Carbo Ceramics, Inc. (CRR) Tops Q2 EPS by 1c, Offers Outlook (Earlier)

Carbo Ceramics, Inc. (NYSE: CRR) reported Q2 EPS of $1.00, $0.01 better than the analyst estimate of $0.99. Revenue for the quarter came in at $176.6 million versus the consensus estimate of $165.6 million.

Outlook

CEO Gary Kolstad commented on the outlook for CARBO stating, "The third quarter has recently been the most active quarter in the year for the industry in North America. We believe our ceramic proppant sales volumes will approximate our quarterly productive capacity with the possibility of drawing down some finished goods inventories, which are at a lower level than last year. We anticipate pricing for ceramic proppant to remain relatively stable during the third quarter of 2014.

"Millen Line 1 production is ramping up, and we expect to be at full rate by the end of the third quarter of 2014. Construction on Millen Line 2 and the retrofit of an existing plant to produce KRYPTOSPHERE LD are proceeding well, and both are expected to be completed by the end of the second quarter of 2015. The completion of Millen Line 2 will take our total annual ceramic proppant capacity to 2.25 billion pounds and, in combination with Millen Line 1, will result in an increase to our ceramic proppant capacity of 29 percent in approximately one year. We continue to believe there is increasing demand for high quality, high conductivity ceramic proppant, which provides us with confidence in bringing on additional ceramic proppant capacity.

"Distribution of proppant to the well site remains an important part of the CARBO service offering to our clients. A recent challenge the industry is facing is a tight supply of trucking services in certain areas to transport proppant to the well site. Given this industry issue, we may likely face increased transportation costs and delivery issues.

"We continue to build inventories of KRYPTOSPHERE HD, our new ultra-conductive, high density ceramic proppant for deep well applications. Completion activity in our target market for KRYPTOSPHERE HD, the Gulf of Mexico, continues to be delayed. While ultimately this timing is out of our control, we are optimistic that opportunities for lower tertiary completions will increase in 2015.

"Going forward, we remain excited not only about the advancements we are making in proppant technology with KRYPTOSPHERE but also in the production enhancement technologies we are developing in our three platforms: Production Assurance, Flow Enhancement and Fracture Evaluation. Using proppant as the delivery mechanism for these technologies is unique, as it is the one thing that stays in the reservoir for the life of the well. We see significant opportunities to leverage our proppant-delivered technologies to solve production-related problems, maximize production, increase EUR, and provide valuable information about the reservoir," Mr. Kolstad concluded.

For earnings history and earnings-related data on Carbo Ceramics, Inc. (CRR) click here.

You May Also Be Interested In

• Bristol-Myers Squibb (BMY) stock slips despite earnings beat
• Hertz Global (HTZ) misses earnings expectations as fleet costs weigh
• Hess Midstream Partners LP (HESM) Misses Q1 EPS by 5c, reaffirms guidance