Monday, April 21, 2014

Another Source For Frack Sand? Illinois

I don't subscribe to the service, so all I see is this snippet:
..Another one that I'd just throw in this group is Eagle Materials (EXP). They are primarily historically a wallboard and cement company so they're a little bit of a combination that you don't always see together a lot. They have a lot of opportunity and they are also greenfielded or in the process of greenfielding a frac sand mine in Illinois. Frac sand, as you probably know, is not a construction material; it's used in energy-production fracking.
They are waiting on a final permit that we think they probably ought to get a ruling on by the end of this month. If they are able to do what they think they can do with this frac sand business, that business could end up being as big as even the original focus. So that's a company that I think is a very good company and incredibly well-run company that has some obviously very good opportunities ahead of it in the market recovery in the construction materials business, that's all got itself set up to benefit from the energy boom if they're able to do what they think they can...
.... but sometimes that's enough. 

This was from a press release back in 2012:
Eagle Materials Inc. announced today that the company has entered into a definitive agreement with Lafarge North America to purchase Lafarge's Sugar Creek, Missouri and Tulsa, Oklahoma cement plants, as well as related assets, which include six distribution terminals, two aggregates quarries, eight ready-mix concrete plants and a fly ash business. Eagle will also enter into a transition sales agreement to supply certain Lafarge operations with cement for four to five years, and an agreement with a Lafarge affiliate to supply low-cost alternative fuels to the acquired operations.

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