U.S. Silica Announces Additional Cost Reduction Actions
KATY, Texas, March 24, 2020 /PRNewswire/ -- U.S. Silica Holdings, Inc. (NYSE: SLCA) today announced annualized SG&A cost reductions of approximately $20 million in response to the recent drop in oil prices and the expected decline in drilling and completion activity in North American shale over the coming quarters.
Additionally, the Company plans to idle its Sparta, Wisconsin facility, taking 1.5 million tons of Oil & Gas proppant capacity offline. The Company will continue to closely monitor industry proppant demand to align costs with market conditions.
"The headwinds created by recent OPEC actions led to the difficult decisions we are announcing today,'' said Bryan Shinn, chief executive officer. ''These strategic actions, supported by the more consistent earnings and cash flows of our Industrial & Specialty Products segment, will help U.S. Silica remain the industry leader and continue to provide our customers outstanding products and services." he added.
About U.S. Silica
U.S. Silica Holdings, Inc. is a performance materials company and is a member of the Russell 2000 Index. The Company is a leading producer of commercial silica used in a wide range of industrial applications and in the oil and gas industry. Over its 119-year history, U.S. Silica has developed core competencies in mining, processing, logistics and materials science that enable it to produce and cost-effectively deliver over 1,500 diversified products to customers across our end markets. U.S. Silica's wholly-owned subsidiaries include EP Minerals and SandBox Logistics™. EP Minerals is an industry leader in the production of products derived from diatomaceous earth, perlite, engineered clays, and non-activated clays. SandBox Logistics™ is a state-of-the-art leader in proppant storage, handling and well-site delivery, dedicated to making proppant logistics cleaner, safer and more efficient. The Company currently operates 27 mines and production facilities. The Company is headquartered in Katy, Texas and has offices in Frederick, Maryland, Reno, Nevada and Chicago, Illinois.