Shares of Emerge Energy Services dropped almost 28 percent Friday on news that it will not make a third-quarter cash distribution to stockholders.
Citing difficult market conditions for fracking sand, the Southlake-based company’s board of directors on Thursday said it did not “generate available cash to distribute for the three months ending Sept. 30.”
Last month, the company also said that it was withdrawing its previously announced distribution guidance for the rest of the year.
Emerge Energy stock (ticker: EMES) dropped $1.92 a share, or 27.7 percent, to $5.01 on Friday.
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Emerge Energy’s operations include Superior Silica Holdings, a provider of sand and proppants for hydraulic fracturing; Direct Fuels Partners, which operates a refinery and distribution center in Euless, and Allied Energy Co., which distributes gasoline, diesel and other fuels.
Because of depressed oil prices, drilling firms as well as companies like Emerge Energy that provide them services such as fracking sand have been struggling.
Baker Hughes reported Friday that the number of rigs exploring for oil and natural gas in the U.S. was unchanged this week at 787.