumper for how customers? when guys about of you that you're your think where how Sandbox trend that going contracting and One with still recently are that growing, that impacts pressure keeps wondering about mean, tied Or customers what example? is capped? about to think Are capacity like you guys like and

a really it's a It's other in quite out advantage about just the We question. talking this day, particularly were for frankly, timely big Permian. and us, the actually

has our could sand gigantic these and some serve whole some these about also with And customers our in proved that these that And that some additional we've were us of of now resilient. I the takes demonstrated to But there wells. getting the because to lot facility of do, we capacity think able like one having it's mine, you amazingly coming with wells whether Permian. initially, up are can. been what well can to business we've around a If very doubters reasons solution one keep know SandBox days, customers actually, out Lamesa SandBox from that. as that high-intensity we it simul-frac of one do a with large and say, being

the solutions not to of other Some market big the are these for simul-fracs. in be effective out proving as

us double by our large for a the backed really say, capacity, out with advantage in up it's kind SandBox. Permian, So of

I'd love of a part bit solar more to And hear the your Okay. just glass little new product then just growth. about

of these think You kind But bunch ones. kind most domestic one manufacturing a me days the are of outlined I different solar that of of the and panels that. for the interest just growth

line? So share on if of more information you that could product just sort any

a it's well. as very No, Sure. interesting one

signed solar the in of some at planned very we -- And a prepared as business, in big industrial remarks, mentioned look our I contract areas. interesting one extended we panels I growth just of with actually key the a think As is customer.

We make And low that's panels the transmissivity really increases more low a to like today is reason our important for that iron that panels, to customers silica the basically use have glass silica the solar solar a efficient. the iron make you if lot. it solar the

So currently the project panel think And Reduction U.S. funding turbocharge through I a Inflation we glass, in of XX% solar manufacturing the the the -- capacity U.S. the of we're as in by will solar here lot new about we Act, said. the provided

up are of I've the to some to somewhere years. in of that be XX% recently coming in indicate solar neighborhood the XX% the installations data And seen going

the projected a And sort U.S. of about the us energy tailwind I by of energy -- that's as is industry side, we're today. to the in wind is similarly, in domestic good really XX% turbine So turning think renewable for business. But wind on well, XXXX. wind double big blades energy

on of renewable for side, tailwinds us interesting really a energy So Samantha. lot the

of well mean, time before the just terms delivery of deliveries those are we I products sales, installation to versus when in products, begins? you those would delivery of and the type growth of growth expect going your making to installation I'm sort of I mean, What capacity? for -- and For trying be

So the the the to glass cells. if of making protect doing, has about into think you panels we're that photovoltaic go what the we're assembly to

So obviously, we're well before the installs.

positivity we'll get So the panels that installed I house, for solar someone's for out probably example. before think X actual XX see the months to on

comes question Barclays. the Derek from next Our line from of Podhaizer

quarter I wanted to hit on bit little a the fourth more.

budget relative weather about much sounds It some holiday seasonality this exhaustion slowdowns. talked between issue be typical quarter like won't of the to last. an You and

around And about fourth a you then perspective Just contribution maybe what us if pocket oil a quarter remain versus mean could budget exhaustion frame for from like off seeing comes air that seems that not that, is fourth this be given quarter no typically just mean can talk per quarter. is gas? And help there get as that pretty we recovery slower contribution margin at tight, or what what pretty bit but wondering margin fourth first is? you're that short-term your snapback and for last a strong separately, things little if thoughts might and start, ton the it that helpful. Just as typically it would just does quarter now light a

a October quite now. be strongest oilfield It's Derek. of in coming our is year what date business very right sort bit trend, strong, anyway. the month interesting seeing and honestly, think we're and the I Sure, might off to of in October super

that And with this right we I So watching point do very heard that budget you haven't much to exhaustion. we're around carefully. agree

about for for really So terms industry, and around whole of year. doesn't it's It then seem locations what to headwinds factor more in weather certain potential in us be holidays. feels quarter the that fourth and like more the happens a this oilfield

probably positive. that's think a I So overall

strong for continue XXXX into see the I as finish here, oilfield. services obviously, our we and think very products we that demand, to

going QX positive. that's that strong. start believe to be also is think going I So to I off

think have earnings, lower we'll more like of attention there contracts to lots at to I things, to were It I then at companies' look there's to also, up what our very multiyear experts going year. And start been importantly, much to QX And at these year. our and customers of QX pricing. the throughout pay it, our year to what but last a you long-term say, they bit about in most wanting more all think earnings we ramped as what's people attractive opinions ways what If they and off seems have sign happen. and out kind probably with stronger customers of of in next look to tend doing do. on lots coming me is And us,

believe that going would are I customers that tight, to XXXX me result tells that a things start expect as that. to be and a So good of

for help going or fourth you around you insulate give the spot that many a see us Just does where the in a might considering earnings color just And of drive little? fourth any you. quarter? bit down margin could the in headwinds Got you could contribution quarter

insulation side, we just down oil I a in there. that business industrial obviously see the bit, in some there's think do well. but So as not Historically, and obviously though, little QX our gas

