CARBO Ceramics Warns On Q3 Ceramic Proppant Sales Volumes

(RTTNews) - CARBO Ceramics Inc. (CRR), an oilfield services technology company, Monday said it currently expects that its third quarter 2014 ceramic proppant sales volumes will be similar to those sold in the first quarter of 2014.

In pre-market activity on the NYSE, CARBO shares were losing around 2.31 percent.

In its update concerning marketplace conditions and related impact to sales volumes, the company noted that it is seeing a growing number of operators experiment with the use of more sand in their well completions.

While sand demand is increasing, the company believes the conductivity and production benefits of its ceramic proppant are needed in today's reservoirs. Nevertheless, these changes are adversely impacting the company's sales volumes.

CARBO said it has experienced increased price competition on ceramic proppant sales from both domestic and international manufacturers, especially in the Bakken.

Further, delays by some clients in their well completions will impact some sales that the company expected to make in September 2014.

President and Chief Executive Officer Gary Kolstad said, "In an industry where we are only recovering approximately 5 percent of the oil in the shale plays, we believe there is a need for both our current and future production enhancement technologies.... We plan to manage the current competitive pricing environment, caused by proppant oversupply, by focusing on sales volumes and introducing new technologies."

CARBO shares settled at $84.52 on Friday, down 9.98 percent. In pre-market activity, shares declined $1.95 or 2.31 percent further, and trading at $82.57.