U.S. Silica Holdings, Inc. operates as a global performance materials company.
The company is a leading producer of commercial silica used in the oil and gas industry and in a wide range of industrial applications. In addition, through the company’s subsidiary EP Minerals, LLC (‘EPM’), the company is an industry leader in the production of industrial minerals, including diatomaceous earth, clay (calcium bentonite and calcium montmorillonite) and perlite.
The company has developed core competen...
U.S. Silica Holdings, Inc. operates as a global performance materials company.
The company is a leading producer of commercial silica used in the oil and gas industry and in a wide range of industrial applications. In addition, through the company’s subsidiary EP Minerals, LLC (‘EPM’), the company is an industry leader in the production of industrial minerals, including diatomaceous earth, clay (calcium bentonite and calcium montmorillonite) and perlite.
The company has developed core competencies in mining, processing, logistics and materials science that enable the company to produce and deliver over 800 diversified product types to customers across the company’s end markets. As of December 31, 2023, the company had 26 operating mines and processing facilities and two additional exploration stage properties across the United States. The company controls 479 million tons of reserves of commercial silica, which can be processed to make 177 million tons of finished products that meet American Petroleum Institute (‘API’) frac sand specifications, and 81 million tons of reserves of diatomaceous earth, perlite, and clays.
The company’s operations are organized into two reportable segments: Oil & Gas Proppants and Industrial & Specialty Products. The company’s segments are complementary because its ability to sell to a wide range of customers across end markets in these segments allows the company to maximize recovery rates in its mining operations and optimize the company’s asset utilization.
Products and Services
In order to serve a broad range of end markets, the company produces and sells a variety of commercial silica, diatomaceous earth, clay and perlite products. The company also offers services, including transportation, equipment rental and contract labor.
Whole Grain Silica Products—The company sells whole grain commercial silica products in a range of shapes, sizes and purity levels. The company sells whole grain silica that has a round shape and high crush strength to be used as frac sand in connection with oil and natural gas recovery. The company also sells whole grain silica products in a range of size distributions, grain shapes and chemical purity levels to the company’s customers involved in the manufacturing of glass products, including a low-iron whole grain product sold to manufacturers of architectural and solar glass applications. In addition, the company sells several grades of whole grain round silica to the foundry industry and provide whole grain commercial silica to the building products industry.
Performance Material Products—The company sells engineered performance materials made from diatomaceous earth (DE), clay and perlite. DE is used in filtration for foods and beverages, pharmaceuticals and swimming pools. DE is also used as a functional additive for paint and coatings, plastics and rubber, and agriculture. Perlite (hydrated volcanic glass) is used mainly for filtration. Calcium bentonite clay is used for bleaching, catalysis and adsorption in edible oil processing, aromatics purification, and industrial and chemical applications.
Services—The company offers services through the provision of transportation, equipment rental and contract labor services, primarily through SandBox, to companies in the oil and gas industry.
Additionally, the company sells ground silica and industrial minerals products for use in a wide variety of products.
Customers
The company sells its products to a variety of end markets. The company’s customers in the oil and gas proppants end market include major oilfield services companies and exploration and production companies that are engaged in hydraulic fracturing. Sales to the oil and gas proppants end market comprised approximately 64% of the company’s total sales in 2023.
The company’s primary markets are core industrial end markets with customers engaged in the production of building and construction products, fillers and extenders, glass, foundry products, chemicals, and sports and recreation products. The company also benefits from strong and long-standing relationships with the company’s customers in each of the industrial and specialty products end markets the company serves. Through EPM, the company also serves a variety of industrial mineral markets, including pool filtration, paints and plastics, absorbents and food and beverage. Sales to the company’s Industrial and Specialty Products end markets comprised approximately 36% of the company’s total sales in 2023.
Seasonality
The company’s business is affected to some extent by seasonal fluctuations in weather that impact the company’s production levels and its customers' business needs. For example, during the second and third quarters (year ended December 2023) the company typically sells more commercial silica to its customers in the building products and recreation end markets due to increased construction activity resulting from more favorable weather. In the first and fourth quarters, the company generally experiences lower sales, and sometimes production levels, largely from adverse weather hampering logistical capabilities and general decreased customer activity levels.
Intellectual Property
The company’s intellectual property primarily consists of trade secrets, know-how and trademarks, including the company’s name US SILICA and products with trademarked names, such as MIN-U-SIL, Mystic White II, Q-ROK, SIL-CO-SIL, White Armor, EP Minerals, EVERWHITE, and SANDBOX among others. The company owns patents and have patent applications pending related to SandBox, the company’s ‘last mile’ logistics solution. Most of the issued patents have expiration dates ranging from 2026-2041.
Regulation and Legislation
The company is subject to the requirements of the U.S. Occupational Safety and Health Act (‘OSHA’) and comparable state statutes that regulate the protection of the health and safety of workers.
The company’s safety program is designed to ensure compliance with the standards of the company’s Occupational Health and Safety Manual and MSHA regulations.
The company’s trucking services are regulated by the U.S. Department of Transportation (‘DOT’), the Federal Motor Carrier Safety Administration (‘FMCSA’) and by various state agencies. These regulatory authorities have broad powers, generally governing matters such as authority to engage in motor carrier operations, as well as motor carrier registration, driver hours of service, safety and fitness of transportation equipment and drivers, transportation of hazardous materials and periodic financial reporting.
The company is subject to applicable requirements regarding the storage, use, transportation and disposal of these substances, including the relevant Spill Prevention, Control and Countermeasure requirements that the EPA imposes on the company.
Federal agencies granting permits for the company’s operations must also consider impacts to endangered and threatened species and their habitat under the Endangered Species Act. The company also must comply with and are subject to liability under the Endangered Species Act, which prohibits and imposes stringent penalties for the harming of endangered or threatened species and their habitat.
Some states in which the company’s projects are located or are being developed have state laws similar to NEPA.
History
The company was founded in 1894. It was incorporated under the laws of the state of Delaware in 2008. The company was formerly known as GGC USS Holdings Inc. and changed its name to U.S. Silica Holdings, Inc. in 2011.
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