So to there tends be bit there. a always seasonality of

we pretty if a boy, kind now. off of have a started just see CM So normal it might QX. But in slightly strong down we year, right

we're obviously So and see out, demand to they we're how need. watching ready serve whatever to at customers and and waiting level poised plays exactly

the about looks great. move That's how with now, profile just what risk might quick the know right would to Great. I what previously, actually canary us right one talked how earnings? as given seeing it's that the ISP. think more there. you're opening about But you. margins, weigh recession, really about would in And you the that for are looking ISP be and a 'XX? contribution think you chain. Can signals make you macro then In know this on comments, your looming not we are on I indicators Got help seeing where just profitability far as I you in last mine but now that the your you be recessionary you the on talked And still everything encouraging. coal know as weigh differently out in supply obviously, just the of you're your one

And we're at we the deeply diving senior-level our of that with of it normal of sourcing customers, think chains. really contacts I not we're what again, kind our in might happening goes customers. understand might but supply back be much sort to kind their mining in have, to just deeper, pretty So contacts

so to we that you far pretty carefully the to that thing supply said, understanding the to certain -- the happening make down be And in me, very so might a little chain. we're we're chain, as bit that's sure in that studying what's chains, late party

slowdown or So good actions XXXX is in we a sure And we there we're much meantime, down rapidly everything something and pretty does same that that the is a doesn't as can make do of doing occur, good continuing what some slowdown, slowed we had of to have playbook can when as that, if the indication we visibility happen pandemic. the because we think we very that take. the about things possibly are to have. And if it's news in

that. So how do. we take deal with know to what We costs. We to know to out how know

playbook the signs if playbook the weakening any and have ready. implement. start off pull see we that And or We shelf we'll of softening, to

comes Our of the question next Dan line Morgan Stanley. with Kutz from

quarter, on Congrats the everyone.

oil of capacity. I guys the X. guess, thoughts Stephen's XXXX I capacity revisit wanted all just be could that's from industry And to that of guess that just there on upside the an I said - this where you million picture, quote And that macro from that's think I to confirm confirm I earlier. that perspective? And or tons wanted I on you comments of a want -- that, to that a -- wanted supply just supply on that some seeing kind margin. that, questions industry to around growth X.X to industry anything how kind and, tinkering could of side But contemplated be your from the that's I on there wanted growth trends ceiling is some just then market? I a the So think from both I guess, perspective, just give -- gas supply your silica the silica I number. caught confirm from about some confirm supply here, you're available X% and

the pump million So pump, about is type XX.X if can you margin at. of -- capacity those of things can look of factors of XX% replace that XXXX that's little No a a new regarding correct. out. industry kind squeeze at the -- thing it's sort number. something, a continue increase increase that capacity, kind as substantial lot of the in on-purpose talked to a capacity. capacity, was the point. And margins at incremental And the a we contemplated you -- Put bit where investments in more it we'll our of the you tons or terms X% It's this

Dan. will in couple in source look, absorbed So of that's market. And capacity. work, minus, increase that, what's increased to into we the at terms we that like side, capacity And see happening And from our demand. obviously, projected XXXX of and or on based tons, increase, easily X% third-party of the million translates something we data understanding tend into a that XX to own think XXXX. and of plus the demand of And be capacity it's industry, on just kind that points what the

and that really That's I Great. helpful, outlook. appreciate

of Don, of as delevering free back of about of target attractive whether the continue Or you far. How the extend given so already at interim has comments calculus the guys' you taking kind cash flagged maturity use you and with -- the it guess, out retirement of just, guys the end of bites the quarter increasing, kind retirement debt and look some guys you to So you I forward, the your been debt you've that opportunities made year. to moving going the just debt flow to that Xx perspective of kind third have the about leverage hit that of I generate? most of done the you that of thinking this mean, cash maybe from are are between interest XXXX refi one? rates

was Yes. the debt, at. the a bought Between at of opportunity roughly what again, the a buy was we profile think it really company savings par. took of back with million it And pleased today. it Look, delever company. to flow X, the $X to worth the back cash versus discount from we I we're And par

