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Hi-Crush Partners LP (NYSE:HCLP) Set To Benefit From US Fracking Boom

Boston, MA 09/02/2014 (wallstreetpr) – Hi-Crush Partners LP (NYSE:HCLP) and other sand producers have a reason to rejoice as the US fracking industry sees a boom. The use of fracking techniques is acting as a strong reason for the popularity of unconventional shale. It makes it easier for the companies to extract oil and natural gas. Sand producers get the entire benefit as sand is a major component used in the fracking process. Apart from Hi-Partners, sand producers including Emerge Energy Services LP (NYSE:EMES) and U.S. Silica Holdings Inc (NYSE:SLCA) will also benefit from the US fracking boom.

The boost

The fracking boom is already helping the sand producer Hi-Crush Partners LP (NYSE:HCLP) and Emerge Energy as their stock prices have increased more than 10% in just one week. Investors and analysts are positive on the sand producers and consider it as the best time to put their money in the industry. Emerge Energy went public in the month of May last year. The listing price was $17 per share and today it is trading near its 52 week high of $145.71 per share. The stock prices of U.S. Silica and Hi-Crush Partners LP (NYSE:HCLP) have also tripled in the same period.

The fracking process

Fracking or hydraulic fracturing can be defined as a process in which rocks are fractured by use of hydraulically pressurized liquid. The liquid is formed by mixing a large volume of sand and water and other chemicals essential to make cracks in underground rock structures. The new fracking techniques have made the unconventional shale plays look attractive in the US and abroad.

The outlook

Hi-Crush Partners LP (NYSE:HCLP) and other sand producers will benefit in the near term as the fracking projects will boost the sand demand which in result will have a positive impact on the price of sand. The market expects the sand demand to rise by as much as 30% in the current year. It will improve margins that ultimately will help the sand producers to report strong results.

Published by Nicholas Maithya

Nicholas is a Financial Analyst by profession, who enjoys writing about investments, technological developments, business, economics and other financial topics at various financial publications. Join him here on as he endeavors to deliver to you the latest breaking news on the above mentioned fronts. Contact him by email at [email protected] or follow Nicholas Kitonyi @nmaithyak on Twitter.

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