Producer and supplier of sand, U.S. Silica Holdings, Inc. (SLCA, Financial) , advanced in the quarter driven by an earnings beat and better than anticipated 2021 outlook. A material uptick in proppant demand, solid cost containment, disciplined execution in oil and gas, as well as stability and pricing power on the Industrial side of the business contributed to returns. Looking ahead, we expect SLCA to benefit from its proximity to last-mile logistics, as well as gain market share from challenged frac sand competitors. At current trading levels, we believe SLCA remains well positioned from a risk/reward standpoint.
From John Rogers (Trades, Portfolio)' Ariel Fund first-quarter 2021 commentary.