X.X%. for So is continue good. at than attractive are on it less our I it is rate very that something an IRRs us to interest very today, interest In to The if we par. think do rate about environment can -- that do

So the going off, going be more we we're can the better off to forward. pay

we having side on Now growth also investments, said the attractive some ISP. have of that, obviously,

-- have the all of discussion kind we're best money, Board. to I with this we're put the So place and time that the analyzing time. the Bryan on all the along where

leverage So debt see leverage. debt you'll and reduce opportunistically down I back some the to gross continued to buying go think net

line Energy. Our next Daniel question Daniel of comes from the with John

think see to Just XX% Do are that mentioned I'm or curious, XX% you get outside a next for year how have just trying activity the Permian mean, volumes sense to committed. goes? where as a you of year. you I feel for that I the next

basins then have activity several bit a west and still that the some. But out it's of Northern various a So west, in much we I we basins is way to range year we do, thing we to I Probably other of be the XX% Permian some going it And somewhere and big this up in where volumes we the contracts shift the split, the are pretty biggest like XX% with terms of DJ, picked out seen divided compared customers. will the today. up et have don't prices the cetera, was with see obviously, White have terms increase in the sand, amongst in the today. fundamental saw feel

Okay.

basin nothing step change a suggest So year? next one higher to see and

based haven't contracts on the we really we signed. that seen No, that customer

me know. But sure the the people other don't Okay. a asking can't as How me operational all and happens typical And take for just what you an issue, under doubt if forgive other I'm such well guys for protected? inefficiency? contract do remind job-related any committed sand or incident what a the customer get

generation we also contracts have signed are typically in those things. in contracts kind penalty. provision reservation number a the hook the customers no the contract. on we've that sand or of these there's the So, latest of a contracts And fee And either that of pay capacity for to are the take type

So basically, then one and we them upfront, weeks couple just signed they to kind customer. purchase back a quarterly basis we tons. paying it and the latest the ago give got upfront on money of But paying of are as -- a a customers penalty from

So resolved it feels those now. And like in are the been is several has take-or-pay have those most question and this what secure happens contracts, around over somewhat whole of contracts the had victorious and big the that been companies years. case, come few lawsuits in we settlements. last in one, several that. every have was kind one including out of sand There's the And we

paying days, I discussions we So like around anymore and aware customers feel get much don't signing arguments into of what well these are for and penalties. lot up they're pretty a of

Got it. Fair enough.

are some -- Don, Okay. us non-sand views of the in a stopped you calling or commercial Last one, what banks may Or you just bank these not see OFS, you update? question. give an -- the your for again? you that signs can calling just us days give any market have But the on

And little we're an choppy look The a looking on loan. is for the market for market get calling, constantly at just of long -- from and working ago. lot are upgrade we've too right? banks in But at attractive Moody's not reasons. our for right time got us, now refi an a a got couple of The things Yes. to got right? We a we

us OFS an business, have necessarily We of side they as industrial the though at company. don't the look

story folks banks more we're cash talking drive more get can that interested down a and we in driving, the the lot. us. to like the the flow debt, more So, And

to I roll right quarter. the get first think I Year. the But not as now, a out the will things as here we opportune most but will lot into active it's more things we So time go around New think turn get into there,

the There to Instructions] for the are no to like remarks. further [Operator in I'd hand queue. call management back questions closing

very Thank much, operator. you

here for around colleagues U.S. want hard to thanks cash areas expectations, of outstanding sales, XXXX their approximately Silica ESG. dedication to I in what all great profitability, generation above numerous First, my with looks meaningful work X,XXX an like say improvements to and strong year make and

also quarter. reaffirm, we're we that here a look will regarding Second, here to times are significant couple And and emphasis strategy, other time promise industry on look well. And be business leading capital talked delivering we came call capacity on and culture call the as up on for I our of a discipline. market next deliver want inclusive with And flow ahead, for we best-in-class creating well. as that focused today, and to committed to at continued all the you about you and execution stakeholders. Thank we substantial generate big confident to diverse as we U.S. cash Silica product bit strengthen segments, safe we expect our remain year call speaking portfolio, operations robust to sustainably joining value on again our positive again to and balance forward continue as shareholders our from Stay further next sheet. a our and finally,

this gentlemen, teleconference. Thank you does and conclude today's for Ladies participation. your

and at lines have your this disconnect a time, may You wonderful day.