U.S. Silica Announces Additional Cost Reduction Actions
KATY, Texas, April 28, 2020 /PRNewswire/ -- U.S. Silica Holdings, Inc. (NYSE: SLCA) today announced additional SG&A cost reductions of approximately $17 million in response to the COVID-19 pandemic and resulting lower North American oilfield well completion activity.
The Company has closely monitored industry proppant demand to align costs with market conditions and is taking necessary actions including workforce reductions, 401k match suspension, elimination of 2020 raises for salaried employees, reduced senior executive salaries and curtailed operating hours at several facilities.
"The decline in oil demand resulting from COVID-19 has driven a precipitous decline in crude oil prices resulting in lower expected near-term demand for well completion products and services such as our frac sand and last mile logistics offerings,'' said Bryan Shinn, chief executive officer. ''The strategic actions announced today, along with our balanced business portfolio of industrial customers, will position us well to continue to outperform our competition in the short term and emerge from the economic downturn in an advantaged position."
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.