Fairmount's merger with Unimin will create a behemoth in the oil and gas proppant and industrial sand industry, but that doesn't mean it's automatically a great investment.
News & Analysis: Fairmount Santrol Holdings
Shares of the frac sand leader are down 12% year to date.
Fracking-supply companies CARBO Ceramics, Smart Sand, and Fairmount Santrol all zoomed double digits last month.
Higher sales and expanded margins did wonders for the frack sand producer's bottom line.
The frack-sand producer and some of its peers are up big today.
Now that the frack sand producer has returned to profitability, management wants to jump on the trend of investing in new sand mines in Texas.
The frack-sand producer received two analyst downgrades today.
A combination of falling oil prices and increasing capacity is fueling a big sell-off in Fairmount Santrol Holdings, U.S. Silica, Smart Sand, and Hi-Crush Partners.
While many of its peers have rapidly expanded production capacity, Fairmount Santrol's production posted only modest gains.
Oil tumbled back toward $50 per barrel, which sent shares of Fairmont Santrol, Hi-Crush Partners, W&T Offshore, Sanchez Energy, and Oasis Petroleum down double digits this week.