CARBO Ceramics is the world's leading producer and supplier of ceramic proppants---small ceramic spheres used in the hydraulic fracturing of natural gas and oil wells. Hydraulic fracturing is the most common method of stimulating production from oil and gas wells.
Headquartered in Irving, Texas, the company manufactures its products in New Iberia, Louisiana; Eufaula, Alabama; McIntyre, Georgia; and Luoyang, China. CARBO Ceramics has storage and distribution facilities in most major oil and gas producing regions worldwide, including the U.S., Canada, Europe, China, Australia, Singapore, and the Middle East.
More than 85% of the company's revenues are derived from the use of its products in natural gas wells. Worldwide demand for natural gas is forecast to increase significantly over the next 20 years. As natural gas demand escalates and production companies drill deeper wells, ceramic proppants should continue to gain market share from alternative proppants. In the future, CARBO Ceramics should benefit from growth opportunities in its traditional deep well markets as well as greater market penetration from the increased use of its products in shallower oil and gas wells.
INVESTMENT HIGHLIGHTS
- CARBO Ceramics leads the industry in market share (approximately 56%). The company has an outstanding customer service record due to its superior on-time delivery performance, technical support and product availability.
The market for natural gas continues to drive the company's growth. CARBO Ceramics is well positioned to benefit from increasing demand for fracturing jobs associated with higher levels of natural gas production.
The company's technical marketing strategy based on the use of ceramic proppants in shallower wells is enhancing CARBO's penetration of the market for alternative proppants.
Through its Pinnacle Technologies subsidiary, CARBO Ceramics is also the world's leading provider of fracture diagnostic services. Pinnacle Technologies has enhanced the company's ability to provide production-enhancing solutions to exploration and production companies worldwide.
CARBO Ceramics has no debt. The company's substantial cash flow and strong balance sheet provide the experienced management team with the resources to pursue attractive growth opportunities.
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