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What: Shares of ceramic proppants provider Carbo Ceramics
So what: In the fourth quarter, revenue was just $158.1 million, compared to the $179.2 million analysts expected. Earnings were also terrible, reaching just $1.43 per share versus the $1.70 analysts expected.
Now what: The cutback in natural gas drilling due to low prices is impacting Carbo faster than most expected. Haynesville shale volumes fell 70% in the quarter, and volumes will likely fall further as Chesapeake Energy cuts off up to 1 billion cubic feet per day of supply. Management hopes to make up the losses in liquids drilling, but for now earnings and revenue will suffer.
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