Producer and supplier of sand U.S. Silica Holdings,Inc. (SLCA, Financial) was a top performer in the quarter on better than expected earnings. Industrial & Specialty Product revenue and profits rebounded sharply. Cost reduction measures in the Oil & Gas segment, as well as rising sand volumes due to increasing frac activity and well completions also contributed to returns. Looking ahead, we expect SLCA to continue to benefit from its proximity to last-mile logistics, as well as gain market share from challenged frac sand competitors. Additionally, SLCA remains in a solid position from a liquidity perspective. They do not have any maturities due until 2025 and the balance sheet, as well as cash on hand remain sound. At current trading levels, we believe SLCA is well positioned from a risk/reward standpoint.
From John Rogers (Trades, Portfolio)' Ariel Fund fourth-quarter 2020 shareholder commentary.
